EX-99.1 2 sach-q3resultsx8kxexx991.htm EX-99.1 Document

sachemcapital-logoxcolor.jpg EXHIBIT 99.1

SACHEM CAPITAL REPORTS THIRD QUARTER 2025 RESULTS
- Company to Host Webcast and Conference Call -

BRANFORD, Conn., November 5, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced its financial results for the quarter ended September 30, 2025.

John Villano, CPA, Sachem’s Chief Executive Officer, commented, “In the third quarter, amid a challenging macroeconomic backdrop, our focus remained on disciplined portfolio management and capital preservation. Following the successful completion of our $100 million senior secured notes private placement, we used a portion of the proceeds to repay $56.3 million of unsecured subordinated notes, extending our debt maturity profile and strengthening our liquidity. As a result, we are in a better position to capitalize on high-quality lending opportunities, which we believe will drive long-term shareholder value into 2026 and thereafter.”

Results of operations for the quarter ended September 30, 2025

Total revenue was $12.0 million compared to $14.8 million in the third quarter of 2024. The change in revenue was primarily due to the cumulative effect of materially lower net new origination over the last twelve months, resulting in a reduction in the unpaid principal balance of loans held for investment, in addition to a currently elevated amount of nonperforming loans and real estate owned. Utilizing the average performing loans held for investment balance for the three months ended September 30, 2025 of $268.1 million, the effective interest rate on loans held for investment for the three months ended September 30, 2025 was 12.4%. Comparatively, utilizing the average performing loans held for investment balance for the three months ended September 30, 2024 of $361.7 million, the effective interest rate on loans held for investment for the three months ended September 30, 2024 was 12.6%. Income from limited liability company investments decreased by $0.4 million as the Company has reduced its investments in limited liability companies by $12.8 million since December 31, 2024. The Company used returns of capital from its investments in limited liability companies to fund additional loans held for investment during the period.

Total operating costs and expenses for the third quarter of 2025 were $12.4 million compared to $19.6 million in the same quarter last year. Interest and amortization of deferred financing costs remained relatively consistent with the prior period at $6.6 million, but increased as a percentage of total revenues due to lower revenues in 2025. The increase in compensation and employee benefits of $0.6 million relates to one time cash bonuses of $0.4 million and additional headcount to build out the executive team due to resignation of the prior chief financial officer and the






hiring of his replacement and a new chief accounting officer. The material decline in the provision for credit losses related to loans held for investment for the three months ended September 30, 2025 of $7.3 million as compared to the corresponding 2024 period is a result of the prior year build-up and recognition of credit loss allowance as the aggregate non-performing loan balances were increasing significantly. As the Company has been addressing its non-performing loan portfolio for the last year through loan sales, primarily during the fourth quarter of 2024, ongoing foreclosure sales and conversions to real estate owned with subsequent sale, material additional new material credit loss allowance has not been required.

Net loss attributable to common shareholders for the third quarter of 2025 was $0.1 million, or $0.00 per common share, compared to net loss attributable to common shareholders of $6.1 million, or $0.13 per common share for the third quarter of 2024.

Balance Sheet

At quarter end, total assets were $484.4 million compared to $492.0 million as of December 31, 2024 and total liabilities were $308.8 million compared to $310.3 million as of December 31, 2024.

Total indebtedness at quarter end was $298.8 million. This includes: $171.0 million of unsecured notes payable (net of $2.2 million of deferred financing costs), $86.4 million of senior secured notes payable (net of $3.6 million of deferred financing costs), $7.8 million of repurchase agreements, $32.7 million outstanding on a $50.0 million revolving credit facility and $0.9 million of outstanding principal on a loan secured by a mortgage on the Company’s office building.

Total shareholders’ equity as of September 30, 2025 was $175.6 million compared to $181.7 million as of December 31, 2024.

Book value per common share

Book value per common share as of September 30, 2025, was $2.47, a change of $0.17 from book value per common share as of December 31, 2024 of $2.64. This reduction is primarily due to cash dividends declared and paid for the nine months ended September 30, 2025 on issued and outstanding common shares and Series A Preferred Stock totaling $10.5 million, or $0.22 per common share, partially offset by net income for the nine months ended September 30, 2025 of $3.8 million, or $0.08 per common share.










Dividends

The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.

On September 30, 2025, the Company paid a dividend of $0.484375 per share to the holders of its Series A Preferred Stock and $0.05 per share to its common shareholders of record on September 15, 2025.

Investor Conference Webcast and Call

The Company is hosting a webcast and conference call Wednesday, November 5, 2025 at 8:00 a.m. Eastern Time, to discuss its financial results for the quarter ended September 30, 2025 in greater detail. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx.

Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or1-201-389-0920 for international callers.

Replay

The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Wednesday, November 19, 2025, and can be accessed by dialing 1-844-512-2921 for U.S. callers or 1-412-317-6671 for international callers and by entering replay passcode: 13753427.

About Sachem Capital Corp

Sachem is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., one to three years), secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Every loan is secured by a first mortgage lien on real estate and is usually personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.







Forward Looking Statements

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding the Company’s future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management’s current expectations and projections about future events and trends that management believes may affect the company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission on March 31, 2025, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.

Investor & Media Contact:
Email: investors@sachemcapitalcorp.com


















SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)

September 30, 2025December 31, 2024
(unaudited)(audited)
Assets
Cash and cash equivalents$11,172 $18,066 
Investment securities (at fair value)1,429 1,517 
Loans held for investment (net of deferred loan fees of $2,397 and $1,950)372,823 375,041 
Allowance for credit losses(11,083)(18,470)
Loans held for investment, net 361,740 356,571 
Loans held for sale (net of valuation allowance of $574 and $4,880)8,797 10,970 
Interest and fees receivable (net of allowance of $2,915 and $3,133)4,065 3,768 
Due from borrowers (net of allowance of $906 and $1,135)5,794 5,150 
Real estate owned (net of impairment of $185 and $492)18,912 18,574 
Investments in limited liability companies41,167 53,942 
Investments in developmental real estate, net22,612 14,032 
Property and equipment, net3,053 3,222 
Other assets5,656 6,164 
Total assets$484,397 $491,976 
Liabilities and Shareholders’ Equity
Liabilities:
Notes payable (net of deferred financing costs of $2,241 and $3,713)$171,013 $226,526 
Senior secured notes payable (net of deferred financing costs of $3,554 and $0)86,446 — 
Repurchase agreements7,825 33,708 
Mortgage payable939 1,002 
Lines of credit32,740 40,000 
Accounts payable and accrued liabilities3,377 4,377 
Advances from borrowers5,811 4,047 
Below market lease intangible628 665 
Total liabilities308,779 310,325 
Commitments and Contingencies - Note 14
Shareholders’ equity:
Preferred shares - $0.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 shares of Series A Preferred Stock issued and outstanding at September 30, 2025 and December 31, 20242 2 
Common Shares - $0.001 par value; 200,000,000 shares authorized; 47,691,121 and 46,965,306 issued and outstanding at September 30, 2025 and December 31, 2024, respectively48 47 
Additional paid-in capital257,600 256,956 
Cumulative net earnings39,306 35,518 
Cumulative dividends paid(121,338)(110,872)
Total shareholders’ equity175,618 181,651 
Total liabilities and shareholders’ equity$484,397 $491,976 







SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(dollars in thousands, except share and per share data)

Three Months EndedNine Months Ended
September 30,September 30,
2025202420252024
Revenues
Interest income from loans$8,326 $11,420 $23,696 $35,816 
Fee income from loans1,964 1,843 5,160 6,543 
Income from limited liability company investments1,098 1,495 4,128 3,907 
Other investment income85 3 102 388 
Other income527 24 1,131 81 
Total revenues12,000 14,785 34,217 46,735 
Operating expenses
Interest and amortization of deferred financing costs6,565 6,836 18,798 21,278 
Compensation and employee benefits2,334 1,745 5,926 5,053 
General and administrative expenses1,679 2,301 4,338 4,797 
Provision for credit losses related to loans held for investment812 8,096 2,788 17,964 
Change in valuation allowance related to loans held for sale33 — (1,014)— 
Impairment loss on real estate owned185 320 185 397 
Loss (gain) on sale of real estate owned and property and equipment, net312 (30)181 (294)
Other expenses447 339 1,287 1,205 
Total operating expenses12,367 19,607 32,489 50,400 
Operating (loss) income (367)(4,822)1,728 (3,665)
Other income, net
Gain (loss) on equity securities1,364 (229)2,060 229 
Total other income, net1,364 (229)2,060 229 
Net income (loss)997 (5,051)3,788 (3,436)
Preferred stock dividends(1,117)(1,095)(3,352)(3,187)
Net (loss) income attributable to common shareholders$(120)$(6,146)$436 $(6,623)
Basic and diluted (loss) earnings per common share$0.00 $(0.13)$0.01 $(0.14)
Basic and diluted weighted average number of common shares outstanding46,902,151 47,339,635 46,854,457 47,390,113 









SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
dollars in thousands)
Nine Months Ended
September 30,
20252024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)$3,788 $(3,436)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of deferred financing costs1,653 1,860 
Depreciation and amortization expense368 281 
Stock-based compensation645 650 
Provision for credit losses related to loans held for investment2,788 17,964 
Change in valuation allowance related to loans held for sale(1,014)— 
Impairment loss on real estate owned185 397 
Loss (gain) on sale of real estate owned and property and equipment, net181 (294)
Gain on extinguishment of debt(140)— 
Gain on equity securities(2,060)(229)
Change in deferred loan fees446 (1,278)
Changes in operating assets and liabilities:
Interest and fees receivable, net(79)(563)
Other assets310 3,509 
Due from borrowers, net(2,251)(1,666)
Accounts payable and accrued liabilities (960)257 
Advances from borrowers1,764 (3,942)
Total adjustments and operating changes1,836 16,946 
NET CASH PROVIDED BY OPERATING ACTIVITIES5,624 13,510 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities— (7,767)
Proceeds from the sale of investment securities2,148 43,964 
Purchase of interests in limited liability companies(5,742)(11,082)
Proceeds from investments in limited liability companies18,517 — 
Proceeds from sale of real estate owned3,282 2,008 
Acquisitions of and improvements to real estate owned(235)— 
Purchase of property and equipment(55)26 
Investments in developmental real estate(2,762)(2,482)
Principal disbursements for loans(125,609)(115,670)
Principal collections on loans112,045 135,265 
NET CASH PROVIDED BY INVESTING ACTIVITIES1,589 44,262 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit58,840 — 
Repayments on lines of credit(66,100)(26,292)
Proceeds from repurchase agreements11,693 — 
Repayments of repurchase agreements(37,576)(2,979)
Repayment of mortgage payable(63)(59)
Repayment of notes payable(56,845)(23,647)
Dividends paid on common shares(7,114)(14,159)
Dividends paid on Series A Preferred Stock(3,352)(3,187)
Proceeds from issuance of Senior Secured Notes90,000 — 
Payments of deferred financing costs(3,590)— 
Repurchase of common shares— (1,373)
Proceeds from issuance of common shares, net of expenses— 2,050 
Proceeds from issuance of Series A Preferred Stock, net of expenses— 5,157 
NET CASH USED IN FINANCING ACTIVITIES(14,107)(64,489)
NET DECREASE IN CASH AND CASH EQUIVALENTS(6,894)(6,717)
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD18,066 12,598 
CASH AND CASH EQUIVALENTS – END OF PERIOD$11,172 $5,881