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Here are 1-3 brief analogies for Sachem Capital (SACH):

• It's like a specialized mortgage lender, similar to a niche version of Rocket Mortgage, but it provides short-term loans to real estate investors and developers for property acquisition and renovation instead of traditional home buyers.
• Imagine it as the commercial real estate lending department of a large bank like Wells Fargo or JP Morgan Chase, but that's its exclusive business, offering quick, short-term financing for property development.

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• Short-Term Real Estate Loans: Sachem Capital provides financing to real estate investors and owners through short-term loans secured by first mortgage liens on residential or commercial properties for acquisition, renovation, development, or improvement.

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Sachem Capital (SACH) operates as a real estate finance company, primarily offering short-term loans. Therefore, its "customers" are the borrowers who receive these loans. The company's description indicates that it lends to various real estate investors and owners rather than selling goods or services to a few major corporate clients.

Based on the company description, Sachem Capital serves the following categories of customers:

1. Real Estate Investors: Individuals or entities acquiring properties for investment purposes, such as flipping or holding for rental income.
2. Real Estate Developers: Individuals or entities involved in the renovation, rehabilitation, or new construction development of residential or commercial properties.
3. Property Owners: Individuals or entities who own residential or commercial properties and seek funding for improvements or upgrades to their existing assets.

These customers are typically private individuals, partnerships, or small to medium-sized private companies engaged in real estate projects. The company does not list specific customer names, nor would it typically have major public companies as its direct loan customers in this type of business model.

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John L. Villano, CPA, Chairman, Chief Executive Officer and President

Mr. Villano has served as Chairman and Chief Executive Officer of Sachem Capital Corp. since its inception in 2010. He is responsible for overseeing all aspects of the company's business operations, including loan origination and servicing, investor relations, and business development. Before founding Sachem Capital Corp., he was engaged in the private practice of accounting and auditing for nearly 30 years. Mr. Villano is also the founder of Sachem Capital Partners LLC and JJV LLC.

Jeffery C. Walraven, Executive Vice President and Chief Financial Officer

Mr. Walraven possesses extensive experience with both private and public real estate companies, focusing on capital markets, accounting, and finance. He co-founded Freehold Properties, Inc., a REIT, and held the position of Chief Operating Officer and director since May 2019. Previously, from January 2014 to May 2019, he served as Executive Vice President and Chief Financial Officer of MedEquities Realty Trust, Inc., an internally managed healthcare REIT that was initially funded privately and later sold to Omega Healthcare Investors, Inc. He also served as an independent director and audit committee member for Broad Street Realty, Inc.

Eric O'Brien, Senior Vice President of Asset Management, Managing Director at Urbane Capital, LLC

Mr. O'Brien is an accomplished executive with over 30 years of experience in construction management, design, and development. His expertise includes construction finance, asset management, property acquisitions, and real estate development. In his role, he is responsible for the company's lending evaluation, assessment, and approvals.

Ralph Sylvester, Vice President of Asset Management, Director at Urbane Capital, LLC

Mr. Sylvester serves as the Vice President of Asset Management at Sachem Capital Corp. and Director at Urbane Capital, LLC.

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1. Exposure to Real Estate Market Fluctuations and Credit Risk: Sachem Capital's business model, which involves originating short-term loans secured by first mortgage liens on real property primarily in the Northeastern United States and Florida, makes it highly susceptible to the health of the real estate markets in these regions. A significant downturn in real estate values, reduced transaction volumes, or an economic recession could lead to an increase in loan defaults by real estate investors and owners, who are Sachem's primary borrowers. Such a scenario could also result in lower recovery rates on foreclosed properties, thereby threatening the company's earnings and capital. Credit quality is identified as a key pressure point, with elevated delinquencies and foreclosure activity posing a risk if collateral values weaken further.
2. Interest Rate Volatility: As a real estate finance company, Sachem Capital's profitability is directly tied to its net interest margin, which is the difference between the interest earned on its loans and the cost of its funding. Fluctuations in interest rates can compress these margins if the cost of its capital increases faster than the rates it can charge on its loans. A decrease in net interest income was observed in 2025, reflecting ongoing financial challenges and increased weighted average cost of capital due to refinancing activity.
3. REIT Compliance Risk: Sachem Capital operates as a Real Estate Investment Trust (REIT), which allows it to avoid federal income taxes by distributing at least 90% of its taxable income to its stockholders annually. However, maintaining this REIT status requires adherence to complex and stringent regulatory requirements. Failure to comply with these rules could lead to the company being subject to federal income taxes, which would materially and adversely impact its financial condition, operational results, and ability to provide distributions to shareholders.

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The clear emerging threat for Sachem Capital is the rise of FinTech and PropTech lending platforms. These platforms leverage advanced technology, including artificial intelligence and machine learning for underwriting, and streamlined online processes for loan origination and servicing. By automating and digitizing key aspects of real estate finance, these emerging platforms can offer faster approvals, greater convenience, and potentially lower costs for short-term, secured real estate loans to investors and developers. This directly challenges the operational model of traditional private lenders like Sachem Capital, potentially eroding their market share and competitive advantage through superior efficiency and user experience.

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For Sachem Capital (SACH), the addressable market for its main products and services, which involve originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property for real estate investors and owners, can be estimated as follows:

• The private lending market in the U.S., which aligns with Sachem Capital's hard money lending services, is expected to reach approximately $2 trillion in assets by 2025.

• In Florida, a primary operating region for Sachem Capital, the market size for the Real Estate Loans & Collateralized Debt industry is projected to be $17.7 billion in 2026. This market has been growing at an average annual rate of 6.7% from 2020 to 2025.

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1. Growth in High-Quality Loan Originations and Portfolio Yields: Sachem Capital's primary revenue driver is originating, underwriting, and funding short-term, high-yield real estate loans. The company emphasizes a disciplined and scalable origination platform with strict underwriting requirements. Continued focus on originating high-quality, secured real estate loans under conservative standards, coupled with maintaining strong asset yields on performing loans, is expected to drive profitable growth.
2. Effective Resolution and Redeployment of Non-Performing Assets: Sachem Capital is actively focused on monetizing its non-performing assets and redeploying the capital into new originations. Successfully resolving these assets will free up significant capital to be reinvested in performing loans, thereby increasing interest income and overall revenue.
3. Optimization of Capital Structure and Reduction in Cost of Capital: The company has been strategically repositioning its balance sheet by refinancing and amending credit facilities and securing new senior secured financing. Sachem Capital remains focused on reducing its overall cost of capital and maintaining adequate liquidity. A lower cost of capital is expected to enhance net interest margin and overall profitability.
4. Expansion and Deeper Penetration in Target Geographic Markets: Sachem Capital's loan portfolio is diversified across primary markets, including Connecticut, Florida, Massachusetts, and New York. While already diversified, sustained and potentially expanded lending activity within these key regions, along with a focus on experienced developers and quality properties, will contribute to consistent portfolio growth and revenue generation.

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Share Repurchases

• Sachem Capital announced a share repurchase program in October 2024, authorizing the repurchase of up to $5.80 million of its shares.
• In 2025, the company repurchased common shares, resulting in a net cash outflow of approximately $1.488 million.

Share Issuance

• Sachem Capital issued Series A Preferred Stock, generating net proceeds of $0.109 million in 2025 and $5.706 million in 2024.
• The company reported proceeds from the issuance of common shares, net of expenses, totaling $2.049 million in 2024.

Capital Expenditures

• Capital expenditures in the most recent quarter totaled approximately -$0.012 million.
• Sachem Capital's primary focus for capital deployment is through originating and managing a portfolio of short-term real estate loans and opportunistic real estate purchases.