Set-of-Mark extraction review — before (table + bounding box) | after (final markdown)

529b0f1e2c2c0650.pdf

p1 · table 1 · Securities registered pursuant to Section 12(b) of the Act:

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Title of each class	Ticker symbol(s)	Name of each exchange on which registered
Common shares, par value $0.001 per share	SACH	NYSE American LLC
6.00% Notes due 2026	SCCD	NYSE American LLC
6.00% Notes due 2027	SCCE	NYSE American LLC
7.125% Notes due 2027	SCCF	NYSE American LLC
8.00% Notes due 2027	SCCG	NYSE American LLC
7.75% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share	SACHPRA	NYSE American LLC

p3 · table 2 · SACHEM CAPITAL CORP.

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Item	Page Number
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025	1
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025 (unaudited)	2
Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Six Months Ended June 30, 2026 and 2025 (unaudited)	3
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (unaudited)	5
Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures about Market Risk	44
Item 4. Controls and Procedures	44
Part II OTHER INFORMATION
Item 1A. Risk Factors	45
Item 6. Exhibits	48
SIGNATURES	52
EXHIBITS

p6 · table 3 · Consolidated Balance Sheets

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Item	June 30, 2026	December 31, 2025
	(unaudited)	(audited)
Assets
Cash and cash equivalents	$ 28,819	$ 10,924
Investment securities (at fair value)	803	936
Loans held for investment (net of deferred loan fees of $1,753 and $2,230)	335,804	375,188
Allowance for credit losses	(13,491)	(11,510)
Loans held for investment, net	322,313	363,678
Interest and fees receivable (net of allowance of $1,233 and $2,598)	3,975	4,116
Due from borrowers (net of allowance of $2,043 and $1,084)	4,413	6,978
Real estate owned (net of impairment of $1,028 and $1,110)	20,968	16,402
Investments in limited liability companies	34,237	39,132
Investments in developmental real estate, net	45,536	9,719
Property and equipment, net	3,043	3,160
Other assets	8,793	5,002
Total assets	$ 472,900	$ 460,047
Liabilities and Shareholders' Equity
Liabilities:
Notes payable (net of deferred financing costs of $1,213 and $1,905)	$ 172,041	$ 171,349
Senior secured notes payable (net of deferred financing costs of $3,152 and $3,427)	96,848	86,573
Mortgage payable	873	917
Lines of credit	36,500	19,000
Accounts payable and accrued liabilities	4,727	3,255
Advances from borrowers	3,119	4,016
Total liabilities	314,108	285,110
Commitments and Contingencies - Note 14
Shareholders' equity:
Preferred shares - $0.001 par value; 5,000,000 shares authorized; 3,332,000 shares designated as Series A Preferred Stock; 2,312,758 shares of Series A Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025, respectively	2	2
Common Shares - $0.001 par value; 200,000,000 shares authorized; 47,954,632 and 47,684,955 issued and outstanding at June 30, 2026 and December 31, 2025, respectively	48	48
Additional paid-in capital	258,332	257,905
Cumulative net earnings	30,372	41,826
Cumulative dividends paid	(129,962)	(124,844)
Total shareholders' equity	158,792	174,937
Total liabilities and shareholders' equity	$ 472,900	$ 460,047

p7 · table 4 · SACHEM CAPITAL CORP.

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Item	Three Months Ended June 30, 2026	Three Months Ended June 30, 2025	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
Interest income from loans	$ 7,252	$ 7,482	$ 16,006	$ 15,370
Interest income from limited liability company investments	750	859	1,608	2,801
Interest expense and amortization of deferred financing costs	(6,328)	(6,139)	(12,387)	(12,233)
Net interest income	1,674	2,202	5,227	5,938
Provision for credit losses related to loans held for investment	(2,551)	(925)	(7,923)	(1,977)
Change in valuation allowance related to loans held for sale	—	1,043	—	1,047
Net interest (loss) income after provision for credit losses related to loans held for investment and changes in valuation allowance related to loans held for sale	(877)	2,320	(2,696)	5,008
Other income
Fee income from loans	1,146	1,771	2,438	3,196
Income from limited liability company investments	71	119	176	229
Other investment income	4	12	7	17
Gain (loss) on equity securities	7	821	(133)	696
Other income	134	532	277	604
Total other income	1,362	3,255	2,765	4,742
Operating expenses
Compensation and employee benefits	(1,937)	(1,821)	(4,075)	(3,592)
General and administrative expenses	(1,450)	(1,304)	(3,413)	(2,659)
Transaction expenses	(2,567)	—	(4,175)	—
Impairment loss on real estate	(288)	—	(191)	—
Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net	475	131	671	131
Other expenses	(95)	(694)	(340)	(839)
Total operating expenses	(5,862)	(3,688)	(11,523)	(6,959)
Net (loss) income	(5,377)	1,887	(11,454)	2,791
Preferred stock dividends	(1,120)	(1,118)	(2,240)	(2,235)
Net (loss) income attributable to common shareholders	$ (6,497)	$ 769	$ (13,694)	$ 556
Basic and diluted (loss) income per common share	$ (0.14)	$ 0.02	$ (0.29)	$ 0.01
Basic and diluted weighted average number of common shares outstanding	47,281,931	46,875,187	47,230,349	46,830,215

p8 · table 5 · SACHEM CAPITAL CORP.

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	Preferred Shares Shares	Preferred Shares Amount	Common Shares Shares	Common Shares Amount	Additional Paid in Capital	Cumulative Net Earnings	Cumulative Dividends Paid	Totals
Balance, April 1, 2026	2,312,758	$ 2	47,955,647	$ 48	$ 258,172	$ 35,749	$ (128,362)	$ 165,609
Stock-based compensation, less shares forfeited	—	—	(1,015)	—	160	—	—	160
Dividends paid on Series A Preferred Stock	—	—	—	—	—	—	(1,120)	(1,120)
Dividends paid on Common Shares	—	—	—	—	—	—	(480)	(480)
Net loss	—	—	—	—	—	(5,377)	—	(5,377)
Balance, June 30, 2026	2,312,758	$ 2	47,954,632	$ 48	$ 258,332	$ 30,372	$ (129,962)	$ 158,792

p8 · table 6 · FOR THE THREE MONTHS ENDED JUNE 30, 2025

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	Preferred Shares Shares	Preferred Shares Amount	Common Shares Shares	Common Shares Amount	Additional Paid in Capital	Cumulative Net Earnings	Cumulative Dividends Paid	Totals
Balance, April 1, 2025	2,306,748	$ 2	47,310,139	$ 47	$ 257,220	$ 36,422	$ (114,352)	$ 179,339
Stock-based compensation, less shares forfeited	—	—	—	—	164	—	—	164
Dividends paid on Series A Preferred Stock	—	—	—	—	—	—	(1,118)	(1,118)
Dividends paid on Common Shares	—	—	—	—	—	—	(2,365)	(2,365)
Net income	—	—	—	—	—	1,887	—	1,887
Balance, June 30, 2025	2,306,748	$ 2	47,310,139	$ 47	$ 257,384	$ 38,309	$ (117,835)	$ 177,907

p9 · table 7 · SACHEM CAPITAL CORP.

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Description	Preferred Shares Shares	Preferred Shares Amount	Common Shares Shares	Common Shares Amount	Additional Paid in Capital	Cumulative Net Earnings	Cumulative Dividends Paid	Totals
FOR THE SIX MONTHS ENDED JUNE 30, 2026
Balance, January 1, 2026	2,312,758	$ 2	47,684,955	$ 48	$ 257,905	$ 41,826	$ (124,844)	$ 174,937
Stock-based compensation, less shares forfeited	—	—	269,677	—	427	—	—	427
Dividends paid on Series A Preferred Stock	—	—	—	—	—	—	(2,240)	(2,240)
Dividends paid on Common Shares	—	—	—	—	—	—	(2,878)	(2,878)
Net loss	—	—	—	—	—	(11,454)	—	(11,454)
Balance, June 30, 2026	2,312,758	$ 2	47,954,632	$ 48	$ 258,332	$ 30,372	$ (129,962)	$ 158,792
FOR THE SIX MONTHS ENDED JUNE 30, 2025
Balance, January 1, 2025	2,306,748	$ 2	46,965,306	$ 47	$ 256,956	$ 35,518	$ (110,872)	$ 181,651
Stock-based compensation, less shares forfeited	—	—	344,833	—	428	—	—	428
Dividends paid on Series A Preferred Stock	—	—	—	—	—	—	(2,235)	(2,235)
Dividends paid on Common Shares	—	—	—	—	—	—	(4,728)	(4,728)
Net income	—	—	—	—	—	2,791	—	2,791
Balance, June 30, 2025	2,306,748	$ 2	47,310,139	$ 47	$ 257,384	$ 38,309	$ (117,835)	$ 177,907

p10 · table 8 · SACHEM CAPITAL CORP.

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	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (11,454)	$ 2,791
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Amortization of deferred financing costs	1,035	1,101
Depreciation and amortization expense	152	234
Stock-based compensation	427	428
Provision for credit losses related to loans held for investment	7,923	1,977
Change in valuation allowance related to loans held for sale	—	(1,047)
Impairment loss on real estate owned	191	—
Gain on sale of real estate owned and property and equipment, net	(671)	(131)
Loss (gain) on equity securities	133	(696)
Change in deferred loan fees	(477)	681
Changes in operating assets and liabilities:
Interest and fees receivable, net	(332)	(462)
Other assets	310	(1,010)
Due from borrowers, net	(448)	(2,277)
Accounts payable and accrued liabilities	1,355	(996)
Advances from borrowers	(897)	99
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(2,753)	692
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of investment securities	—	1,174
Purchase of interests in limited liability companies	(721)	(5,731)
Proceeds from investments in limited liability companies	5,616	10,963
Proceeds from sale of real estate owned	2,402	1,559
Purchase of property and equipment	—	(43)
Investments in developmental real estate	(1,104)	(1,022)
Proceeds from sale of investments in developmental real estate	1,215	—
Principal disbursements for loans	(79,308)	(80,952)
Principal collections on loans	70,360	71,394
NET CASH USED IN INVESTING ACTIVITIES	(1,540)	(2,658)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	38,500	36,100
Repayments on lines of credit	(21,000)	(49,862)
Proceeds from repurchase agreements	—	11,693
Repayments of repurchase agreements	—	(30,959)
Repayment of mortgage payable	(44)	(42)
Dividends paid on common shares	(2,878)	(4,728)
Dividends paid on Series A Preferred Stock	(2,240)	(2,235)
Proceeds from issuance of Senior Secured Notes	10,000	50,000
Payments of deferred financing costs	(150)	(3,593)
NET CASH PROVIDED BY FINANCING ACTIVITIES	22,188	6,374
NET INCREASE IN CASH AND CASH EQUIVALENTS	17,895	4,408
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD	10,924	18,066
CASH AND CASH EQUIVALENTS – END OF PERIOD	$ 28,819	$ 22,474

p12 · table 9 · SACHEM CAPITAL CORP.

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	Six months ended June 30, 2026	Six months ended June 30, 2025
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the period for interest	$ 11,437	$ 11,005
Real estate acquired in connection with foreclosure of certain mortgages	$ 6,500	$ 6,298
Loans held for sale transferred to loans held for investment	$ —	$ 6,479
Developmental real estate acquired in restructuring of loan held for investment	$ 35,948	$ 1,696
Loans held for investment transferred to other assets	$ 454	$ —
Loans originated from sale of real estate owned	$ —	$ 840

p16 · table 10 · The following table presents the assets and liabilities of our consolidated VIEs:

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(in thousands)	SN Holdings	Holdings
Assets
Cash and cash equivalents	$ 200	$ 21,401
Loans held for investment	99,140	162,226
Allowance for credit losses	(1,711)	(2,431)
Loans held for investment, net	97,429	159,795
Interest and fees receivable, net	675	1,693
Due from borrowers, net	1,029	1,418
Other assets	—	2,773
Total assets	$ 99,333	$ 187,080
Liabilities
Senior secured notes payable, net	$ —	$ 96,848
Lines of credit	36,500	—
Accounts payable and accrued liabilities	477	1,279
Advances from borrowers	1,608	1,110
Total liabilities	$ 38,585	$ 99,237

p16 · table 11 · Fair Value Measurement

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(in thousands)	Fair Value Measurement June 30, 2026	Fair Value Measurement December 31, 2025
Level 1
Investment securities	$ 803	$ 936

p16 · table 12 · Fair Value Measurement

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(in thousands)	June 30, 2026	December 31, 2025
Level 3
Individually evaluated loans, net of allowance for credit losses	$ 100,447	$ 114,028
Real estate owned, net	20,968	16,402
Investments in developmental real estate, net	19,168	—

p17 · table 13 · Carrying Amounts and Fair Values of Financial Instruments

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(in thousands)	Carrying Amount June 30, 2026	Carrying Amount December 31, 2025	Fair Value Measurement June 30, 2026	Fair Value Measurement December 31, 2025
Level 1
Cash and cash equivalents	$ 28,819	$ 10,924	$ 28,819	$ 10,924
Notes payable (listed) - fixed rate debt	172,041	171,349	170,422	163,854
Level 2
Lines of credit	36,500	19,000	36,500	19,000
Level 3
Loans held for investment, net	322,313	363,678	322,313	363,678
Interest and fees receivable and due from borrowers	8,388	11,094	8,388	10,963
Investments in limited liability companies	34,237	39,132	34,237	39,132
Advances from borrowers	3,119	4,016	3,119	4,016
Senior secured notes payable	96,848	86,573	105,423	89,277
Mortgage payable	873	917	873	917

p18 · table 14 · Loans held for investment

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(in thousands)	Current	30-59 days past due	60-89 days past due	90 days and greater	Total
As of June 30, 2026	$ 255,512	$ —	$ 1,710	$ 80,335	$ 337,557
As of March 31, 2026	$ 259,192	$ 37,956	$ 1,360	$ 57,327	$ 355,835
As of December 31, 2025	$ 239,615	$ 20,218	$ —	$ 117,585	$ 377,418

p19 · table 15 · The following table presents the Company's loans held for investment by geographic location as of June 30, 2026 and December 31, 2025

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(in thousands)	June 30, 2026 Carrying Value	June 30, 2026 % of Portfolio	December 31, 2025 Carrying Value	December 31, 2025 % of Portfolio
New England	$ 137,801	40.9 %	$ 163,049	43.2 %
Mid-Atlantic	48,098	14.2 %	40,483	10.7 %
South	138,213	40.9 %	170,441	45.2 %
West	13,445	4.0 %	3,445	0.9 %
Total	$ 337,557	100.0 %	$ 377,418	100.0 %

p19 · table 16 · FICO Score (in thousands)

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FICO Score (2) (in thousands)	June 30, 2026 Carrying Value	Year Originated (1) 2026	Year Originated (1) 2025	Year Originated (1) 2024	Year Originated (1) 2023	Year Originated (1) 2022	Year Originated (1) Prior
Under 500	$ —	$ —	$ —	$ —	$ —	$ —	$ —
501-550	35	—	—	—	—	—	35
551-600	—	—	—	—	—	—	—
601-650	25,042	10,000	1,218	4,445	649	2,628	6,102
651-700	64,152	—	15,288	2,453	3,591	9,042	33,778
701-750	105,188	33,239	25,534	7,675	12,154	5,298	21,288
751-800	143,140	2,456	38,644	18,897	49,319	13,737	20,087
801-850	—	—	—	—	—	—	—
Total	$ 337,557	$ 45,695	$ 80,684	$ 33,470	$ 65,713	$ 30,705	$81,290

p20 · table 17 · FICO Score

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FICO Score (2) (in thousands)	December 31, 2025 Carrying Value	Year Originated (1) 2025	Year Originated (1) 2024	Year Originated (1) 2023	Year Originated (1) 2022	Year Originated (1) 2021	Year Originated (1) Prior
Under 500	$ 142	$ —	$ 142	$ —	$ —	$ —	$ —
501-550	35	—	—	—	—	—	35
551-600	—	—	—	—	—	—	—
601-650	17,665	2,914	4,250	1,025	3,102	—	6,374
651-700	81,859	18,654	4,017	10,594	9,010	38,375	1,209
701-750	125,603	24,082	7,226	23,721	5,299	64,348	927
751-800	137,725	42,340	15,795	46,339	13,449	19,802	—
801-850	14,389	—	—	1,700	12,689	—	—
Total	$ 377,418	$ 87,990	$ 31,430	$ 83,379	$ 43,549	$ 122,525	$ 8,545

p20 · table 18 · The following table presents the amortized cost of collateral dependent loans:

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Collateral Type	June 30, 2026 Collateral Dependent Loans	December 31, 2025 Collateral Dependent Loans
Residential	$ 38,565	$ 65,077
Commercial	49,629	27,700
Pre-Development Land	6,320	12,832
Mixed Use	14,825	14,666
Total	$ 109,339	$ 120,275

p22 · table 19 · Loan Modifications

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(in thousands)	Carrying Value	% of Total Carrying Value of Loans held for investment, net	Financial Effect
Principal modification, with no term extension	$ —	— %	Unpaid interest/taxes/charges added principal b
Term extension	23,272	7.2 %	A weighted average of 8.5 months added to the life of th

p22 · table 20 · Three months ended June 30, 2025

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(in thousands)	Carrying Value	% of Total Carrying Value of Loans held for investment, net	Financial Effect
Principal modification, with no term extension	$ 14,042	3.9 %	Unpaid interest/taxes/charges added to principal b
Term extension	25,559	7.0 %	A weighted average of 7.7 months added to the life of th

p22 · table 21 · Six months ended June 30, 2026

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(in thousands)	Carrying Value	% of Total Carrying Value of Loans held for investment, net	Financial Effect
Principal modification, with no term extension	$ 5,810	1.8 %	Unpaid interest/taxes/charges added to principal balance
Term extension	55,141	17.1 %	A weighted average of 3.6 months were added to the life of the loans

p22 · table 22 · Six months ended June 30, 2025

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(in thousands)	Carrying Value	% of Total Carrying Value of Loans held for investment, net	Financial Effect
Principal modification, with no term extension	$ 14,042	3.9 %	Unpaid interest/taxes/charges added to principal balance
Term extension	47,702	13.1 %	A weighted average of 7.4 months were added to the life of the loans

p22 · table 23 · Performance of loans modified during twelve-month period ended June 30, 2026

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(in thousands)	Current	90-119 days past due	120+ days past due	Total
Principal modification, with no term extension	$ 5,810	$ —	$ —	$ 5,810
Term extension	77,986	9,571	—	87,557

p23 · table 24 · FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

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(in thousands)	Current	90-119 days past due	120+ days past due	Total
Principal modification, with no term extension	$ 15,268	$ —	$ —	$ 15,268
Term extension	61,692	12,895	—	74,587
Allowance for credit losses

p23 · table 25 · Allowance for credit losses

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	Balance as of March 31, 2026	Provision for (recovery of) credit losses related to loans	Charge-offs	Balance as of June 30, 2026
Loans held for investment	$ 12,401	$ 1,102	$ (12)	$ 13,491
Interest and fees receivable	922	497	(186)	1,233
Due from borrower	1,791	753	(501)	2,043
Unfunded commitments	588	199	—	787
Total allowance for credit losses	$ 15,702	$ 2,551	$ (699)	$ 17,554

p23 · table 26 · Financial statement line items impacted by allowance for credit losses - six months ended June 30, 2026

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Item	Balance as of December 31, 2025	Provision for (recovery of) credit losses related to loans	Charge-offs	Balance as of June 30, 2026
Loans held for investment	$ 11,510	$ 5,873	$ (3,892)	$ 13,491
Interest and fees receivable	2,598	473	(1,838)	1,233
Due from borrower	1,084	1,460	(501)	2,043
Unfunded commitments	670	117	—	787
Total allowance for credit losses	$ 15,862	$ 7,923	$ (6,231)	$ 17,554

p24 · table 27 · Allowance for credit losses by region

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Region	Balance as of March 31, 2026	Provision for (recovery of) credit losses related to loans	Charge-offs	Allowance for credit losses as of June 30, 2026
New England	$ 6,599	$ 1,065	$ —	$ 7,664
Mid-Atlantic	2,411	(158)	—	2,253
South	1,803	(55)	(12)	1,736
West	1,588	250	—	1,838
Total	$ 12,401	$ 1,102	$ (12)	$ 13,491

p25 · table 28 · FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026

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	Balance as of December 31, 2025	Provision for (recovery of) credit losses related to loans	Charge-offs	Allowance for credit losses as of June 30, 2026
New England	$ 6,429	$ 1,235	$ —	$
Mid-Atlantic	1,770	483	—
South	1,681	3,947	(3,892)
West	1,630	208	—
Total	$ 11,510	$ 5,873	$ (3,892)	$

p25 · table 29 · Charge-offs on Loan Principal by Fiscal Year of Origination

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	2026	2025	2024	2023	2022	Prior	Total
Current period charge-offs	$ —	$ —	$ —	$ —	$ —	$ 12	$ 12
Total	$ —	$ —	$ —	$ —	$ —	$ 12	$ 12

p25 · table 30 · Charge-offs on Loan Principal by Fiscal Year of Origination

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	2026	2025	2024	2023	2022	Prior	Total
Current period charge-offs	$ —	$ —	$ —	$ —	$ —	$ 3,892	$ 3,892
Total	$ —	$ —	$ —	$ —	$ —	$ 3,892	$ 3,892

p26 · table 31 · As of June 30, 2026 and December 31, 2025, investment in developmental real estate, net consisted of the following:

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(in thousands)	Cost	Accumulated Depreciation	Net investment	Cost	Accumulated Depreciation	Net investment
Land and land improvements	$ 8,350	$ —	$ 8,350	$ 8,392	$ (15)	$ 8,377
Building	19,563	(9)	19,554	1,346	(4)	1,342
Construction in progress	17,664	(32)	17,632	—	—	—
Total	$ 45,577	$ (41)	$ 45,536	$ 9,738	$ (19)	$ 9,719

p27 · table 32 · The following table presents the Company's REO activity during the six months ended June 30, 2026 and June 30, 2025:

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Item	June 30, 2026	June 30, 2025
Real estate owned at beginning of period	$ 16,402	$ 18,574
Principal basis transferred to real estate owned	6,500	6,298
Charge-offs on principal transferred	—	(3,978)
Proceeds from sale of real estate owned	(2,402)	(1,559)
Loans origination from sale of real estate owned	—	(840)
Impairment loss on real estate owned	(191)	—
Gain on sale of real estate owned	659	131
Real estate owned at end of period	$ 20,968	$ 18,626

p27 · table 33 · Property and Equipment, Net

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(in thousands)	Cost	Accumulated Depreciation	Net investment	Cost	Accumulated Depreciation	Net investment
Building	$ 2,594	$ (211)	$ 2,383	$ 2,594	$ (177)	$ 2,417
Land	255	—	255	255	—	255
Furniture and fixtures	308	(214)	94	308	(185)	123
Computer hardware and software	322	(291)	31	320	(276)	44
Vehicles	502	(222)	280	502	(181)	321
Total property and equipment, net	$ 3,981	$ (938)	$ 3,043	$ 3,979	$ (819)	$ 3,160

p29 · table 34 · Other Assets

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	June 30, 2026	December 31, 2025
Prepaid expenses	$ 668	$
Other receivables	865
Other assets	405
Notes receivable	6,334
Goodwill	391
Intangible asset – trade name	130
Total	$ 8,793	$

p32 · table 35 · The following table presents the future principal payments on the Notes payable as of June 30, 2026:

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Years ending December 31,	Amount
2026 (six months remaining)	$ 51,750
2027	121,504
Total principal payments	173,254
Deferred financing costs	(1,213)
Total notes payable, net of deferred financing costs	$ 172,041

p32 · table 36 · The following table presents the estimated amortization of the deferred financing costs as of June 30, 2026:

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Years ending December 31,	Amount
2026 (six months remaining)	$ 718
2027	495
Total deferred costs	$ 1,213

p33 · table 37 · Accounts Payable and Accrued Liabilities

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	June 30, 2026	December 31, 2025
Accounts payable and accrued expenses	$ 2,991	$ 1,551
Allowance for credit losses on unfunded commitments	787	669
Accrued interest	949	1,035
Total	$ 4,727	$ 3,255

p33 · table 38 · 13. Fee Income from Loans

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	Three Months Ended June 30, 2026	Three Months Ended June 30, 2025	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
Origination and modification fees	$ 728	$ 761	$ 1385	$ 1,541
Extension fees	73	184	332	462
Late and other fees	129	147	293	226
Processing fees	14	30	37	51
Construction servicing fees	69	104	143	241
Legal fees	40	71	79	134
Other fees	93	474	169	541
Total	$ 1,146	$ 1,771	$ 2,438	$ 3,196

p39 · table 39 · Investments in LLC's

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Investment	June 30, 2026 Carrying Value	June 30, 2026 Ownership Percentage	December 31, 2025 Carrying Value	December 31, 2025 Ownership Percentage
Shem Creek Capital Fund V LLC	$ 770	7.6%	$ 867	7.6%
Shem Creek Capital Fund VI LLC	1,463	9.9%	3,071	9.9%
Shem Creek Capital Fund VII LLC	4,294	13.0%	3,605	13.0%
Shem Creek Sachem V LLC	1,639	49.0%	1,736	49.0%
Shem Creek Sachem VI LLC	10,440	44.6%	13,403	45.5%
Shem Creek Sachem 100 LLC	8,131	69.5%	8,950	67.6%
Shem Creek Capital LLC	5,000	20.0%	5,000	20.0%
Total Shem LLC Investments	$ 31,737		$ 36,632
Cordo CLT Investors LLC	$ 2,500	7.2%	$ 2,500	7.2%
Total investments in LLC's	$ 34,237		$ 39,132

p41 · table 40 · FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026

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Item	June 30, 2026
Deferred Tax Assets:
Net Operating Loss Carryforwards	$ 1,054
Investment in LLCs	179
Basis in REO Assets	261
Total Gross Deferred Tax Assets	1,494
Less: Valuation Allowance	(1,395)
Net Deferred Tax Assets	99
Deferred Tax Liabilities:
Depreciation	(54)
Prepaid Expenses	(12)
Amortization	(33)
Total Deferred Tax Liabilities	(99)
Total Deferred Tax Assets/(Liabilities)	$ —

p44 · table 41 · Our Mortgage Loan Portfolio

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	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
Loans disbursed (1)	$ 40,547	$ 75,747
Loans originated	7	11
Loan repayments	$ 52,310	$ 70,360
Number of loans repaid	14	23
Principal of loans transferred to real estate owned	$ 6,500	$ 6,500
Number of loans transferred to real estate owned	1	1
	As of June 30, 2026	As of December 31, 2025
Number of loans held for investment outstanding	100	115
Gross principal amount of loans held for investment	$ 337,557	$ 377,418
Weighted average contractual interest rate (2)	11.46 %	13.10 %
Weighted average term to maturity (in months) (3)	6	8

p45 · table 42 · The table below presents our loans held for investment by loan size as of June 30, 2026:

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Amount	Number of Loans	Percentage	Aggregate Gross Principal Amount	Percentage
$1,000,000 or less	41	41.0 %	$ 16,881	4.9 %
$1,000,001 to $5,000,000	39	39.0 %	88,804	26.3 %
$5,000,001 to $10,000,000	11	11.0 %	84,386	25.0 %
$10,000,001 or more	9	9.0 %	147,486	43.8 %
Total	100	100.0 %	$ 337,557	100.0 %

p45 · table 43 · Loans Held for Investment by State

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State	Number of Loans	Percentage	Gross Amount Outstanding	Percentage
California	1	1.0 %	$ 10,000	2.9 %
Connecticut	41	41.0 %	93,682	27.9 %
Florida	11	11.0 %	73,595	21.8 %
Georgia	1	1.0 %	1,200	0.4 %
Maine	1	1.0 %	550	0.2 %
Maryland	2	2.0 %	3,073	0.9 %
Massachusetts	9	9.0 %	43,159	12.8 %
New Jersey	4	4.0 %	13,228	3.9 %
New York	16	16.0 %	29,506	8.7 %
North Carolina	5	5.0 %	34,981	10.4 %
Pennsylvania	2	2.0 %	4,890	1.4 %
Rhode Island	1	1.0 %	412	0.1 %
South Carolina	3	3.0 %	11,579	3.4 %
Tennessee	2	2.0 %	16,857	5.0 %
Washington D.C.	1	1.0 %	845	0.2 %
Total	100	100.0 %	$ 337,557	100.0 %

p46 · table 44 · Year of Origination - Number of Loans, Percentage, Aggregate Gross Principal Amount, Percentage

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Year of Origination	Number of Loans	Percentage	Aggregate Gross Principal Amount	Percentage
2026	9	9.0 %	$ 45,695	13.5 %
2025	19	19.0 %	$ 80,684	24.0 %
2024	14	14.0 %	33,470	9.9 %
2023	13	13.0 %	65,713	19.5 %
2022	17	17.0 %	30,705	9.1 %
2021	19	19.0 %	73,073	21.6 %
2020	4	4.0 %	6,199	1.8 %
2019 and prior	5	5.0 %	2,018	0.6 %
Total	100	100.0 %	$ 337,557	100.0 %

p47 · table 45 · Property Types Securing Loans Held for Investment

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	June 30, 2026 Aggregate Gross Principal Amount	June 30, 2026 Percentage	December 31, 2025 Aggregate Gross Principal Amount	December 31, 2025 Percentage
Residential	$ 173,302	51.2 %	$ 202,234	53.6 %
Commercial	105,207	31.2 %	110,178	29.2 %
Pre-Development Land	11,369	3.4 %	17,977	4.8 %
Mixed Use	47,679	14.2 %	47,029	12.4 %
Total	$ 337,557	100.0 %	$ 377,418	100.0 %

p47 · table 46 · Allowance for Credit Losses Against Unpaid Principal Balance

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Item	June 30, 2026 Aggregate Gross Principal Amount	June 30, 2026 Allowance	June 30, 2026 Percentage of Respective Principal	December 31, 2025 Aggregate Gross Principal Amount	December 31, 2025 Allowance	December 31, 2025 Percentage of Respective Principal
Performing – General reserve	$ 228,218	$ (4,599)	2.0 %	$ 259,833	$ (5,262)	2.0 %
Non-performing – Direct reserves	77,712	(2,114)	2.7 %	80,079	(2,054)	2.6 %
Non-performing in Foreclosure – Direct reserves	31,627	(6,778)	21.4 %	37,506	(4,194)	11.2 %
Non-performing subtotal	$ 109,339	$ (8,892)	8.1 %	$ 117,585	$ (6,248)	5.3 %
Total	$ 337,557	$ (13,491)	4.0 %	$ 377,418	$ (11,510)	3.0 %

p48 · table 47 · Investment in Developmental Real Estate

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Property Type	Location	Month of Acquisition	Carrying Value
Commercial	Branford, CT	July 2025	$ 1,541
Residential - Single family (2 parcels)	Old Lyme, CT	May 2025	696
Residential - Multifamily (1 parcel)	East Windsor, CT	March 2025	2,259
Residential - Multifamily (2 parcels)	New London, CT	November 2024	4,250
Residential - Multifamily (3 completed units and one parcel)	Naples, FL	January 2026	36,831
Accumulated depreciation			(41)
Total			$ 45,536

p48 · table 48 · Real Estate Owned

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Property Type	Location	Month of Acquisition	Carrying Value
Commercial - Restaurant	Bristol, CT	March 2019	$ 750
Land	Bristol, CT	December 2019	821
Residential - Single Family	Bellingham, MA	December 2023	293
Residential - Multi Family	Flagler Beach, FL	October 2024	3,382
Commercial - Office	Windsor, CT	December 2024	1,400
Commercial - Office	Windsor, CT	December 2024	2,000
Commercial - Office	Wilton, CT	September 2025	1,338
Commercial - Office	Wilton, CT	September 2025	334
Residential - Multi Family	Jacksonville, FL	October 2025	2,400
Residential - Multi Family	Daytona Beach, FL	October 2025	1,750
Land	Lake Worth, FL	June 2026	6,500
Total			$ 20,968

p50 · table 49 · Three months ended June 30, 2026 compared to three months ended June 30, 2025

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Line Item	2026	2025	$ Change	% Change
Interest income from loans	$ 7,252	$ 7,482	$ (230)	(3.1)%
Interest income from limited liability company investments	750	859	(109)	(12.7)%
Interest expense and amortization of deferred financing costs	(6,328)	(6,139)	189	3.1 %
Net interest income	1,674	2,202	(528)	(24.0)%
Net interest margin	1.9 %	2.3 %
Provision for credit losses related to loans held for investment	(2,551)	(925)	1,626	175.8 %
Change in valuation allowance related to loans held for sale	—	1,043	(1,043)	(100.0)%
Net interest (loss) income after provision for credit losses related to loans held for investment and changes in valuation allowance related to loans held for sale	(877)	2,320	(3,197)	(137.8)%
Other income
Fee income from loans	1,146	1,771	(625)	(35.3)%
Income from limited liability company investments	71	119	(48)	(40.3)%
Other investment income	4	12	(8)	(66.7)%
Gain on equity securities	7	821	(814)	(99.1)%
Other income	134	532	(398)	(74.8)%
Total other income	1,362	3,255	(1,893)	(58.2)%
Operating expenses
Compensation and employee benefits	(1,937)	(1,821)	116	6.4 %
General and administrative expenses	(1,450)	(1,304)	146	11.2 %
Transaction expenses	(2,567)	—	2,567	100.0 %
Impairment loss on real estate	(288)	—	288	100.0 %
Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net	475	131	344	262.6 %
Other expenses	(95)	(694)	(599)	(86.3)%
Total operating expenses	(5,862)	(3,688)	2,174	58.9 %
Net (loss) income	(5,377)	1,887	(7,264)	(384.9)%
Preferred stock dividends	(1,120)	(1,118)	2	0.2 %
Net (loss) income attributable to common shareholders	$ (6,497)	$ 769	$ (7,266)	NM
Basic and diluted (loss) income per common share	$ (0.14)	$ 0.02
Basic and diluted weighted average number of common shares outstanding	47,281,931	46,875,187

p56 · table 50 · Book value per common share

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	June 30, 2026	March 31, 2026
Total shareholders’ equity	$ 158,792	$ 165,609
Series A Preferred Stock ($25 liquidation preference per share)	(57,819)	(57,819)
Total shareholders’ equity, net of preferred stock	$ 100,973	$ 107,790
Number of common shares outstanding at period end	47,954,632	47,955,647
Book value per common share	$ 2.11	$ 2.25

p57 · table 51 · Six months ended June 30, 2026 compared to six months ended June 30, 2025

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Line Item	2026	2025	$ Change	% Change
Interest income from loans	$ 16,006	$ 15,370	$ 636	4.1 %
Interest income from limited liability company investments	1,608	2,801	(1,193)	(42.6)%
Interest expense and amortization of deferred financing costs	(12,387)	(12,233)	154	1.3 %
Net interest income	5,227	5,938	(711)	(12.0)%
Net interest margin	2.9 %	3.2 %
Provision for credit losses related to loans held for investment	(7,923)	(1,977)	5,946	300.8 %
Change in valuation allowance related to loans held for sale	—	1,047	(1,047)	(100.0)%
Net interest (loss) income after provision for credit losses related to loans held for investment and changes in valuation allowance related to loans held for sale	(2,696)	5,008	(7,704)	(153.8)%
Other income
Fee income from loans	2,438	3,196	(758)	(23.7)%
Income from limited liability company investments	176	229	(53)	(23.1)%
Other investment income	7	17	(10)	(58.8)%
(Loss) gain on equity securities	(133)	696	(829)	(119.1)%
Other income	277	604	(327)	(54.1)%
Total other income	2,765	4,742	(1,977)	(41.7)%
Operating expenses
Compensation and employee benefits	(4,075)	(3,592)	483	13.4 %
General and administrative expenses	(3,413)	(2,659)	754	28.4 %
Transaction expenses	(4,175)	—	4,175	100.0 %
Impairment loss on real estate	(191)	—	191	100.0 %
Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net	671	131	540	412.2 %
Other expenses	(340)	(839)	(499)	(59.5)%
Total operating expenses	(11,523)	(6,959)	4,564	65.6 %
Net (loss) income	(11,454)	2,791	(14,245)	(510.4)%
Preferred stock dividends	(2,240)	(2,235)	5	0.2 %
Net (loss) income attributable to common shareholders	$ (13,694)	$ 556	$ (14,250)	NM
Basic and diluted (loss) income per common share	$ (0.29)	$ 0.01
Basic and diluted weighted average number of common shares outstanding	47,230,349	46,830,215

p62 · table 52 · Book value per common share

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	June 30, 2026	December 31, 2025
Total shareholders’ equity	$ 158,792	$ 174,937
Series A Preferred Stock ($25 liquidation preference per share)	(57,819)	(57,819)
Total shareholders’ equity, net of preferred stock	$ 100,973	$ 117,118
Number of common shares outstanding at period end	47,954,632	47,684,955
Book value per common share	$ 2.11	$ 2.46

p63 · table 53 · Sources and Uses of Funds - Cash Flow Summary

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Amount	Six Months Ended 2026	Six Months Ended 2025	Change Amount	Change Percentage
	(in thousands)		(in thousands)
Cash and cash equivalents, January 1	$ 10,924	$ 18,066	$ (7,142)	(39.5)%
Net cash (used in) provided by operating activities	(2,753)	692	(3,445)	(497.8)%
Net cash used in investing activities	(1,540)	(2,658)	1,118	(42.1)%
Net cash provided by financing activities	22,188	6,374	15,814	248.1 %
Cash and cash equivalents, June 30	$ 28,819	$ 22,474	$ 6,345	28.2 %

p63 · table 54 · Contractual Obligations

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	Total	Less than 1 year	1 – 3 years	3 – 5 years	More than 5 years
Unfunded portions of outstanding construction loans	$ 41,393	$ 27,238	$ 14,155	$ —	$ —
Unfunded commitments to investments in LLCs	651	651	—	—	—
Total contractual obligations	$ 42,044	$ 27,889	$ 14,155	$ —	$ —

p69 · table 55 · Item 6. EXHIBITS

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Exhibit No.	Description
2.1	Form of Amended and Restated Exchange Agreement (1)
2.2	Contribution Agreement, dated as of May 17, 2026 by and between Industrial Realty Group Global, LLC and Sachem Capital Corp (26)
3.1	Certificate of Incorporation (1)
3.1(a)	Certificate of Amendment to Certificate of Incorporation (1)
3.1(b)	Certificate of Amendment to Certificate of Incorporation filed on October 7, 2019 (2)
3.1(c)	Certificate of Amendment to Certificate of Incorporation filed on June 25, 2021 (7)
3.1(d)	Certificate of Amendment to Certificate of Incorporation filed on July 19, 2022 (17)
3.1(e)	Certificate of Amendment to Certificate of Incorporation filed on August 23, 2022 (11)
3.1(f)	Certificate of Amendment to Certificate of Incorporation filed on November 13, 2025 (6)
3.2	Amended and Restated Bylaws, effective as of March 25, 2025 (19)
4.1	Indenture, dated as of June 21, 2019, between Sachem Capital Corp. and U.S. Bank National Association, as Trustee (3)
4.2	Specimen 7.75% Series A Cumulative Redeemable Preferred Stock Certificate. (7)

p71 · table 56 · Table of Contents

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Exhibit No.	Description
4.3	Fourth Supplemental Indenture between Sachem Capital Corp. and U.S. Bank National Association, as Trustee (4)
4.4	Form of 6.00% Note due 2026 (attached as Exhibit A to Exhibit 4.3 above).
4.5	Fifth Supplemental Indenture between Sachem Capital Corp. and U.S. Bank Trust Company, National Association, as Trustee (8)
4.6	Form of 6.00% Note due 2027 (attached as Exhibit A to Exhibit 4.5 above)
4.7	Sixth Supplemental Indenture between Sachem Capital Corp. and U.S. Bank Trust Company, National Association, as Trustee (20)
4.8	Form of 7.125% Note due 2027 (attached as Exhibit A to Exhibit 4.7 above)
4.9	Seventh Supplemental Indenture between Sachem Capital Corp. and U.S. Bank Trust Company, National Association, as Trustee (10)
4.10	Form of 8.00% Note due 2027 (attached as Exhibit A to Exhibit 4.9 above)
4.11	Revolving Credit Note, dated March 20, 2025, in the principal amount of $50 million in favor of Needham Bank, as lender (18)
4.12	Note Purchase and Guaranty Agreement, dated June 11, 2025 (21)
10.1**	Employment Agreement by and between John L. Villano and Sachem Capital Corp. (1)
10.1(a)**	Amendment to Employment Agreement by and between John L. Villano and Sachem Capital Corp. (5)
10.2	Sachem Capital Corp. 2016 Equity Compensation Plan (1)
10.3	Credit and Security Agreement, dated as of March 20, 2025, among SN Holdings, as the borrower, Sachem Capital Corp., as the guarantor, the lenders party thereto and Needham Bank, as administrative agent (18)
10.3(a)	Amendment No.1 to the Credit and Security Agreement, dated as of June 9, 2025, among SN Holdings, as the borrower, Sachem Capital Corp., as the guarantor, the lenders party thereto and Needham Bank, as administrative agent (23)
10.3(b)	Amendment No.2 to the Credit and Security Agreement, dated as of January 21, 2026, among SN Holdings, as the borrower, Sachem Capital Corp., as the guarantor, the lenders party thereto and Needham Bank, as administrative agent (9)
10.4**	Final Form of the Restrictive Stock Grant Agreement dated February 17, 2023 under the Sachem Capital Corp. 2016 Equity Compensation Plan between the Company and John L. Villano (13)
10.5**	Final Form of the Restricted Stock Grant Agreement dated March 19, 2024 under the Sachem Capital Corp. 2016 Equity Compensation Plan between the Company and John L. Villano (14)
10.6	Cooperation Agreement, dated August 20, 2024, between Sachem Capital Corp. and Blackwells Capital LLC, Blackwells Onshore I LLC and Jason Aintabi (15)
10.7**	Final Form of the Restrictive Stock Grant Agreement dated September 7, 2023 under the Sachem Capital Corp. 2016 Equity Compensation Plan between Sachem Capital Corp. and each of Leslie Bernhard, Arthur Goldberg and Brian Prinz (16)
10.8**	Final Form of the Restrictive Stock Grant Agreement dated March 10, 2025 under the Sachem Capital Corp. 2016 Equity Compensation Plan between Sachem Capital Corp. and each of Arthur Goldberg, Brian Prinz and Jeffery Walraven (19)
10.9	Sachem Capital Corp. 2025 Omnibus Incentive Plan (22)
10.10	Restricted Stock Award Agreement, dated August 11, 2025, under the Sachem Capital Corp. 2025 Omnibus Incentive Plan between Sachem Capital Corp. and John L. Villano (a portion of the exhibit has been excluded from the exhibit because it both (i) is not material and (ii) is the type that the company treats as private or confidential) (25)
10.11**	Employment Agreement by and between Jeffery C. Walraven and Sachem Capital Corp. effective as of September 1, 2025 (24)
10.12**	Restricted Stock Award Agreement, dated September 3, 2025, under the Sachem Capital Corp. 2025 Omnibus Incentive Plan between Sachem Capital Corp. and Jeffery C. Walraven (a portion of the exhibit has been excluded from the exhibit because it both (i) is not material and (ii) is the type that the company treats as private or confidential) (24)
31.1	Chief Executive Officer Certification as required under section 302 of the Sarbanes Oxley Act *