Sachem Capital Corp. (SACH): Business Model Canvas [Apr-2026 Updated]

You're looking at a mortgage REIT, Sachem Capital Corp. (SACH), that thrives by offering fast, non-bank financing to real estate pros, typically with short-term, first-mortgage loans. Honestly, in this high-rate environment, their real test is managing a loan book of about $375.3 million as of Q3 2025 while simultaneously cleaning up legacy Non-Performing Loans (NPLs). This model is all about secured lending and disciplined underwriting. So, if you want to see the mechanics behind their $8.3 million in Q3 interest income and how they structure their key partnerships to keep the capital flowing, dive into the full Business Model Canvas below.

Sachem Capital Corp. (SACH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Sachem Capital Corp. relies on to fund its lending and manage its portfolio as of late 2025. These aren't just vendors; they are capital providers and enablers of the loan lifecycle.

The relationship with Shem Creek Capital is significant for diversification into multifamily debt capital solutions. Sachem Capital Corp. completed its acquisition of a 20% membership interest in Shem Creek Capital, LLC in February 2025, paying the final $2.5 million installment of the $5 million purchase price. Sachem Capital Corp. had invested an aggregate of $41,200,000 in projects managed by Shem Creek Capital through six investment funds as of June 30, 2025. These investments generated approximately $3,000,000 in revenue for the six months ended June 30, 2025, representing an attractive low risk double digit yield. Sachem Capital Corp. holds an option to acquire an additional 10% stake by early 2027.

Debt capital raising relies on intermediaries. A key recent event involved a private placement of new $100 Million Senior Secured Notes, announced in August 2025, of which an initial $50 million was drawn. Another recent issuance mentioned was $4.373 million in new debt. This points directly to the role of investment banks and private placement agents in structuring and selling these instruments to investors.

The revolving credit facility remains a crucial liquidity source. As of September 30, 2025, Sachem Capital Corp. had $32.7 million outstanding on this facility, which has total commitments of $50.0 million. This facility was established under a new Credit Agreement entered into on March 20, 2025, with Needham Bank serving as the administrative agent for the lenders.

The operational side of loan closing requires specialized external support. These partners are essential for perfecting the collateral securing the loans Sachem Capital Corp. originates.

Here's a look at the key financial partnerships and associated figures from 2025 filings:

Partner Category	Specific Partner/Facility	Key Financial Metric (2025 Data)	Context/Date
Debt Capital Solutions (Multifamily)	Shem Creek Capital, LLC	$41,200,000 aggregate investment	As of June 30, 2025
Debt Capital Solutions (Multifamily)	Shem Creek Capital, LLC	$5,000,000 total cost for 20% stake	Acquisition completed February 2025
Debt Issuance (Private Placement)	Investment Banks/Agents	$100 Million Senior Secured Notes issued	Announced August 2025
Debt Issuance (Private Placement)	Investment Banks/Agents	$4.373 million recent debt issuance	Mentioned in December 2025 context
Revolving Credit Facility	Needham Bank (Administrative Agent)	$50.0 million commitment size	As of March 31, 2025
Revolving Credit Facility	Needham Bank (Administrative Agent)	$32.7 million outstanding balance	As of September 30, 2025

The support structure also includes:

• Title companies and real estate attorneys for loan closing and collateral perfection.
• Legal counsel for structuring the $50.0 million revolving credit facility with Needham Bank.

Finance: draft 13-week cash view by Friday.

Sachem Capital Corp. (SACH) - Canvas Business Model: Key Activities

You're running a specialty finance company, so your key activities revolve around the entire lifecycle of a loan, from finding the deal to collecting the final payment. For Sachem Capital Corp., this means a constant, disciplined focus on credit, capital structure, and compliance.

The core engine is the origination, underwriting, and funding of short-term, first-mortgage real estate loans. These are what the industry calls "hard money loans," typically lasting 12 to 36 months, secured by real property. Sachem Capital Corp. maintains strict underwriting guidelines, generally requiring the original loan amount not to exceed 70% of the property's fair market value, or 85% of the total project cost for renovation deals. The stated interest rates on the mortgage loan portfolio can range from 6.5% to 15.0%, with a default interest rate generally set at 18.0%.

Managing the resulting loan portfolio is a major ongoing task. While you requested a Q3 2025 figure of $375.3 million, the latest reported net loans held for investment as of June 30, 2025, stood at $364.5 million. For the three months ended September 30, 2025, the effective interest rate on the average performing loans held for investment balance of $268.1 million was 12.4%.

Here's a look at the composition of the lending activity and portfolio metrics as of the latest reporting periods:

Metric	Value/Rate	Context/Date
Average Performing Loan Balance	$268.1 million	Three months ended September 30, 2025
Effective Interest Rate on Performing Loans	12.4%	Three months ended September 30, 2025
Q3 2025 Total Revenue	$12.0 million	Quarter ended September 30, 2025
Q3 2025 Interest Income on Loans	$8.3 million	Quarter ended September 30, 2025
Q3 2025 Loan Fees	$2.0 million	Quarter ended September 30, 2025
Total Indebtedness	$298.8 million	As of September 30, 2025

A significant activity involves actively working through legacy Real Estate Owned (REO) and Non-Performing Loans (NPLs). The revenue decline in Q3 2025 was partly attributed to this 'currently elevated amount of nonperforming loans and real estate owned'. Sachem Capital Corp. had a plan in Q2 2025 to resolve $12.5 million in NPLs and loans held for sale by the end of Q3. To be fair, the company noted that material additional credit loss allowance wasn't required as of Q3 2025, thanks to prior efforts.

Managing debt maturities and liquidity is paramount, especially given the cost of funds. Sachem Capital Corp. recently executed a key financing move by closing a private placement of $100 million in five-year Senior Secured Notes due June 11, 2030, announced in June 2025. The initial draw was $50 million, with the remaining $50 million available until May 15, 2026. This debt carries a fixed interest rate of 9.875% per annum, plus a 1.0% commitment fee on the undrawn portion. You used a portion of these proceeds to repay $56.3 million of unsecured subordinated notes that matured in September 2025, while drawing an additional $40 million on the new notes.

Finally, maintaining REIT compliance is a non-negotiable activity. Sachem Capital Corp. operates and intends to continue qualifying as a Real Estate Investment Trust (REIT) for federal income tax purposes. This means the company intends to comply with the rule requiring the distribution of a minimum of 90% of taxable income annually to shareholders. For instance, the dividend paid to common shareholders as of September 30, 2025, was $0.05 per share. The book value per common share as of that same date was $2.47.

Finance: draft 13-week cash view incorporating the new debt structure by Friday.

Sachem Capital Corp. (SACH) - Canvas Business Model: Key Resources

You're looking at the core assets Sachem Capital Corp. uses to run its business as of late 2025. These aren't just line items; they're the actual engines driving their real estate lending and investment strategy.

The primary resource is the loan portfolio secured by first mortgage liens on real property. This is the bread and butter of Sachem Capital Corp., focusing on short-term financing for property acquisition, renovation, and development. As of June 30, 2025, the scale of this core asset base is quite clear, even with ongoing portfolio management challenges.

Here's a quick look at the balance sheet strength supporting this resource as of the second quarter end:

Metric	Amount as of June 30, 2025	Comparison Point
Total Assets	$501.8 million	Up from $492.0 million at year-end 2024
Net Loans Held for Investment	$364.5 million	Net of allowance for credit losses
Gross Unpaid Principal Balance (UPB) of Loans	$382.1 million	Secured by 135 first mortgage loans
Total Indebtedness	$315.5 million	Includes unsecured notes, senior secured notes, and credit facility draw
Total Shareholders' Equity	$177.9 million	Book value per common share was $2.54

The company's ability to access capital markets is a critical supporting resource. Sachem Capital Corp. maintains its listing on the NYSE American, which facilitates equity and debt offerings. For instance, in the second quarter of 2025, they successfully closed a private placement of new $100 million Senior Secured Notes, which immediately bolstered liquidity and helped extend their debt maturity profile. By September 30, 2025, after using some proceeds to repay debt, total indebtedness stood at $298.8 million.

Another key resource, though less quantifiable in hard dollar terms on the balance sheet alone, is the in-house development and construction expertise gained through the Urbane New Haven acquisition. This capability allows Sachem Capital Corp. to engage in opportunistic real estate purchases and development, moving beyond pure lending. This is a value-add component to their overall strategy, helping them manage assets that may transition to real estate owned (REO) or development projects.

The operational structure also relies on specific financial metrics that underpin resource management:

• Net income attributable to common shareholders for Q2 2025 was $0.8 million.
• Total operating costs for Q3 2025 were $12.4 million, down from $19.6 million in Q3 2024.
• The effective interest rate on loans held for investment for the three months ended September 30, 2025, was 12.4%.

Honestly, managing the loan portfolio-especially the gross unpaid principal balance of nonperforming loans, which was around $107 million net as of June 30, 2025-is as much a resource management task as an origination task. Finance: draft the Q3 2025 asset-to-equity ratio analysis by next Tuesday.

Sachem Capital Corp. (SACH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why real estate investors choose Sachem Capital Corp. over traditional banks for their financing needs. It boils down to speed, structure, and security, all backed by the numbers from their latest reporting period.

Fast, flexible, non-bank financing for time-sensitive real estate projects.

• Non-bank lending provides an alternative when speed is critical.
• The effective interest rate on performing loans for the three months ended September 30, 2025, was 12.4%.
• Gross principal balance of loans held for investment was $375.2 million at the end of Q3 2025.

Conservative Loan-to-Value (LTV) underwriting criteria for secured lending.

Sachem Capital Corp. emphasizes a conservative loan to value ratio as its primary underwriting criteria. This focus on collateral protection is a key differentiator. The portfolio is secured by first mortgage liens, and each loan includes a personal guarantee from the borrower principal(s).

Metric	Value as of September 30, 2025
Gross Unpaid Principal Balance of Non-Performing Loans	$104.1 million
Net Loans Held for Investment	$361.7 million
Concentration of Largest Borrower Exposure (Naples Loans)	13.4% of portfolio

Short-term loan structure, typically one to three years.

The typical structure is short-term, which aligns with the project-based nature of fix-and-flip or quick renovation work. This contrasts with the longer commitment periods often required by conventional lenders.

• Stated typical loan term is one to three years.
• The weighted average remaining term on the loan book as of Q3 2025 was 6 months.
• During Q3 2025, terms were extended an average of 10 months on $29 million of loans to bridge timing issues.

Customized loan programs for fix-and-flip, new construction, and distressed assets.

The value proposition includes tailoring financing to the underlying asset type, which is reflected in the portfolio's property mix as of September 30, 2025. This shows where Sachem Capital Corp. is actively deploying capital.

Property Mix (by Outstanding Principal)	Percentage
Residential	54%
Commercial	30%
Mixed Use	12%
Land	4%

The focus on distressed assets is evident in their active management of non-performing loans (NPLs) and Real Estate Owned (REO) properties. For instance, gross NPLs fell from $119.6 million at Q2 2025 to $104.1 million at Q3 2025.

Sachem Capital Corp. (SACH) - Canvas Business Model: Customer Relationships

You're dealing with professional real estate investors who need capital for acquisition, renovation, or development, and Sachem Capital Corp. structures its relationships to serve this specific, sophisticated segment.

Direct, high-touch relationship with professional real estate investors.

The relationship is grounded in the lending activity, which targets real estate investors needing short-term, secured, nonbanking loans. The net loans held for investment as of $364.5 million on June 30, 2025, represents the core of these relationships. The Company's primary underwriting criteria remains a conservative loan to value ratio.

The nature of the client base is reflected in the institutional activity reported for Q2 2025, where 18 institutional investors added shares to their portfolio and 22 decreased their positions in their most recent quarter.

Personalized loan structuring to meet unique borrower needs.

Sachem Capital Corp. customizes loan terms, as evidenced by the wide range of loan sizes in the portfolio. As of March 31, 2025, the mortgage loan portfolio included loans ranging in size from $0.03 million up to $37.9 million. The stated interest rates for these loans ranged from 6.5% to 15.0%. The default interest rate is generally set at 18.0%, though this can vary based on state usury laws.

Metric	Value as of Late 2025	Reference Date
Net Loans Held for Investment	$364.5 million	June 30, 2025
Smallest Loan Size in Portfolio	$0.03 million	March 31, 2025
Largest Loan Size in Portfolio	$37.9 million	March 31, 2025
Stated Interest Rate Range	6.5% to 15.0%	March 31, 2025

Investor relations team for communication with public shareholders.

Communication with public shareholders is maintained through regular financial reporting and direct engagement opportunities. Sachem Capital Corp. hosts webcasts and conference calls to discuss results, such as the call for the third quarter ended September 30, 2025, held on November 5, 2025. The Company maintains its commitment to shareholders through dividend distributions. For instance, a dividend of $0.05 per share was paid to common shareholders of record on September 15, 2025. The holders of its Series A Preferred Stock received $0.484375 per share on the same record date. As of August 4, 2025, the Issuer had a total of 47,342,288 Common Shares outstanding.

The dividend schedule announced on December 4, 2025, confirmed a quarterly dividend of $0.05 per common share and $0.484375 per share on its 7.75% Series A Cumulative Redeemable Preferred Stock, payable on December 30, 2025, to shareholders of record as of December 15, 2025.

• Common Share Dividend Paid (Sept. Record): $0.05 per share.
• Series A Preferred Dividend Paid (Sept. Record): $0.484375 per share.
• Total Common Shares Outstanding: 47,342,288 (as of August 4, 2025).
• Investor Relations Contact: Stephen Sweat.

Sachem Capital Corp. (SACH) - Canvas Business Model: Channels

You're looking at how Sachem Capital Corp. gets its product-short-term, secured, nonbanking loans to real estate investors-to the market and how it sources the capital to fund those loans. It's a mix of direct sales, public markets, and professional networks.

Direct loan origination platform and in-house lending team

The core channel for loan deployment is the direct origination platform, supported by an in-house lending team. This team underwrites and manages the portfolio of loans secured by first mortgages. While the focus has been on disciplined portfolio management, the underlying asset base gives you a clear picture of this channel's scale. As of June 30, 2025, the Company's net loans held for investment totaled $364.5 million. That represents a decline of $121.2 million compared to the same date in 2024, showing a recent contraction in the direct deployment channel. Still, the effective interest rate on loans held for investment for the three months ended September 30, 2025, was a solid 12.4%.

Here's a quick look at the loan portfolio metrics as of mid-2025:

Metric	Value as of June 30, 2025	Value as of September 30, 2025
Net Loans Held for Investment	$364.5 million	Average Performing Balance: $268.1 million
Effective Interest Rate on Loans	N/A	12.4%
Quarterly Revenue (Q2 2025 vs Q3 2025)	$10.8 million	$12.0 million

Company website and investor relations portal for capital sourcing

Sachem Capital Corp. uses its digital presence, specifically the company website at www.sachemcapitalcorp.com, as a primary channel for investor communication and capital raising activities. This portal hosts the Investor Relations section where key events, like earnings calls, are broadcasted. For instance, the webcast for the Third Quarter 2025 earnings call was made available there. This digital channel is crucial for transparency and attracting capital, especially through debt offerings.

The company actively uses private placements to manage its liabilities. In the third quarter of 2025, Sachem Capital Corp. completed a $100 million senior secured notes private placement. They immediately used a portion of that to repay $56.3 million of unsecured subordinated notes, which directly impacts the capital structure accessed via investor channels.

NYSE American exchange for common stock and multiple debt notes

The public exchange is a vital channel for equity and certain debt instruments. Sachem Capital Corp. trades its common stock under the ticker SACH on the NYSE American exchange. As of December 5, 2025, the stock price was $1.09, with a market capitalization around $50.55M. The company also previously listed multiple debt notes on this exchange, such as the 7.75% unsecured, unsubordinated Notes due September 30, 2025, which were fully repaid and delisted in September 2025. Access to capital markets via the exchange dictates the cost and availability of public funding.

Key market data points for this channel as of late 2025 include:

• Stock Price (Dec 5, 2025): $1.09.
• 52-Week Stock Price Range: Low of $0.80 to High of $1.48.
• Total Indebtedness (Sept 30, 2025): $298.8 million.
• Total Shareholders' Equity (Sept 30, 2025): $175.6 million.

Industry relationships and referrals from real estate professionals

The origination of their specialized hard money loans relies heavily on established industry relationships. These relationships, often with real estate professionals, serve as a key referral source for borrowers needing short-term financing for acquisition, renovation, or development. The CEO specifically noted confidence in leveraging these industry relationships to drive long-term shareholder value. This channel is less about public metrics and more about the network that feeds the direct lending platform. The nature of their business-offering loans to real estate investors-means that trust and established referral streams within that community are defintely a core part of their business acquisition strategy.

Sachem Capital Corp. (SACH) - Canvas Business Model: Customer Segments

You're looking at the core clientele Sachem Capital Corp. serves, both on the borrowing side and the investment side, as of late 2025. This isn't a bank; it's a mortgage REIT, so the segments are distinct.

Borrowers: Professional Real Estate Investors and Developers

Sachem Capital Corp. targets real estate investors and developers needing short-term, secured, nonbanking loans. These loans are typically for property acquisition, renovation, development, rehabilitation, or improvement, generally with a term of one to three years. Every loan is secured by a first mortgage lien on real estate and usually requires a personal guarantee from the borrower's principal(s). The primary underwriting criterion remains a conservative loan-to-value ratio.

The lending activity is concentrated, with a single borrower representing a significant portion of the portfolio as of mid-2025. Here's a look at that concentration:

Metric	As of June 30, 2025	As of December 31, 2024
Single Borrower Portfolio Percentage	13.1%	14.0%
Single Borrower Loan Balance (Millions)	$50.4 million	$55.0 million

The effective interest rate on the loan portfolio reflects the high-yield focus. For the three months ended September 30, 2025, the effective interest rate on loans held for investment was 12.4%, based on an average performing balance of $268.1 million. Loan terms themselves show a range of pricing:

• Stated interest rates on loans held for investment ranged from 6.5% to 15.0% as of March 31, 2025.
• New loan origination pricing in Q3 2025 remained firm at 12% and 2%.

Geographic Focus

While Sachem Capital Corp. has historically been concentrated, the strategy involves opportunistic geographic expansion. Historically, as of December 31, 2022, Connecticut loans accounted for approximately 61.3% of the portfolio by the number of loans, though only about 43.5% by loan balances. The expansion has moved the portfolio beyond Connecticut to include Texas, Florida, and 12 other states, suggesting a broader, though still East Coast-leaning, footprint as of late 2025.

Investors: Common and Preferred Stock Holders

Sachem Capital Corp. serves investors seeking high-yield dividends, a characteristic of its Real Estate Investment Trust (REIT) structure requiring a minimum distribution of taxable income. The company maintains two primary classes of publicly traded equity instruments:

• Common Stock (Ticker: SACH)
• 7.75% Series A Cumulative Redeemable Preferred Stock (Ticker: SACHPRA)

The commitment to these dividend-seeking customers is evident in the declared payments for the third quarter of 2025:

Stock Class	Declared Quarterly Dividend (as of Sept/Dec 2025)	Annualized Preferred Rate
Common Shares	$0.05 per share	N/A
7.75% Series A Preferred Stock	$0.484375 per share	7.75%

The total number of common shares outstanding provides context for the equity base supporting these dividends. As of May 1, 2025, there were 47,310,139 Common Shares outstanding. The book value per share as of September 30, 2025, stood at $2.47.

The market values these investor segments differently. As of July 10, 2025, the market capitalization was approximately $61.5 million. By December 5, 2025, this figure had adjusted to approximately $59 million, with the common stock price at $1.09.

Sachem Capital Corp. (SACH) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Sachem Capital Corp. (SACH) engine, which is heavily influenced by debt financing and credit quality management. Here's the breakdown of the major cost centers based on the latest available figures from mid-to-late 2025.

• Interest expense on total indebtedness (Q2 2025 interest and amortization: $6.139 million).
• General and administrative expenses, including compensation and overhead.
• Provision for credit losses on the loan portfolio.
• Costs associated with managing and monetizing Real Estate Owned (REO) assets.

The cost of capital is a primary driver, given Sachem Capital Corp.'s structure as a real estate investment trust (REIT) reliant on debt. Total indebtedness stood at $315.5 million as of June 30, 2025. By the third quarter end, September 30, 2025, total indebtedness had reduced to $298.8 million.

You can see how the financing costs trended across the first three quarters of 2025:

Expense Component (Three Months Ended)	Q2 2025 (June 30)	Q3 2025 (September 30)
Interest and amortization of deferred financing costs	$6.139 million	$6.6 million

General and administrative costs reflect personnel and operational overhead. For the second quarter of 2025, compensation and employee benefits saw an increase of $0.5 million, and other expenses totaled $0.3 million, relative to the prior year period. For a more granular look at the third quarter of 2025, the components of operating expenses were:

• Compensation and employee benefits: $2.334 million (in thousands).
• General and administrative expenses: $1.679 million (in thousands).

Managing credit risk directly impacts the cost structure through the provision for credit losses. In Q2 2025, the provision for credit losses related to loans held for investment saw a significant decline of $7.6 million, or 89.1% compared to Q2 2024, which was the primary driver for the overall reduction in operating costs to $9.7 million from $18.3 million year-over-year. Still, the provision remained a material cost item in the subsequent quarter:

• Provision for credit losses related to loans held for investment (Q3 2025): $0.812 million (in thousands).

Costs related to Real Estate Owned (REO) assets, which are properties acquired through foreclosure, are managed through holding or selling. As of June 30, 2025, net REO totaled $18.626 million (in thousands). The management and monetization activities for the six months ending June 30, 2025, included:

REO Activity (Six Months Ended June 30, 2025)	Amount (in thousands)
Principal basis transferred to real estate owned	$6,298
Proceeds from sale of real estate owned	($1,559)
Gain on sale of real estate owned	$131

The change in valuation allowance related to loans held for sale, a cost component reflecting changes in the expected loss on assets held for sale, was a reduction of $1.1 million in Q2 2025.

Sachem Capital Corp. (SACH) - Canvas Business Model: Revenue Streams

You're looking at how Sachem Capital Corp. actually brings in the money, which is key for understanding their stability, especially now in late 2025. Their revenue streams are heavily weighted toward their core lending business, though other sources contribute to the total picture.

The primary driver remains the interest earned on their portfolio of short-term loans secured by first mortgage liens. For the third quarter of 2025, this interest income hit $8.326 million, which is very close to the $8.3 million figure you noted. This rate is influenced by the current environment; for the three months ended September 30, 2025, the effective interest rate on loans held for investment was 12.4%, based on an average performing loan balance of $268.1 million.

Next up are the fees Sachem Capital Corp. collects related to making and managing those loans. In Q3 2025, fee income from loans totaled $1.964 million. This is slightly under the $2.0 million estimate, but still a significant component of their non-interest revenue.

Here's a quick look at the revenue breakdown for the three months ended September 30, 2025, compared to the same period last year, showing where the total revenue of $12.0 million came from:

Revenue Source	Q3 2025 (in thousands USD)	Q3 2024 (in thousands USD)
Interest income from loans	8,326	11,420
Fee income from loans	1,964	1,843
Income from limited liability company investments	1,098	1,495
Other investment income	85	3
Other income	527	24
Total revenues	12,000	14,785

Income from their limited liability company (LLC) investments also feeds the top line, coming in at $1.098 million for the quarter, aligning with the $1.1 million figure you mentioned. Honestly, this stream has seen a reduction, as Sachem Capital Corp. has actively reduced its LLC investments by $12.8 million since December 31, 2024, using those returns to fund more loans held for investment.

Regarding gains on the sale of Real Estate Owned (REO) and other assets, the Q3 2025 results actually show a net loss in that category. The line item for Loss (gain) on sale of real estate owned and property and equipment, net, was $0.312 million (a loss) for the quarter. This reflects the ongoing work in disposing of assets that have moved through the foreclosure process, which is a necessary part of managing non-performing loans.

To give you a broader context on the quarter's financial performance related to revenue:

• Total revenue for the nine months ended September 30, 2025, was $34.217 million.
• GAAP Net Income for Q3 2025 was $0.997 million.
• Net loss attributable to common shareholders for Q3 2025 was $0.1 million.
• Book value per common share as of September 30, 2025, stood at $2.47.

Finance: draft 13-week cash view by Friday.