UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Address of Principal Executive Office) (Zip Code) ____________________________________________________________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 12, 2026 SACHEM CAPITAL CORP. (Exact name of Registrant as specified in its charter) (CommissionFile Number) New York 001-37997 81-3467779 (IRS Employer Identificatio ...

Core Viewpoint - Sachem Capital Corp. has made significant progress in its portfolio initiatives, including the sale of an office asset and the acquisition of condominium assets in Naples, Florida, aimed at strengthening liquidity and enhancing shareholder value [2][3]. Portfolio and Financing Activities - The company sold its office property in Westport, Connecticut, generating net cash proceeds of approximately $19.9 million and realizing a book gain of about $4.0 million, which bolstered its liquidity and balance sheet [3]. - The acquisition of condominium assets in Naples, Florida, involved a noncash exchange transaction valued at approximately $39.9 million, allowing the company to consolidate control over these assets while maintaining a secured lender position on a separate waterfront parcel [5][9]. - Urbane Capital, the company's subsidiary, will manage and develop the acquired condominium assets, which include three completed units and a southern parcel entitled for four additional units, with sales expected over the next 18 to 24 months [6][8]. Credit Facility Update - The company amended its $50.0 million revolving credit facility, extending its maturity from March 2, 2026, to March 2, 2028, with an option for an additional one-year extension, enhancing liquidity and balance sheet flexibility [10][11]. Preliminary Results for 2025 - Net income attributable to common shareholders for 2025 is projected to be between $0.01 and $0.04 per share, a significant improvement from a net loss of $0.93 per share in 2024 [12]. - The book value per common share is expected to range from $2.43 to $2.46, down from $2.64 in 2024, primarily due to cash dividends exceeding net income for the year [13].

Financial Performance - Total revenue for Q3 2025 was $12.0 million, a decrease of 19% from $14.8 million in Q3 2024[4] - Total revenues for Q3 2025 were $12,000,000, a decrease of 18.9% from $14,785,000 in Q3 2024[22] - Interest income from loans decreased to $8,326,000 in Q3 2025 from $11,420,000 in Q3 2024, representing a decline of 27.5%[22] - Net income attributable to common shareholders was a loss of $120,000 in Q3 2025 compared to a loss of $6,146,000 in Q3 2024[22] - Net loss attributable to common shareholders was $0.1 million, or $0.00 per share, compared to a net loss of $6.1 million, or $0.13 per share in Q3 2024[7] Operating Costs - Total operating costs and expenses decreased to $12.4 million in Q3 2025 from $19.6 million in the same quarter last year[5] - Operating expenses decreased to $12,367,000 in Q3 2025 from $19,607,000 in Q3 2024, a reduction of 37.0%[22] - The provision for credit losses related to loans held for investment was $812,000 in Q3 2025, significantly lower than $8,096,000 in Q3 2024[22] Assets and Liabilities - Total assets at the end of Q3 2025 were $484.4 million, down from $492.0 million as of December 31, 2024[8] - Total liabilities decreased to $308.8 million from $310.3 million as of December 31, 2024[8] - Total shareholders' equity as of September 30, 2025, was $175.6 million, down from $181.7 million as of December 31, 2024[10] - Book value per common share decreased to $2.47 as of September 30, 2025, from $2.64 as of December 31, 2024[11] Cash Flow and Dividends - Cash and cash equivalents at the end of the period were $5,881,000, down from $11,172,000 at the end of Q3 2024[23] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $13,510,000, compared to $5,624,000 for the same period in 2024[23] - Dividends paid on common shares increased to $14,159,000 in the nine months ended September 30, 2025, from $7,114,000 in the same period of 2024[24] - The company paid a dividend of $0.05 per share to common shareholders on September 30, 2025[13] Financing Activities - The company reported a net cash used in financing activities of $64,489,000 for the nine months ended September 30, 2025, compared to $14,107,000 in the same period of 2024[24] - The company issued Senior Secured Notes amounting to $90,000,000 during the reporting period[24] Company Strategy - The company intends to continue operating as a Real Estate Investment Trust (REIT) and comply with the requirement to distribute a minimum of 90% of taxable income to shareholders[12]

Group 1: Earnings Performance - Sachem Capital Corp. reported break-even quarterly earnings per share, compared to a loss of $0.13 per share a year ago, representing an earnings surprise of -100.00% [1] - The company posted revenues of $12 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.42%, but down from $14.78 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Sachem Capital shares have lost about 21.5% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $10.98 million, and $0.04 on revenues of $43.97 million for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 31% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for Sachem Capital was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Loans and Investments - Loans disbursed for the three months ended September 30, 2025, totaled $44.657 million, while loans repaid amounted to $40.651 million[129]. - As of September 30, 2025, the gross principal amount of loans held for investment was $375.220 million, with a weighted average contractual interest rate of 13.21%[129]. - The allowance for credit losses as of September 30, 2025, was $11.083 million, representing 3.0% of the total gross principal amount of loans held for investment[134]. - The number of loans held for investment outstanding decreased from 157 as of December 31, 2024, to 119 as of September 30, 2025[129]. - The primary markets for the company's loans held for investment included Connecticut (45.5% of loans), Florida (14.3%), and Massachusetts (8.4%) as of September 30, 2025[131]. - The aggregate gross principal amount of residential loans held for investment was $202.220 million, accounting for 53.9% of the total[132]. - The company’s loan portfolio included 54 loans of $1 million or less, representing 45.4% of the total number of loans[131]. - The weighted average term to maturity for loans held for investment increased from 4 months as of December 31, 2024, to 6 months as of September 30, 2025[129]. Financial Performance - Total revenues for the three months ended September 30, 2025, decreased by 18.8% to $12,000,000 compared to $14,785,000 for the same period in 2024[138]. - Interest income from loans fell by 27.1% to $8,326,000, while fee income from loans increased by 6.6% to $1,964,000[138]. - Net income for the three months ended September 30, 2025, was $997,000, a significant improvement from a net loss of $5,051,000 in the same period of 2024[138]. - The provision for credit losses related to loans held for investment dropped by 90.0% to $812,000 compared to $8,096,000 in 2024[138]. - Total operating expenses decreased by 36.9% to $12,367,000 from $19,607,000 in the prior year[138]. Asset and Equity Changes - Total assets decreased by $7.6 million, or 1.5%, to $484.4 million as of September 30, 2025, mainly due to a $6.9 million decrease in cash and cash equivalents[151]. - Total liabilities decreased by $1.5 million, or 0.5%, to $308.8 million as of September 30, 2025, driven by a $55.5 million reduction in notes payable[152]. - Total shareholders' equity decreased by $6.0 million, or 3.3%, to $175.6 million as of September 30, 2025, due to increased dividends paid[153]. - Book value per common share decreased to $2.47 as of September 30, 2025, down from $2.54 as of June 30, 2025[144]. - Book value per common share decreased to $2.47 as of September 30, 2025, from $2.64 at December 31, 2024, primarily due to $10.4 million in dividends paid[150]. Non-Performing Loans - The company reported a total of 104.066 million in non-performing loans as of September 30, 2025, with a direct reserve of $2.372 million[134]. - The aggregate non-performing loan balance as of September 30, 2024, was $147.0 million, an increase of $62.4 million from December 31, 2023[143]. - The aggregate non-performing loan balance increased to $147.0 million as of September 30, 2024, up $62.4 million from $84.6 million at December 31, 2023[149]. Cash and Financing Activities - Cash and cash equivalents increased by 90.0% to $11.2 million as of September 30, 2025, compared to $5.9 million at the end of the previous year[155]. - The company entered into a new Credit Agreement on March 20, 2025, with a maturity date of March 2, 2026, and had borrowed $32.7 million under this facility as of September 30, 2025[158]. - A private placement of $100.0 million in Senior Secured Notes was completed on June 11, 2025, with an initial draw of $50.0 million and an additional draw of $40.0 million in September 2025[159][160]. - The company reduced its investments in limited liability companies by $12.8 million since December 31, 2024, using returns to fund additional loans[140]. - The company has no off-balance sheet transactions that could affect liquidity or capital resource requirements[161]. Employee Compensation - Compensation and employee benefits increased by 33.8% to $2,334,000, attributed to one-time cash bonuses and additional headcount[142].

Core Viewpoint - Sachem Capital Corp. reported its financial results for Q3 2025, highlighting a focus on disciplined portfolio management and capital preservation amid a challenging macroeconomic environment [2][3]. Financial Performance - Total revenue for Q3 2025 was $12.0 million, down from $14.8 million in Q3 2024, primarily due to lower net new origination and an increase in nonperforming loans [4]. - The effective interest rate on loans held for investment was 12.4% for Q3 2025, slightly down from 12.6% in Q3 2024 [4]. - Net loss attributable to common shareholders was $0.1 million, or $0.00 per share, compared to a net loss of $6.1 million, or $0.13 per share, in Q3 2024 [6]. Operating Costs - Total operating costs and expenses for Q3 2025 were $12.4 million, significantly lower than $19.6 million in the same quarter last year [5]. - The provision for credit losses related to loans held for investment decreased to $0.8 million in Q3 2025 from $8.1 million in Q3 2024, reflecting a reduction in non-performing loan balances [5][22]. Balance Sheet - Total assets at the end of Q3 2025 were $484.4 million, down from $492.0 million as of December 31, 2024 [7]. - Total liabilities were $308.8 million, slightly down from $310.3 million at the end of 2024 [7]. - Total shareholders' equity decreased to $175.6 million from $181.7 million as of December 31, 2024 [9]. Dividends - The company paid a dividend of $0.484375 per share to Series A Preferred Stockholders and $0.05 per share to common shareholders on September 30, 2025 [12]. - The company intends to continue qualifying as a Real Estate Investment Trust (REIT) and plans to distribute a minimum of 90% of taxable income to shareholders [11]. Future Outlook - The company aims to capitalize on high-quality lending opportunities to drive long-term shareholder value into 2026 and beyond [3].

Core Viewpoint - Sachem Capital Corp. will release its third quarter 2025 financial results on November 5, 2025, before market open, followed by a webcast and conference call at 8:00 a.m. Eastern Time [1]. Company Overview - Sachem Capital Corp. is a mortgage REIT that focuses on originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property [3]. - The company provides short-term secured, nonbanking loans to real estate investors for property acquisition, renovation, development, rehabilitation, or improvement, with a primary underwriting criterion of a conservative loan-to-value ratio [3]. - The loans are typically secured by residential or commercial real estate, held for resale or investment, and are personally guaranteed by the principal(s) of the borrower [3]. - In addition to lending activities, the company also engages in opportunistic real estate purchases [3]. Conference Call Participation - To participate in the conference call, interested parties should dial in at least 15 minutes prior to the start time, with domestic and international numbers provided [3]. - A playback of the conference call will be available until November 19, 2025, with specific domestic and international numbers for access [3].

Core Viewpoint - Four real estate stocks have shown significant declines in momentum despite the Federal Reserve entering a rate-cutting cycle, indicating persistent challenges in the sector's risk appetite and investor sentiment [2][9]. Group 1: Stock Performance - Cherry Hill Mortgage Investment Corp. (CHMI) saw its momentum score decrease from 10.68 to 10.50, a drop of 0.18 percentile points, with a year-to-date decline of 3.82% and a 30.58% drop over the past year [8]. - National Storage Affiliates Trust (NSA) experienced a momentum percentile slip from 10.68 to 9.35, a decrease of 1.33 points, with an 18.98% decline year-to-date and a 37.14% drop over the year [8]. - Sachem Capital Corp. (SACH) also saw its momentum score fall from 10.68 to 9.35, mirroring NSA's decline, with an 11.11% year-to-date drop and a 55.56% decline over the year [8]. - Smith Douglas Homes Corp. (SDHC) had its ranking decrease from 10.11 to 9.01, a reduction of 1.10 percentile points week-on-week, reflecting uncertainty around housing starts and affordability [7]. Group 2: Market Context - The underperformance of these four realty stocks is notable as rate reductions by the Fed typically stimulate the real estate sector by lowering capital costs and boosting demand [9]. - The decline in momentum rankings suggests that company-specific risks, such as credit quality and supply imbalances, are currently outweighing macro-level benefits [9].

Core Insights - Granite Point Mortgage Trust (NYSE: GPMT) and Sachem Capital (NYSE: SACH) are currently out of favor with investors, with public preferreds trading at discounts to their $25 per share liquidation value [1] Group 1: Market Dynamics - The equity market serves as a powerful mechanism where daily price fluctuations can lead to significant wealth creation or destruction over the long term [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - Granite Point Mortgage Trust (NYSE: GPMT) and Sachem Capital (NYSE: SACH) are currently out of favor with investors, with their public preferred shares trading at discounts to the $25 per share liquidation value [1] Group 1: Company Performance - Both GPMT and SACH are categorized as mortgage REITs, indicating their focus on real estate investment trusts that primarily deal with mortgage financing [1] Group 2: Market Dynamics - The equity market is described as a powerful mechanism where daily price fluctuations can lead to significant long-term wealth creation or destruction [1] - Pacifica Yield is mentioned as a firm that aims for long-term wealth creation by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]