Revenue and Income Growth - Revenue increased by 80.3% compared to Q1 2021, with interest income rising by 87.8% and origination fees increasing by 216.5%[126] - Total revenue for Q1 2022 was approximately $10.3 million, an increase of 80.3% from $5.7 million in Q1 2021[160] - Interest income for Q1 2022 was approximately $8.5 million, up 87.8% from $4.5 million in Q1 2021[160] - Origination fees increased to approximately $1.6 million in Q1 2022, representing a 216.5% increase from approximately $517,000 in Q1 2021[160] - Net income attributable to common shareholders rose by 57.1%, while earnings per share remained unchanged at $0.10[126] - Net income attributable to common shareholders for the three months ended March 31, 2022, was $3,429,700, up from $2,183,101 in the prior year[166] - Adjusted earnings attributable to common shareholders for the period ended March 31, 2022, were $4,481,930, compared to $2,183,101 for the same period in 2021, reflecting a significant increase[166] Assets and Liabilities - Total assets increased by approximately $63.8 million, or 15.3%, to approximately $481.8 million as of March 31, 2022, primarily due to an increase in the mortgage loan portfolio[168] - Total liabilities rose by approximately $44.5 million, or 18.7%, to approximately $282.4 million as of March 31, 2022, mainly due to an increase in notes payable[169] - Total shareholders' equity increased by approximately $19.3 million to approximately $199.4 million as of March 31, 2022, driven by net proceeds from the sale of common shares[170] Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2022, was approximately $7.8 million, compared to $2.8 million for the same period in 2021[171] - Net cash used for investing activities increased significantly to approximately $48.7 million for the three months ended March 31, 2022, compared to $2.1 million in the prior year[172] - Net cash provided by financing activities for the three months ended March 31, 2022, was approximately $56.8 million, a substantial increase from $1.8 million used in the comparable 2021 period[174] Loan Portfolio and Underwriting - Mortgages receivable increased by 125.6% compared to March 31, 2021, and cash and cash equivalents rose by 215.4%[126] - As of March 31, 2022, the mortgage loan portfolio included 204 loans with future funding obligations totaling approximately $115.4 million, up from 129 loans totaling approximately $23.5 million a year earlier[138] - The yield on the mortgage loan portfolio decreased from 11.73% in Q1 2021 to 11.30% in Q1 2022, indicating interest rate compression[130] - The company has implemented a new underwriting model to automate loan documentation, enhancing processing accuracy and efficiency[127] - The company is focusing on larger-value commercial loans with experienced sponsors to drive growth and operational excellence[127] Debt and Financing - Debt represented approximately 55.5% of total capital as of March 31, 2022, down from 63.0% a year prior[140] - The outstanding balance under the Churchill Facility was approximately $26.9 million as of March 31, 2022, accruing interest at an effective rate of 4.70% per annum[145] - The Wells Fargo Loan had a balance of approximately $23.3 million at March 31, 2022, with an interest rate of 1.75% below the prime rate[146] - The NHB Mortgage had an outstanding amount of $750,000 as of December 31, 2021, with an initial interest rate of 3.75% per annum[147] Shareholder Distributions - The company aims to grow its loan portfolio while maintaining a minimum distribution of 90% of taxable income to qualify as a REIT[125] - The company intends to pay regular quarterly distributions to holders of common shares of not less than 90% of its REIT taxable income[177] - The company raised approximately $15.5 million from the sale of 2,730,725 common shares during the three months ended March 31, 2022[150] - The company raised approximately $45.5 million from the sale of 1,903,000 shares of Series A Preferred Stock in June and July 2021[148] Operating Expenses - Increased operating expenses were noted, primarily due to a higher debt load, increased headcount, and loan volume[137] - Total operating costs and expenses for Q1 2022 were approximately $5.9 million, an increase of 68.6% from $3.5 million in Q1 2021[161] Contractual Obligations - As of March 31, 2022, total contractual obligations amounted to approximately $119.2 million, including unfunded loan commitments of $115.4 million[185]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37997 SACHEM CAPITAL CORP. (Exact name of registrant as specified in its charter) State or other jurisdiction of (I ...

Part I FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Sachem Capital's unaudited financial statements detail its financial position and performance for Q3 2021 [Balance Sheets](index=4&type=section&id=Balance%20Sheets) Total assets grew to **$313.4 million** by September 30, 2021, fueled by mortgages receivable and equity from stock offerings Balance Sheet Highlights (in USD) | Account | Sep 30, 2021 (Unaudited) | Dec 31, 2020 (Audited) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$313,351,751** | **$226,670,184** | **+38.2%** | | Mortgages Receivable | $219,963,291 | $155,616,300 | +41.4% | | Cash and cash equivalents | $19,242,316 | $19,408,028 | -0.9% | | **Total Liabilities** | **$154,593,669** | **$145,750,644** | **+6.1%** | | Notes payable (net) | $110,394,395 | $109,640,692 | +0.7% | | **Total Shareholders' Equity** | **$158,758,082** | **$80,919,540** | **+96.2%** | [Statements of Comprehensive Income](index=5&type=section&id=Statements%20of%20Comprehensive%20Income) Total revenue increased **62.5%** to **$20.9 million** for the nine months ended September 30, 2021, driving net income growth Income Statement Summary (Nine Months Ended Sep 30, in USD) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $20,948,451 | $12,894,752 | +62.5% | | Interest income from loans | $15,307,692 | $9,640,387 | +58.8% | | Total operating costs | $11,915,593 | $6,250,875 | +90.6% | | Net Income | $9,032,858 | $6,643,877 | +36.0% | | Net income to common shareholders | $8,100,769 | $6,643,877 | +21.9% | | Diluted EPS | $0.32 | $0.30 | +6.7% | Income Statement Summary (Three Months Ended Sep 30, in USD) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $8,522,376 | $4,271,808 | +99.5% | | Net Income | $4,300,615 | $2,138,784 | +101.1% | | Net income to common shareholders | $3,386,824 | $2,138,784 | +58.4% | | Diluted EPS | $0.12 | $0.10 | +20.0% | [Statements of Changes in Shareholders' Equity](index=6&type=section&id=Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity significantly increased to **$158.8 million** by September 30, 2021, primarily from preferred and common stock offerings - For the nine months ended September 30, 2021, the company issued 1,903,000 shares of preferred stock for net proceeds of **$45.5 million** and 6,096,448 shares of common stock for net proceeds of **$30.9 million**[23](index=23&type=chunk) - Dividends paid during the first nine months of 2021 totaled **$6.1 million** for common stock and **$932,089** for preferred stock[23](index=23&type=chunk) [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Net cash from operating activities was **$17.4 million**, while investing activities used **$84.9 million**, resulting in a slight cash decrease Cash Flow Summary (Nine Months Ended Sep 30, in USD) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $17,374,582 | $7,389,446 | | Net Cash used for Investing Activities | ($84,941,629) | ($41,361,462) | | Net Cash from Financing Activities | $67,401,335 | $20,514,152 | | **Net (Decrease) in Cash** | **($165,712)** | **($13,457,864)** | | Cash at End of Period | $19,242,316 | $5,384,073 | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Financial%20Statements) The notes provide detailed context for the financial statements, covering accounting policies, fair value measurements, and specifics on assets, liabilities, and equity - The company specializes in short-term (one to three years), secured, non-banking "hard money" loans to real estate investors, primarily in **Connecticut**, secured by first mortgage liens[34](index=34&type=chunk) - The company elected to be taxed as a **Real Estate Investment Trust (REIT)** for federal income tax purposes starting with its 2017 tax return, requiring it to distribute at least **90%** of its taxable income annually[53](index=53&type=chunk) - The company's mortgage loan portfolio includes **157 loans** with future funding obligations totaling **$61,707,185** as of September 30, 2021[85](index=85&type=chunk) - The company's loan portfolio is geographically concentrated, with approximately **59.51%** in Connecticut, **21.09%** in Florida, and **10.69%** in New York[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant revenue and loan portfolio growth, strategic initiatives, and challenges, including financing strategy and REIT status [Review of the first Nine Months of 2021 and Outlook](index=26&type=section&id=Review%20of%20the%20first%20Nine%20Months%20of%202021%20and%20Outlook) Revenue grew **62.5%** and net income **21.9%** for the first nine months of 2021, driven by mortgage growth and strategic initiatives - The company's primary business objective is to grow its loan portfolio while protecting capital to provide attractive **risk-adjusted returns** to shareholders, primarily through dividends[115](index=115&type=chunk) - Strategic initiatives include focusing on **larger-value commercial loans**, driving operational excellence through automation, and developing relationships with larger wholesale brokers[115](index=115&type=chunk) - Challenges for the remainder of 2021 include increased competition, borrower expectations for better terms leading to **rate compression**, and increased operating expenses[122](index=122&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk) - As of September 30, 2021, the company had unfunded commitments of **$61.7 million**, primarily due to an increase in construction loan originations in the Florida market[126](index=126&type=chunk) [Operational and Financial Overview](index=33&type=section&id=Operational%20and%20Financial%20Overview) The company's capital structure is balanced with **49.3% debt** and **50.7% equity**, facing portfolio yield compression and borrower concentration - The company's capital structure as of September 30, 2021, is approximately **49.3% debt** and **50.7% equity**[130](index=130&type=chunk) - At September 30, 2021, one borrower's outstanding loans represented **10.2%** of the mortgage loan portfolio, and a second borrower's obligations, on a fully funded basis, would represent approximately **10.0%**[130](index=130&type=chunk) - The yield on the mortgage loan portfolio was **11.92%** for the nine months ended September 30, 2021, down from **12.28%** for the same period in 2020, indicating interest rate compression[134](index=134&type=chunk) [Financing Strategy Overview](index=35&type=section&id=Financing%20Strategy%20Overview) The company's financing strategy leverages debt and equity, with **$144.6 million** in outstanding debt and a new **$200 million** repurchase facility - In June and July 2021, the company raised approximately **$45.5 million** in net proceeds from the sale of its Series A Preferred Stock[138](index=138&type=chunk) - Total outstanding debt at September 30, 2021, was approximately **$144.6 million**, including a **$30.1 million** credit line and **$114.5 million** in unsecured notes[140](index=140&type=chunk)[144](index=144&type=chunk) - On July 21, 2021, the company established a **$200 million** master repurchase financing facility with Churchill, allowing it to sell mortgage loans to raise capital at a rate based on **30-day LIBOR plus a spread of 3%-4%**[145](index=145&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Total revenue nearly doubled in Q3 2021 and grew **62.5%** for the nine-month period, driven by interest income despite rising costs Q3 2021 vs Q3 2020 Performance (in USD) | Metric | Q3 2021 | Q3 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | ~$8.5M | ~$4.3M | +99.5% | | Interest Income | ~$6.1M | ~$3.5M | +75.5% | | Operating Costs | ~$4.2M | ~$2.1M | +97.9% | | Net Income to Common Shareholders | ~$3.4M | ~$2.1M | +58.4% | Nine Months 2021 vs 2020 Performance (in USD) | Metric | YTD 2021 | YTD 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | ~$20.9M | ~$12.9M | +62.5% | | Interest Income | ~$15.3M | ~$9.6M | +58.8% | | Operating Costs | ~$11.9M | ~$6.3M | +90.6% | | Net Income to Common Shareholders | ~$8.1M | ~$6.6M | +21.9% | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$75.3 million** in cash and equivalents, supported by significant asset and equity growth - Cash, cash equivalents, and investment securities totaled approximately **$75.3 million** at September 30, 2021[161](index=161&type=chunk) - Total assets increased by **38.2%** to **$313.4 million** at September 30, 2021, from **$226.7 million** at December 31, 2020[162](index=162&type=chunk) - Shareholders' equity increased by **$77.8 million**, primarily due to net proceeds from the Series A Preferred Stock offering (**~$45.5 million**) and common stock sales (**~$30.9 million**)[165](index=165&type=chunk) - Net cash provided by financing activities for the nine months ended September 30, 2021 was approximately **$67.5 million**, driven by stock issuances[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Sachem Capital Corp is exempt from providing quantitative and qualitative market risk disclosures - As a **smaller reporting company**, Sachem Capital Corp is not required to provide the information required by Item 3[179](index=179&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes - Management concluded that as of September 30, 2021, the company's disclosure controls and procedures are **effective**[181](index=181&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[182](index=182&type=chunk) Part II OTHER INFORMATION [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant credit risk due to borrower concentration and liquidity risk from **$61.7 million** in unfunded commitments - At September 30, 2021, one borrower's loans represented **10.2%** of the mortgage portfolio. A second borrower's total funding obligations would represent approximately **10.0%** of the portfolio on a fully funded basis, creating significant borrower concentration risk[185](index=185&type=chunk) - The company had significant unfunded commitments of approximately **$61.7 million** as of September 30, 2021. Failure to meet these obligations could lead to legal claims and adversely impact the business[186](index=186&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and key agreements - The report includes a comprehensive list of exhibits, such as the Certificate of Incorporation, bylaws, indentures for various note series, key employment agreements, the Master Repurchase Agreement with Churchill, and required CEO/CFO certifications[188](index=188&type=chunk)

Sachem Capital Corp. (NYSE:SACH) Q2 2021 Earnings Conference Call August 17, 2021 8:00 AM ET Company Participants David Waldman - Investor Relations John Villano - Chief Executive Officer & Chief Financial Officer Conference Call Participants Tyler Batory - Janney Christopher Nolan - Ladenburg Thalmann Brian Hollenden - Aegis Capital Operator Good morning, ladies and gentlemen, and welcome to the Sachem Capital Second Quarter 2021 Conference Call. At this time, all participants have been placed on a listen- ...

Revenue and Income - Revenue increased by 44.2% compared to the first half of 2020, driven by a 49.4% increase in interest income due to growth in lending activities [105]. - Net income rose by 4.6%, with earnings per share remaining unchanged at $0.10 [105]. - Total revenue for Q2 2021 was approximately $6.7 million, an increase of 56.0% from $4.3 million in Q2 2020, primarily driven by growth in lending operations [148]. - Interest income for Q2 2021 was approximately $4.7 million, up 43.4% from approximately $3.3 million in Q2 2020 [148]. - Net income for Q2 2021 was approximately $2.5 million, or $0.10 per share, compared to $2.3 million, or $0.10 per share in Q2 2020 [151]. - Total revenue for the six months ended June 30, 2021 was approximately $12.4 million, a 44.2% increase from $8.6 million in the same period of 2020 [152]. Assets and Liabilities - Total assets at June 30, 2021 were approximately $296.3 million, an increase of 30.7% from approximately $226.7 million at December 31, 2020 [159]. - Total liabilities at June 30, 2021 were approximately $150.0 million, a 2.9% increase from approximately $145.8 million at December 31, 2020 [160]. - Total shareholders' equity at June 30, 2021 was approximately $146.3 million, an increase of approximately $65.4 million from approximately $80.9 million at December 31, 2020 [161]. Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2021 was approximately $6.1 million, compared to approximately $4.0 million for the same period in 2020 [163]. - Net cash used for investing activities for the six months ended June 30, 2021 was approximately $26.7 million, compared to approximately $15.7 million for the comparable 2020 period [164]. - Net cash provided by financing activities for the six months ended June 30, 2021, was approximately $63.4 million, a significant increase from $2.5 million in the comparable 2020 period [165]. - Anticipated cash requirements for operating needs are expected to be met by current cash balances and anticipated cash flows from operations for the next 12 months [167]. - Long-term cash needs will be funded through unused net proceeds from financing activities, operating cash flows, and proceeds from sales of real estate owned [168]. Capital Structure - The company's capital structure improved, with debt at 50.6% and equity at 49.4% as of June 30, 2021, compared to 63% debt and 37% equity at March 31, 2021 [120]. - As of June 30, 2021, the company's capital structure was approximately 50.6% debt and 49.4% equity, with total outstanding indebtedness of approximately $148.8 million [126][135]. - The company aims to maintain a modest amount of leverage for financing its portfolio, having reduced its debt level from 63.0% to 50.6% of total capital [134]. Loan Portfolio - Mortgages receivable increased by 55.1%, amounting to $61.4 million compared to June 30, 2020 [105]. - The yield on the loan portfolio decreased to 11.72% as of June 30, 2021, down from 12.38% in the same period of 2020, indicating rate compression [114]. - The yield on the mortgage loan portfolio decreased from 12.38% in 2020 to 11.72% in the first half of 2021, indicating interest rate compression [128]. - The company experienced $58 million in loan payoffs during the first half of 2021, compared to $55 million for all of 2020, attributed to a stronger real estate market [127]. - Approximately 88.5% of the mortgage loans in the portfolio had a term of one year or less as of June 30, 2021, to mitigate risks associated with rising interest rates [129]. - The company had 130 loans with future funding obligations totaling $31.8 million as of June 30, 2021 [117]. Operating Expenses and Financial Performance - Operating expenses increased significantly due to a higher debt load and new personnel hires, impacting overall financial performance [116]. - Total operating costs and expenses for Q2 2021 were approximately $4.2 million, an increase of 105.1% from $2.0 million in Q2 2020, mainly due to higher interest expenses [149]. Future Plans and Strategies - The company plans to use its cash reserves to further increase the mortgage loan portfolio in the second half of 2021 [120]. - The company plans to expand its geographic footprint beyond New England, focusing on markets in Florida and Texas, while exploring partnerships with local lenders [123]. - The company remains focused on maintaining its REIT status by distributing at least 90% of taxable income to shareholders [103]. - The company intends to pay regular quarterly distributions to common shareholders of not less than 90% of REIT taxable income [169]. Financing Activities - The company completed a $200 million master repurchase financing facility with Churchill MRA Funding I LLC, allowing for flexible capital raising at a low cost [123]. - A $200 million master repurchase financing facility was consummated with Churchill MRA Funding I LLC to finance the expansion of the lending business [171]. - The company raised approximately $45.4 million from the sale of 1,903,000 shares of Series A Preferred Stock in June and July 2021 [133]. - The company sold 1,700,000 shares of Series A Preferred Stock for net proceeds of $40.6 million on June 29, 2021 [166]. - From July 1, 2021, to August 9, 2021, the company raised $8,014,203 in net proceeds from the sale of 1,582,717 common shares [173]. Contractual Obligations - Total contractual obligations as of June 30, 2021, amounted to $31,852,145, including unfunded loan commitments of $31,845,533 [176]. - The company has a margin loan account with Wells Fargo, with a balance of approximately $34.3 million at June 30, 2021, bearing interest at 1.5% [139]. - Seven mortgage loans were under enforcement or collection proceedings, representing approximately 0.5% of the aggregate mortgage loan portfolio as of June 30, 2021 [130].

Financial Data and Key Metrics Changes - The company achieved a 33% increase in quarterly revenue, reaching approximately $5.7 million compared to $4.3 million in the same period last year [8][22] - Interest income on the loan portfolio increased by 56% year-over-year [8][22] - Net income for the first quarter was approximately $2.2 million, maintaining the same per-share earnings of $0.10 as the previous year [25] - Total assets increased by $1.6 million from $226.7 million to $228.4 million [28] - Total liabilities decreased to $143.8 million from $145.8 million at the end of the previous year [29] - Shareholders' equity increased by approximately $3.7 million to $84.6 million [30] Business Line Data and Key Metrics Changes - Loan repayments in Q1 2021 were $30.5 million, while new loan fundings were $31.7 million, both record highs for any quarter in the company's history [9] - Origination fee income remained relatively flat, increasing by approximately 1% [22] - Late and processing fees increased by 17%, and other income rose by 61% [22] Market Data and Key Metrics Changes - Nationally, active listings decreased by 53%, and median list home prices increased by 17% year-over-year [12] - In Connecticut, days on market decreased between 43% and 52%, with median list prices increasing by 2% to 18% depending on the county [12] Company Strategy and Development Direction - The company aims to grow its loan portfolio while maintaining strict underwriting guidelines to protect capital and provide attractive risk-adjusted returns [12][33] - Expansion beyond Connecticut is a priority, with a focus on Florida and Texas, targeting larger value commercial loans [18][34] - The company is exploring various financing alternatives to lower its cost of capital [41] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the economic climate in the Northeast and the favorable competitive landscape due to restrictive lending criteria from traditional lenders [16][17] - The company believes its quick turnaround and flexibility with borrowers provide a competitive advantage [17] - Despite challenges from COVID-19, the company remains confident in its long-term growth prospects [26] Other Important Information - The company raised approximately $56 million of unsecured unsubordinated notes in 2020, which has provided liquidity for growth [13] - A dividend of $0.12 per share was declared and paid to shareholders [36] - The company has a low interest line of credit with Wells Fargo, secured by its portfolio of short-term securities [14] Q&A Session Summary Question: What is the target leverage ratio for the second half of 2021? - The company currently has $200 million in assets versus $100 million in debt, maintaining a conservative approach to growth and avoiding over-leveraging [45][46] Question: Should the evaluation of ways to lower the cost of capital be expected in the second half of the year? - The company is in the process of evaluating opportunities and expects to make an announcement in approximately 45 days [49] Question: Can you provide an update on the expansion in Florida and Texas? - The company has approximately $15 million to $20 million in Florida, focusing on the Cape Coral area, and is cautiously exploring opportunities in Austin [53][55]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________________________ to Commission File Number: 001-37997 (Exact name of registrant as specified in its charter) New Yor ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37997 SACHEM CAPITAL CORP. (Exact name of registrant as specified in its charter) New York 81-3467779 State or othe ...

Mortgage Loan Portfolio - As of September 30, 2020, the yield on the mortgage loan portfolio was 12.28%, down from 12.66% for the same period in 2019[109]. - The company had 480 mortgage loans receivable, with 18 loans restructured under a forbearance program totaling an outstanding principal balance of $5.1 million and $146,000 in deferred interest[93]. - The company initiated a forbearance program in Q2 2020, deferring approximately $200,000 of interest on 23 loans with an aggregate principal amount of $6.5 million[97]. - The loan-to-value ratio for new loans was temporarily reduced to 50% during the pandemic but was increased back to 70% as of July 1, 2020[98]. - The company expanded its loan portfolio in Florida from less than $1 million to $9.7 million by September 30, 2020[101]. - Approximately 78.1% of the mortgage loans in the portfolio had a term of one year or less as of September 30, 2020[111]. Financial Performance - Total revenue for Q3 2020 was approximately $4.3 million, representing an increase of approximately $900,000 or 26.4% compared to Q3 2019[128]. - Interest income for Q3 2020 was approximately $3.5 million, up from approximately $2.4 million in Q3 2019, while net origination fees decreased to approximately $393,000 from $497,000[128]. - Total operating costs and expenses for Q3 2020 were approximately $2.1 million, an increase of approximately $800,000 or 61.5% compared to Q3 2019, primarily due to increased interest expense[129]. - Net income for Q3 2020 was approximately $2.055 million, or $0.10 per share, compared to $2.139 million, or $0.10 per share for Q3 2019[132]. - For the nine months ended September 30, 2020, total revenue was approximately $12.9 million, an increase of approximately $3.1 million or 32% compared to the same period in 2019[133]. - Net income for the nine months ended September 30, 2020 was approximately $6.7 million, or $0.30 per share, compared to approximately $5.3 million, or $0.30 per share for the same period in 2019[138]. Cash and Investments - The company had approximately $33.1 million in cash and investments as of September 30, 2020, a decrease from $34.8 million at December 31, 2019[139]. - Net cash provided by operating activities for the nine months ended September 30, 2020 was approximately $7.4 million, a slight increase from $7.3 million in the same period of 2019[140]. - Net cash used for investing activities increased significantly to approximately $41.4 million in 2020 from $14.5 million in 2019, primarily due to higher principal disbursements for mortgages receivable[141]. - Net cash provided by financing activities rose to approximately $20.5 million in 2020 compared to $18.1 million in 2019, driven by proceeds from the Wells Fargo line of credit and the sale of fixed rate notes[142]. - The company anticipates that current cash and investment balances, along with projected cash flows from operations, will be sufficient to fund operations for the next 12 months[143]. - Long-term cash needs will be funded through proceeds from the sale of debt and/or equity securities, cash on hand, investments, and operating cash flows[144]. Debt and Capital Structure - The company’s indebtedness was approximately 50.4% of total capital at September 30, 2020, with expectations for this percentage to increase[114]. - As of September 30, 2020, the company's capital structure consisted of 49.6% equity and 50.4% debt, with total indebtedness of approximately $85.6 million[115]. - The company issued an additional $14 million of September 2025 Notes in October 2020, increasing its overall debt[115]. - In October 2020, the company sold an additional $14 million aggregate principal amount of September 2025 Notes, with an option for underwriters to purchase an additional $2.1 million[147]. - The company is not involved in any off-balance sheet transactions that could affect liquidity or capital resource availability[149]. Dividends and Shareholder Distributions - The company intends to pay regular quarterly distributions to common shareholders amounting to not less than 90% of its REIT taxable income[146]. - A dividend of $0.12 per share, totaling approximately $2.65 million, was paid to shareholders on November 4, 2020[148]. Market Competition - The company faced increased competition from private equity funds and hedge funds, although competition decreased due to COVID-19[104]. - The average yield on the portfolio is expected to continue compressing due to increased competition and borrower demands[105]. - The company is focusing on expanding its geographic footprint beyond Connecticut to Florida and Texas, while also funding larger loans[107]. Obligations - As of September 30, 2020, total contractual obligations amounted to approximately $13.35 million, including operating lease obligations and unfunded construction loans[151].

Sachem Capital Corp (NYSE:SACH) Q2 2020 Earnings Conference Call August 11, 2020 8:00 AM ET Company Participants David Waldman - IR John Villano - CEO and CFO Conference Call Participants Rommel Dionisio - Aegis Capital Jim Altschul - Aviation Advisors Operator Good day, ladies and gentlemen, and welcome to the Sachem Capital Second Quarter 2020 Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. At this ti ...