Sachem Capital Review 2026: SACH Loans, Losses and the IRG Deal

Which Sachem security you are looking at

“Sachem Capital” searches mix five listed securities and one lending business. The cover page of the June 30, 2026 10-Q lists them all on NYSE American:

Behind the notes sit two layers of secured debt with a prior claim on specific assets: $100 million of 9.875% senior secured notes due 2030 issued by a subsidiary ($96.8 million on the balance sheet, net of costs, at June 30, 2026) and a $50 million revolving line from Needham Bank ($36.5 million drawn), whose maturity was extended to March 2, 2028 on January 21, 2026.

What a Sachem loan costs, from its own 10-K

Private hard-money lenders rarely put their pricing in a public document. Sachem has to, and the terms have barely moved in three annual reports. From the 10-K for 2025 (filed March 13, 2026):

Two things in that table matter more than the headline rate. First, the extension points: on a one-year loan that runs late, each extension adds another fee, and Sachem's own modification tables show how common that was. In 2024 it granted term extensions to borrowers in financial difficulty on loans carried at $108.0 million, 30.1% of the book. Second, the default rate: the 10-K cannot agree with itself on whether it is up to 24% or generally 18%, so read the number in your own note. In 2025, ten loans with $31.9 million of principal had their rate cut when Sachem took them “off default rate” in a modification.

What borrowers actually paid on average: the weighted average contractual rate on the book was 10.72% in 2022 and 11.42% in 2023 excluding fees, and 12.53% in 2024 and 13.10% in 2025 including default interest. The effective yield on performing loans was 11.4% in the second quarter of 2026. For comparison with the wider market, see hard money loan rates in 2026.

The loan book, quarter by quarter

This is the part only a listed lender discloses. All figures from Sachem's 10-K and 10-Q balance sheets and loan notes:

Loan balances to September 2024 are gross mortgages receivable; from December 2024 they are net of deferred loan fees. Non-accrual includes loans pending foreclosure.

Read down the columns and the 2024 to 2026 story is plain. Bad loans peaked at $147.0 million in September 2024, about 31% of the book (our arithmetic). Sachem then did three things: it sold 32 loans with $55.8 million of principal at a $22.0 million loss, it took 22 loans into foreclosed real estate in 2024 and 13 more in 2025, and it took a full-year loss of $43.9 million for common shareholders in 2024. The non-accrual balance fell to $87.0 million by year end, then climbed back to $117.6 million a year later.

At June 30, 2026, $80.3 million of the $337.6 million book was 90 or more days past due (23.8%, our arithmetic), $31.6 million was in pending or pre-foreclosure, and the allowance covered about 4.0% of gross loans (our arithmetic). Concentration is high: one borrower was 13.3% of the portfolio, $50.4 million, at the end of 2025. In the first quarter of 2026 Sachem restructured a large Naples, Florida loan and took the project onto its own books, which is why “developmental real estate” jumped to $45.5 million. It is now finishing and marketing those residences itself, through its in-house platform, Urbane Capital.

The geography has shifted too. Connecticut collateral fell from 39.8% of loan principal at the end of 2023 to 26.9% at the end of 2025, while Florida reached 30.3%.

From $0.13 to $0.01: the common dividend

At $0.13 a quarter the payout ran at $0.52 a year; at $0.01 it is $0.04, a cut of about 92% (our arithmetic). The June 2026 cut came less than three weeks after the IRG agreement. In the first half of 2026 Sachem booked $4.2 million of transaction expenses and a net loss to common shareholders of $13.7 million, and its second-quarter net interest margin was 1.9%. The 10-Q says only that dividend levels “may fluctuate from period to period depending on operating performance, credit trends, asset repositioning activity and capital market access.”

The preferred is a different story so far: every quarterly 8-K from 2024 to September 2026 declares the full $0.484375 on the 7.75% Series A ($1.9375 a year on $25, our arithmetic).

The IRG deal: a lender turning into an industrial landlord

The May 18, 2026 8-K and joint press release lay out the terms:

The release frames it as an “immediate and durable strategic reset for Sachem shareholders,” and is candid about why: “Sachem's current growth profile is constrained by limited capital deployment capacity and a high cost of capital.” A shareholder should notice that the deemed $2.00 is about 5% below the $2.11 June book value (our arithmetic), so the premium is to a share price that had fallen well below book, not to the assets. The full economics will only be visible in the proxy statement, which Sachem had not filed as of October 10, 2026. Its first-quarter 10-Q was filed late, on May 20, 2026, after an NT 10-Q citing “the accounting and disclosure review relating to recent transactions.”

The notes: the dates that matter

Sachem has $173.3 million of unsecured listed notes maturing between December 2026 and September 2027, starting with $51.8 million on December 30, 2026. It held $28.8 million of cash at June 30, 2026, plus undrawn room on its credit line. The 10-Q says management believes cash, facilities and operating cash flow are sufficient for the next 12 months and that it will address the maturities “through a combination of operating cash flow, credit facility capacity, secured financing alternatives and potential capital markets transactions,” adding that “There can be no assurance that refinancing will occur on terms similar to existing obligations.”

Two structural points for noteholders. The senior secured notes and the Needham line are secured; the listed notes are not, and the subsidiary that issued the secured notes held $187.1 million of assets that, in the 10-Q's words, “can only be used to settle obligations of Holdings.” And the listed notes do not disappear in the IRG deal: they stay obligations of the company that becomes IRG Realty Trust, whose balance sheet would add about $1.4 billion of property debt.

What a borrower can do with this

• Ask whether Sachem is lending on your deal size right now. It originated 30 loans in 2025, and while the IRG deal is pending the 10-Q says it may be unable, without IRG's consent, to “originate new loans above specified thresholds.” A term sheet is not a closing.
• Price the extension, not just the rate. Points are 1% to 3% up front and more on each extension. Ask for the extension fee, the extension conditions and the maturity date in writing.
• Read the default clause. Sachem's 10-K gives the default rate as up to 24% in one place and generally 18% in another. Your note is the only number that counts; also check the guaranty you are signing.
• Get a second quote for a residential flip or bridge loan. For a one-to-four-unit project, compare with a high-volume residential bridge lender and with RCN Capital, another Connecticut-based investor lender. Our hard money lenders guide and bridge loan explainer cover the rest of the field.

These lenders work mainly on residential fix-and-flip, bridge and rental loans. Sachem's book is mostly larger loans, averaging over $3 million and including land and construction loans, so for those the comparison set is narrower.

What a SACH, note or preferred holder can do with this

• Common holders: the vote needs a majority of all outstanding shares, so not voting counts against. Wait for the proxy's pro forma statements and fairness opinions before deciding; after a 20-to-1 split, 47.95 million shares become about 2.4 million (our arithmetic).
• SCCD holders: the December 30, 2026 maturity comes before the April 30, 2027 outside date. Watch the third-quarter 10-Q, expected in November 2026, for how Sachem plans to repay $51.8 million.
• Preferred holders: the Series A has been callable at $25 plus accrued dividends since June 29, 2026, and its conversion terms will be adjusted for the reverse split. Check how the proxy treats the change-of-control provisions.
• Compare with what happened elsewhere. Velocity Financial is the other listed investor-loan lender; PeerStreet shows what happens to hard-money investors when a lender fails outright, which is not Sachem's situation today.

The alert below sends an email when Sachem Capital (CIK 1682220) files with the SEC, including the merger proxy and the next 10-Q.

FAQ

Sources, read October 10, 2026: Sachem Capital Corp. (CIK 1682220) Forms 10-K for 2023 (accession 0001410578-24-000381), 2024 (0001410578-25-000587) and 2025 (0001682220-26-000014); Forms 10-Q for March 31, June 30 and September 30, 2024, March 31, June 30 and September 30, 2025, and March 31 and June 30, 2026 (accessions in the CSV, the last 0001682220-26-000053); the Form 8-K of May 18, 2026 with the joint press release on the Industrial Realty Group Contribution Agreement (0001682220-26-000024); the NT 10-Q of May 18, 2026; earnings releases of April 2, August 15 and November 14, 2024 and August 5, 2026; dividend 8-Ks from February 2024 to September 4, 2026; the 8-K of January 22, 2026 on the Needham Bank facility; the 2026 proxy statement (DEF 14A, September 11, 2026); and sachemcapitalcorp.com (company claims). Percentages, annualized dividends, average loan size and post-split share counts are our arithmetic. This is analysis of public documents, not investment, legal, lending or tax advice.