Sachem Capital Corp. reported its financial results for the second quarter and first half of 2026, revealing a net loss of $5.4 million for the three months ended June 30, 2026, compared to a net income of $1.9 million for the same period in 2025. For the six months ended June 30, 2026, the company recorded a net loss of $11.5 million, a significant decline from the $2.8 million net income reported in the prior year. The company attributed the losses to a decrease in net interest income, increased provisions for credit losses, and transaction expenses related to a pending contribution agreement with Industrial Realty Group Global, LLC.
Total revenue for the second quarter of 2026 was $3.0 million, down from $5.5 million in the same quarter of 2025. Interest income from loans decreased slightly to $7.3 million from $7.5 million year-over-year, while interest income from limited liability company investments fell sharply to $0.8 million from $1.6 million. The company’s net interest income also declined to $1.7 million, down 24% from the previous year, primarily due to increased provisions for credit losses, which rose to $2.6 million from $0.9 million in the prior year.
Sachem Capital's total assets increased to $472.9 million as of June 30, 2026, compared to $460.0 million at the end of 2025. This growth was driven by a significant increase in cash and cash equivalents, which rose to $28.8 million from $10.9 million, and a rise in real estate owned, which increased to $21.0 million from $16.4 million. However, loans held for investment decreased to $322.3 million from $363.7 million, reflecting a strategic shift in the company's asset management approach.
The company is currently undergoing a significant transformation, as it has entered into a Contribution Agreement with Industrial Realty Group Global, LLC, which is expected to close by April 30, 2027. This agreement involves a series of pre-closing reorganizations, including a 20-to-1 reverse stock split and a change in the company’s name to "IRG Realty Trust, Inc." Following the transaction, IRG Global is anticipated to hold approximately 94.1% of the outstanding operating partnership units, significantly influencing the company’s governance and operations.
Looking ahead, Sachem Capital's management expressed cautious optimism about the future, emphasizing the importance of effective credit risk management and operational efficiency. The company plans to focus on stabilizing its net interest margin and addressing the challenges posed by nonperforming loans. However, the successful execution of the pending transaction and the ability to navigate the associated complexities will be critical to the company's future performance and shareholder value.
About Sachem Capital Corp.
Sachem Capital Corp. is a real estate finance company specializing in originating, underwriting, funding, and managing short-term loans secured by first mortgages on residential and commercial properties. Its primary markets include the eastern U.S., serving real estate investors and developers. The company offers hard money loans with structured interest rates, fees, and collateral, focusing on risk-adjusted returns, operational efficiency, and borrower relationships.
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