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Sachem Capital (SACH)
:SACH
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Sachem Capital (SACH) AI Stock Analysis

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SACH

Sachem Capital

(SACH)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
$0.86
▲(7.12% Upside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by mixed financial performance (recent return to losses and declining revenue despite positive but uneven cash flow) and a weak technical trend (trading below major moving averages). The earnings-call catalyst (industrial REIT transformation) adds potential upside, but substantial governance, leverage, dilution, and execution risks keep the overall outlook balanced; valuation is supported by a very high yield but undermined by negative earnings.
Positive Factors
Strategic industrial REIT transformation
Converting Sachem into a scaled, lease‑driven industrial REIT materially alters the business model from short‑term lending to recurring lease cash flows. Scale and predictable rent rolls reduce reliance on origination cycles and provide a durable revenue base supporting long‑term cash generation and growth initiatives.
Negative Factors
Concentrated economic and voting control by IRG
Extremely concentrated economic ownership and initial voting control by IRG creates governance risk and potential related‑party influence. Minority public holders may have limited ability to influence strategy or safeguards, which can affect capital allocation discipline, distributions, and minority returns over multiple quarters to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic industrial REIT transformation
Converting Sachem into a scaled, lease‑driven industrial REIT materially alters the business model from short‑term lending to recurring lease cash flows. Scale and predictable rent rolls reduce reliance on origination cycles and provide a durable revenue base supporting long‑term cash generation and growth initiatives.
Read all positive factors

Sachem Capital (SACH) vs. SPDR S&P 500 ETF (SPY)

Sachem Capital Business Overview & Revenue Model

Company Description
Sachem Capital Corp. (SACH) is a real estate finance company organized as a real estate investment trust (REIT) that originates, underwrites, funds, services, and manages a portfolio of loans. The company primarily provides short-term, asset-backe...
How the Company Makes Money
Sachem Capital primarily makes money from the spread and fees generated by its real estate lending activities. The core revenue stream is interest income earned on its loan portfolio (typically short-term, real-estate-secured loans), which accrues...

Sachem Capital Earnings Call Summary

Earnings Call Date:May 18, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presents a strategically meaningful transaction that creates a large, lease-driven industrial REIT with multiple growth levers, experienced operators, and a path to improved capital markets positioning. However, material concerns remain around concentrated IRG ownership and voting control (94.1% economic interest and ~51% voting power), an initially high pro forma leverage (~8x), a dilutive reverse 20:1 stock split and limited immediate economic interest for existing Sachem shareholders (~5.9%). The combination of clear strategic upside and significant governance, leverage and execution risks results in a balanced view.
Positive Updates
Creation of a Scaled Industrial REIT
Definitive contribution agreement to form IRG Realty Trust, Inc. (IRGT) — a publicly listed industrial REIT designed to be a scaled, lease-driven platform combining IRG's industrial portfolio with Sachem's capital solutions business.
Negative Updates
Concentrated Economic and Voting Control by IRG
IRG is expected to own approximately 94.1% of IRGT via newly created OP units and will receive Class B voting shares that initially provide ~51% of total voting power, resulting in concentrated control and potential governance influence over IRGT.
Read all updates
Q1-2026 Updates
Negative
Creation of a Scaled Industrial REIT
Definitive contribution agreement to form IRG Realty Trust, Inc. (IRGT) — a publicly listed industrial REIT designed to be a scaled, lease-driven platform combining IRG's industrial portfolio with Sachem's capital solutions business.
Read all positive updates
Company Guidance
Management guided that the contribution will create IRG Realty Trust (IRGT) as a UPREIT comprising 98 industrial properties with an implied enterprise value of $3.4 billion (based on 3/31/2026 values), pro forma ownership of ~94.1% by IRG and ~5.9% by existing Sachem shareholders, and Sachem stand‑alone common equity valued at $2.00 per share (premium to 30‑ and 90‑day VWAP); a 20:1 reverse split is expected (implying a post‑split reference price of ≈$40 assuming $2 at close), IRG will receive noneconomic Class B voting shares giving it ~51% voting power, and closing is targeted by year‑end 2026 subject to shareholder approval and customary conditions with Scotiabank arranging new credit facilities; pro forma metrics include Sachem’s ~$470 million of assets as of 3/31/2026, IRG’s platform of >200 properties totaling ~100 million sq ft and ~20% annual growth since 2015, a top‑10 tenant concentration of ≈30% of annualized base rent, anticipated leverage ~8x with a path to sub‑6x, IRGRA to manage operations with largely tenant‑reimbursable property costs, and multiple growth levers (lease‑up, mark‑to‑market rent, acquisitions and capital solutions) to drive recurring lease‑driven cash flow and NAV growth.

Sachem Capital Financial Statement Overview

Summary
Overall financials are mixed: TTM revenue declined (-11.4%) and the company returned to a net loss (-$1.8M) after a profitable 2025, while cash generation remains positive (TTM FCF ~$3.2M) but uneven. Leverage is meaningful (debt-to-equity ~1.5x) and results have shown sensitivity to market/credit conditions.
Income Statement
42
Neutral
Balance Sheet
50
Neutral
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Mar 2024Dec 2022Mar 2022
Income Statement
Total Revenue45.65M47.06M57.50M29.97M30.62M20.00M
Gross Profit30.72M46.01M35.16M29.97M30.62M20.00M
EBITDA6.44M32.22M-11.35M266.33K106.41K83.53K
Net Income-673.00K6.31M-39.57M15.90M20.91M13.32M
Balance Sheet
Total Assets473.27M460.05M491.98M620.89M565.66M417.96M
Cash, Cash Equivalents and Short-Term Investments11.56M11.86M19.58M12.60M48.29M102.57M
Total Debt298.29M277.84M268.19M345.89M284.39M194.46M
Total Liabilities307.66M285.11M310.32M390.82M347.95M237.88M
Stockholders Equity165.61M174.94M181.65M230.08M217.71M180.08M
Cash Flow
Free Cash Flow2.82M2.50M12.81M21.86M11.57M26.98M
Operating Cash Flow3.31M2.66M12.89M21.86M13.15M27.81M
Investing Cash Flow7.10M29.35M79.91M-72.49M-159.54M-166.00M
Financing Cash Flow-23.25M-39.15M-87.33M39.52M128.16M160.72M

Sachem Capital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.80
Price Trends
50DMA
0.95
Negative
100DMA
1.00
Negative
200DMA
0.98
Negative
Market Momentum
MACD
-0.04
Negative
RSI
43.34
Neutral
STOCH
71.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SACH, the sentiment is Negative. The current price of 0.8 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.95, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SACH.

Sachem Capital Risk Analysis

Sachem Capital disclosed 87 risk factors in its most recent earnings report. Sachem Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sachem Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$47.53M9.9511.02%11.34%-12.38%-13.43%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
$170.83M11.273.78%14.13%-2.38%-35.43%
58
Neutral
$83.03M20.166.09%17.70%-7.99%
51
Neutral
$69.00M-1.33-6.46%15.04%-23.52%64.81%
49
Neutral
$39.08M-7.67-0.39%20.00%49.86%89.23%
47
Neutral
$34.60M-5.15-0.90%20.03%-28.61%-164.74%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SACH
Sachem Capital
0.83
-0.20
-19.44%
LOAN
Manhattan Bridge Capital
4.21
-0.86
-16.91%
SEVN
Seven Hills Realty Trust
7.65
-1.24
-13.94%
LFT
Lument Finance Trust
0.68
-1.32
-66.15%
CHMI
Cherry Hill Mortgage
2.30
-0.13
-5.23%
GPMT
Granite Point Mortgage
1.46
-0.83
-36.27%

Sachem Capital Corporate Events

Dividends
Sachem Capital Declares Quarterly Common and Preferred Dividends
Positive
Jun 4, 2026
On June 4, 2026, Sachem Capital Corp. announced that its board of directors declared a quarterly dividend of $0.01 per common share, payable on June 30, 2026 to shareholders of record as of June 15, 2026. The move outlines the company’s late...
Business Operations and StrategyM&A TransactionsStock Split
Sachem Capital to Transform into IRG Industrial REIT
Positive
May 18, 2026
On May 17, 2026, Sachem Capital agreed a strategic contribution deal with Industrial Realty Group Global under which IRG will contribute 98 industrial properties valued at about $2.9 billion into a new operating partnership controlled by Sachem. I...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 06, 2026