Sachem Capital Corp. (SACH): Marketing Mix Analysis [Dec-2025 Updated]

You're looking past the REIT structure to see the nuts and bolts of how this specialized lender operates, and honestly, their marketing mix is pure, focused finance. For this firm, the four P's aren't about selling widgets; they're about managing risk in high-yield, short-term real estate debt. We'll break down how their core Product-secured, hard money loans-is priced aggressively, hitting a weighted average contractual rate of nearly 13.21% as of September 30, 2025, while their Place remains concentrated on the Eastern Seaboard. Stick with me as we map out their investor-centric Promotion and see if this strategy holds up.

Sachem Capital Corp. (SACH) - Marketing Mix: Product

Sachem Capital Corp. offers short-term, secured, non-banking 'hard money' loans to real estate investors. These loans are typically for terms ranging from 12 to 36 months.

The core offering is financing secured by first mortgages on real property. Every loan is secured by a first mortgage lien on real estate and is usually personally guaranteed by the borrower's principal(s).

The Company's primary underwriting criteria is a conservative loan to value ratio.

The product suite is designed to fund the acquisition, renovation, development, rehabilitation, or improvement of properties. Specific product categories align with these needs, including financing for projects such as Fix and Flip, New Construction, and Distressed Acquisition.

For the six months ended June 30, 2025, Sachem Capital Corp. disbursed loans totaling $80,952 thousand. The net carrying value of the loan portfolio, after an allowance for credit losses of $17,600 thousand, stood at $364,500 thousand as of June 30, 2025.

Sachem Capital Corp. diversifies its income stream through investments in Limited Liability Companies (LLCs), such as Shem Creek Capital, which focuses on multifamily finance. As of June 30, 2025, the total investments in LLCs carried a value of $48,710 thousand.

The income generated from the Shem LLC investments for the three months ended June 30, 2025, was $1.0 million, and for the six months ended June 30, 2025, it was $3.0 million. The Company had unfunded commitments totaling $2.4 million to the Shem LLC entities at June 30, 2025.

The following table details the carrying value of specific LLC investments as of June 30, 2025:

The product structure also includes the following characteristics:

• Loans are secured by first mortgages on real property.
• Terms are typically 12 to 36 months for real estate investors.
• Financing products cover needs like Fix and Flip, New Construction, and Distressed Acquisition.
• Diversified income is generated via LLC investments, including Shem Creek Capital in multifamily finance.

Book value per common share as of September 30, 2025, was $2.47.

Sachem Capital Corp. (SACH) - Marketing Mix: Place

Geographic focus primarily on the Eastern Seaboard of the United States.

Sachem Capital Corp. offers short-term loans secured by first mortgage liens on real property located primarily on the Eastern Seaboard of the United States. The company was historically concentrated in Connecticut and surrounding states. The distribution of the mortgage loan portfolio, based on a prior reporting period, illustrates this focus:

The average performing loans held for investment balance for the three months ended September 30, 2025, was $268.1 million.

Corporate headquarters located in Branford, Connecticut.

The corporate headquarters address for Sachem Capital Corp. is 568 East Main Street, Branford, Connecticut 06405, United States.

Direct-to-borrower model for loan origination and servicing.

Sachem Capital Corp. engages in the originating, underwriting, funding, servicing, and managing of its loan portfolio directly. The company relies on relationships with existing and former borrowers, real estate investors, banks, real estate brokers, mortgage brokers, attorneys, and web-based advertising to originate loans. The company does not lend to owner-occupants.

• Loan term typically ranges from 12 to 36 months.
• The company utilizes a vertically integrated loan origination platform.
• The effective interest rate on loans held for investment for the three months ended September 30, 2025, was 12.4%.

Significant exposure in Southwest Florida (Naples) with $50.4 million in nonperforming loans as of Q3 2025.

As of the third quarter of 2025, Sachem Capital Corp. has a significant asset with a loan balance of $50.4 million associated with a property in Naples, which is being addressed through mediation.

Financial context as of September 30, 2025:

• Total revenue for Q3 2025 was $12.0 million.
• Total indebtedness at quarter end was $298.8 million.
• Book value per common share as of September 30, 2025, was $2.47.

Sachem Capital Corp. (SACH) - Marketing Mix: Promotion

You're looking at how Sachem Capital Corp. communicates its value proposition to the market, especially to the income-focused investor base that REITs target. This promotion centers heavily on investor relations and the consistency of shareholder returns, backed by specific balance sheet actions.

Investor Relations focus is a primary promotional channel for Sachem Capital Corp. The company held its Q3 2025 earnings conference call on November 5, 2025, at 8:00 a.m. Eastern Time. You could join the call by dialing 1-877-704-4453 (domestic) or 1-201-389-0920 (international). The press release detailing the operating and financial results for the quarter ended September 30, 2025, was made available before market open that day. The webcast archive is available on the company's website, www.sachemcapitalcorp.com. This regular cadence of calls keeps the investment community informed.

Sachem Capital Corp. markets itself as a Real Estate Investment Trust (REIT) to attract income investors. The company confirms it currently operates and qualifies as a REIT for federal income taxes and intends to maintain this status, which generally requires distributing a minimum of 90% of taxable income each year to shareholders. This structure is key to attracting investors seeking regular income distributions.

The commitment to shareholder returns is promoted through consistent dividend declarations. The Board declared a quarterly common stock dividend of $0.05 per share for Q4 2025, payable on December 30, 2025, to shareholders of record as of the close of trading on December 15, 2025. This follows the $0.05 per share common dividend paid on September 30, 2025, for shareholders of record on September 15, 2025. For the nine months ended September 30, 2025, cash dividends declared and paid on common shares totaled $0.15 per common share.

Strategic messaging during these promotional events emphasizes specific financial management actions. Key phrases used by management include 'disciplined portfolio management' and 'strengthening liquidity.' These messages are supported by concrete actions taken during the quarter, such as the successful completion of a $100 million senior secured notes private placement. A portion of those proceeds was used to repay $56.3 million of unsecured subordinated notes, which management stated enhanced financial flexibility.

Here's a look at some of the latest reported financial figures that underpin the promotional narrative:

The promotion also addresses the current portfolio challenges directly, framing them as manageable risks being actively addressed. The company highlighted its focus on working through legacy assets, specifically mentioning nonperforming loans that continue to weigh on monthly earnings by roughly $450,000. The company's commitment to its REIT structure is a core part of its ongoing communication strategy, as demonstrated by the following:

• Operates and qualifies as a Real Estate Investment Trust (REIT).
• Intends to comply with the minimum 90% taxable income distribution rule.
• Common dividend of $0.05 per share declared for Q4 2025.
• CEO John Villano emphasized capital preservation.
• Focus on capitalizing on high-quality lending opportunities into 2026.

The messaging is designed to assure current and prospective income investors that Sachem Capital Corp. is actively managing its balance sheet to support future distributions, even while navigating a challenging environment. The contrast between the recent revenue of $12.0 million for Q3 2025 and the $14.8 million for Q3 2024 is explained by lower origination volume and nonperforming loans, but the focus shifts to the steps taken to strengthen the base for future performance.

Sachem Capital Corp. (SACH) - Marketing Mix: Price

When you look at Sachem Capital Corp.'s pricing structure, you're really looking at the interest rates and fees they charge on their real estate loans. This is the core of how they generate revenue from their product. For the period ending September 30, 2025, the weighted average contractual interest rate across the portfolio, which includes the impact of non-accruals, stood at 13.21%.

However, for the loans that were actively performing during the third quarter of 2025, the effective interest rate Sachem Capital realized was 12.4%. This rate is calculated based on the average performing loans held for investment balance for the quarter, which was $268.1 million. To be fair, that effective rate reflects the current mix of assets on the books, which included an elevated amount of nonperforming loans during the period.

Beyond the recurring interest income, origination pricing is a significant component. In Q3 2025, loan fees generated $2.0 million, which was a key part of the total revenue picture. The total revenue for that quarter was $12.0 million. The pricing strategy, therefore, relies on both the contractual interest charged and the upfront fees collected when originating new loans. If you're looking at the scale of the assets generating this revenue, the total gross principal balance of first lien loans on the books as of Q3 2025 was $375.2 million.

Here's a quick look at the key figures that define the pricing realization and portfolio size as of the end of Q3 2025:

The structure of the revenue stream shows how the pricing translates into cash flow. You can see the breakdown of the total revenue for the third quarter:

• Interest income on loans: $8.3 million
• Loan fees: $2.0 million
• LLC investments income: $1.1 million
• Other investment and other income: $0.6 million (combined)

Also, consider the book value context, as this relates to the perceived value of the equity supporting these priced assets. The book value per common share as of September 30, 2025, was $2.47. This is important because it gives you a baseline for the equity cushion supporting the loan portfolio that is priced at these interest rates. Finance: review the impact of the 12.4% effective rate versus the 13.21% contractual rate on Q4 projections by next Tuesday.