Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 27

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 six months ended June 30, 2024. Additionally, the Company leases space to a tenant under an operating lease. The lease provides for the payment of fixed base rent payable monthly in advance and periodic step-ups in rent over the term of the lease and a pass through to tenants their share of increases in real estate taxes and operating expenses over a base year. The lease also provides for free rent and a tenant improvement allowance of $2.7 million. The lease commenced February 2025 with a cash rent abatement period of 425 days.

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Table of ContentsSACHEM CAPITAL CORP.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

As of June 30, 2025, future minimum rents under non-cancelable operating leases were as follows:Years Ending December 31,Amount(in thousands)2025 (remaining six months)$— 2026936 20271,267 20281,292 20291,318 Thereafter8,852 Total$13,665 The Company acquired one property in investment in developmental real estate that was subject to an in place lease.  In the purchase price allocation, the Company recorded an acquired below market lease intangible of $0.7 million.  The estimated annual amortization of the below market lease intangible is $0.1 million per year.

6.    Real Estate Owned (“REO”)

Property acquired through foreclosure are included on the Condensed Consolidated Balance Sheets as real estate owned and further categorized as held for sale or held for rental, described in detail below.As of June 30, 2025 and December 31, 2024, real estate owned, net totaled $18.6 million. During the six months ended June 30, 2025, the Company’s real estate owned portfolio recorded no impairment loss compared to an impairment loss of $0.5 million for the year ended December 31, 2024, which is considered a Level 3 non-recurring fair market value adjustment.The following table presents the Company’s REO as of June 30, 2025:June 30, 2025(in thousands)Real estate owned at December 31, 2024$18,574 Principal basis transferred to real estate owned6,298 Charge-off’s on principal transferred(3,978)Proceeds from sale of real estate owned(1