Company: SACH
Filing Date: 2025-05-16
Form Type: S-3
Source: 0001628280-25-026169
Chunk: 7

Company: Sachem Capital Corp.
Filing Date: 2025-05-16
Form: S-3
Chunk 7
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 policy limiting the amount of indebtedness we may incur, but under the terms of the loan documents related to our various credit facilities, including the indenture governing the Notes, we are required to maintain total assets exceeding 150% of our total liabilities. Depending on various factors we may, in the future, decide to take on additional debt to expand our mortgage loan origination activities to increase the potential returns to our shareholders. The amount of leverage we deploy depends on our assessment of a variety of factors, which may include the liquidity of the real estate market in which most of our collateral is located, employment rates, the cost of funds relative to the yield curve, the potential for losses and extension risk in our portfolio, the gap between the duration of our assets and liabilities, our opinion regarding the creditworthiness of our borrowers, the value of the collateral underlying our portfolio, our outlook for interest rates and property values and general economic conditions.

#### REIT Qualification
We believe that we have qualified as a REIT since the consummation of the IPO and that it is in the best interests of our shareholders that we continue to operate as a REIT. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders on an annual basis.

Even if we qualify for taxation as a REIT, we may be subject to certain U.S. federal, state, and local taxes on our income. Furthermore, we have a taxable REIT subsidiary (“TRS”), which pays U.S. federal, state, and local taxes on its net taxable income.

#### Summary Risk Factors
Investing in our Securities involves risks. Before purchasing any of our Securities, you should carefully consider the risks and uncertainties listed in this base prospectus and discussed in detail in the in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 in the sections with the heading “Risk Factors.” These risk factors may be updated in our subsequent filings with the SEC (including our subsequent quarterly reports on Form 10-Q) and the other information contained in this document, in an applicable prospectus supplement, an applicable free writing prospectus or incorporated by reference herein or therein. See “Where You Can Find More Information; Incorporation by Reference” in this base prospectus. These risks are not the only ones faced by us. Additional risks not presently known or that are currently deemed immaterial could also materially and adversely affect our financial condition, results of operations, business and prospects. In connection with the forward