Company: SACH
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001682220-25-000070
Chunk: 59

Company: Sachem Capital Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 in investment in developmental real estate that was subject to an in place lease during 2023.  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 September 30, 2025 and December 31, 2024, real estate owned, net totaled $18.9 million and $18.6 million, respectively. During the nine months ended September 30, 2025, the Company recorded an impairment loss on real estate owned of $0.2 million 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 activity during the nine months ended September 30, 2025:(in thousands)Real estate owned at December 31, 2024$18,574 Principal basis transferred to real estate owned17,185 Investment in real estate owned235 Charge-offs on principal transferred(8,344)Proceeds from sale of real estate owned(3,282)Real estate owned transferred to investment in developmental real estate(4,250)Loans origination from sale of real estate owned(840)Impairment of real estate owned(185)Loss on sale of real estate owned(181)Real estate owned at September 30, 2025$18,912 As of September 30, 2025, REO included $0.8 million of real estate held for rental and $18.1 million of real estate held for sale. As of December 31, 2024, REO included $0.8 million of real estate held for rental and $17.8 million of real estate held for sale.Properties Held for SaleDuring the nine months ended September 30, 2025, the Company sold ten properties held for sale and recognized a loss on sale of $0.2 million. In addition, the Company transferred two properties held for sale to investments in developmental real estate carried at an aggregate value of $4.3 million. During the nine months ended September 30