Company: SACH
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001682220-25-000070
Chunk: 27

Company: Sachem Capital Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 30, 2024.For the nine months ended September 30, 2025 and 2024, depreciation and amortization expense related to developmental real estate was $0.1 million and $0.1 million, respectively, which is presented in other expenses on the Company’s Condensed Consolidated Statements of Operations. Tenant improvements and other intangibles associated with the tenant began amortizing upon commencement of the lease that occurred in February 2025. Amortization related to tenant improvements and intangibles was $71,000 for the nine months ended September 30, 2025 compared to no such amortization for the nine months ended September 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 NINE MONTHS ENDED SEPTEMBER 30, 2025

As of September 30, 2025, future minimum rents under non-cancelable operating leases were as follows:Years Ending December 31,Amount(in thousands)2025 (remaining three 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 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.