Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 58

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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ization 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(1,559)Loans origination from sale of real estate owned(840)Gain on sale of real estate owned131 Balance at end of period$18,626 As of June 30, 2025, REO included $0.8 million of real estate held for rental and $17.8 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 six months ended June 30, 2025, the Company sold six properties held for sale and recognized a gain on sale of $0.1 million. During the six months ended June 30, 2024, the Company sold eleven property held for sale and recognized a gain on sale of $0.3 million. Such sales are included in gain on sale of real estate owned and property and equipment, net on the Company’s Condensed Consolidated Statements of Operations.

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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

Properties Held for RentalAs of June 30, 2025 and December 31, 2024, one