Sachem Capital Strengthens Naples Florida Real Estate Position Through Strategic Asset Restructuring

Sachem Capital Corp., a mortgage REIT listed on NYSE American under ticker SACH, has orchestrated a significant transformation of its Naples Florida real estate operations through a series of strategic moves completed in early 2026. The initiative marks a pivotal shift in the company’s approach to managing its legacy Naples Florida exposure, transitioning from a traditional lending posture to active development and asset management. Combined with asset sales and extended credit facilities, these moves are positioning the company to enhance shareholder value through disciplined capital deployment.

Westport Connecticut Office Asset Delivers Capital and Balance Sheet Relief

In December 2025, Sachem Capital successfully divested its Westport, Connecticut office property, generating $19.9 million in net cash proceeds and realizing approximately $4.0 million in book gains. The sale closed on December 31, 2025, providing immediate liquidity benefits and enhanced balance sheet flexibility. This transaction, executed through Urbane Capital—the company’s proprietary real estate development and asset management division—demonstrates the effectiveness of the company’s strategy to optimize its property portfolio and redeploy capital toward higher-return initiatives. The proceeds were strategically allocated to strengthen financial position and support future portfolio optimization efforts.

Naples Florida Real Estate Repositioning: From Mortgage Holder to Active Developer

The most significant strategic development involves Sachem Capital’s February 5, 2026 acquisition of 100% membership interests in entities holding Naples Florida condominium assets previously secured by mortgage liens. Through a noncash exchange transaction valued at approximately $39.9 million in net book value, the company transformed its role from senior secured lender to direct owner and active manager of these Naples Florida real estate assets. This pivot consolidates the company’s capital structure and clarifies execution responsibility across its Naples Florida investments.

The acquired Naples Florida portfolio encompasses three completed residential units positioned for immediate remarketing and sales, plus an entitled southern parcel approved for development of four additional condominium units. The company projects construction and marketing activities will occur over the next 18 to 24 months, subject to prevailing market conditions. Urbane Capital has assumed full operational responsibility for development, marketing, and monetization across these Naples Florida real estate assets, leveraging the subsidiary’s track record in active property management.

Complementing this position, Sachem Capital retained a $12.3 million first mortgage securing a separate waterfront development parcel in Naples Florida. The company maintains its role as senior secured lender on this asset without assuming development responsibilities, allowing continued monitoring of principal protection and value maximization while diversifying its Naples Florida exposure across both equity and debt positions.

Management views this restructuring as strategically advantageous, as it simplifies an otherwise complex capital structure, enhances operational clarity, and positions the company to actively manage, develop, and ultimately monetize the assets it directly controls within its Naples Florida portfolio over an extended timeframe.

Liquidity Enhancement Through Extended Credit Facility

Subsequent to year-end, on January 21, 2026, Sachem Capital secured an extended credit facility with Needham Bank, extending its $50.0 million revolving credit facility maturity from March 2, 2026 to March 2, 2028. The amended agreement includes an optional one-year extension to March 2, 2029, subject to lender consent and standard conditions. All other material terms remain unchanged. This extension significantly enhances the company’s liquidity profile and provides substantial balance sheet flexibility as it continues managing its portfolio and executing its capital allocation strategy.

Financial Performance and Book Value Trends

Preliminary results for the year ended December 31, 2025 indicate net income attributable to common shareholders in the range of $0.01 to $0.04 per share, a substantial improvement from the $0.93 per share net loss reported for 2024. This inflection reflects the company’s progress on portfolio optimization initiatives throughout 2025.

Book value per common share for 2025 is expected to range between $2.43 and $2.46, compared to $2.64 as of December 31, 2024. The decrease reflects cash dividends paid to common and Series A Preferred stockholders that exceeded net income for the year. This dividend policy maintains shareholder distributions while the company executes longer-term value-creation strategies.

Strategic Implications for the Real Estate Investment Framework

These developments reflect Sachem Capital’s disciplined approach to real estate portfolio management. By consolidating its Naples Florida real estate interests under active Urbane Capital management, the company positions itself to capture development upside while maintaining secured lending exposure to complementary assets. The combination of asset sales generating liquidity, extended credit facility capacity, and Naples Florida real estate restructuring provides a robust platform for continued capital-efficient deployment and shareholder value creation.

Chief Executive Officer John Villano emphasized this strategic direction: the company closed 2025 with meaningful progress on portfolio initiatives, and these early 2026 actions further strengthen both liquidity position and the foundation for long-term shareholder returns through prudent capital allocation.