Overview

• U.S. mortgage REIT reported Q1 net loss, driven by loan restructuring and transaction expenses

• Company's book value per share declined, reflecting net loss and dividend payments

• Previously announced combination with Industrial Realty Group to create top-10 industrial REIT

Outlook

• Company expects combination with IRG to add significant industrial property lease-driven revenue

• Sachem expects combination to provide scale and diversification for long-term growth

• Company intends to continue qualifying and operating as a REIT, distributing at least 90% of taxable income

Result Drivers

• LOAN RESTRUCTURING CHARGE - Co incurred $3.9 mln non-cash charge tied to Naples, Florida loan restructuring, impacting provision for credit losses

• TRANSACTION EXPENSES - $1.6 mln in expenses related to IRG combination contributed to net loss

• HIGHER OPERATING COSTS - Compensation, administrative, and developmental real estate expenses increased, reflecting portfolio scale and complexity

Company press release: ID:nGNX3BGWYh

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		-$0.15
Q1 Net Income		-$7.20 mln	$652,000 (1 Analyst)

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Sachem Capital Corp is $1.23, about 2.1% above its May 19 closing price of $1.20

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