Terms

Series

7.75% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.75%

Rate Type

Fixed

Annual Dividend

$1.94

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

June 29, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Issuer, Indebtedness And Liabilities Of Subsidiaries, Any Senior Preferred Equity, Secured And Unsecured Notes (June 2024 Notes, December 2024 Notes, 2025 Notes), Wells Fargo Margin Loan; Pari Passu With: Any Future Parity Preferred Equity Securities; Senior To: Common Shares, All Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

1,700,000

Prospectus Summary

Sachem Capital Corp. (NYSE American: SACH), a Connecticut-based REIT specializing in short-term first-mortgage real estate loans, is offering 1,700,000 shares of its 7.75% Series A Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference. Dividends are paid quarterly in arrears on March 30, June 30, September 30, and December 30 at a fixed annual rate of $1.9375 per share (7.75% of par). The preferred is cumulative, meaning any unpaid dividends accrue and must be paid in full before any distributions can be made to common shareholders — missed payments do not permanently extinguish the obligation. The stock has no stated maturity and is optionally redeemable by the issuer at $25.00 on or after June 29, 2026. The Series A Preferred Stock sits above common equity but below all of Sachem Capital's existing and future indebtedness in the capital stack. As of March 31, 2021, the company carried approximately $142.7 million in debt, including ~$114.5 million in three series of unsecured, unsubordinated five-year notes (yielding 7.125%–7.75%) and ~$28.2 million on a Wells Fargo margin loan — all of which rank effectively senior to this preferred. There is no bank regulatory capital trigger; however, the issuer may redeem the preferred before June 29, 2026 solely to preserve REIT tax qualification. Upon a Change of Control where common stock is also delisted, holders gain the right to convert into common shares (capped at 25 shares per preferred share), subject to the issuer's prior redemption right. At the $25.00 public offering price, the effective yield is 7.75% per annum ($1.9375 annually, ~$0.484375 per quarter). As REIT distributions, these dividends do not qualify for the reduced 15%/20% qualified dividend income (QDI) rate for individual investors, nor for the corporate dividends-received deduction (DRD); however, individual U.S. holders may be eligible for a 20% pass-through deduction under Section 199A through 2025. Record dates fall on the 15th of March, June, September, and December. If Sachem fails to pay dividends for six or more quarterly periods, preferred holders may elect two additional board directors, though dividends on junior securities (including common) are blocked while preferred arrears remain outstanding.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Sachem Capital fails to pay dividends on the Series A Preferred Stock for six or more quarterly periods, holders gain the right to elect two additional directors; common dividends and repurchases on junior securities are blocked while preferred dividends are in arrears.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 53 (Average)