Cash flow generation is severely impaired, with AFFO negative at -$6.4 million in Q1 2026, which suggests the company's quarterly dividend of $3.5 million is being funded from external capital rather than core operations.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -783K | 2.66M | 12.89M | 21.86M | 13.15M | 27.81M | 9.63M | 8.12M | 6.22M | 4.84M | 3.7M |
| Operating CF Growth % | -745.15% | -79.35% | -41.02% | 66.22% | -52.71% | 188.81% | 18.63% | 30.56% | 28.31% | 31.04% | - |
| Operating CF / Revenue % | -2.31% | 5.66% | 22.42% | 72.92% | 42.94% | 139.01% | 73.75% | 79.71% | 61.87% | 76.5% | 104.43% |
| Net Income | -9.06M | 6.31M | -39.57M | 15.9M | 20.91M | 13.32M | 8.99M | 6.2M | 7.77M | 4.86M | 3.05M |
| Depreciation & Amortization | 1.33M | 2.2M | 372K | 266.33K | 106.41K | 83.53K | 61.87K | 63.57K | 32.53K | 28.36K | 47.68K |
| Stock-Based Compensation | 839K | 840K | 863K | 822.23K | 495.01K | 191.32K | 16.43K | 43.15K | 37.59K | 0 | 0 |
| Other Non-Cash Items | 4.45M | -2.03M | 53.41M | 9.32M | 5.41M | 1.89M | 500.92K | 1.19M | 141.56K | -44.49K | 87.97K |
| Working Capital Changes | 539K | -4.66M | -2.19M | -4.45M | -13.77M | 12.32M | 54.73K | 626.64K | -1.77M | 0 | 510.92K |
| Cash from Investing | 30.47M | 29.35M | 79.91M | -72.49M | -159.54M | -166M | -82.82M | -37.82M | -16.84M | -28.93M | -6.94M |
| Acquisitions (Net) | 0 | 19.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -1.44M | -6.45M | -26.04M | -42.65M | -76.43M | -210.12M | -97.56M | -16M | 0 | 0 | -886.01K |
| Sale of Investments | 17.1M | 17.97M | 51.25M | 18.57M | 84.59M | 180.53M | 78.96M | 0 | 0 | 0 | 1.06M |
| Other Investing | 15.29M | 1.33M | 54.77M | -48.41M | -166.12M | -135.59M | -64.08M | -21.58M | -16.12M | -28.8M | -6.72M |
| Cash from Financing | -23.34M | -39.15M | -87.33M | 39.52M | 128.16M | 160.72M | 73.76M | 48.38M | 9.82M | 23.48M | 2.97M |
| Dividends Paid | -11.01M | -13.97M | -20.81M | -25.73M | -22.5M | -14.12M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M |
| Common Dividends | -7.17M | -9.5M | -16.51M | -21.93M | -18.81M | -12.27M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M |
| Debt Issuance (Net) | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | -1.49M | -226.33K | 0 | 0 | 0 | 0 | 0 | 0 | -580.89K |
| Other Financing | -8.29M | 0 | 7.25M | -16.07M | 18.93M | -2.34M | 25.42M | -2.79M | -755.76K | -2.69M | 4.43M |
| Net Change in Cash | 6.34M | -7.14M | 5.47M | -11.11M | -18.23M | 22.53M | 566.09K | 18.68M | -795.36K | -607.64K | -272.22K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 11.56M | 18.07M | 12.6M | 23.71M | 41.94M | 19.41M | 18.84M | 158.86K | 954.22K | 1.56M | 1.83M |
| Cash at End | 28.82M | 10.92M | 18.07M | 12.6M | 23.71M | 41.94M | 19.41M | 18.84M | 158.86K | 954.22K | 1.56M |
| Free Cash Flow | -1.26M | 2.5M | 12.81M | 21.86M | 11.57M | 26.98M | 9.48M | 7.87M | 5.51M | 4.71M | 3.3M |
| FCF Growth % | -154.79% | -80.49% | -41.37% | 88.95% | -57.13% | 184.67% | 20.38% | 43.03% | 16.83% | 42.8% | - |
| FCF / Revenue % | -3.74% | 5.31% | 22.28% | 72.92% | 37.77% | 134.9% | 72.61% | 77.34% | 54.79% | 74.41% | 93.2% |
Quick answers to the most common questions about buying SCCD stock.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) generated $2.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) generated $2.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) spent $3.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sachem Capital Corp. 6.00% Notes Due 2026 (SCCD) returned $14.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Sustained negative AFFO and dividend funding
Metrics are mathematically derived from official filings.
Dividend Payout Relies on External Funding
Sachem's dividend appears unsustainable, with AFFO negative in recent quarters, including a -$6.4 million loss in Q1 2026, forcing the company to fund the $3.5 million quarterly payout from sources other than core operations.
The persistent negative AFFO and the suspension of the Div/AFFO ratio in 2026Q1 suggest the dividend is not covered by operating cash flows and is likely being funded through debt or equity issuance. This pattern is unsustainable over the long term, as it depletes capital reserves and increases leverage without corresponding cash generation from the portfolio.
FFO Severely Distorts Operating Cash Flow
A massive divergence exists between GAAP operating cash flow and FFO, notably in 2026Q1 where OCF was positive $835,000 while FFO was negative $6.0 million, indicating severe non-cash charge distortions in core earnings.
This disconnect implies that the standard FFO calculation for a mortgage REIT is failing to capture the true cash dynamics of the portfolio, possibly due to large realized losses or non-cash impairments. For analysts, this means GAAP OCF and FFO are both unreliable as standalone cash flow proxies, requiring a deeper examination of the underlying asset performance and non-cash adjustments.
Depreciation Volatility Obscures Earnings
The FFO-to-Net-Income ratio exhibits extreme swings, from 4.95 in 2025Q3 to -0.14 in 2026Q1, demonstrating that depreciation and amortization adjustments are the dominant factor in reported earnings, not operational performance.
This volatility suggests that the company's asset base is subject to large, irregular depreciation charges that completely overwhelm the underlying net income figure. Consequently, Net Income is an almost meaningless metric for evaluating Sachem's performance, and the focus must shift entirely to the stability and trajectory of FFO and its components.
Hidden Portfolio Risks and Funding Gaps
The cash flow statement may mask risks like capitalized interest on non-accrual loans and funding gaps, as the dividend payout continues despite negative AFFO, suggesting reliance on volatile external capital markets.
For a mortgage REIT like Sachem, the FFO and AFFO metrics may not fully capture the economic reality of loan workouts, interest capitalization on delinquent assets, or the full cost of maintaining the loan portfolio. The continued dividend payment while burning cash implies a potential future need for dilutive equity offerings or asset sales, which could further impair shareholder value if market conditions deteriorate.