Cash flow generation is critically impaired, with AFFO of $1.4 million in Q4 2025 covering only 43% of the $3.5 million in dividends paid, highlighting reliance on external funding and a payout ratio that appears unsustainable.
Sachem Capital Corp. 6.00% Note (SCCE) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | -783K | 2.66M | 12.89M | 21.86B | 13.15B | 27.81B | 9.63B | 8.12B |
| Operating CF Growth % | -745.15% | -79.35% | -99.94% | 66.22% | -52.71% | 188.81% | 18.63% | - |
| Operating CF / Revenue % | 3.52% | - | -0.61% | 72.92% | 42.94% | 139.01% | 73.75% | 79.71% |
| Net Income | -12.41M | 6.31M | -39.57M | 15.9B | 20.91B | 13.32B | 8.99B | 6.2B |
| Depreciation & Amortization | 1.68M | 2.2M | 2.46M | 2.68B | 2.21B | 1.37B | 663.82M | 786.15M |
| Stock-Based Compensation | 839K | 840K | 863K | 822.23M | 495.01M | 191.32M | 16.43M | 43.15M |
| Other Non-Cash Items | 6.49M | -6.69M | 3.28B | 7.57B | 3.94B | 3.43B | 914.58M | 371.61M |
| Working Capital Changes | -1.86M | 0 | -3.23B | -5.12B | -14.41B | 9.49B | -960.88M | 719.04M |
| Cash from Investing | 30.47M | 29.35M | 79.91M | -72.49B | -159.54B | -166B | -82.82B | -37.82B |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | -7.77M | -42.65B | 0 | 0 | 0 | 0 |
| Sale of Investments | 18.01M | 17.97M | 43.89M | 18.12B | 0 | 0 | 0 | 0 |
| Other Investing | 12.58M | 11.55M | 43.87M | -47.96B | -157.96B | -165.17B | -82.67B | -37.58B |
| Cash from Financing | -23.34M | -39.15M | -87.33M | 39.52B | 128.16B | 160.72B | 73.76B | 48.38B |
| Dividends Paid | -8.77M | -9.5M | -16.51M | -25.73B | -22.5B | -14.12B | -7.96B | -9.68B |
| Common Dividends | -2.39M | 0 | -16.51M | -25.73B | -22.5B | -14.12B | -7.96B | -9.68B |
| Debt Issuance (Net) | 0 | 0 | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | -1.49B | -226.33M | 0 | 0 | 0 | 0 |
| Other Financing | -14.57M | -29.65M | 52.41B | 81.22B | 5.11B | 99.18B | 25.42B | -664.92M |
| Net Change in Cash | 6.34M | -7.14M | 5.47M | -11.11B | -18.23B | 22.53B | 566.09M | 18.68B |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 11.56M | 18.07M | 12.6M | 23.71B | 41.94B | 19.41B | 18.84B | 158.86M |
| Cash at End | 28.82M | 10.92M | 18.07M | 12.6B | 23.71B | 41.94B | 19.41B | 18.84B |
| Free Cash Flow | -902K | 2.5M | 12.81M | 22.37B | 11.57B | 26.98B | 9.48B | 7.87B |
| FCF Growth % | -138.63% | -80.49% | -99.94% | 93.4% | -57.13% | 184.67% | 20.38% | - |
| FCF / Revenue % | 4.06% | - | -0.61% | 74.64% | 37.77% | 134.9% | 72.61% | 77.34% |
Quick answers to the most common questions about buying SCCE stock.
Sachem Capital Corp. 6.00% Note (SCCE) 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% Note (SCCE) 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% Note (SCCE) spent $0.2M 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% Note (SCCE) returned $9.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Operational cash flow collapse
Metrics are mathematically derived from official filings.
Dividend Coverage Deterioration
As reported in recent filings, AFFO of $1.4M in Q4 2025 against dividends paid of $3.5M yields a 2.34x payout ratio, indicating distributions far exceed operating cash generation and appear unsustainable without external capital infusions.
The company's ability to fund its dividend from core operations has deteriorated significantly. The Q4 2025 payout ratio of 2.34x, where dividends paid were more than double the AFFO, signals that Sachem is distributing capital rather than earnings. This pattern suggests the dividend is being supported by cash reserves or financing activities rather than being funded by sustainable, recurring cash flows from its lending portfolio.
FFO Cash Conversion Instability
FFO relative to GAAP operating cash flow has been highly inconsistent, with FFO of -$6.7M versus OCF of $835K in Q1 2026, creating a -0.12 ratio that points to significant non-cash adjustments distorting the relationship between reported earnings and actual cash movements.
The relationship between FFO and operating cash flow is erratic, which undermines confidence in the quality of reported earnings. In Q1 2026, FFO was deeply negative while OCF was modestly positive, a disconnect that may indicate large non-cash charges, such as impairment or loss provisions, are flowing through the income statement but not the cash statement. This instability makes it challenging to assess the underlying cash generation of the business.
Depreciation Add-Back Anomaly
In Q4 2024, FFO and Net Income were both reported at -$36.1B, indicating a near-zero depreciation add-back, a highly unusual condition for a REIT that suggests the asset base may have been substantially written down or the accounting is inconsistent with prior periods.
The standard REIT accounting practice of adding back depreciation to derive FFO appears to break down in the 2024 data. The absence of a positive gap between FFO and Net Income, which is typically substantial for real estate firms, raises questions about asset values and depreciation practices. This could imply significant asset impairments or a fundamental shift in the company's balance sheet composition that warrants further investigation into the footnotes.
Dividend Reliance on External Capital
With negative FFO in both Q1 and Q2 2026 and dividend payments of $2.88M over the same period, the company's distributions appear to be funded by drawdowns on cash reserves or external financing rather than sustainable operating cash flow.
The cash flow data suggests a clear dependency on external funding to sustain shareholder payouts. Negative FFO in the most recent quarters indicates core operations are not generating sufficient cash to cover dividends, implying the company is accessing its balance sheet or capital markets to make payments. This pattern is a classic warning sign for REITs, as it can lead to dilution or increased leverage without a clear path to restoring self-funded distributions.
Potential Cash Flow Statement Omissions
The significant volatility in operating cash flow, from $7.0M in Q2 2024 to -$3.6M in Q2 2026, may mask underlying portfolio issues such as capitalized costs, off-balance-sheet joint venture obligations, or deferred maintenance that reduce the economic sustainability of reported cash movements.
While the cash flow statement shows operational volatility, it may not fully capture certain economic realities. Investors should monitor whether changes in working capital, particularly tenant receivables and deferred income, are artificially inflating or deflating reported OCF in any given quarter. Furthermore, any capitalized leasing or maintenance costs, if present, would reduce the true free cash flow available to the company beyond what is shown in the basic OCF to FCF reconciliation.