Cash flow generation is deteriorating, with Affiliated Funds From Operations (AFFO) negative for four of the last five quarters (most recently -$6.4 million in 2026Q1) and operating cash flow turning negative at -$3.6 million in 2026Q2, indicating dividends are being funded by balance sheet drawdowns rather than core operations.
Sachem Capital Corp. 7.125% Not (SCCF) cash flow statement — 12-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 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | -783K | 2.66M | 12.89M | 21.86M | 13.15M | 27.81M | 9.63M | 8.12M | 6.22M | 4.84M | 3.7M | 2.38M | 1.46M |
| Operating CF Growth % | -745.15% | -79.35% | -41.02% | 66.22% | -52.71% | 188.81% | 18.63% | 30.56% | 28.31% | 31.04% | 55.59% | 62.25% | - |
| 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% | 85.27% | 93.91% |
| Net Income | -9.06M | 6.31M | -39.57M | 15.9M | 20.91M | 13.32M | 8.99M | 6.2M | 7.77M | 4.86M | 3.05M | 2.31M | 1.47M |
| Depreciation & Amortization | 1.33M | 2.2M | 372K | 266.33K | 106.41K | 83.53K | 61.87K | 63.57K | 32.53K | 28.36K | 47.68K | 0 | 0 |
| Stock-Based Compensation | 839K | 840K | 863K | 822.23K | 495.01K | 191.32K | 16.43K | 43.15K | 37.59K | 0 | 0 | 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 | 256.99K | 39.72K |
| Working Capital Changes | 539K | -4.66M | -2.19M | -4.45M | -13.77M | 12.32M | 54.73K | 626.64K | -1.77M | 0 | 510.92K | 36.9K | -45.02K |
| Cash from Investing | 30.47M | 29.35M | 79.91M | -72.49M | -159.54M | -166M | -82.82M | -37.82M | -16.84M | -28.93M | -6.94M | -13.18M | -5.15M |
| Acquisitions (Net) | 0 | 19.87M | 0 | 0 | 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 | 0 | 0 |
| Sale of Investments | 17.1M | 17.97M | 51.25M | 18.57M | 84.59M | 180.53M | 78.96M | 0 | 0 | 0 | 1.06M | 421.82K | 0 |
| Other Investing | 15.29M | 1.33M | 54.77M | -48.41M | -166.12M | -135.59M | -64.08M | -21.58M | -16.12M | -28.8M | -6.72M | -13.6M | -5.15M |
| 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 | 6.76M | 8.64M |
| Dividends Paid | -11.01M | -13.97M | -20.81M | -25.73M | -22.5M | -14.12M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M | -1.4M | -636.64K |
| Common Dividends | -7.17M | -9.5M | -16.51M | -21.93M | -18.81M | -12.27M | -7.96M | -9.68M | -6.79M | -5.8M | -3.88M | -1.4M | -636.64K |
| Debt Issuance (Net) | -1000K | -1000K | -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 | -45K | 0 |
| Other Financing | -8.29M | 0 | 7.25M | -16.07M | 18.93M | -2.34M | 25.42M | -2.79M | -755.76K | -2.69M | 4.43M | 7.16M | 4.28M |
| 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 | -4.04M | 4.95M |
| Exchange Rate Effect | 0 | 0 | 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 | 5.87M | 922.53K |
| 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 | 1.83M | 5.87M |
| 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 | 2.38M | 1.46M |
| FCF Growth % | -154.79% | -80.49% | -41.37% | 88.95% | -57.13% | 184.67% | 20.38% | 43.03% | 16.83% | 42.8% | 38.87% | 62.25% | - |
| FCF / Revenue % | -3.74% | 5.31% | 22.28% | 72.92% | 37.77% | 134.9% | 72.61% | 77.34% | 54.79% | 74.41% | 93.2% | 85.27% | 93.91% |
Quick answers to the most common questions about buying SCCF stock.
Sachem Capital Corp. 7.125% Not (SCCF) generated $2.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sachem Capital Corp. 7.125% Not (SCCF) 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. 7.125% Not (SCCF) 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. 7.125% Not (SCCF) 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
Dividend sustainability threatened by persistent losses
Metrics are mathematically derived from official filings.
Dividend Coverage Collapses into Deficit
Based on reported figures, AFFO has been negative for four of the last five quarters, most recently at negative $6.4 million in 2026Q1, indicating the dividend is being paid from sources other than core operational cash flow.
The company's AFFO, the true measure of distributable cash flow for a REIT, has turned deeply negative, falling from a modest positive $955,000 in early 2025 to a $6.4 million deficit by 2026Q1. This renders the quarterly dividend payment of $3.5 million entirely unsupported by core operations, suggesting reliance on external funding or balance sheet cash to maintain distributions. The payout ratio is undefined (negative), a clear signal of unsustainable capital return practices.
FFO Fails to Convert to Operating Cash
According to recent SEC filings, the FFO-to-OCF conversion has been erratic and often negative, with 2026Q2 showing FFO of negative $6.0 million against operating cash outflows of $3.6 million, highlighting volatile non-cash adjustments.
The relationship between FFO and GAAP operating cash flow is inconsistent, with periods like 2025Q3 showing a strong positive $4.9 million OCF against a $1.1 million FFO, while 2026Q2 shows both metrics as deeply negative. This volatility suggests significant non-cash items, such as changes in straight-line rent or realized losses, are distorting the core cash generation profile quarter-to-quarter, making the underlying operational cash trend difficult to discern.
Net Losses Reflect Core Operational Strain
As reported in financial statements, GAAP Net Income losses of $6.5 million and $6.1 million in the first two quarters of 2026 closely track the FFO losses of $6.0 million each quarter, indicating depreciation is no longer masking the fundamental operational deficit.
Typically for a REIT, significant depreciation creates a large wedge between Net Income and FFO. However, for SCCF, the recent parity between these metrics implies that non-cash charges beyond depreciation are a major driver of the losses, or that the asset base is generating minimal positive cash flow. This reinforces the view that the business is experiencing core operational stress, not merely an accounting phenomenon.
Negative OCF Signals Collection Weakness
Based on recent SEC filings, negative operating cash flow of $3.6 million in 2026Q2, following a negative $3.0 million in 2025Q4, suggests persistent challenges in converting reported revenues into collected cash, potentially from tenant defaults or straight-line reversals.
The shift to sustained negative operating cash flow in recent quarters is alarming for a lending-focused REIT, as it indicates cash is not being collected from borrowers or tenants in line with accrual accounting. This could stem from non-accrual loans, delayed interest payments, or the reversal of previously recognized straight-line income, all of which would severely undermine the quality of the revenue stream.
Dividends Funded by Balance Sheet Drawdown
The company has paid approximately $40 million in dividends over the last ten quarters while generating cumulative negative AFFO, indicating a sustained dependency on external capital or prior cash reserves to fund shareholder distributions.
With distributable cash flow consistently negative, the continued payment of dividends necessitates drawing down existing cash balances or accessing capital markets. This practice is inherently depleting and unsustainable, as it erodes the balance sheet without operational support. Investors should monitor liquidity metrics and any upcoming debt maturities closely, as the financing need for the dividend could become acute.
What Could Invalidate the Base Case
The dramatic swing from a $36.1 million FFO loss in 2024Q4 to profitability in subsequent quarters, followed by another downturn, suggests operational results may be heavily influenced by one-time events like loan modifications or asset sales, not sustainable trends.
The base case of persistent operational stress could be invalidated if the volatility is driven by episodic, non-recurring items. For instance, the large 2024Q4 loss might reflect a single large impairment or write-down, while the 2025 recovery could stem from realized gains on dispositions. Without detailed segment data, it is impossible to assess the core recurring earnings power, meaning the true trajectory could be significantly better—or worse—than the erratic headline numbers suggest.