Sachem Capital to Form $3.4B Industrial REIT with IRG Merger
Sachem Capital reported Q1 net interest income of $3.6M and a $5.4M provision, including a $3.9M non-cash charge from a Florida condo restructuring. It will merge with Industrial Realty Group, adding 98 assets valued at $2.9B to form a $3.4B industrial REIT.
1. Q1 Financial Results
In the quarter ended March 31, 2026, Sachem Capital generated net interest income of $3.6 million on $270.9 million average performing loans held for investment, achieving a 13.5% effective loan yield and a 3.9% net interest margin. Provision for credit losses rose to $5.4 million, driven by lower collateral valuations and a $3.9 million non-cash charge tied to the Florida condo loan restructuring, while operating expenses increased to $5.7 million due to strategic staffing and one-time costs.
2. Merger with Industrial Realty Group
Post-quarter, Sachem entered a definitive contribution agreement with Industrial Realty Group to combine 98 industrial properties worth $2.9 billion with Sachem’s $470 million loan and real estate portfolio. The combined IRG Realty Trust will have an implied enterprise value of $3.4 billion, positioning it among the top-10 listed industrial REITs and providing scale, diversification and multiple growth pathways.