<SEC-DOCUMENT>0001104659-21-078829.txt : 20210609
<SEC-HEADER>0001104659-21-078829.hdr.sgml : 20210609
<ACCEPTANCE-DATETIME>20210609164920
ACCESSION NUMBER:		0001104659-21-078829
CONFORMED SUBMISSION TYPE:	S-3
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20210609
DATE AS OF CHANGE:		20210609

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Sachem Capital Corp.
		CENTRAL INDEX KEY:			0001682220
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				813467779
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-256940
		FILM NUMBER:		211005648

	BUSINESS ADDRESS:	
		STREET 1:		698 MAIN STREET
		CITY:			BRANFORD
		STATE:			CT
		ZIP:			06405
		BUSINESS PHONE:		2034334736

	MAIL ADDRESS:	
		STREET 1:		698 MAIN STREET
		CITY:			BRANFORD
		STATE:			CT
		ZIP:			06405
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-3
<SEQUENCE>1
<FILENAME>tm2119189d1_s3.htm
<DESCRIPTION>S-3
<TEXT>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange Commission
on June&nbsp;9, 2021</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No.&nbsp;333-</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 100%"><DIV STYLE="border-top: Black 2pt solid; font-size: 1pt; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Form&nbsp;S-3</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SACHEM CAPITAL CORP.</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>New York</B></FONT><BR>
(State or other jurisdiction of <BR>
incorporation or organization)</TD>
    <TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 49%; font-size: 10pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>81-3467779</B></FONT><BR>
(I.R.S. Employer<BR>
Identification Number)</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>698
Main Street</B></FONT><BR>
<B>Branford, Connecticut 06405</B><BR>
<B>(203) 433-4736</B><BR>
(Address, including Zip Code, and Telephone Number, including Area Code, of Registrant's Principal Executive Offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>John L. Villano, CPA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Sachem Capital Corp.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>698 Main Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Branford, Connecticut 06405</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(203) 433-4736</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, Address, including Zip Code, and Telephone
Number, including Area Code, of Agent for Service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Copies to:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Joel J. Goldschmidt,&nbsp;Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Kurzman Eisenberg Corbin&nbsp;&amp; Lever,
LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>One North Broadway, 12<SUP>th</SUP> Floor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>White Plains, New York 10601</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(914) 286-6362</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Approximate date of commencement of proposed
sale to the public: From time to time after the effective date of this registration statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check
the following box.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415 under
the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
this form is filed to register additional securities for an offering pursuant to Rule&nbsp;462(b)&nbsp;under the Securities Act, check
the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
this form is a post-effective amendment filed pursuant to Rule&nbsp;462(c)&nbsp;under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
this form is a registration statement pursuant to General Instruction&nbsp;I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule&nbsp;462(e)&nbsp;under the Securities Act, check the following box.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
this form is a post-effective amendment to a registration statement filed pursuant to General Instruction&nbsp;I.D. filed to register
additional securities or additional classes of securities pursuant to Rule&nbsp;413(b)&nbsp;under the Securities Act, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting company&rdquo; and &quot;emerging
growth company&quot; in Rule&nbsp;12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 55%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Large&nbsp;accelerated&nbsp;filer&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 45%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accelerated&nbsp;filer&nbsp;</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-accelerated filer&nbsp;</FONT><FONT STYLE="font-family: Wingdings">x</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Smaller&nbsp;reporting&nbsp;company&nbsp;</FONT><FONT STYLE="font-family: Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Emerging growth company&nbsp;<FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION
OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Title of Each Class&nbsp;of Securities to be Registered&nbsp;<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Amount to be<BR>
Registered&nbsp;<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposed<BR>
Maximum<BR>
Offering Price<BR>
Per&nbsp;Unit&nbsp;<SUP>(2)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Proposed<BR>
Maximum<BR>
Aggregate<BR>
Offering<BR>
Price&nbsp;<SUP>(3)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Amount of<BR>
Registration<BR>
Fee&nbsp;<SUP>(3)</SUP></B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 48%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common shares, par value $0.001 per share <SUP>(4)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Preferred shares, par value $0.001 per share <SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Debt securities <SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Warrants <SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Units <SUP>(4)&nbsp;(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Guarantees of debt securities <SUP>(4)(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">150,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">16,365</FONT></TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This registration statement covers offers, sales and other distributions of the securities listed in this table from time to time at prices to be determined, as well as common shares issuable upon the exchange or conversion of preferred shares or convertible debt securities so offered or sold that are exchangeable for or convertible into common shares or upon the exercise of warrants so offered, sold or distributed.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Omitted pursuant to Form&nbsp;S-3 General Instruction II.D.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">See Form&nbsp;S-3 General Instruction II.D and Rule&nbsp;457(o)&nbsp;promulgated under the Securities Act of 1933.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This registration statement covers an indeterminate amount of the securities of each identified class of securities. An unspecified aggregate initial offering price or number of the securities of each identified class is being registered as may from time to time be offered at unspecified prices. Separate consideration may or may not be received for securities that are issuable on exercise, conversion or exchange of other securities.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(5)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The securities covered by this registration statement may be sold or otherwise distributed separately, together or as units with other securities covered by this registration statement.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>(6)</SUP></FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">No separate consideration will be received for the Guarantees.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Registrant hereby amends this Registration Statement on such
date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states
that this Registration Statement shall thereafter become effective in accordance with Section&nbsp;8(a)&nbsp;of the Securities Act of
1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting
pursuant to said Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red">The information in this preliminary
prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is deemed effective. This preliminary prospectus is not an offer to sell these securities and we are not soliciting
an offer to buy these securities in any state where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PROSPECTUS</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SUBJECT TO COMPLETION</B></FONT></TD>
    <TD STYLE="width: 33%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>DATED </B></FONT><B>June&nbsp;9, 2021</B></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>$150,000,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="tm2119189d1_s3img001.jpg" ALT=""><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B></B></FONT><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Shares, Preferred Shares, Debt Securities,
Guarantees of Debt Securities, Warrants and Units</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may, from time to time, offer, in one or more series or classes,
separately or together, and in amounts, at prices and on terms to be set forth in one or more supplements to this prospectus, the following
securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">common shares, par value $0.001 per share;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">preferred shares, par value $0.001 per share;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">warrants to purchase common shares or preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">debt securities;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">guarantees of debt securities; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&bull;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">units consisting of two or more of the classes of securities listed above.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We refer to the common shares, preferred shares, warrants, debt securities
and units collectively as the &ldquo;Securities&rdquo; in this base prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This base prospectus describes some of the general terms that may apply
to the Securities and the general manner in which they may be offered. The specific terms of any Securities to be offered, and the specific
manner in which they may be offered will be set forth in the applicable prospectus supplement. The prospectus supplement will also contain
information, where applicable, about the material federal income tax considerations relating to, and any listing on a securities exchange
of, the Securities covered by such prospectus supplement. It is important that you read both this base prospectus and the applicable prospectus
supplement before you invest in the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Securities may be offered and sold to or through one or more underwriters,
dealers and agents, or directly to purchasers, on a continuous or delayed basis. The prospectus supplement will describe the terms of
the plan of distribution and set forth the names of any agents, dealers or underwriters involved in the sale of the securities. See &ldquo;Plan
of Distribution&rdquo; beginning on page&nbsp;59 for more information on this topic. No Securities may be sold without delivery of a prospectus
supplement describing the method and terms of the offering of the Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">Our common shares are listed on the NYSE American under the symbol
 &ldquo;SACH.&rdquo; On June 8, 2021, the closing sale price of the common shares on NYSE American was $5.11 per share. In addition, we
have three series of five-year unsecured unsubordinated notes listed upon the NYSE American under the symbols &ldquo;SCCB,&rdquo; &ldquo;SACC&rdquo;
and &ldquo;SCCC&rdquo;. None of the other Securities are currently listed on any exchange or quoted on any other trading venue or system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>See &ldquo;Risk Factors&rdquo; in Item 1A of our <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921044384/sach-20201231x10k.htm" STYLE="-sec-extract: exhibit">Annual Report on Form&nbsp;10-K, filed March&nbsp;31, 2021, with respect to our year ended December&nbsp;31, 2020</A>, in Item 1A of each subsequently filed
Quarterly Report on form 10-Q (which documents are incorporated by reference herein) as well as the other information contained or incorporated
by reference in this base prospectus or any prospectus supplement hereto before making a decision to invest in the Securities. See &ldquo;Where
You Can Find More Information; Incorporation By Reference&rdquo; on page&nbsp;61 of this base prospectus.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of the Securities or determined if this prospectus is truthful or complete. Any representation
to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">The date of this prospectus is
June&nbsp;[--], 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Page</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#ss_001"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">ABOUT THIS PROSPECTUS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_001"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">ii</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 88%"><A HREF="#prospectus"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PROSPECTUS SUMMARY</FONT></A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right"><A HREF="#prospectus"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#riskfactors"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">RISK FACTORS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#riskfactors"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">12</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#cautionarystatement"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#cautionarystatement"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">12</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#useofproceeds"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">USE OF PROCEEDS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#useofproceeds"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">13</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#marketprice"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">MARKET PRICE OF COMMON SHARES AND RELATED SHAREHOLDER MATTERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#marketprice"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">14</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#dividends"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DIVIDENDS AND DISTRIBUTION POLICY</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#dividends"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">15</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#ss_010"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF COMMON SHARES</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_010"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">17</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#ss_009"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF PREFERRED SHARES</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_009"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">18</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#ss_008"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF WARRANTS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_008"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">21</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#ss_007"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF DEBT SECURITIES</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_007"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">23</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#ss_006"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF GUARANTEES OF DEBT SECURITIES</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_006"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">26</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#ss_005"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">DESCRIPTION OF UNITS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_005"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">27</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#ss_004"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">CERTAIN PROVISIONS OF NEW YORK LAW AND OF OUR CERTIFICATE OF INCORPORATION AND BYLAWS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_004"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">28</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#ss_003"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">RESTRICTIONS ON OWNERSHIP AND TRANSFER OF CAPITAL STOCK</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_003"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">30</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#ss_002"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#ss_002"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">34</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#planofdistribution"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">PLAN OF DISTRIBUTION</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#planofdistribution"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">59</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#legalmetters"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">LEGAL MATTERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#legalmetters"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#experts"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">EXPERTS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#experts"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">60</FONT></A></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><A HREF="#whereyoucan"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION BY REFERENCE</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><A HREF="#whereyoucan"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">61</FONT></A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You should rely only on the information contained or incorporated by
reference in this base prospectus and any accompanying prospectus supplement. We have not authorized anyone to provide you with different
or additional information. If anyone provides you with different or additional information, you should not rely on it. We are not making
an offer to sell Securities in any jurisdiction where the offer or sale is not permitted. The information appearing in this base prospectus,
any accompanying prospectus supplement and the documents incorporated by reference herein or therein is accurate only as of their respective
dates or on other dates which are specified in those documents. Our business, financial condition, results of operations and prospects
may have changed since those dates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For investors outside the United States: We have not done anything
that would permit any offering under this base prospectus or any prospectus supplement to this prospectus or possession or distribution
of this base prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside
the United States who come into possession of this base prospectus must inform themselves about, and observe any restrictions relating
to, the offering of Securities and the distribution of this base prospectus outside the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_001"></A>ABOUT THIS PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This base prospectus is part of a shelf registration statement that
we filed with the Securities and Exchange Commission, or the SEC, in accordance with General Instruction I.B.1 of Form&nbsp;S-3, using
a &ldquo;shelf&rdquo; registration process for the delayed offering and sale of Securities pursuant to Rule&nbsp;415 under the Securities
Act of 1933, as amended, or the Securities Act. Under the shelf registration process, we may, from time to time, sell the Securities described
in this base prospectus in one or more offerings. This base prospectus provides you with a general description of the Securities we may
offer. Each time we sell Securities, we will provide a prospectus supplement containing specific information about the terms of the Securities
being offered and the manner in which they will be offered. The prospectus supplement may also add, update or change information contained
in this base prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This base prospectus and any accompanying prospectus supplement do
not contain all the information included in the registration statement. We have omitted parts of the registration statement in accordance
with the rules&nbsp;and regulations of the SEC. For further information, we refer you to the registration statement on Form&nbsp;S-3 of
which this base prospectus is a part, including its exhibits. Statements contained in this base prospectus and any accompanying prospectus
supplement about the provisions or contents of any agreement or other document are not necessarily complete. If the SEC&rsquo;s rules&nbsp;and
regulations require that an agreement or document be filed as an exhibit to the registration statement, please see that agreement or document
for a complete description of these matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You should read this base prospectus together with any additional information
you may need to make your investment decision. You should also read and carefully consider the information in the documents we have referred
you to in &ldquo;Where You Can Find More Information; Incorporation by Reference&rdquo; below. Information incorporated by reference after
the date of this base prospectus may add, update or change information contained in this base prospectus. Any information in such subsequent
filings that is inconsistent with this base prospectus will supersede the information in this base prospectus or any earlier prospectus
supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">The industry and market data and other
statistical information, if any, contained in this base prospectus and in the documents that we incorporate by reference are based
on our own estimates, independent publications, government publications, reports by market research firms or other published
independent sources, and, in each case, are believed by us to be reasonable estimates. Although we believe these sources are
reliable, we have not independently verified the information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><I>All references in this base prospectus to &ldquo;us,&rdquo;
 &ldquo;we,&rdquo; or &ldquo;our,&rdquo; are references to Sachem Capital Corp. and its predecessor, Sachem Capital Partners, LLC, or SCP,
unless specified otherwise.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: #231f20"><B><A NAME="prospectus"></A>PROSPECTUS SUMMARY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><I>The information below is only a summary of more
detailed information included elsewhere in or incorporated by reference in this base prospectus. This summary may not contain all the
information that is important to you or that you should consider before deciding to invest in of our securities. Please read this entire
base prospectus, including the risk factors, as well as the information incorporated by reference in this base prospectus and any related
prospectus supplement, carefully.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We are a Connecticut-based real estate finance company
that specializes in originating, underwriting, funding, servicing and managing a portfolio of short-term (i.e., three years or less) loans
secured by first mortgage liens on real property. From our inception, in December&nbsp;2010, through our initial public offering, in February&nbsp;2017,
we operated as a limited liability company. On February&nbsp;9, 2017, we completed our initial public offering (the &ldquo;IPO&rdquo;),
the primary purpose of which was to raise equity capital to fund mortgage loans and expand our mortgage loan portfolio and to diversify
our ownership so that we could qualify, for federal income tax purposes, as a real estate investment trust, or REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We believe that, since consummation of the IPO, we
met all the requirements to qualify as a REIT for federal income tax purposes and elected to be taxed as a REIT beginning with our 2017
tax year. As a REIT, we are entitled to claim deductions for distributions of taxable income to our shareholders thereby eliminating any
corporate tax on such taxable income. Any taxable income not distributed to shareholders is subject to tax at the regular corporate tax
rates and may also be subject to a 4% excise tax to the extent it exceeds 10% of our total taxable income. To maintain our qualification
as a REIT, we are required to distribute each year at least 90% of our taxable income. As a REIT, we may also be subject to federal excise
taxes and state taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Our Competitive Strengths</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We believe our competitive strengths include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 24px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt; color: #231F20">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><U>History of successful operations.</U> We commenced operations as a limited liability company in December 2010 with three investors and limited equity capital. Since our inception through March 31, 2021, we have funded approximately 1,472 mortgage loans having an aggregate principal amount of $380.9 million. Immediately prior to our initial public offering in February 2017 (the &ldquo;IPO&rdquo;), we had approximately 155 investors and $27 million of members&rsquo; equity. Since we became a public company, as of March 31, 2021, we have raised approximately an additional $50.2 million (excluding the IPO proceeds) in equity capital and $114.2 million of debt capital. Similarly, since the IPO, our mortgage loan portfolio has grown from $33.8 million to $156.8 million at March 31, 2021. In addition, at March 31, 2021, we had $18.3 million of cash and cash equivalents. We have reported net profits in every quarter since our IPO.</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="padding-right: 12.15pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif; color: #231F20"><U>Long-standing
                                       relationships</U>. We have ongoing relationships with many of our borrowers.
At March 31, 2021, our loan portfolio includes 157 loans having an aggregate principal balance of approximately $27.2 million that were
extensions of prior loans. Customers are also a referral source for new borrowers. As long as these borrowers remain active real estate
investors, they provide us with an advantage in securing new business and help us maintain a pipeline to attractive new opportunities
that may not be available to many of our competitors or to the general market.</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 12.25pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><U>Competent workforce</U></FONT><FONT STYLE="background-color: white"><I>.</I>&nbsp;Our employees are multi-skilled professionals who have a strong &ldquo;team&rdquo; orientation, a &ldquo;continuous process improvement&rdquo; mentality, and an authentic desire to learn all aspects of our business and contribute wherever and however they are needed.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 12.25pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20"><U>Knowledge of the market</U></FONT><FONT STYLE="color: #231f20">. We have an intimate knowledge of the Connecticut real estate market, which enhances our ability to identify attractive opportunities and helps distinguish us from many of our competitors.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20"><U>Disciplined lending</U></FONT><FONT STYLE="color: #231f20">. We seek to maximize our risk-adjusted returns, and preserve and protect capital, through our disciplined and credit-based approach. We utilize rigorous underwriting and loan closing procedures that include numerous checks and balances to evaluate the risks and merits of each potential transaction. We seek to protect and preserve capital by carefully evaluating the condition of the property, the location of the property, the value of the property and other forms of collateral.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20"><U>Vertically-integrated loan origination platform</U></FONT><FONT STYLE="color: #231f20">. We manage and control the loan process from origination through closing with our own personnel or independent third parties, including legal counsel and appraisers, with whom we have long relationships. </FONT><FONT STYLE="background-color: white">Together, these individuals constitute a team highly experienced in credit evaluation, underwriting and loan structuring. We also believe that our procedures and experience allow us to execute opportunities quickly and efficiently.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20"><U>Structuring flexibility</U></FONT><FONT STYLE="color: #231f20">. As a small, non-bank, geographically focused real estate lender, we can move quickly and have much more flexibility than traditional lenders to structure loans to suit the needs of our clients. Our ability to customize financing structures to meet borrowers' needs is one of our key business strengths.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 12.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20"><U>No legacy issues</U></FONT><FONT STYLE="color: #231f20">. We are not burdened by distressed legacy real estate assets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Market Opportunity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Notwithstanding the spread of the novel corona virus
known as COVID-19, which has had a severe adverse impact on general economic conditions, we continue to believe that once the spread of
the virus abates there still will be a significant market opportunity for a well-capitalized &ldquo;hard money&rdquo; lender to originate
attractively priced loans to small-scale real estate developers with strong equity positions (<I>i.e.,</I>&nbsp;good collateral), particularly
in Connecticut where, traditionally, real estate values in many neighborhoods have been stable and substandard properties are improved,
rehabilitated and renovated. We further believe that there will be many opportunities for us to expand our business into new markets.
For example, since the fourth quarter of 2019 and during 2020, we have funded loans secured by properties in Naples, Florida, Phoenix,
Arizona, Austin, Texas, Charleston, South Carolina, Littleton, Colorado and Sacramento, California. We also believe these developers will
prefer to borrow from us rather than other lending sources because of our flexibility in structuring loans to suit their needs, our lending
criteria, which places greater emphasis on the value of the collateral rather than the property cash flow or credit of the borrower, and
our ability to close quickly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Our Objectives and Strategy and Outlook for 2021</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Our primary business objective
remains constant: to grow our loan portfolio while protecting and preserving capital in a manner that provides for attractive risk-adjusted
returns to our shareholders over the long term principally through dividends. We intend to achieve this objective by accelerating profitable
growth and driving operational excellence. To accelerate profitable growth, we will continue to focus on selectively originating, managing,
and servicing a portfolio of first mortgage real estate loans designed to generate attractive risk-adjusted returns across a variety of
market conditions and economic cycles. We are also targeting larger-value commercial loans with strong, experienced sponsors. To drive
operational excellence, we have embarked on a broad change management initiative to review, assess, and upgrade &ndash; or transform if
necessary &ndash; our existing operational processes, from workflows and employee roles/responsibilities to decision trees and data collection
forms. We believe that our ability to react quickly to the needs of borrowers, our flexibility in terms of structuring loans to meet the
needs of borrowers, our intimate knowledge of the Connecticut real estate market, which is our largest market, our expertise in &lsquo;&lsquo;hard
money&rsquo;&rsquo; lending and our focus on newly originated first mortgage loans, should enable us to achieve our primary objective.
Nevertheless, we remain flexible to take advantage of other real estate opportunities that may arise from time to time, whether they relate
to the mortgage market or to direct or indirect investments in real estate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our strategy to achieve this objective also
includes the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 92%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">capitalize on opportunities created by the long-term structural changes in the real estate lending market and the continuing lack of liquidity in the commercial and investment real estate markets;</FONT></TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">take advantage of the prevailing economic environment and current economic, political and social trends that may impact real estate lending, as well as the outlook for real estate in general and particular asset classes;</FONT></TD>
    </TR>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 92%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">remain flexible to capitalize on changing sets of investment opportunities that may be present in the various points of an economic cycle; and</FONT></TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">operate to qualify as a REIT and for an exemption from registration under the Investment Company Act of 1940, as amended, or the Investment Company Act.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In terms of our outlook for 2021, the biggest
challenge remains the unknown impact of COVID-19 and future actions that may be taken to contain the spread of COVID-19. Keeping our workforce
healthy and safe is our number one priority and we are following the updated guidelines and recommendations issued by the State of Connecticut
on March&nbsp;19, 2021. We continue to encourage employees to stay home when sick and encourage working from home when possible. In the
event of a positive COVID-19 case, Sachem employees inform management and follow state testing and contact tracing protocols. At Sachem,
we have not been immune to the virus striking our employees and their family members. Fortunately, none of these occurrences has been
life-threatening in any way. However, to mitigate the risk of office closure and to ensure business continuity, our employees are equipped
so they can seamlessly work remotely, away from the Sachem corporate office. This remote work set-up has proven to be effective since,
at times during the pandemic, employees had to self-isolate based on their own health condition or that of an immediate family member.
While loan processing and funding may have been marginally delayed, there was no impact to the service levels we provided our borrowers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In the event we are forced to close our physical
office, there would be some impact. For example, the underwriting process would continue to function but would take longer to complete
without immediate access to background and credit profiles. Loan committee meetings would continue to be held virtually (as they are under
normal conditions) but the loan approval process may incur delay or not be as thorough and efficient as in the past. In addition, we may
not be able to meet with borrowers or potential borrowers, including physical property inspections, which could adversely impact our ability
to service our loans, monitor compliance and originate new loans. Finally, the filing of loan documents with the various recording offices
may be delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In summary, the consequences may include one
or more of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase the amount of time necessary to review loan applications, structure loans and fund loans;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adversely impact the ability of borrowers to remain current on their obligations;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduce the rate of prepayments;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">delay the completion of renovation projects in-process;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 92%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">inhibit the ability of borrowers to sell their properties to repay their obligation to us; and</FONT></TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">delay foreclosure or other judicial proceedings necessary to enforce our rights.</FONT></TD>
    </TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Other factors that we believe will impact
our business in 2021 include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #231f20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Increased
competition</I></FONT>. In the past, our primary competitors were other non-bank real estate finance companies and banks and other financial institutions. Our principal competitive advantages included our size and our ability to address the
needs of borrowers in terms of timing and structuring loan transactions. More recently, we are encountering competition from private equity
funds, hedge funds and other specialty finance entities funded by investment banks, asset managers, private equity funds and hedge funds.
Clearly, the primary driver for these new market participants is the need to generate yield. They are well-funded and aggressive in terms
of pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><I>Borrower
expectations.</I></FONT><FONT STYLE="background-color: white">&nbsp;The new competitive landscape is shifting the negotiating leverage
in favor of borrowers. As borrowers have more choices, they are demanding better terms. For the quarter ended March&nbsp;31, 2021, the
yield on our portfolio was 11.73% compared to 12.16% for the quarter ended March&nbsp;31, 2020. We expect further rate compression in
2021.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #231f20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Property
value fluctuations.</I></FONT> We remain aware of property value market cycles and utilize a dashboard of indicators to track property
value trends. If we see a decline in property values, our response to this development would be to adhere to our strict loan-to-value
ratio, limit the term of our loans to not more than one year, and aggressively enforce our rights when loans go into default. We intend
to be well-capitalized and well-positioned to be opportunistic through negative cycles as we did in the first quarter of 2020. By judiciously
relying on our dashboard of leading indicators and continuing to make decisions in a sound and proper manner, we see no reason to expect
any negative outcome regarding our business operations and growth. Some of our indicators within our dashboard are interest rate changes
impacting mortgage rates, days-on-market, pending sales, NAHB&rsquo;s Housing Market Index, and the Senior Loan Officer Opinion Survey,
among others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; color: #231f20"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Increased
operating expenses.</I></FONT> We expect operating expenses to be higher in 2021 than they were in 2020. Specifically, we expect an increase
in interest expense due to a higher level of indebtedness. In 2020, we sold approximately $56.1 million of unsecured unsubordinated five-year
notes having an interest rate of 7.75%. The full impact of the interest will be felt for the first time in 2021. In addition, we expect
our compensation expense to increase as we hired new personnel and increased salaries on account of our growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Despite the challenges we faced in 2020, the changing
dynamics of the real estate finance marketplace and the impact of COVID-19, we continue to believe in the viability of our business model.
Our goal is, and has always been, to continue to grow our mortgage loan portfolio and increase our loan profitability, while at the same
time maintain or improve on our existing underwriting and loan criteria. Specifically, we believe that the following factors will, in
fact, help us deal with the uncertainties expected in 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">As of March&nbsp;31, 2021, we had cash and cash equivalents
and investment securities balance of approximately $54.7 million, which we will use to increase our mortgage loan portfolio. From January&nbsp;through
March&nbsp;31, 2021, we funded $31.7 million of mortgage loans including loan modifications and construction draws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our largest expense item is interest and amortization
of deferred financing costs, which has increased significantly as we have increased our indebtedness. At March&nbsp;31, 2021, our capital
structure was 63.0% debt and 37.0% equity. The weighted average interest rate on our $114.5 million of outstanding unsecured unsubordinated
five-year notes is 7.36% per annum. On the other hand, the notes provide us with operational flexibility. Other than interest, they do
not have any significant costs and expenses, such as legal fees, collateral maintenance fees, unused facility fees, processing fees and
the additional personnel costs relating to reporting and compliance. Second, they only have one financial covenant &ndash; an asset coverage
ratio of 150%. There are no limitations in terms of the size of the mortgage loans we choose to fund, the markets in which we choose to
operate and the nature of the collateral. Finally, the notes are unsecured. However, we may obtain a senior credit facility should such
a facility be available at terms that are advantageous to our strategy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We have made the necessary adjustments to our operations
to replace our former co-chief executive officer by hiring new employees and re-assigning existing employees to new tasks. We now have
a robust executive team that includes our chief executive and chief financial officer, a chief operating officer and a chief investment
officer. In addition, we have added junior executives as well in accounting and administration. Although these new hires will result in
increased compensation, they were and will continue to be necessary to accommodate our growth and to maintain our ability to continue
to service our borrowers and manage our business without sacrificing quality.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We have adjusted and refined our business strategy
to address changes in the marketplace and our growth to-date. Specifically, we continue to strengthen our geographic footprint beyond
Connecticut with particular emphasis on Florida and Texas. We are funding larger loans than we have in the past that are secured by what
we believe are higher-quality properties that are being developed by borrowers that we deem to be more stable and successful. In 2020,
we funded loans secured by properties in Arizona, Texas, South Carolina, Florida, Colorado and California. We continue to look for opportunities
in new markets that meet our basic underwriting and loan criteria. In addition, we believe the migration to these types of loans will
offset any rate compression and help us maintain a low foreclosure rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Operational and Financial Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our loans typically have a maximum initial
term of one to three years and bear interest at a fixed rate of 5% to 13% per year and a default rate of 18% per year. We usually receive
origination fees, or &ldquo;points,&rdquo; ranging from 2% to 5% of the original principal amount of the loan as well as other fees relating
to underwriting, funding and managing the loan, such as inspection fees. Since we treat an extension or renewal of an existing loan as
a new loan, we also receive additional &ldquo;points&rdquo; and other loan-related fees in connection with those transactions. Interest
is always payable monthly in arrears. As a matter of policy, we do not make any loans if the loan-to value ratio exceeds 70%. In the case
of construction loans, the loan-to-value ratio is based on the post-construction value of the property. We rely on readily available market
data, including appraisals when available or timely, tax assessment rolls, recent sales transactions and brokers to evaluate the value
of the collateral. Finally, we have adopted a policy that limits the maximum amount of any loan we fund to a single borrower or a group
of affiliated borrowers to 10% of the aggregate amount of our loan portfolio, taking into consideration the loan under consideration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our revenue consists primarily of interest
earned on our loan portfolio. As our capital structure has tilted towards more debt over the past 24 months, debt service has become a
significant factor in determining our net income. Our capital structure at March&nbsp;31, 2021 was approximately 63.0% debt vs. 37.0%
equity. Most of our debt, approximately $114.5 million, is unsecured unsubordinated 5-year notes. The weighted average interest rate on
these notes is 7.36%. In addition, we had a balance of approximately $28.2 million at March&nbsp;31, 2021 under our margin loan account
with Wells Fargo. The outstanding balance on this loan bears interest at a rate equal to 1.75% below the prime rate. The interest rate
on this loan as of March&nbsp;31, 2021 was 1.5%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In addition, our net income for three months
ended March&nbsp;31, 2021 has been adversely impacted by a reduction in the yield on our mortgage loan portfolio as well as $30.5 million
of loan payoffs during the period compared to $55 million for all of 2020. In the first quarter of 2021, we realized faster payoff of
investment &ldquo;fix and flip&rdquo; loans with these projects coming to fruition quicker due to a stronger real estate market and, we
believe, our sound underwriting and analysis of each project. According to Realtor.com, nationwide for April&nbsp;2021, year-over-year,
 &ldquo;days on market,&rdquo; a common real estate market indicator, fell 31%,&nbsp;active listings fell 53% and median list prices increased
17%.&nbsp; For the Connecticut market over the same period, days on market decreased between 43.1% - 51.5% and median list prices increased
1.7% - 18.3%, depending on the county. Our strategy continues to be to adhere to our current underwriting guidelines, which we believe
will allow us to continue to grow our loan portfolio while protecting and preserving capital in a manner that provides attracted risk-adjusted
returns to our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For the three months ended March&nbsp;31,
2021 and 2020, the yield on our mortgage loan portfolio was 11.73% and 12.16%, respectively. For this purpose, yield only takes into account
the stated interest rate on the mortgage note adjusted to the default rate, if applicable. We believe the interest rate compression will
continue to be a factor in 2021 as we implement our new strategy focusing on larger loans, secured by higher quality properties being
developed by more seasoned developers with a history of successful development projects. On the other hand, since the interest rate on
our outstanding indebtedness is fixed, we have reduced the risk on interest rate compression if and when interest rates begin to increase.
That will enable us to continue to focus on growth and building market share rather than short-term profits and cash flow.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We seek to mitigate the risk associated with
rising rates by limiting the term of new loans to one year. At March&nbsp;31, 2021, approximately 82.7% of the mortgage loans in our portfolio
had a term of one year or less. If, at the end of the term, the loan is not in default and meets our other underwriting criteria, we will
consider an extension or renewal of the loan at our then prevailing interest rate. If interest rates have decreased and we renew a loan
at a lower rate, the &ldquo;spread&rdquo; between our borrowing costs and the yield on our portfolio will be squeezed and would adversely
impact our net income. We cannot assure you that we will be able to increase our rates at any time in the future and we cannot assure
you that we can continue to increase our market share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">As a real estate finance company, we deal with a variety
of default situations, including breaches of covenants, such as the obligation of the borrower to maintain adequate liability insurance
on the mortgaged property, to pay the taxes on the property and to make timely payments to us. As such, we may not be aware that a default
occurred. At March&nbsp;31, 2021, five of our mortgage loans were the subject of enforcement or collection proceedings. The aggregate
amount due on these loans, including principal, unpaid accrued interest and borrower charges, was approximately $496,000, representing
approximately 0.3% of our aggregate mortgage loan portfolio. In the case of each of these loans, we have determined the value of the collateral
exceeds the aggregate amount due. To date, the aggregate amount of realized losses on our loan portfolio have been&nbsp;<I>de minimis.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Financing Strategy Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">To continue to grow our business, we must increase
the size of our loan portfolio, which requires that we use our existing working capital to fund new loans and raise additional capital
either by selling shares of our capital stock or by incurring additional indebtedness. We do not have a policy limiting the amount of
indebtedness that we may incur. Thus, our operating income in the future will depend on how much debt we incur and the spread between
our cost of funds and the yield on our loan portfolio. Rising interest rates could have an adverse impact on our business if we cannot
increase the rates on our loans to offset the increase in our cost of funds and to satisfy investor demand for yield. In addition, rapidly
rising interest rates could have an unsettling effect on real estate values, which could compromise some of our collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We do not have any formal policy limiting the amount
of indebtedness we may incur. Depending on various factors we may, in the future, decide to take on additional debt to expand our mortgage
loan origination activities to increase the potential returns to our shareholders. Although we have no pre-set guidelines in terms of
leverage ratio, the amount of leverage depends on our assessment of a variety of factors, which may include the liquidity of the real
estate market in which most of our collateral is located, employment rates, general economic conditions, the cost of funds relative to
the yield curve, the potential for losses and extension risk in our portfolio, the gap between the duration of our assets and liabilities,
our opinion regarding the creditworthiness of our borrowers, the value of the collateral underlying our portfolio, and our outlook for
interest rates and property values. At March&nbsp;31, 2021, debt proceeds represented approximately 63.0% of our total capital. To grow
the business and satisfy the requirement to pay out 90% of net profits, during the last two years we increased our level of debt from
41.7% to 63.0% of our total capital. We intend to maintain a modest amount of leverage for the sole purpose of financing our portfolio
and not for speculating on changes in interest rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our total outstanding indebtedness at March&nbsp;31,
2021 was approximately $142.7 million, which included a credit line loan of approximately $28.2 million and three series of unsecured,
unsubordinated five-year notes having an aggregate original principal amount of approximately $114.5 million (collectively, the &ldquo;Notes&rdquo;).
The Notes include notes having an aggregate principal amount of approximately $23.7 million bearing interest at the rate of 7.125% per
annum and have a maturity date of June&nbsp;30, 2024 (the &ldquo;June&nbsp;2024 Notes&rdquo;); notes having an aggregate principal amount
of $34.5 million bearing interest at the rate of 6.875% per annum and have a maturity date of December&nbsp;30, 2024 (the &ldquo;December&nbsp;2024
Notes&rdquo;); and notes having an aggregate original principal amount of approximately $56.4 million, bearing interest at the rate of
7.75% per annum and have a maturity date of September&nbsp;30, 2025 (the &ldquo;2025 Notes&rdquo;). All three series of Notes are unsecured,
unsubordinated obligations and rank equally in right of payment with all our existing and future senior unsecured and unsubordinated indebtedness
but are effectively subordinated in right of payment to all our existing and future secured indebtedness (including indebtedness that
is initially unsecured but to which we subsequently grant a security interest). Interest on all three series of Notes is payable quarterly
in arrears on March&nbsp;30, June&nbsp;30, September&nbsp;30 and December&nbsp;30 of each year the Notes are outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Each series of Notes was issued pursuant to the Indenture,
dated June&nbsp;21, 2019, and a supplement thereto, which provides for the form and terms, including default provisions and cures, applicable
to each series. All three series of Notes are subject to (i)&nbsp;&ldquo;Defeasance,&rdquo; which means that, by depositing with a trustee
an amount of cash and/or government securities sufficient to pay all principal and interest, if any, on such notes when due and satisfying
any additional conditions required under the Indenture, we will be deemed to have been discharged from our obligations under such notes
and (ii)&nbsp;an &ldquo;Asset Coverage Ratio&rdquo; requirement pursuant to which we may not pay any dividends or make distributions in
excess of 90% of our taxable income, incur any indebtedness or purchase any shares of our capital stock unless we have an &ldquo;Asset
Coverage Ratio&rdquo; of at least 150% after giving effect to the payment of such dividend, the making of such distribution or the incurrence
of such indebtedness. &ldquo;Asset Coverage Ratio&rdquo; means the ratio (expressed as a percentage) of the value of our total assets
relative to the aggregate amount of its indebtedness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We may, at our option, at any time and from time to
time, on or after June&nbsp;30, 2021, in the case of the June&nbsp;2024 Notes, November&nbsp;7, 2021, in the case of the December&nbsp;2024
Notes, and September&nbsp;4, 2022, in the case of the 2025 Notes, redeem such notes, in whole or in part, at a redemption price equal
to 100% of the outstanding principal amount thereof plus accrued and unpaid interest to, but excluding, the date fixed for redemption.
On and after any redemption date, interest will cease to accrue on the redeemed notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">All three series of Notes trade on the NYSE American.
The June&nbsp;2024 Notes trade under the symbol &ldquo;SCCB&rdquo;, the December&nbsp;2024 Notes trade under the symbol &ldquo;SACC&rdquo;
and the 2025 Notes trade under the symbol &ldquo;SCCC&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We have a margin loan account with Wells Fargo, which
is secured by our portfolio of short-term securities and has a balance of approximately $28.2 million at March&nbsp;31, 2021. The outstanding
balance on this loan bears interest at a rate equal to 1.75% below the prime rate. The interest rate at March&nbsp;31, 2021 is 1.5%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>REIT Qualification</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that we have qualified as a REIT since the consummation
of the IPO and that it is in the best interests of our shareholders that we operate as a REIT. We made the election to be taxed as a REIT
beginning with our 2017 tax&nbsp;year. As a REIT, we are required to distribute at least 90% of our taxable income to our shareholders
on an annual basis. We cannot assure you that we will be able to maintain REIT status.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our qualification as a REIT depends on our ability to meet on a continuing
basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended
(the &ldquo;Code&rdquo;), relating to, among other things, the sources of our gross income, the composition and values of our assets,
our compliance with the distribution requirements applicable to REITs and the diversity of ownership of our outstanding common shares.
We cannot assure you that we will be able to maintain our qualification as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">So long as we qualify as a REIT, we, generally, will
not be subject to U.S. federal income tax on our taxable income that we distribute currently to our shareholders. If we fail to qualify
as a REIT in any taxable year and do not qualify for certain statutory relief provisions, we will be subject to U.S. federal income tax
at regular corporate income tax rates and may be precluded from electing to be treated as a REIT for four taxable years following the
year during which we lose our REIT qualification. Even though we qualify as a REIT, we may be subject to certain U.S. federal, state and
local taxes on our income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Distribution Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">U.S. federal income tax law generally requires that
a REIT distribute annually at least 90% of its taxable income. To the extent that it annually distributes less than 100% of its taxable
income, the undistributed amount is taxed at regular corporate rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We intend to pay regular quarterly dividends in an
amount necessary to maintain our qualification as a REIT. Any distributions we make to our shareholders, the amount of such dividend and
whether such dividend is payable in cash, our common shares or other property, or a combination thereof, is at the discretion of our board
of directors and will depend on, among other things, our actual results of operations and liquidity. These results and our ability to
pay distributions will be affected by various factors, including the net interest and other income from our portfolio, our operating expenses
and other expenditures and the restrictions and limitations imposed by the New York Business Corporation Law, referred to as the BCL,
and any restrictions and/or limitations imposed on us by our creditors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">To comply with certain REIT qualification requirements,
we will, before the end of any REIT taxable year in which we have accumulated earnings and profits attributable to a non-REIT year, declare
a dividend to our shareholders to distribute such accumulated earnings and profits, referred to as a Purging Distribution. As of January&nbsp;1,
2017, we had no accumulated earnings and profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">For information regarding dividends paid See &ldquo;Dividend
and Distribution Policy&rdquo; at page&nbsp;15 below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Restrictions Relating to our Common Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our certificate of incorporation, as amended, includes
several provisions that are designed to ensure that we satisfy various Code-imposed requirements applicable to REITs including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 32.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Shareholders are prohibited from beneficially or constructively owning, applying certain attribution rules&nbsp;under the Code, more than 4.99% by value or number of shares, whichever is more restrictive, of our outstanding capital shares. This restriction does not apply to Jeffrey C. Villano, one of our founders and our former co-Chief Executive Officer, and John L. Villano, our other founder and our current Chief Executive Officer. As of March&nbsp;31, 2021, Jeffrey Villano and John Villano beneficially own approximately 6.6% and 5.6%, respectively, of our outstanding common shares. In addition, our board of directors may, in its sole discretion, waive the ownership limit with respect to a shareholder if it is presented with evidence satisfactory to it that such ownership will not then or in the future jeopardize our qualification as a REIT.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 22.7pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Shareholders are not allowed to transfer their shares of our capital stock if, as a result of such transfer, we would have fewer than 100 shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

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  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 11.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Any ownership or purported transfer of our capital shares in violation of the foregoing restrictions will result in the shares so owned or transferred being automatically transferred to a charitable trust for the benefit of a charitable beneficiary, and the purported owner or transferee acquiring no rights in those shares. If a transfer to a charitable trust would be ineffective for any reason to prevent a violation of the restriction, the transfer resulting in the violation will be void from the time of the purported transfer.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #231f20">The foregoing limitations and
restrictions could delay or prevent a transaction or a change in control of us that might involve a premium price for our capital shares
or otherwise be in the best interests of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our board of directors has granted three exemptions
to the ownership limitation. One waiver was granted to an investment fund allowing it to purchase up to 9.9% of our outstanding common
shares. However, under the constructive ownership rules&nbsp;applicable to REITs, for tax purposes, those shares are deemed to be owned
by the investors in the fund rather than a single shareholder. A second waiver was granted to an investment advisor and asset manager
allowing it to purchase up to 9.9% of our outstanding common shares for the accounts of its clients. The third waiver was given to Brian
Prinz, one of our independent directors who, following the completion of our initial public offering (the &ldquo;IPO&rdquo;), was the
constructive owner of more than 4.99% of our outstanding common shares. However, as a result of the follow-on offering in October-November&nbsp;2017,
Mr.&nbsp;Prinz&rsquo;s constructive ownership of our outstanding shares has been reduced and no longer exceeds the 4.99% limitation. We
are not aware of any shareholder, other than Jeffrey C. Villano and John L. Villano, owning more than 4.99% of our outstanding common
shares for tax purposes or otherwise. Accordingly, we do not believe that there are five or fewer shareholders who currently own more
than 50% of our outstanding shares and we have no intention of granting any further waivers to the ownership limitation. However, if one
or more shareholders were to acquire a significant number of our shares without our knowledge, we may fail the diversified ownership requirement
and, as a result, fail to qualify as a REIT. The ownership limitation provided for by our charter provides a mechanism by which we may
be able to force a shareholder to reduce his, her or its interest if we know about it but it may not prevent them from acquiring shares
in excess of the limit initially.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Summary Risk Factors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">An investment in our securities involves various risks
that you should consider carefully before investing in us. Many of these risks are discussed in our Annual Report on Form&nbsp;10-K for
the year ended December&nbsp;31, 2020 and as supplemented by other risk factors discussed in our Quarterly Reports on Form&nbsp;10-Q filed
in 2021. If any of these risks occur, our business, financial condition, liquidity, results of operations, prospects and ability to make
distributions to our shareholders could be materially and adversely affected. In that case, the trading price of our securities could
decline, and you may lose a portion or your entire investment. These risks include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">The outbreak and spread of the novel coronavirus
disease, known as COVID-19 may have a material adverse effect on our business operations and financial condition.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Difficult conditions in the mortgage and real estate markets, the financial markets and the economy generally have caused and may cause us to experience losses in the future.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">An increase in interest rates could adversely affect our ability to generate income and pay dividends.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Prepayment rates can change, adversely affecting the performance of our assets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Short-term loans may involve a greater risk of loss than traditional mortgage loans.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Many of our loans are not funded with interest reserves and our borrowers may be unable to pay the interest accruing on the loans when due, which could have a material adverse impact on our financial condition.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Many of the properties securing our mortgage loans are not income producing, thus increasing the risks of delinquency and foreclosure.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Our due diligence may not reveal all the risks associated with a mortgage loan or the property that will be mortgaged to secure the loan, which could lead to losses.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Residential mortgage loans are subject to increased risks.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Our real estate assets are subject to risks particular to real property.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may be adversely affected by the economies and other conditions of the markets in which we operate, particularly in Connecticut, where we have a high concentration of our loans.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The illiquidity of our loan portfolio could significantly impede our ability to respond to adverse changes in economic, financial, investment and other conditions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Declining real estate valuations could result in impairment charges, the determination of which involves a significant amount of judgment on our part. Any impairment charge could have a material adverse effect on us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Competition could have a material adverse effect on our business, financial condition and results of operations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may adopt new or change our existing investment, financing, or hedging strategies and asset allocation and operational and management policies without shareholder consent, which may result in the purchase of riskier assets, the use of greater leverage or commercially unsound actions, any of which could materially adversely affect our business, financial condition and results of operations and our ability to make distributions to our shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">In connection with our lending operations, we rely on third-party service providers to perform a variety of services, comply with applicable laws and regulations, and carry out contractual covenants and terms, the failure of which by any of these third-party service providers may adversely impact our business and financial results.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may be adversely affected by deficiencies in foreclosure practices as well as related delays in the foreclosure process.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may be unable to identify and complete acquisitions on favorable terms or at all, which may inhibit our growth and have a material adverse effect on us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The downgrade of the credit ratings of the U.S., any future downgrades of the credit ratings of the U.S. and the failure to resolve issues related to U.S. fiscal and debt policies may materially adversely affect our business, liquidity, financial condition and results of operations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Interruptions in our ability to provide our products and our service to our customers could damage our reputation, which could have a material adverse effect on us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The occurrence of cyber-incidents, or a deficiency in our cybersecurity or in those of any of our third party service providers, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of our confidential information or damage to our business relationships or reputation, all of which could negatively impact our business and results of operations</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The loss of key personnel, including our executive officers, could have a material adverse effect on us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Our inability to recruit or retain qualified personnel or to maintain access to key third-party service providers and software developers, could have a material adverse effect on us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The stock ownership limit imposed by our charter may inhibit market activity in our common shares and may restrict our business combination opportunities.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">If we sell or transfer mortgage loans to a third party, including a securitization entity, we may be required to repurchase such loans or indemnify such third party if we breach representations and warranties.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">An inability to access external sources of capital on favorable terms or at all could limit our ability to execute our business and growth strategies.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">If we are unable to leverage our assets to the extent we currently anticipate, the returns on certain of our assets could be diminished, which may limit or eliminate our ability to make distributions to our shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Our outstanding indebtedness as of December&nbsp;31, 2020 was approximately $143.6 million, which exposes us to the risk of default thereunder, among other risks.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Despite our current debt levels, we may still
incur substantially more debt or take other actions which could have the effect of diminishing our ability to make payments on our indebtedness
when due and distributions to our shareholders.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our outstanding fixed rate term notes are unsecured
and therefore are effectively subordinated to any secured indebtedness we have incurred or may incur in the future.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">The Notes are subordinated to the indebtedness
and other liabilities of our subsidiaries.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">The indenture under which the Notes are issued
contains limited protection for holders of the Notes.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">An increase in market interest rates could result
in a decrease in the value of the Notes.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Although the Notes are listed on the NYSE American,
an active trading market for the Notes may not develop, which could limit the ability of Noteholders to sell the Notes and/or the market
price of the Notes.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We may choose to redeem the Notes when prevailing
interest rates are relatively low.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">If we default on our obligations to pay our other
indebtedness, we may not be able to make payments on the Notes.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">We are not obligated to contribute to a sinking
fund to retire the Notes and the Notes are not guaranteed by a third- party.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">A downgrade, suspension or withdrawal of the credit
rating assigned by a rating agency to us or the Notes, if any, could cause the liquidity or market value of the Notes to decline significantly.&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0.2in">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Maintenance of our Investment Company Act exemption imposes limits on our operations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Failure to qualify as a REIT would adversely affect our operations and ability to make distributions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Qualifying as a REIT involves highly technical and complex provisions of the Code and therefore, in certain circumstances, may be subject to uncertainty.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Even though we qualify as a REIT, we, nevertheless, may be subject to taxes, which will reduce our cash flow.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The REIT distribution requirements could adversely affect our ability to grow our business and may force us to seek third-party capital during unfavorable market conditions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends, which could depress the market price of our common shares if it is perceived as a less attractive investment.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may in the future choose to pay dividends in the form of common shares, in which case shareholders may be required to pay income taxes in excess of the cash dividends they receive.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Complying with REIT requirements may cause us to liquidate or forgo otherwise attractive investment opportunities.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We may be subject to adverse legislative or regulatory tax changes that could reduce the market price of our common shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">The market price and trading volume of our securities may be volatile.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">We have not established a minimum dividend payment level for our common shareholders and there are no assurances of our ability to pay dividends to our common shareholders in the future.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Future offerings of preferred shares or debt securities would rank senior to our common shares upon liquidation and for dividend purposes, would dilute the interests of our common shareholders and may adversely affect the market price of our common shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">An increase in interest rates may have an adverse effect on the market price of our common shares and our ability to make distributions to our shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">&bull;</FONT></TD>
    <TD STYLE="padding-right: 0.2in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #231f20">Your investment in and resulting interest in us may be diluted or lose value if we issue additional shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20"><B>Corporate Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #231f20">Our principal executive offices are currently located
at 698 Main Street, Branford, Connecticut 06405 and our telephone number is (203) 433-4736. The URL for our website is <I>www.sachemcapitalcorp.com</I>.
The information contained on or connected to our website is not incorporated by reference into, and you must not consider the information
to be a part of, this base prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="riskfactors"></A>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Investing in our securities involves risks.
You should carefully consider the risks and uncertainties described under the heading &ldquo;Risk Factors&rdquo; included in our <A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921044384/sach-20201231x10k.htm" STYLE="-sec-extract: exhibit">Annual Report on Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2020</A>, as such risk factors may be updated in our subsequent filings
with the SEC (including our subsequent quarterly reports on Form&nbsp;10-Q) and the other information contained in this document, in an
applicable prospectus supplement or incorporated by reference herein or therein, before purchasing any of our securities. See &ldquo;Where
You Can Find More Information; Incorporation by Reference&rdquo; in this base prospectus. These risks are not the only ones faced by us.
Additional risks not presently known or that are currently deemed immaterial could also materially and adversely affect our financial
condition, results of operations, business and prospects. In connection with the forward-looking statements that appear in this prospectus,
you should carefully review the factors referred to above and the cautionary statements referred to in &ldquo;Forward-Looking Statements
May&nbsp;Prove Inaccurate&rdquo; below. Actual results could differ materially from those anticipated in these forward-looking statements
as a result of certain factors, including the risks faced by us described above and in the documents incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="cautionarystatement"></A>CAUTIONARY STATEMENT
ABOUT FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">This prospectus and certain documents incorporated
by reference herein include certain statements that may be deemed to be &ldquo;forward-looking statements&rdquo; within the meaning of
the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provisions thereof. All statements,
other than statements of historical facts, included in this prospectus and certain documents incorporated by reference herein that address
activities, events or developments that we expect, believe or anticipate will or may occur in the future, including such matters as future
capital expenditures, dividends and acquisitions (including the amount and nature thereof), development trends of the real estate industry
and the New York metropolitan area markets, business strategies, expansion and growth of our operations and other similar matters, are
forward-looking statements. These forward-looking statements are based on certain assumptions and analyses made by us considering our
experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are
appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Forward-looking statements are not guaranties
of future performance and actual results or developments may differ materially, and we caution you not to place undue reliance on such
statements. Forward-looking statements are generally identifiable by the use of the words &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo;
 &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;estimate,&rdquo; &ldquo;believe,&rdquo; &ldquo;intend,&rdquo; &ldquo;project,&rdquo;
 &ldquo;continue,&rdquo; or the negative of these words, or other similar words or terms. Forward-looking statements contained in this
prospectus and certain documents incorporated by reference herein are subject to a number of risks and uncertainties that may cause our
actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied
by forward-looking statements made by us. These risks and uncertainties include those described in detail in our annual, quarterly and
current periodic reports filed pursuant to the Securities and Exchange Act of 1934, as amended and that are incorporated herein by reference,
as well as any additional risk factors included in any prospectus supplement used in connection with the offering and sale of any Securities,
as well as others that may not be included in these reports and prospectus supplements. In addition, many of the risk factors that could
adversely impact our business, operations and financial results are beyond our control. Except as required by law, we undertake no obligation
to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise. In light
of these risks and uncertainties, the forward-looking events and circumstances discussed in this prospectus and the incorporated documents
might not occur and actual results, performance or achievement could differ materially from that anticipated or implied in the forward-looking
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="useofproceeds"></A>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Unless otherwise specified in the applicable
prospectus supplement, we intend to use the net proceeds from the sale of the Securities offered hereby for general corporate purposes
and working capital, which may include repaying existing indebtedness, investing in real estate opportunities other than as a mortgage
lender and acquisitions of existing mortgage loan portfolios or real estate finance companies as suitable opportunities arise. Unless
otherwise set forth in a prospectus supplement, we will not receive any proceeds from the sale of Securities by a selling shareholder.
Further details relating to the use of the net proceeds from any particular offering of Securities will be set forth in the applicable
prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="marketprice"></A>MARKET PRICE OF COMMON SHARES</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AND RELATED SHAREHOLDER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February&nbsp;10, 2017, our common shares listed on the NYSE American
(f/k/a &ldquo;NYSE MKT&rdquo;) and began trading under the symbol &ldquo;SACH&rdquo;. Prior to its listing on the NYSE American, our common
shares were not publicly traded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June&nbsp;8, 2021, the last reported sale price of our common shares
on NYSE American was $5.11 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June&nbsp;8, 2021, we had 60 shareholders of record. The number
of holders does not include individuals or entities who beneficially own shares but whose shares, which are held of record by a broker
or clearing agency but does include each such broker or clearing agency as one record holder. We believe we have approximately 1,600 beneficial
shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="dividends"></A>DIVIDENDS AND DISTRIBUTION POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The holders of our common shares are entitled to receive dividends
as may be declared from time to time by our board of directors. Payments of future dividends are within the discretion of our board of
directors and depend on, among other factors, our retained earnings, capital requirements, operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a REIT, we will be required, before the end of any REIT taxable
year in which we have accumulated earnings and profits attributable to a non-REIT year, to declare a dividend to our shareholders to distribute
such accumulated earnings and profits (a &ldquo;Purging Distribution&rdquo;). As of January&nbsp;1, 2017, we did not have any accumulated
earnings and profits attributable to a non-REIT year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From and after the effective date of our REIT election, we intend to
pay regular quarterly distributions to holders of our common shares in an amount not less than 90% of our REIT taxable income (determined
before the deduction for dividends paid and excluding any net capital gains). U.S. federal income tax law generally requires that a REIT
distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital
gains, and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its taxable income.
We intend to make distributions to our shareholders to comply with the REIT requirements of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The table below sets forth dividends paid since we began operating
as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount </B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Payment Date</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Per Share</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 1pt solid; width: 26%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2021</B></FONT></TD>
    <TD STYLE="width: 63%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 2%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right; width: 8%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April&nbsp;16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January&nbsp;8 <SUP>&yen;</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2020</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November&nbsp;4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">August&nbsp;7***</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January&nbsp;27*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2019</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">October&nbsp;22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;29</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April&nbsp;18</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January&nbsp;10**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.17</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2018</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November&nbsp;6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.12</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;27</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.11</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April&nbsp;27***</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.105</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">February&nbsp;27****</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.105</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2017</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November&nbsp;17</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.105</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">July&nbsp;27</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.105</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April&nbsp;27</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;0.05</FONT></TD></TR>
  </TABLE>




































































<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 4%">&yen;</TD><TD STYLE="width: 96%">A portion represents a distribution of 2020 income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 4%">*</TD><TD STYLE="width: 96%">A portion represents a distribution of 2019 income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 4%">**</TD><TD STYLE="width: 96%">Represents a distribution of 2018 income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 4%; text-align: left">***</TD><TD STYLE="text-align: justify; width: 96%">A portion represents a distribution of 2017 income.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 4%; text-align: left">****</TD><TD STYLE="text-align: justify; width: 96%">Represents a distribution of 2017 income.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our ability to pay dividends, the amount of the dividend and the frequency
at which we will pay dividends is subject to numerous factors, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">how quickly we can deploy the net proceeds from the sale of Securities to make new loans;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to increase the interest rate on our loans to keep pace with the frequency and size of rate increases under our credit line;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to manage and control our operating and administrative expenses, particularly those relating to our status as a public reporting REIT;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">defaults by our borrowers;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the rate of prepayments on our outstanding loans and our ability to reinvest those payments in new loans;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regional and national economic conditions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">competition from banks and other financing sources;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our cash flow from operations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">unanticipated developments, write-offs or liabilities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrictions and limitations imposed by the BCL; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrictions in our existing and future credit facilities.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">See, generally, &ldquo;Risk&nbsp;Factors&rdquo;
incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_010"></A>DESCRIPTION OF COMMON SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following description of our common shares is only a summary.
This description and the description contained in any prospectus supplement is subject to, and qualified in its entirety by reference
to, our certificate of incorporation and bylaws, each as amended, each of which has previously been filed with the SEC and which we incorporate
by reference as exhibits to the registration statement of which this prospectus is a part, and the BCL.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Authorized Capitalization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our authorized capital stock includes 100,000,000 common shares, par
value $0.001 per share. At June&nbsp;8, 2021, we had 25,474,662 common shares and no preferred shares issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to preferences that may apply to preferred shares outstanding
at the time, the holders of outstanding common shares are entitled to receive dividends out of assets legally available therefor at such
times and in such amounts as the board of directors may from time to time determine. Each shareholder is entitled to one vote for each
common share held on all matters submitted to a vote of shareholders. Directors are elected by plurality vote. Therefore, the holders
of a majority of the outstanding common shares voted can elect all the directors then standing for election. Holders of common shares
are not entitled to preemptive rights and are not subject to conversion or, as more fully described below in &lsquo;&lsquo;Restrictions
on Ownership and Transfer of Capital Stock,&rsquo;&rsquo; except in the case of a prohibited transfer, redemption. If we liquidate or
dissolve or our business is otherwise wound up, the holders of common shares would be entitled to share ratably in the distribution of
all of our assets remaining available for distribution after satisfaction of all our liabilities and the payment of the liquidation preference
of any outstanding preferred shares. Each outstanding common share is, and all common shares outstanding upon completion of an offering
of common shares will be, fully paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Authorized but Unissued Shares of Capital Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">New York law does not require shareholder approval for any issuance
of authorized shares. However, the listing requirements of NYSE American, which would apply for so long as our common shares are listed
on the NYSE American, require shareholder approval of certain issuances (other than a public offering) equal to or exceeding 20% of the
then outstanding voting power or then outstanding common shares, as well as for certain issuances of shares of capital stock in compensatory
transactions. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional
capital or to facilitate acquisitions. One of the effects of the existence of unissued and unreserved common shares may be to enable our
board of directors to sell common shares to persons friendly to current management, for such consideration, in form and amount, as is
acceptable to the board, which issuance could render more difficult or discourage an attempt to obtain control of us by means of a merger,
tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive shareholders of opportunities
to sell their common shares at prices higher than prevailing market prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The transfer agent and registrar for our common shares is Computershare
Trust Company, N. A. located at 250 Royal Street, Canton, Massachusetts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_009"></A>DESCRIPTION OF PREFERRED SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following description of the terms of our preferred shares is
only a summary. This description and the description contained in any prospectus supplement is subject to, and qualified in its entirety
by reference to, our certificate of incorporation and bylaws, each as amended, each of which has previously been filed with the SEC and
which we incorporate by reference as exhibits to the registration statement of which this prospectus is a part, and the BCL. In addition,
the specific terms of any series of preferred shares will be described in the applicable prospectus supplement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our authorized capital stock includes 5,000,000 preferred shares, $0.001
par value per share. There are no preferred shares currently outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following description of the preferred shares sets forth general
terms and provisions of the preferred shares to which any prospectus supplement may relate. The statements below describing the preferred
shares are in all respects subject to and qualified in their entirety by reference to the applicable provisions of our restated certificate
of incorporation and bylaws and any applicable articles supplementary designating terms of a series of preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The issuance of preferred shares could adversely affect the voting
power, dividend rights and other rights of holders of common shares. Our board of directors could establish another series of preferred
shares that could, depending on the terms of the series, delay, defer or prevent a transaction or a change in control of our company that
might involve a premium price for the common shares or otherwise be in the best interest of the holders thereof. Management believes that
the availability of preferred shares will provide us with increased flexibility in structuring possible future financings and acquisitions
and in meeting other needs that might arise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Terms</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the limitations prescribed by our certificate of incorporation,
our board of directors is authorized to fix the number of preferred shares constituting each series and the designations and powers, preferences
and relative, participating, optional or other special rights and qualifications, limitations or restrictions thereof, including provisions
as may be desired concerning voting, redemption, dividends, dissolution or the distribution of assets, conversion or exchange, and other
subjects or matters as may be fixed by resolution of the board of directors. The preferred shares, when issued in exchange for the consideration
therefor, will be fully paid and nonassessable by us and will have no preemptive rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Reference is made to the prospectus supplement relating to the series
of preferred shares offered thereby for the specific terms thereof, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The title and stated value of the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of preferred shares in the class, the liquidation preference per share and the offering price;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The dividend rate(s), period(s)&nbsp;and/or payment day(s)&nbsp;or method(s)&nbsp;of calculation thereof applicable to the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The date from which dividends on the preferred shares shall accumulate, if applicable;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The procedures for any auction and remarketing, if any, for the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The provision for a sinking fund, if any, for the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The provision for redemption, if applicable, of the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any listing of the preferred shares on any securities exchange;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The terms and conditions, if applicable, upon which the preferred shares may or will be convertible into common shares, including the conversion price or manner of calculation thereof;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The relative ranking and preferences of the preferred shares as to dividend rights and rights upon liquidation, dissolution or winding up of our affairs;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any limitations on direct or beneficial ownership and restrictions on transfer, in each case as may be appropriate to preserve the status of our company as a REIT;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A discussion of federal income tax considerations applicable to the preferred shares; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any other specific terms, preferences, rights, limitations or restrictions of the preferred shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rank</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless otherwise specified in the applicable prospectus supplement,
the preferred shares will, with respect to dividend rights and rights upon liquidation, dissolution or winding up of our company, rank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">senior to all classes or series of common shares and to all equity securities issued by us the terms of which provide that the equity securities shall rank junior to the preferred shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">junior to all equity securities issued by us which the terms of the preferred shares provide will rank senior to it. The term &quot;equity securities&quot; does not include convertible debt securities; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on a parity with all equity securities issued by us other than those referred above.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividends</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless otherwise specified in the applicable prospectus supplement,
the preferred shares will have the rights with respect to payment of dividends set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of the preferred shares of each series will be entitled to
receive, when, as and if declared by our board of directors, out of our assets legally available for payment, cash dividends in the amounts
and on the dates as will be set forth in, or pursuant to, the applicable prospectus supplement. Each dividend shall be payable to holders
of record as they appear on our share transfer books on the record dates as shall be fixed by our board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dividends on any series of preferred shares may be cumulative or non-cumulative,
as provided in the applicable prospectus supplement. Dividends, if cumulative, will be cumulative from and after the date set forth in
the applicable prospectus supplement. If the board of directors fails to declare a dividend payable on a dividend payment date on any
series of preferred shares for which dividends are non-cumulative, then the holders of such series of preferred shares will have no right
to receive a dividend in respect of the related dividend period and we will have no obligation to pay the dividend accrued for the period,
whether or not dividends on such series of preferred shares are declared payable on any future dividend payment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Redemption</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If so provided in the applicable prospectus supplement, the preferred
shares will be subject to mandatory redemption or redemption at our option, as a whole or in part, in each case upon the terms, at the
times and at the redemption prices set forth in the prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidation Preference</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon any voluntary or involuntary liquidation, dissolution or winding
up of our affairs, then, before any distribution or payment shall be made to the holders of any common shares or any other class or series
of our capital stock ranking junior to the preferred shares of such series in the distribution of assets upon any liquidation, dissolution
or winding up of our company, the holders of the preferred shares shall be entitled to receive out of the assets of our company legally
available for distribution to shareholders liquidating distributions in the amount of the liquidation preference per share that is set
forth in the applicable prospectus supplement, plus an amount equal to all dividends accumulated and unpaid thereon, which shall not include
any accumulation in respect of unpaid dividends for prior dividend periods if the preferred shares do not have a cumulative dividend.
After payment of the full amount of the liquidating distributions to which they are entitled, the holders of preferred shares will have
no rights or claim to any of our remaining assets. In the event that, upon any voluntary or involuntary liquidation, dissolution or winding
up, our available assets are insufficient to pay the amount of the liquidating distributions on all outstanding preferred shares of such
series and the corresponding amounts payable on all shares of other classes or series of capital stock of our company ranking on a parity
with the preferred shares in the distribution of assets, then the holders of the preferred shares and all such other classes or series
of capital stock shall share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would
otherwise be respectively entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In determining whether a distribution (other than upon our voluntary
or involuntary liquidation, dissolution or winding up) by dividend, redemption or other acquisition of shares of our stock or otherwise
is permitted under the BCL, no effect shall be given to amounts that would be needed, if we were to be dissolved at the time of the distribution,
to satisfy the preferential rights upon dissolution of holders of any series of preferred shares whose preferential rights upon dissolution
are superior to those receiving the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Voting Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of preferred shares will not have any voting rights, except
as set forth below or as otherwise indicated in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conversion Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The terms and conditions, if any, upon which any series of preferred
shares is convertible into common shares will be set forth in the applicable prospectus supplement. The terms will include the number
of common shares into which the preferred shares are convertible, the conversion price, or manner of calculation thereof, the conversion
period, provisions as to whether conversion will be at the option of the holders of the preferred shares or us, the events requiring an
adjustment of the conversion price and provisions affecting conversion in the event of the redemption of the preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Restrictions on Ownership</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As discussed below under &ldquo;Restrictions on Ownership and Transfer
of Capital Stock,&rdquo; for us to qualify as a REIT under the Code, not more than 50% in value of our outstanding capital stock may be
owned, directly or indirectly, by five or fewer individuals at any time during the last half of a taxable year. An individual for these
purposes is defined by the federal income tax laws pertaining to REITs. The application of the Code restrictions on stock ownership is
very complex. Therefore, the certificate of designation for each series of preferred shares may contain provisions restricting the ownership
and transfer of such series of preferred shares. The applicable prospectus supplement will specify any additional ownership limitation
relating to a series of preferred shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_008"></A>DESCRIPTION OF WARRANTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following description of warrants is only a summary. This description
is subject to, and qualified in its entirety by reference to, the provisions of the applicable warrant agreement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants Outstanding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the IPO, we issued to the underwriters warrants
to purchase an aggregate of 130,000 common shares at an exercise price of $6.25 per common share. These warrants are exercisable at any
time, and from time to time, in whole or in part, commencing on February&nbsp;9, 2018 and expire on February&nbsp;9, 2022. The fair value
of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $114,926. As of June&nbsp;8, 2021, none
of these warrants had been exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with a public offering of common shares in October-November&nbsp;2017,
we issued to the underwriters warrants to purchase an aggregate of 187,500 common shares at an exercise price of&thinsp;$5.00 per share.
These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on October&nbsp;24, 2018 and expire
on October&nbsp;24, 2022. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was
$131,728. In July&nbsp;2019, warrants to purchase an aggregate of 16,407 common shares were exercised for which we received approximately
$82,000. As of June&nbsp;8, 2021, 171,093 of these warrants were outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following description, together with the additional information
we may include in any applicable prospectus supplements, summarizes the material terms and provisions of the warrants that we may offer
under this prospectus. While the terms we have summarized below will apply generally to any warrants that we may offer under this prospectus,
we will describe the particular terms of any series of warrants in more detail in the applicable prospectus supplement. The terms of any
warrants offered under a prospectus supplement may differ from the terms described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will file as exhibits to the registration statement of which this
prospectus is a part or will incorporate by reference from another report that we file with the SEC, the form of warrant agreement, which
may include a form of warrant certificate, that describes the terms of the particular series of warrants we are offering before the issuance
of the related series of warrants. The following summary of material provisions of the warrants and the warrant agreements are subject
to, and qualified in their entirety by reference to, all the provisions of the warrant agreement and warrant certificate applicable to
a particular series of warrants. We urge you to read the applicable prospectus supplements related to the particular series of warrants
that we sell under this prospectus, as well as the complete warrant agreements and warrant certificates that contain the terms of the
warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will describe in the applicable prospectus supplement the terms
relating to warrants being offered including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the offering price and aggregate number of warrants offered;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with each such security or each principal amount of such security;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if applicable, the date on and after which the warrants and the related securities will be separately transferable;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the case of warrants to purchase common shares or preferred shares, the number of shares of common shares or preferred shares, as the case may be, purchasable upon the exercise of one warrant and the price at which these shares may be purchased upon such exercise;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the terms of any rights to redeem or call the warrants;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the dates on which the right to exercise the warrants will commence and expire;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the manner in which the warrant agreements and warrants may be modified;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">federal income tax consequences of holding or exercising the warrants, if material;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the terms of the securities issuable upon exercise of the warrants; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any other specific terms, preferences, rights or limitations of or restrictions on the warrants.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before exercising their warrants, holders of warrants will not have
any of the rights of holders of the securities purchasable upon such exercise, including, in the case of warrants to purchase common shares
or preferred shares, the right to receive dividends, if any, or payments upon our liquidation, dissolution or winding up of our affairs
or to exercise voting rights, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exercise of Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each warrant will entitle the holder to purchase the securities that
we specify in the applicable prospectus supplement at the exercise price that we describe in the applicable prospectus supplement. Unless
we otherwise specify in the applicable prospectus supplement, holders of the warrants may exercise the warrants at any time up to the
specified time on the expiration date that we set forth in the applicable prospectus supplement. After the close of business on the expiration
date, unexercised warrants will become void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of the warrants may exercise the warrants by delivering the
warrant certificate representing the warrants to be exercised together with specified information and paying the required amount to the
warrant agent in immediately available funds, as provided in the applicable prospectus supplement. We intend to set forth in any warrant
agreement and in the applicable prospectus supplement the information that the holder of the warrant will be required to deliver to the
warrant agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon receipt of the required payment and any warrant certificate or
other form required for exercise properly completed and duly executed at the corporate trust office of the warrant agent or any other
office indicated in the applicable prospectus supplement, we will issue and deliver the securities purchasable upon such exercise. If
fewer than all the warrants represented by the warrant or warrant certificate are exercised, then we will issue a new warrant or warrant
certificate for the remaining amount of warrants. If we so indicate in the applicable prospectus supplement, holders of the warrants may
surrender securities as all or part of the exercise price for warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_007"></A>DESCRIPTION OF DEBT SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following description of the terms of debt securities that we
may issue and the related indenture, if any, is only a summary. This description and the description contained in any prospectus supplement
are subject to and qualified in their entirety by reference to the applicable indentures, which will be incorporated by reference as exhibits
to the registration statement of which this prospectus is a part.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may offer secured or unsecured debt securities in one or more series
which may be senior, subordinated or junior subordinated, and which may be convertible or exchangeable into another security. Unless otherwise
specified in the applicable prospectus supplement, the debt securities will be issued in one or more series under the Indenture, dated
June&nbsp;21, 2019, between us and U.S. Bank, N.A. (the &ldquo;Indenture&rdquo;), and the specific terms applicable to such debt securities
will be set forth in a supplement to such Indenture and in the applicable debt securities in accordance with the Trust Indenture Act
of 1939, as amended (the &ldquo;TIA&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following description of selected provisions of the Indenture and
the debt securities that may be issued thereunder is not complete, and the description of the selected terms of a specific series of debt
securities included in the applicable prospectus supplement also will not be complete. You should review the form of the Indenture, any
supplemental indentures and the form of the applicable debt security, which forms have been or will be filed as exhibits to the registration
statement of which this prospectus is a part, or as exhibits to documents which have been or will be incorporated by reference in this
base prospectus. To obtain a copy of the form of the Indenture or the form of the applicable debt securities, see &ldquo;Where You Can
Find More Information&rdquo; in this prospectus. The following description of debt securities and the description of the debt securities
of the particular series in the applicable prospectus supplement are qualified in their entirety by reference to all of the provisions
of the Indenture, any supplemental indentures and the applicable debt securities, which provisions, including defined terms, are incorporated
by reference in this prospectus. Capitalized terms used but not defined in this section shall have the meanings assigned to those terms
in the Indenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The aggregate principal amount of debt securities that we may issue
under the Indenture is unlimited. The prospectus supplement relating to any series of debt securities that we may offer will contain the
specific terms of the debt securities. These terms may include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the issuer or co-obligors of such debt securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the guarantors of each series, if any, and the terms of the guarantees (including provisions relating to seniority, subordination and release of the guarantees), if any;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the title and aggregate principal amount of the debt securities and any limit on the aggregate principal amount;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether the debt securities will be senior, subordinated or junior subordinated;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether the debt securities will be secured or unsecured;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any applicable subordination provisions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the maturity date(s)&nbsp;or method for determining same;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;whether the debt security is rated, by whom it was rated and the rating;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the interest rate(s)&nbsp;or the method for determining same;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the dates on which interest will accrue or the method for determining dates on which interest will accrue and dates on which interest will be payable and whether interest shall be payable in cash or additional securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether the debt securities are convertible or exchangeable into other securities and any related terms and conditions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">redemption or early repayment provisions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">authorized denominations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">form;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if other than the principal amount, the principal amount of debt securities payable upon acceleration;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">place(s)&nbsp;where payment of principal and interest may be made, where debt securities may be presented and where notices or demands upon us may be made;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether such debt securities will be issued in whole or in part in the form of one or more global securities and the date as of which the securities are dated if other than the date of original issuance;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">amount of discount or premium, if any, with which such debt securities will be issued;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any covenants applicable to the debt securities being issued;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any defaults and events of default applicable to the debt securities being issued;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the currency, currencies or currency units in which the purchase price for, the principal of and any premium and any interest on, such debt securities will be payable;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the time period within which, the manner in which and the terms and conditions upon which the holders of the debt securities or the issuer or co-obligors, as the case may be, can select the payment currency;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our obligation or right to redeem, purchase or repay debt securities under a sinking fund, amortization or analogous provision;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any restriction or conditions on the transferability of the debt securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the securities exchange(s)&nbsp;on which the debt securities will be listed, if any;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether any underwriter(s)&nbsp;will act as a market maker(s)&nbsp;for the debt securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the extent to which a secondary market for the debt securities is expected to develop;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provisions granting special rights to holders of the debt securities upon occurrence of specified events;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">compensation payable to and/or reimbursement of expenses of the trustee of the series of debt securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provisions for the defeasance of the debt securities or related to satisfaction and discharge of the indenture:</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provisions relating to the modification of the indenture both with and without the consent of holders of debt securities issued under the indenture and the execution of supplemental indentures for such series; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any other terms of the debt securities (which terms shall not be inconsistent with the provisions of the TIA, but may modify, amend, supplement or delete any of the terms of the indenture with respect to such series debt securities).</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may sell the debt securities, including original issue discount
securities, at par or at a substantial discount below their stated principal amount. Unless we inform you otherwise in a prospectus supplement,
we may issue additional debt securities of a particular series without the consent of the holders of the debt securities of such series
or any other series outstanding at the time of issuance. Any such additional debt securities, together with all other outstanding debt
securities of that series, will constitute a single series of securities under the applicable indenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will describe in the applicable prospectus supplement any other
special considerations for any debt securities we sell which are denominated in a currency or currency unit other than U.S. dollars. In
addition, debt securities may be issued where the amount of principal and/or interest payable is determined by reference to one or more
currency exchange rates, commodity prices, equity indices or other factors. Holders of such securities may receive a principal amount
or a payment of interest that is greater than or less than the amount of principal or interest otherwise payable on such dates, depending
upon the value of the applicable currencies, commodities, equity indices or other factors. Information as to the methods for determining
the amount of principal or interest, if any, payable on any date, the currencies, commodities, equity indices or other factors to which
the amount payable on such date is linked.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">United States federal income tax consequences and special considerations,
if any, applicable to any such series will be described in the applicable prospectus supplement. Unless we inform you otherwise in the
applicable prospectus supplement, the debt securities will not be listed on any securities exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Debt securities to be issued in fully registered form without coupons
and in various denominations. Subject to the limitations provided in the Indenture, applicable indenture supplement and/or in the prospectus
supplement, debt securities that are issued in registered form may be transferred or exchanged at the designated corporate trust office
of the trustee, without the payment of any service charge, other than any tax or other governmental charge payable in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Global Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless we inform you otherwise in the applicable prospectus supplement,
the debt securities of a series may be issued in whole or in part in the form of one or more global securities that will be deposited
with, or on behalf of, a depositary identified in the applicable prospectus supplement. Global securities will be issued in registered
form and in either temporary or definitive form. Unless and until it is exchanged in whole or in part for the individual debt securities,
a global security may not be transferred except as a whole by the depositary for such global security to a nominee of such depositary
or by a nominee of such depositary to such depositary or another nominee of such depositary or by such depositary or any such nominee
to a successor of such depositary or a nominee of such successor. The specific terms of the depositary arrangement with respect to any
debt securities of a series and the rights of and limitations upon owners of beneficial interests in a global security will be described
in the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Governing Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Indentures and the corresponding debt
securities shall be construed in accordance with and governed by the laws of the State of New York.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="ss_006"></A>DESCRIPTION OF GUARANTEES
OF DEBT SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We, or a subsidiary of ours, may guarantee
(either fully and unconditionally or in a limited manner) the due and punctual payment of the principal of, premium, if any, and interest
on one or more series of debt securities issued by us or a subsidiary of ours, as the case may be, whether at maturity, by acceleration,
redemption or repayment or otherwise, in accordance with the terms of the applicable guarantee and the applicable indenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Split-Segment; Name: 3 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_005"></A>DESCRIPTION OF UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We may issue units consisting of a combination
of two or more of any offered Securities, at a single price or at a separate price for each security included in the unit. The Securities
offered may be issued separately or may be evidenced by a separate unit certificate, which may or may not trade separately. The terms
and conditions governing the issuance of any units, including the form and content of any certificate evidencing the units, will be described
in detail in the prospectus supplement to be filed in connection with the offering of such units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_004"></A>CERTAIN PROVISIONS OF NEW YORK LAW AND</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OF OUR CERTIFICATE OF INCORPORATION AND BYLAWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following summary of certain provisions of New York law, our
certificate of incorporation, as amended, and our bylaws does not purport to be complete and is subject to and qualified in its entirety
by reference to the New York Business Corporation Law and to our certificate of incorporation, as amended, and bylaws. Copies of our certificate
of incorporation, as amended, and bylaws are filed as exhibits to the registration statement of which this prospectus forms a part. See
 &ldquo;Where You Can Find More Information.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have one class of directors. Each director serves for a one-year
term or until his or her successor is elected and qualified. Our bylaws provide that our board of directors will consist of not less than
one and not more than five directors. Our board of directors currently consists of four members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Election of Directors; Removals; Vacancies; Meetings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Directors are elected by a plurality of all the
votes cast in the election of directors. Under our bylaws a director may be removed for cause by the board of directors or by shareholders
acting by a simple majority. Our bylaws provide that vacancies on our board of directors may be filled by the remaining directors, even
if the remaining directors do not constitute a quorum. However, only shareholders can fill a vacancy on our board of directors that is
caused by the removal of a director by action of shareholders. Any director elected to fill a vacancy will serve for the remainder of
the full term of the director he or she is replacing or until his or her successor is duly elected and qualifies. Our bylaws provide as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The annual meeting of the board of directors for the election of officers and the transaction of such other business as may come before the meeting, shall be held, without notice, immediately following the annual meeting of shareholders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regular meetings of the board of directors shall be held at such time and place as may be fixed by resolution of the Board, and when so fixed, no further notice thereof need be given. Regular meetings not fixed by resolution of the board of directors may be held on notice at such time and place as shall be determined by the board of directors.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Special meetings of the board of directors may be called on notice at any time by the Chairman, if one shall have been appointed, or the President, and shall be called by the Chairman, if one shall have been appointed, or by the President at the written request of a majority of the directors then in office.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Meetings of Shareholders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our bylaws provide that a meeting of our shareholders for the election
of directors and the transaction of any business will be held annually on such day during the period from May&nbsp;1 through October&nbsp;31,
other than a legal holiday and at the time and place set by the board of directors. Our bylaws provide that a special meeting of shareholders
may be called at any time by the president and must be called by the president at the request in writing of a majority of the directors
then in office or at the request in writing filed with our secretary by the holders of a majority of our issued and outstanding shares
of capital shares entitled to vote at such a meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Shareholder Actions by Written Consent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under Section&nbsp;615 of the BCL and our certificate of incorporation,
as amended, shareholder action may be taken without a meeting if a written consent, setting forth the action so taken, is given by the
shareholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take such action at a
meeting of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Amendment of Certificate of Incorporation and Bylaws</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the BCL, a New York corporation may amend its certificate of
incorporation if such action is declared advisable by the board of directors and approved by the affirmative vote of shareholders entitled
to cast a majority of all of the votes entitled to be cast on the matter. Our bylaws provide that each of our board of directors and
our shareholders has the power to adopt, alter or repeal any provision of our bylaws and to make new bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transactions Outside the Ordinary Course of Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the BCL, a New York corporation generally may not dissolve, merge
or consolidate with another entity, sell all or substantially all its assets or engage in a statutory share exchange unless the action
is declared advisable by the board of directors and approved by the affirmative vote of shareholders entitled to cast a majority of the
votes entitled to be cast on the matter, unless a greater percentage is specified in the corporation&rsquo;s certificate of incorporation.
Our certificate of incorporation, as amended, does not provide for a super majority vote on any matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Business Combinations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the BCL, certain &lsquo;&lsquo;business combinations&rsquo;&rsquo;
(including a merger, consolidation, statutory share exchange and, in certain circumstances specified in the statute, an asset transfer
or issuance or reclassification of equity securities) between a New York corporation and an &lsquo;&lsquo;interested shareholder&rsquo;&rsquo;
(defined generally as any person who beneficially owns, directly or indirectly, 20% or more of the voting power of the corporation&rsquo;s
outstanding voting shares or an affiliate of such an interested shareholder) are prohibited for five years after the most recent date
on which the interested shareholder becomes an interested shareholder. Thereafter, any such business combination must generally be recommended
by the board of directors of the corporation and approved by the affirmative vote of holders of a majority of the outstanding voting shares
of the corporation other than shares held by the interested shareholder with whom (or with whose affiliate) the business combination is
to be effected or held by an affiliate or associate of the interested shareholder, unless, among other conditions, the corporation&rsquo;s
common shareholders receive a minimum price (as described in the BCL) for their shares and the consideration is received in cash or in
the same form as previously paid by the interested shareholder for its shares. A person is not an interested shareholder under the statute
if the board of directors approved in advance the transaction by which the person otherwise would have become an interested shareholder.
A corporation&rsquo;s board of directors may provide that its approval is subject to compliance, at or after the time of approval, with
any terms and conditions determined by the board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>REIT Qualification</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our certificate of incorporation, as amended, provides that our board
of directors may authorize us to revoke or otherwise terminate our REIT election, without approval of our shareholders, if it determines
that it is no longer in our best interests to continue to qualify to be taxed as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Limitation on Directors&rsquo; Liability and Indemnification of
Directors and Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The BCL permits a New York corporation to include in its certificate
of incorporation a provision limiting the liability of its directors to the corporation and its shareholders for money damages, except
if a judgment or other final adjudication establishes that (i)&nbsp;the director&rsquo;s acts were committed in bad faith, (ii)&nbsp;involved
intentional misconduct or a knowing violation of law, (iii)&nbsp;he personally gained a financial profit or other advantage to which he
was not legally entitled or (iv)&nbsp;his act involves (A)&nbsp;the declaration of a dividend that violated section&nbsp;510 of the BCL;
(B)&nbsp;the purchase or redemption of shares of our capital shares in violation of section&nbsp;513 of the BCL; (C)&nbsp;the distribution
of assets to shareholders after dissolution without paying or adequately providing for the payment of all known liabilities; and (D)&nbsp;the
making of loans to a director in violation of section&nbsp;714 of the BCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The BCL permits us to indemnify any present or former director or officer,
against judgments, fines, settlements and reasonable expenses including attorney&rsquo;s fees actually and necessarily incurred as a result
of the action or proceeding, including any appeals, if such director or officer acted, in good faith, for a purpose which he reasonably
believed to be in, or not opposed to, the best interests of the corporation and, in criminal actions or proceedings, in addition, had
no reasonable cause to believe that his conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the BCL permits us to advance reasonable expenses to a
director or officer upon our receipt of an undertaking by or on behalf of such officer or director to repay such amount as, and to the
extent, such officer or director is ultimately found not to be entitled to indemnification or, if entitled to indemnification, to the
extent the amount advanced exceeds the indemnification to which such officer or director is entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our certificate of incorporation, as amended, and bylaws obligate
us, to the fullest extent permitted by New York law in effect from time to time, to indemnify, pay or reimburse reasonable expenses in
advance of final disposition of a proceeding to any present or former director or officer who is made or threatened to be made a party
to, or witness in, a proceeding by reason of his or her service in that capacity and any individual who, while a member of our board
of directors and at our request, serves or has served as a director, officer, trustee or manager of another corporation, real estate
investment trust, limited liability company, partnership, joint venture, trust, employee benefit plan or any other enterprise and who
is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity authorized
by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the board, acting by a quorum consisting of directors who are not parties to such action or proceeding upon a finding that the director or officer has met the standard of conduct set forth in the BCL; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the board upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the applicable standard of conduct set forth in such sections has been met by such director or officer; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">shareholders upon a finding that the director or officer has met the applicable standard of conduct set forth in such sections.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The indemnification and payment or reimbursement of expenses provided
by the indemnification provisions of our certificate of incorporation, as amended, and bylaws are not deemed exclusive of or limit in
any way other rights to which any person seeking indemnification or payment or reimbursement of expenses may be or may become entitled
under any statute, bylaw, resolution, insurance, agreement, vote of shareholders or disinterested directors or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, in the opinion of the SEC,
such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_003"></A>RESTRICTIONS ON OWNERSHIP AND TRANSFER OF CAPITAL
STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For us to qualify to be taxed as a REIT under the Code, our capital
shares must be owned by 100 or more persons during at least 335 days of a taxable year of twelve months or during a proportionate part
of a shorter taxable year (other than the first year for which an election to qualify to be taxed as a REIT has been made). Also, not
more than 50% of the value of the outstanding shares of our capital stock (after taking into account options to acquire shares of capital
stock) may be owned, directly or indirectly, by five or fewer individuals (as defined in the Code to include certain entities such as
private foundations) during the last half of a taxable year (other than the first year for which an election to be a REIT has been made).
To qualify to be taxed as a REIT, we must satisfy other requirements as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our certificate of incorporation, as amended, provides that, subject
to the exceptions described below, no person or entity may own, or be deemed to own, beneficially or by virtue of the applicable constructive
ownership provisions of the Code, more than 4.99%, by value or number of shares, whichever is more restrictive, of our outstanding capital
stock. We refer to the person or entity that, but for operation of the ownership limits or another restriction on ownership and transfer
of shares as described below, would beneficially own or constructively own shares of our capital stock in violation of such limits or
restrictions and, if appropriate in the context, a person or entity that would have been the record owner of such shares as a &lsquo;&lsquo;prohibited
owner.&rsquo;&rsquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The constructive ownership rules&nbsp;under the Code are complex and
may cause shares owned beneficially or constructively by a group of related individuals and/or entities to be deemed owned beneficially
or constructively by one individual or entity. As a result, even if a shareholder&rsquo;s actual ownership does not exceed the share ownership
limits described, on a constructive ownership basis such shareholder may exceed those limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ownership limits described above do not apply to our founders,
Jeffrey C. Villano and John L. Villano,&nbsp;In addition, our board of directors, in its sole discretion, may exempt, prospectively or
retroactively, a particular shareholder from the ownership limits or establish a different limit on ownership (the &ldquo;excepted holder
limit&rdquo;) if we obtain representations and undertakings from such shareholders as are reasonably necessary for the board of directors
to determine that such shareholder&rsquo;s beneficial or constructive ownership of our shares will not result in our being &ldquo;closely
held&rdquo; under Section&nbsp;856(h)&nbsp;of the Code (without regard to whether the ownership interest is held during the last half
of a taxable year) or otherwise failing to qualify to be taxed as a REIT. Any violation or attempted violation of any such representations
or undertakings will result in such shareholder&rsquo;s shares being automatically transferred to a charitable trust. As a condition of
granting the waiver or establishing the excepted holder limit, our board of directors may require an opinion of counsel or a ruling from
the IRS, in either case in form and substance satisfactory to our board of directors, in its sole discretion, to determine or ensure our
status as a REIT. Our board of directors may impose such conditions or restrictions as it deems appropriate in connection with granting
such a waiver or establishing an excepted holder limit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with granting a waiver of the ownership limits or creating
an excepted holder limit or at any other time, our board of directors may from time to time increase or decrease the common share ownership
limit, for all other persons, unless, after giving effect to such increase, five or fewer individuals could beneficially own, in the aggregate,
more than 49.9% in value of our outstanding shares or we would otherwise fail to qualify to be taxed as a REIT. A reduced ownership limit
will not apply to any person or entity whose percentage ownership of our common shares or our shares of all classes and series, as applicable,
is, at the effective time of such reduction, in excess of such decreased ownership limit until such time as such person&rsquo;s or entity&rsquo;s
percentage ownership of our common shares or our shares of all classes and series, as applicable, equals or falls below the decreased
ownership limit, but any further acquisition of our common shares or shares of other classes or series of our capital stock, as applicable,
will violate the decreased ownership limit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Considering these limitations, our certificate of incorporation, as
amended, prohibits:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any person from beneficially or constructively owning, applying certain attribution rules&nbsp;of the Code, shares of our capital stock that would result in our being &ldquo;closely held&rdquo; under Section&nbsp;856(h)&nbsp;of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise cause us to fail to qualify to be taxed as a REIT;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any person from transferring shares of our capital stock if the transfer would result in shares of our capital stock being beneficially owned by fewer than 100 persons (determined under the principles of Section&nbsp;856(a)(5)&nbsp;of the Code); and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any person from beneficially or constructively owning shares of our capital stock to the extent such ownership would result in our failing to qualify as a &ldquo;domestically controlled qualified investment entity&rdquo; within the meaning of Section&nbsp;897(h)(4)(B)&nbsp;of the Code.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any person who acquires or attempts or intends to acquire beneficial
or constructive ownership of shares of our capital stock that will or may violate the ownership limits or any of the other restrictions
on ownership and transfer of shares of our capital stock described above, or who would have owned shares of our capital stock transferred
to the trust as described below, must immediately give notice to us of such event or, in the case of an attempted or proposed transaction,
give us at least 15 days&rsquo; prior written notice and provide us with such other information as we may request in order to determine
the effect of such transfer on our status as a REIT. The foregoing restrictions on ownership and transfer of shares of our capital stock
will not apply if our board of directors determines that it is no longer in our best interests to continue to qualify to be taxed as a
REIT or that compliance with the restrictions and limits on ownership and transfer of shares of our capital stock described above is no
longer required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If any transfer of shares of our capital stock would result in such
shares being beneficially owned by fewer than 100 persons, the transfer will be null and void and the intended transferee will acquire
no rights in the shares. In addition, if any purported transfer of shares of our capital stock or any other event would otherwise result
in any person violating the ownership limits or an excepted holder limit established by our board of directors, or in our being &ldquo;closely
held&rdquo; under Section&nbsp;856(h)&nbsp;of the Code (without regard to whether the ownership interest is held during the last half
of a taxable year) or otherwise failing to qualify to be taxed as a REIT or as a &ldquo;domestically controlled qualified investment entity&rdquo;
within the meaning of Section&nbsp;897(h)(4)(B)&nbsp;of the Code, then that number of shares (rounded up to the nearest whole share) that
would cause the violation will be automatically transferred to, and held by, a trust for the exclusive benefit of one or more charitable
organizations selected by us, and the intended transferee or other prohibited owner will acquire no rights in the shares. The automatic
transfer will be effective as of the close of business on the business day prior to the date of the violating transfer or other event
that results in a transfer to the trust. If the transfer to the trust as described above is not automatically effective, for any reason,
to prevent a violation of the applicable ownership limits or our being &lsquo;&lsquo;closely held&rsquo;&rsquo; under Section&nbsp;856(h)&nbsp;of
the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or our otherwise failing to
qualify to be taxed as a REIT or as a &ldquo;domestically controlled qualified investment entity,&rdquo; then the transfer of the shares
will be null and void and the intended transferee will acquire no rights in such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of our capital stock held in the trust will be issued and outstanding
shares. The prohibited owner will not benefit economically from ownership of any of our capital shares held in the trust and will have
no rights to distributions and no rights to vote or other rights attributable to the shares held in the trust. The trustee of the trust
will exercise all voting rights and receive all distributions with respect to shares held in the trust for the exclusive benefit of the
charitable beneficiary of the trust. Any distribution made before we discover that the shares have been transferred to a trust as described
above must be repaid by the recipient to the trustee upon demand by us. Subject to New York law, effective as of the date that the shares
have been transferred to the trust, the trustee will have the authority to rescind as void any vote cast by a prohibited owner before
our discovery that the shares have been transferred to the trust and to recast the vote in accordance with the desires of the trustee
acting for the benefit of the charitable beneficiary of the trust. However, if we have already taken irreversible corporate action, then
the trustee may not rescind and recast the vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shares of our capital stock transferred to the trustee are deemed offered
for sale to us, or our designee, at a price per share equal to the lesser of&thinsp; (i)&nbsp;the price paid by the prohibited owner for
the shares (or, in the case of a devise or gift, the market price at the time of such devise or gift) and (ii)&nbsp;the market price on
the date we, or our designee, accepts such offer. We may reduce the amount so payable to the prohibited owner by the amount of any dividend
or distribution that we made to the prohibited owner before we discovered that the shares had been automatically transferred to the trust,
and we may pay the amount of any such reduction to the trustee for distribution to the charitable beneficiary. We have the right to accept
such offer until the trustee has sold the shares of our capital shares held in the trust as discussed below. Upon a sale to us, the interest
of the charitable beneficiary in the shares sold terminates, and the trustee must distribute the net proceeds of the sale to the prohibited
owner and must distribute any distributions held by the trustee with respect to such shares to the charitable beneficiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we do not buy the shares, the trustee must, within 20 days of receiving
notice from us of the transfer of shares to the trust, sell the shares to a person or entity designated by the trustee who could own the
shares without violating the ownership limits or the other restrictions on ownership and transfer of shares of our capital shares. After
the sale of the shares, the interest of the charitable beneficiary in the shares transferred to the trust will terminate and the trustee
must distribute to the prohibited owner an amount equal to the lesser of&thinsp; (i)&nbsp;the price paid by the prohibited owner for the
shares (or, if the prohibited owner did not give value for the shares in connection with the event causing the shares to be held in the
trust (for example, in the case of a gift, devise or other such transaction), the market price of the shares on the day of the event causing
the shares to be held in the trust) and (ii)&nbsp;the sales proceeds (net of any commissions and other expenses of sale) received by the
trust for the shares. The trustee may reduce the amount payable to the prohibited owner by the amount of any distribution that we paid
to the prohibited owner before we discovered that the shares had been automatically transferred to the trust and that are then owed by
the prohibited owner to the trustee as described above. Any net sales proceeds in excess of the amount payable to the prohibited owner
must be paid immediately to the charitable beneficiary, together with any distributions thereon. In addition, if, prior to the discovery
by us that shares have been transferred to a trust, such shares are sold by a prohibited owner, then such shares will be deemed to have
been sold on behalf of the trust and, to the extent that the prohibited owner received an amount for or in respect of such shares that
exceeds the amount that such prohibited owner was entitled to receive, such excess amount will be paid to the trustee upon demand. The
prohibited owner has no rights in the shares held by the trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, if our board of directors determines that a transfer or
other event has occurred that would violate the restrictions on ownership and transfer of shares of our stock described above, our board
of directors may take such action as it deems advisable to refuse to give effect to or to prevent such transfer, including, but not limited
to, causing us to redeem the shares, refusing to give effect to the transfer on our books or instituting proceedings to enjoin the transfer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Every owner of 5% or more (or such lower percentage as required by
the Code or the regulations promulgated thereunder) of shares of our stock, within 30 days after the end of each taxable year, must give
us written notice stating the shareholder&rsquo;s name and address, the number of shares of each class and series of our capital stock
that the shareholder beneficially owns and a description of the manner in which the shares are held. Each such owner must provide to us
such additional information as we may request  to determine the effect, if any, of the shareholder&rsquo;s beneficial ownership
on our status as a REIT and to ensure compliance with the ownership limits. In addition, any person or entity that is a beneficial owner
or constructive owner of shares of our capital stock and any person or entity (including the shareholder of record) who is holding shares
of our capital stock for a beneficial owner or constructive owner must, on request, provide to us such information as we may request in
order to determine our status as a REIT and to comply with the requirements of any taxing authority or governmental authority or to determine
such compliance and to ensure compliance with the ownership limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certificates representing shares of our capital stock will bear a
legend referring to the restrictions on ownership and transfer of shares of our capital stock described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The restrictions on ownership and transfer of shares of our capital
stock described above could delay, defer or prevent a transaction or a change in control, including one that might involve a premium price
for our common shares or otherwise be in the best interests of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our board of directors has granted three exemptions to the ownership
limitation. One waiver was granted to an investment fund allowing it to purchase up to 9.9% of our outstanding common shares. However,
under the constructive ownership rules&nbsp;applicable to REITs, for tax purposes, those shares will be deemed to be owned by the investors
in the fund rather than a single shareholder. A second waiver was granted to an investment advisor and asset manager allowing it to purchase
up to 9.9% of our outstanding common shares for the accounts of its clients. The third waiver was given to Brian Prinz, one of our independent
directors who, following the completion of our IPO, was the constructive owner of more than 4.99% of our outstanding common shares. However,
as a result of the follow-on offering in October-November&nbsp;2017, Mr.&nbsp;Prinz&rsquo;s constructive ownership of our outstanding
shares has been reduced and no longer exceeds the 4.99% limitation. We are not aware of any shareholder, other than Jeffrey C. Villano
and John L. Villano, owning more than 4.99% of our outstanding common shares for tax purposes or otherwise. Accordingly, we do not believe
that there are five or fewer shareholders who currently own more than 50% of our outstanding shares and we have no intention of granting
any further waivers to the ownership limitation. However, if one or more shareholders were to acquire a significant number of our shares
without our knowledge, we may fail the diversified ownership requirement and, as a result, fail to qualify as a REIT. The ownership limitation
provided for by our charter provides a mechanism by which we may be able to force a shareholder to reduce his, her or its interest if
we know about it but it may not prevent them from acquiring shares in excess of the limit in the first place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="ss_002"></A>MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following is a general discussion of the
material U.S. federal income tax considerations relating to our qualification and taxation as a real estate investment trust (&ldquo;REIT&rdquo;),
and the acquisition, holding, and disposition of our common shares, our preferred shares, warrant to purchase our common shares or preferred
shares, debt securities (including convertible securities) guarantees of our debt securities as well as units consisting of two or more
of any of the foregoing classes of securities (collectively, &ldquo;Securities&rdquo;). For purposes of the following discussion, references
to &ldquo;our,&rdquo; we,&rdquo; and &ldquo;us&rdquo; means Sachem Capital Corp. as well as our subsidiaries and affiliates unless stated
or the context implies otherwise. This discussion is based upon the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;),
the U.S. Treasury Regulations, rulings and other administrative interpretations and practices of the U.S. Internal Revenue Service (&ldquo;IRS&rdquo;)
(including administrative interpretations and practices expressed in private letter rulings which are binding on the IRS only with respect
to the particular taxpayers who requested and received those rulings), and judicial decisions, all as currently in effect, and all of
which are subject to differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS
would not assert, or that a court would not sustain, a position contrary to any of the tax consequences described below. We have not sought
and will not seek an advance ruling from the IRS regarding any matter discussed in this section. The discussion is also based upon the
assumption that we will operate in accordance with our respective applicable organizational documents. This discussion is for general
information only, and does not purport to discuss all aspects of U.S. federal income taxation that may be important to an investor in
light of the particular investment strategies and goals or tax circumstances of such investor, or to investors subject to special tax
rules, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial institutions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pass-through entities (such as entities treated as partnerships for U.S. federal income tax purposes);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons acting as nominees or otherwise not as beneficial owners;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">insurance companies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">broker-dealers;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">except to the extent described in the discussion below entitled &ldquo;&mdash;Taxation of U.S. Shareholders&mdash;Taxation of Tax-Exempt Shareholders,&rdquo; tax-exempt organizations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">dealers in securities or currencies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">traders in securities that elect to use a mark to market method of accounting;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons that hold shares as part of a straddle, hedge, constructive sale, conversion transaction, or other integrated transaction for U.S. federal income tax purposes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulated investment companies (&ldquo;RICs&rdquo;);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REITs;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">certain U.S. expatriates;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign (non-U.S.) governments;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">except to the extent described in the discussion below entitled &ldquo;&mdash;Taxation of Non-U.S. Shareholders,&rdquo; non-U.S. shareholders (as defined below);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. shareholders whose &ldquo;functional currency&rdquo; is not the U.S. dollar;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons who acquired their shares through the exercise of stock options or otherwise in connection with compensation;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons who do not hold their shares as a capital asset within the meaning of Section&nbsp;1221 of the Code; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">for purposes of the discussion below entitled &ldquo;&mdash;Taxation of U.S. Shareholders,&rdquo; persons subject to the alternative minimum tax under the Code.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For purposes of this discussion, a &ldquo;U.S.
shareholder&rdquo; (or &ldquo;U.S. stockholder&rdquo;) means a beneficial owner of shares of our capital stock that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an individual who is a citizen or resident of the United States for U.S. federal income tax purposes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an estate the income of which is subject to U.S. federal income taxation regardless of its source; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a trust that (A)&nbsp;is subject to the supervision of a court within the United States and the control of one or more U.S. persons or (B)&nbsp;was in existence on August&nbsp;20, 1996, was treated as a U.S. person prior to such date and has a valid election in place to continue to be treated as a U.S. person, as defined in the Code.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If a partnership (or other entity or arrangement
treated as a partnership for U.S. federal income tax purposes) holds shares, the tax treatment of a partner in the partnership generally
will depend on the status of the partner and the activities of the partnership. Any partnership or other entity or arrangement treated
as a partnership for U.S. federal income tax purposes, and the partners in such partnership (as determined for U.S. federal income tax
purposes), should consult their tax advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">This discussion of material U.S. federal income
tax considerations is not binding on the IRS. We cannot assure you that the IRS will not assert, or that a court would not sustain, a
position contrary to any described herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">THE U.S. FEDERAL INCOME TAX RULES APPLICABLE
TO HOLDING AND DISPOSING SHARES, AND TO REITS GENERALLY, ARE HIGHLY TECHNICAL AND COMPLEX. HOLDERS OF SHARES OF OUR CAPITAL STOCK ARE
URGED TO CONSULT THEIR TAX ADVISORS REGARDING THE SPECIFIC TAX CONSEQUENCES TO THEM OF THE OWNERSHIP OF SUCH SHARES, AND OUR QUALIFICATION
AS A REIT,&nbsp;INCLUDING THE APPLICABILITY AND EFFECT OF U.S. FEDERAL, STATE, LOCAL AND NON-U.S. INCOME AND OTHER TAX LAWS, AND POTENTIAL
CHANGES IN APPLICABLE TAX LAWS,&nbsp;IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The U.S. federal income tax treatment of holders
of our shares depends in some instances on determinations of fact and interpretations of complex provisions of U.S. federal income tax
law for which no clear precedent or authority is available. In addition, the tax consequences to a shareholder of holding our shares will
depend on such shareholder&rsquo;s particular tax circumstances. You should consult your tax advisor regarding the U.S. federal, state,
local and foreign income and other tax consequences to you in light of your particular investment or tax circumstances of acquiring, holding,
exchanging, or otherwise disposing of our shares, our election to be taxed as a REIT for U.S. federal income tax purposes, and potential
changes in applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Taxation of the Company as a REIT</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>General</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We elected to be taxed as a REIT commencing
with our taxable year ended December&nbsp;31, 2017. A REIT generally is not subject to U.S. federal income tax on the income that it distributes
to stockholders provided that the REIT meets the applicable REIT distribution requirements and other requirements for qualification as
a REIT under the Code. We believe that we have been organized and operated in a manner to satisfy the requirements for qualification
and taxation as a REIT under the Code, and we intend to continue to be organized and operated in a manner that will allow us to continue
to meet the requirements for qualification and taxation as a REIT under the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Qualification and taxation as a REIT depend
upon our ability to meet the various qualification tests imposed under the Code, including through our actual annual (or in some cases
quarterly) operating results, requirements relating to income, asset ownership, distribution levels and diversity of share ownership,
and the various other REIT qualification requirements imposed under the Code. Given the complex nature of the REIT qualification requirements,
the ongoing importance of factual determinations and the possibility of future changes in our circumstances, we cannot provide any assurances
that we have been or will be organized or operated in a manner so as to satisfy the requirements for qualification and taxation as a REIT
under the Code, or that we will meet in the future the requirements for qualification and taxation as a REIT. See &ldquo;&mdash;Failure
to Qualify as a REIT.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The sections of the Code that relate to our
qualification and operation as a REIT are highly technical and complex. This discussion sets forth the material aspects of the sections
of the Code that govern the U.S. federal income tax treatment of a REIT and its stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Taxation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For each taxable year in which we qualify
for taxation as a REIT, we generally will not be subject to U.S. federal corporate income tax on our &ldquo;REIT taxable income&rdquo;
(generally, taxable income subject to specified adjustments, including a deduction for dividends paid and excluding our net capital gain)
that is distributed currently to our shareholders. This treatment substantially eliminates the &ldquo;double taxation&rdquo; at the corporate
and stockholder levels that generally results from an investment in a non-REIT C corporation. A non-REIT C corporation is a corporation
that generally is required to pay tax at the corporate level. Double taxation means taxation once at the corporate level when the income
is earned and once again at the stockholder level when the income is distributed. In general, the income that we generate is taxed only
at the shareholder level upon a distribution of dividends to our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">U.S. shareholders (as defined below) generally
will be subject to taxation on dividends distributed by us (other than designated capital gain dividends and &ldquo;qualified dividend
income&rdquo;) at rates applicable to ordinary income, instead of at lower capital gain rates. For taxable years beginning after December&nbsp;31,
2017, generally, U.S. shareholders that are individuals, trusts or estates may deduct 20% of the aggregate ordinary dividends distributed
by us, subject to certain limitations. Capital gain dividends and qualified dividend income will continue to be subject to a maximum 20%
rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Any net operating losses, foreign tax credits
and other tax attributes of a REIT generally do not pass through to stockholders, subject to special rules&nbsp;for certain items such
as recognized capital gains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Even if we qualify for taxation as a REIT,
we will be subject to U.S. federal income tax in the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will be taxed at regular corporate rates on any undistributed &ldquo;REIT taxable income.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we elect to treat property that we acquire in connection with certain leasehold terminations as &ldquo;foreclosure property,&rdquo; we may thereby avoid (a)&nbsp;the 100% tax on gain from a resale of that property (if the sale would otherwise constitute a prohibited transaction) as discussed below; and (b)&nbsp;the inclusion of any income from such property not qualifying for purposes of the gross income tests discussed below. Income from the sale or operation of the property may be subject to U.S. federal corporate income tax at the highest applicable rate (currently 21%).</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our net income from &ldquo;prohibited transactions&rdquo; will be subject to a 100% tax.&nbsp;&nbsp;In general, prohibited transactions are sales or other dispositions of property held primarily for sale to customers in the ordinary course of business other than foreclosure property.&nbsp;&nbsp;See &ldquo;&mdash;Gross Income Tests&mdash;Income from Prohibited Transactions.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to satisfy either the 75% gross income test or the 95% gross income test, as discussed below, but our failure is due to reasonable cause and not due to willful neglect and we nonetheless maintain our qualification as a REIT because of specified cure provisions, we will be subject to a 100% tax on an amount equal to (a)&nbsp;the greater of (1)&nbsp;the amount by which we fail the 75% gross income test or (2)&nbsp;the amount by which we fail the 95% gross income test, as the case may be, multiplied by (b)&nbsp;a fraction intended to reflect our profitability.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will be subject to a 4% nondeductible excise tax on the excess of the required distribution over the sum of amounts actually distributed, excess distributions from the preceding taxable year and amounts retained for which U.S. federal income tax was paid, if we fail to make the required distributions by the end of a calendar year.&nbsp;&nbsp;The required distributions for each calendar year is equal to the sum of: 85% of our REIT ordinary income for the year; 95% of our REIT capital gain net income for the year other than capital gains we elect to retain and pay tax on as described below; and any undistributed taxable income from prior taxable years.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will be subject to a 100% penalty tax on certain rental income we receive when a taxable REIT subsidiary provides services to our tenants, on certain expenses deducted by a taxable REIT subsidiary on payments made to us and on income for services rendered to us by a taxable REIT subsidiary, if the arrangements among us, our tenants, and our taxable REIT subsidiaries do not reflect arm&rsquo;s-length terms.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we acquire any assets from a non-REIT C corporation in a transaction in which the basis of the assets in our hands is determined by reference to the basis of the asset in the hands of the non-REIT C corporation, we would be liable for corporate income tax, at the highest applicable corporate rate, for the &ldquo;built-in gain&rdquo; with respect to those assets if we dispose of those assets in a taxable transaction during the five-year period beginning on the day the asset was transferred to us by the non-REIT C corporation.&nbsp;&nbsp;To the extent that assets are transferred to us in a carry-over basis transaction by a partnership in which a corporation owns an interest, we will be subject to this tax in proportion to the non-REIT C corporation&rsquo;s interest in the partnership.&nbsp;&nbsp;Built-in gain is the amount by which an asset&rsquo;s fair market value exceeds its adjusted tax basis at the time we acquire the asset.&nbsp;&nbsp;The results described in this paragraph assume that the non-REIT C corporation will not elect, in lieu of this treatment, to be subject to an immediate tax when the asset is acquired by us.&nbsp;&nbsp;Any gain from the sale of property acquired by us in an exchange under Section&nbsp;1031 (a like-kind exchange) or Section&nbsp;1033 (an involuntary conversion) of the Code would be excluded from the application of this built-in gain tax.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We may elect to retain and pay U.S. federal income tax on our net long-term capital gain.&nbsp;&nbsp;In that case, a U.S. shareholder would include its proportionate share of our undistributed long-term capital gain (to the extent that we make a timely designation of such gain to the shareholder) in its income, would be deemed to have paid the tax we paid on such gain, and would be allowed a credit for its proportionate share of the tax deemed to have been paid, and an adjustment would be made to increase the basis of the U.S. shareholder in our shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we violate the asset tests (other than certain de minimis violations) or other requirements applicable to REITs, as described below, but our failure is due to reasonable cause and not due to willful neglect and we nevertheless maintain our REIT qualification because of specified cure provisions, we will be subject to a tax equal to the greater of $50,000 or the amount determined by multiplying the net income generated by such non-qualifying assets by the highest rate of tax applicable to non-REIT C corporations during periods when such assets would have caused us to fail the asset test.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to satisfy a requirement under the Code which would result in the loss of our REIT qualification, other than a failure to satisfy a gross income test, or an asset test as described in paragraph 9 above, but nonetheless maintain our qualification as a REIT because the requirements of certain relief provisions are satisfied, we will be subject to a penalty of $50,000 for each such failure.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we fail to comply with the requirements to send annual letters to our shareholders requesting information regarding the actual ownership of our shares and the failure was not due to reasonable cause or was due to willful neglect, we will be subject to a $25,000 penalty or, if the failure is intentional, a $50,000 penalty.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The earnings of any subsidiaries that are subchapter C corporations, including any taxable REIT subsidiary, are subject to U.S. federal corporate income tax.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Notwithstanding our qualification as a REIT,
we and our subsidiaries may be subject to a variety of taxes, including payroll taxes and state, local, and foreign income, property and
other taxes on our assets, operations and/or net worth. We could also be subject to tax in situations and on transactions not presently
contemplated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Requirements for Qualification as a REIT</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Code defines a &ldquo;REIT&rdquo; as a
corporation, trust or association:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that is managed by one or more trustees or directors;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that issues transferable shares or transferable certificates to evidence its beneficial ownership;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that would be taxable as a domestic corporation but for Sections 856 through 859 of the Code;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that is neither a financial institution nor an insurance company within the meaning of certain provisions of the Code;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that is beneficially owned by 100 or more persons;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in which not more than 50% in value of the outstanding shares or other beneficial interest of which is owned, actually or constructively, by five or fewer individuals (as defined in the Code to include certain entities and as determined by applying certain attribution rules) during the last half of each taxable year;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that makes an election to be a REIT for the current taxable year, or has made such an election for a previous taxable year that has not been revoked or terminated, and satisfies all relevant filing and other administrative requirements established by the IRS that must be met to elect and maintain REIT status;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that uses a calendar year for U.S. federal income tax purposes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that meets other applicable tests, described below, regarding the nature of its income and assets and the amount of its distributions; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that has no earnings and profits from any non-REIT taxable year at the close of any taxable year.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Code provides that conditions (1), (2),
(3)&nbsp;and (4)&nbsp;above must be met during the entire taxable year and condition (5)&nbsp;above must be met during at least 335 days
of a taxable year of 12 months, or during a proportionate part of a taxable year of less than 12 months. Conditions (5)&nbsp;and (6)&nbsp;do
not apply until after the first taxable year for which an election is made to be taxed as a REIT. Condition (6)&nbsp;must be met during
the last half of each taxable year. For purposes of determining share ownership under condition (6)&nbsp;above, a supplemental unemployment
compensation benefits plan, a private foundation or a portion of a trust permanently set aside or used exclusively for charitable purposes
generally is considered an individual. However, a trust that is a qualified trust under Code Section&nbsp;401(a)&nbsp;generally is not
considered an individual, and beneficiaries of a qualified trust are treated as holding shares of a REIT in proportion to their actuarial
interests in the trust for purposes of condition (6)&nbsp;above. If we fail to satisfy these share ownership requirements, we will fail
to qualify as a REIT unless we qualify for certain relief provisions described in the following paragraph.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To monitor our compliance with condition (6)&nbsp;above,
we are generally required to maintain records regarding the actual ownership of our shares. To do so, we must demand written statements
each year from the record holders of certain specified percentages of our shares pursuant to which the record holders must disclose the
actual owners of the shares (<I>i.e.,</I> the persons required to include in gross income the dividends paid by us). We must maintain
a list of those persons failing or refusing to comply with this demand as part of our records. We could be subject to monetary penalties
if we fail to comply with these record-keeping requirements. A shareholder that fails or refuses to comply with the demand is required
by Treasury Regulations to submit a statement with its tax return disclosing the actual ownership of our shares and other information.
If we comply with the record-keeping requirement and we do not know or, exercising reasonable diligence, would not have known of our failure
to meet condition (6)&nbsp;above, then we will be treated as having met condition (6)&nbsp;above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For purposes of condition (8), we adopted
December&nbsp;31 as our year end, and thereby satisfy this requirement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Effect of Subsidiary Entities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Ownership
of Interests in Partnerships and Limited Liability Companies</I></FONT>. In the case of a REIT which is a partner in a partnership or
a member in a limited liability company treated as a partnership for U.S. federal income tax purposes, Treasury Regulations provide that
the REIT will be deemed to own its pro rata share of the assets of the partnership or limited liability company, as the case may be, based
on its capital interest in such partnership or limited liability company. Also, the REIT will be deemed to be entitled to the income of
the partnership or limited liability company attributable to its pro rata share of the assets of that entity. The assets and gross income
of the partnership or limited liability company retain the same character in the hands of the REIT for purposes of Section&nbsp;856 of
the Code, including satisfying the gross income tests and the asset tests. Thus, our pro rata share of the assets and items of income
of our operating partnership, including our operating partnership&rsquo;s share of these items of any partnership or limited liability
company in which our operating partnership owns an interest, are treated as our assets and items of income for purposes of applying the
requirements described in this prospectus, including the income and asset tests described below. For purposes of determining our proportionate
share of a partnership&rsquo;s income, we either calculate such share based on our capital interest in the partnership or based on the
allocations provided in the applicable partnership&rsquo;s operating agreement, using the more conservative calculation. As of the date
of this prospectus, all our operations are conducted directly by Sachem Capital Corp. and not through other entities. The limited liability
companies in which we have an interest are &ldquo;disregarded entities&rdquo; for tax purposes and, as such, we are deemed to own all
their assets directly. In the future, we may be a limited partner or non-managing member in partnerships or limited liability companies.
If such a partnership or limited liability company were to take actions which could jeopardize our qualification as a REIT or require
us to pay tax, we may be forced to dispose of our interest in such entity. In addition, it is possible that a partnership or limited liability
company could take an action which could cause us to fail a REIT income or asset test, and that we would not become aware of such action
in a time frame that would allow us to dispose of our interest in the partnership or limited liability company or take other corrective
action on a timely basis. In that case, we could fail to qualify as a REIT unless entitled to relief, as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Under the Bipartisan Budget Act of 2015, liability
is imposed on the partnership (rather than its partners) for adjustments to reported partnership taxable income resulting from audits
or other tax proceedings. The liability can include an imputed underpayment of tax, calculated by using the highest marginal U.S. federal
income tax rate, as well as interest and penalties on such imputed underpayment of tax. Using certain rules, partnerships may be able
to transfer these liabilities to their partners. In the event any adjustments are imposed by the IRS on the taxable income reported by
any subsidiary partnerships, we intend to utilize certain rules&nbsp;to the extent possible to allow us to transfer any liability with
respect to such adjustments to the partners of the subsidiary partnerships who should properly bear such liability. However, there is
no assurance that we will qualify under those rules&nbsp;or that we will have the authority to use those rules&nbsp;under the operating
agreements for certain of our subsidiary partnerships.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Ownership
of Interests in Qualified REIT Subsidiaries</I></FONT>. We may own 100% of the stock of one or more corporations that are qualified REIT
subsidiaries.&nbsp;A corporation will qualify as a qualified REIT subsidiary if we own 100% of its stock and it is not a taxable REIT
subsidiary. A qualified REIT subsidiary will not be treated as a separate corporation, and all assets, liabilities and items of income,
deduction and credit of a qualified REIT subsidiary will be treated as our assets, liabilities and such items (as the case may be) for
all purposes of the Code, including the REIT qualification tests. For this reason, references in this discussion to our income and assets
should be understood to include the income and assets of any qualified REIT subsidiary we own. Our ownership of the voting stock of a
qualified REIT subsidiary will not violate the restrictions against ownership of securities of any one issuer which constitute more than
10% of the voting power or value of such issuer&rsquo;s securities or more than 5% of the value of our total assets, as described below
in &ldquo;&mdash;Asset Tests Applicable to REITs.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Ownership
of Interests in Taxable REIT Subsidiaries</I></FONT>. In general, we may jointly elect with a subsidiary corporation, whether or not wholly
owned, to treat such subsidiary corporation as a taxable REIT subsidiary. A taxable REIT subsidiary of ours is a corporation other than
a REIT in which we directly or indirectly hold stock, and that has made a joint election with us to be treated as a taxable REIT subsidiary
under Section&nbsp;856(l)&nbsp;of the Code. A taxable REIT subsidiary also includes any corporation other than a REIT in which a taxable
REIT subsidiary of ours owns, directly or indirectly, securities (other than certain &ldquo;straight debt&rdquo; securities), which represent
more than 35% of the total voting power or value of the outstanding securities of such corporation. For purposes of the following discussion,
the term &ldquo;taxable REIT subsidiary&rdquo; includes subsidiaries of the taxable REIT subsidiaries. Other than some activities relating
to lodging and health care facilities, a taxable REIT subsidiary may generally engage in any business, including the provision of customary
or non-customary services to our tenants without causing us to receive impermissible tenant service income under the REIT gross income
tests. A taxable REIT subsidiary is required to pay regular U.S. federal income tax, and state and local income tax where applicable,
as a non-REIT &ldquo;C&rdquo; corporation. In addition, a taxable REIT subsidiary may be prevented from deducting interest on debt funded
directly or indirectly by us if certain tests regarding the taxable REIT subsidiary&rsquo;s debt to equity ratio and interest expense
are not satisfied. If dividends are paid to us by our taxable REIT subsidiaries, then a portion of the dividends we distribute to our
shareholders who are taxed at individual rates will generally be eligible for taxation at lower capital gains rates, rather than at ordinary
income rates. See &ldquo;&mdash;Taxation of U.S. Shareholders&mdash;Taxation of Taxable U.S. Shareholders&mdash;Qualified Dividend Income.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Generally, a taxable REIT subsidiary can perform
impermissible tenant services without causing us to receive impermissible tenant services income under the REIT income tests. However,
several provisions applicable to the arrangements between us and our taxable REIT subsidiaries ensure that such taxable REIT subsidiaries
will be subject to an appropriate level of U.S. federal income taxation. For example, taxable REIT subsidiaries are limited in their ability
to deduct interest payments in excess of a certain amount made directly or indirectly to us. In addition, we will be obligated to pay
a 100% penalty tax on some payments we receive from, or on certain expenses deducted by, or service income imputed to, our taxable REIT
subsidiaries if the economic arrangements between us, our tenants and such taxable REIT subsidiaries are not comparable to similar arrangements
among unrelated parties. Our taxable REIT subsidiaries, and any future taxable REIT subsidiaries acquired by us, may make interest and
other payments to us and to third parties in connection with activities related to our properties. We cannot assure you that, in the future,
our taxable REIT subsidiaries will not be limited in their ability to deduct interest payments made to us. In addition, we cannot assure
you that the IRS might not seek to impose the 100% excise tax on a portion of payments received by us from, or expenses deducted by, or
service income imputed to, our taxable REIT subsidiaries. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Ownership of Interests in Subsidiary REITs</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We may own stock of one or more corporations
that elect to be taxed as REITs. We currently do not own interests in any subsidiary REIT. We believe any REIT that we may acquire in
the future will operate in a manner to permit us to qualify for taxation as a REIT for U.S. federal income tax purposes and that stock
in any such REIT will be a qualifying asset for purposes of the 75% asset test. However, if any such other REIT that we may acquire in
the future fails to qualify as a REIT then (i)&nbsp;the entity would be subject to regular corporate income tax, as described herein (refer
below to the section entitled &ldquo;&mdash;Failure to Qualify as a REIT&rdquo;) and (ii)&nbsp;our equity interest in such entity would
not be a qualifying real estate asset for purposes of the 75% asset test and would be subject to the 5% asset test and the 10% vote or
value test generally applicable to a REIT&rsquo;s ownership in corporations other than REITs, qualified REIT subsidiaries or taxable REIT
subsidiaries (refer below to the section entitled &ldquo;&mdash;Asset Tests&rdquo;). If any REIT that we may acquire in the future fails
to qualify as a REIT, it is possible that we would not meet the 75% asset test, the 5% asset test, and/or the 10% vote or value test with
respect to its interest in such entity, in which event we would fail to qualify as a REIT, unless we qualified for certain relief provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Gross Income Tests</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To qualify as a REIT, we must satisfy two
gross income tests which are applied on an annual basis. First, in each taxable year at least 75% of our gross income, excluding gross
income from sales of inventory or dealer property in &ldquo;prohibited transactions&rdquo; and certain hedging and foreign currency transactions,
must be derived from investments relating to real property or mortgages on real property, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;rents from real property&rdquo;;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">dividends or other distributions on, and gain from the sale of, shares in other REITs;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">gain from the sale of real property or mortgages on real property, in either case, not held for sale to customers;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">interest income derived from mortgage loans secured by real property and interests in real property (and certain loans partially secured by personal property);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">income attributable to temporary investments of new capital in stocks and debt instruments during the one-year period following our receipt of new capital that we raise through equity offerings or issuance of debt obligations with at least a five-year term; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">gain from the sale of a debt instrument issued by a &ldquo;publicly offered REIT&rdquo; (<I>i.e.,</I> a REIT that is required to file annual and periodic reports with the SEC under the Exchange Act) unless the debt instrument is secured by real property or an interest in real property, is not treated as qualifying income for purposes of the 75% income test.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Second, at least 95% of our gross income in
each taxable year, excluding gross income from prohibited transactions and certain hedging transactions, must be derived from some combination
of income that qualifies under the 75% gross income test described above, as well as (a)&nbsp;other dividends, (b)&nbsp;interest, and
(c)&nbsp;gain from the sale or disposition of shares or securities, in either case, not held for sale to customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Rents
from Real Property</I></FONT>. Rents we receive will qualify as &ldquo;rents from real property&rdquo; for the purpose of satisfying the
gross income requirements for a REIT described above only if several conditions are met. These conditions relate to the identity of the
tenant, the computation of the rent payable, and the nature of the property lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">First, the amount of rent must not be based in whole or in part on the income or profits of any person. However, an amount we receive or accrue generally will not be excluded from the term &ldquo;rents from real property&rdquo; solely by reason of being based on a fixed percentage or percentages of receipts or sales.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Second, we, or an actual or constructive owner of 10% or more in value of our shares, must not actually or constructively own 10% or more of the interests in the tenant, or, if the tenant is a corporation, 10% or more of the voting power or value of all classes of stock of the tenant.&nbsp;&nbsp;Rents received from such tenant that is a taxable REIT subsidiary, however, will not be excluded from the definition of &ldquo;rents from real property&rdquo; as a result of this condition if either (i)&nbsp;at least 90% of the space at the property to which the rents relate is leased to third parties, and the rents paid by the taxable REIT subsidiary are comparable to rents paid by our other tenants for comparable space or (ii)&nbsp;the property is a qualified lodging or qualified health care facility and such property is operated on behalf of the taxable REIT subsidiary by a person who is an &ldquo;eligible independent contractor&rdquo; (as described below) and certain other requirements are met.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Third, rent attributable to personal property, leased in connection with a lease of real property, must not be greater than 15% of the total rent received under the lease.&nbsp;&nbsp;If this requirement is not met, then the portion of rent attributable to personal property will not qualify as &ldquo;rents from real property.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fourth, for rents to qualify as rents from real property for the purpose of satisfying the gross income tests, we generally must not operate or manage the property or furnish or render services to the tenants of such property, other than through an &ldquo;independent contractor&rdquo; who is adequately compensated and from whom we derive no revenue or through a taxable REIT subsidiary.&nbsp;&nbsp;To the extent that impermissible services are provided by an independent contractor, the cost of the services generally must be borne by the independent contractor.&nbsp;&nbsp;We anticipate that any services we provide directly to tenants will be &ldquo;usually or customarily rendered&rdquo; in connection with the rental of space for occupancy only and not otherwise considered to be provided for the tenants&rsquo; convenience.&nbsp;&nbsp;We may provide a minimal amount of &ldquo;non-customary&rdquo; services to tenants of some of our properties, other than through an independent contractor or taxable REIT subsidiary, but we believe that our income from these services has not and will not in the future exceed 1% of our total gross income from any such property.&nbsp;&nbsp;If the impermissible tenant services income exceeds 1% of our total income from a property, then all the income from that property will fail to qualify as rents from real property.&nbsp;&nbsp;If the total amount of impermissible tenant services income does not exceed 1% of our total income from the property, the services will not &ldquo;taint&rdquo; the other income from the property (that is, it will not cause the rent paid by tenants of that property to fail to qualify as rents from real property), but the impermissible tenant services income will not qualify as rents from real property. We are deemed to have received income from the provision of impermissible services in an amount equal to at least 150% of our direct cost of providing the service.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We monitor (and intend to continue to monitor)
the activities provided at, and the non-qualifying income arising from, our properties and believe that we have not provided services
at levels that will cause us to fail to meet the gross income tests. We provide services and may provide access to third party service
providers at some or all our properties. Based upon our experience in the markets where the properties are located, we believe that all
access to service providers and services provided to tenants by us (other than through a qualified independent contractor or a taxable
REIT subsidiary) either are usually or customarily rendered in connection with the rental of real property and not otherwise considered
rendered to the occupant, or, if considered impermissible services, will not result in an amount of impermissible tenant service income
that will cause us to fail to meet the gross income test requirements. However, we cannot provide any assurance that the IRS will agree
with these positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Interest
Income.</I></FONT> &nbsp;&ldquo;Interest&rdquo; generally will be non-qualifying income for purposes of the 75% or 95% gross income tests
if it depends in whole or in part on the income or profits of any person. However, interest based on a fixed percentage or percentages
of receipts or sales may still qualify under the gross income tests. We do not expect to derive significant amounts of interest that will
not qualify under the 75% and 95% gross income tests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Dividend
Income</I></FONT>. Our share of any dividends received from any corporations in which we own an interest (including taxable REIT subsidiaries
but excluding qualified REIT subsidiaries) will qualify for purposes of the 95% gross income test but not for purposes of the 75% gross
income test. At the present time, we do not have interests in other corporations ((including taxable REIT subsidiaries).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Income
from Hedging Transactions</I></FONT>. Although we have not in the past and have no plans to do so in the future, there is a possibility
that at some point in the future we may enter into hedging transactions with respect to one or more of our assets or liabilities. Any
such hedging transactions could take a variety of forms, including the use of derivative instruments such as interest rate swap or cap
agreements, option agreements, and futures or forward contracts. Income of a REIT, including income from a pass-through subsidiary, arising
from &ldquo;clearly identified&rdquo; hedging transactions that are entered into to manage the risk of interest rate or price changes
with respect to borrowings, including gain from the disposition of such hedging transactions, to the extent the hedging transactions hedge
indebtedness incurred, or to be incurred, by the REIT to acquire or carry real estate assets (each such hedge, a &ldquo;Borrowings Hedge&rdquo;),
will not be treated as gross income for purposes of the 95% gross income test, and will not be treated as gross income for purposes of
the 75% gross income test. Income of a REIT arising from hedging transactions that are entered into to manage the risk of currency fluctuations
with respect to our investments (each such hedge, a &ldquo;Currency Hedge&rdquo;) will not be treated as gross income for purposes of
either the 95% gross income test or the 75% gross income test, provided that the transaction is &ldquo;clearly identified.&rdquo; This
exclusion from the 95% and 75% gross income tests also will apply if we previously entered into a Borrowings Hedge or a Currency Hedge,
a portion of the hedged indebtedness or property is disposed of, and in connection with such extinguishment or disposition we enter into
a new &ldquo;clearly identified&rdquo; hedging transaction to offset the prior hedging position. In general, for a hedging transaction
to be &ldquo;clearly identified,&rdquo; (1)&nbsp;it must be identified as a hedging transaction before the end of the day on which it
is acquired, originated, or entered into; and (2)&nbsp;the items of risks being hedged must be identified &ldquo;substantially contemporaneously&rdquo;
with entering into the hedging transaction (generally not more than 35 days after entering into the hedging transaction). To the extent
that we hedge with other types of financial instruments or in other situations, the resultant income will be treated as income that does
not qualify under the 95% or 75% gross income tests unless the hedge meets certain requirements and we elect to integrate it with a specified
asset and to treat the integrated position as a synthetic debt instrument. If we engage in any hedging transactions, we intend to structure
them in a manner that does not jeopardize our qualification as a REIT, but we cannot assure you that we will be successful in this regard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Income
from Prohibited Transactions.</I></FONT>&nbsp;Any gain that we realize on the sale of any property held as inventory or otherwise held
primarily for sale to customers in the ordinary course of business (commonly referred to as &ldquo;dealer property&rdquo;) including our
share of any such gain realized by our operating partnership, either directly or through its subsidiary partnerships and limited liability
companies, will be treated as income from a prohibited transaction that is subject to a 100% penalty tax. For purposes of determining
the amount of income subject to the penalty tax, gains from sales of dealer property may not be offset by losses from such sales. Whether
property is held as dealer property is a question of fact that depends on all the facts and circumstances surrounding the particular transaction.
Among the factors considered by the IRS and the courts in making the dealer determination are the nature and purpose of the acquisition
of the property; the duration of ownership of the property; the extent and nature of the taxpayer&rsquo;s efforts to sell the property;
the number, extent, continuity, substantiality of the property sales; the extent of subdividing, developing, and advertising the property
to increase sales; the use of a business office for the sale of the property; the character and degree of supervision or control exercised
by the taxpayer over any representative selling the property; and the time and effort the taxpayer habitually devotes to the sale. The
frequency and substantiality of sales is often cited by the courts as the most important objective factor in determining whether the taxpayer
is engaged in the business of selling real estate to customers. The fact that the taxpayer holds some or even a substantial portion of
its properties for lease and for long-term investment (<I>i.e.,</I> not as dealer property) does not necessarily preclude other properties
from being viewed as dealer property if the specific facts and circumstances relating thereto indicate that such properties were acquired
and held for sale to customers in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">However, we will not be treated as a dealer
in real property with respect to a property which is a real estate asset that we sell for the purposes of the 100% tax if (i)&nbsp;we
have held the property for at least two years for the production of rental income prior to the sale, (ii)&nbsp;capitalized expenditures
on the property in the two years preceding the sale are less than 30% of the net selling price of the property, and (iii)&nbsp;we either
(a)&nbsp;have seven or fewer sales of property (excluding certain property obtained through foreclosure) for the year of sale, or (b)&nbsp;the
aggregate adjusted basis of property sold during the year is 10% or less of the aggregate adjusted basis of all of our assets as of the
beginning of the taxable year, or (c)&nbsp;the fair market value of property sold during the year is 10% or less of the aggregate fair
market value of all of our assets as of the beginning of the taxable year, or (d)&nbsp; the aggregate adjusted basis of property sold
during the year is 20% or less of the aggregate adjusted basis of all of our assets as of the beginning of the taxable year and the aggregate
adjusted basis of property sold during the three-year period ending with the year of sale is 10% or less of the aggregate tax basis of
all of our assets as of the beginning of each of the three taxable years ending with the year of sale, or (e)&nbsp; the fair market value
of property sold during the year is 20% or less of the aggregate fair market value of all of our assets as of the beginning of the taxable
year and the fair market value of property sold during the three-year period ending with the year of sale is 10% or less of the aggregate
fair market value of all of our assets as of the beginning of each of the three taxable years ending with the year of sale. If we rely
on clauses (b), (c), (d), or (e)&nbsp;in the preceding sentence, substantially all  the marketing and development expenditures with
respect to the property sold must be made through an independent contractor from whom we derive no income or a taxable REIT subsidiary.
The sale of more than one property to one buyer as part of one transaction constitutes one sale for purposes of this &ldquo;safe harbor.&rdquo;
We intend to hold our properties for investment with a view to long-term appreciation, to engage in the business of acquiring, developing
and owning our properties and to make occasional sales of the properties as are consistent with our investment objectives. However, the
IRS may successfully contend that some or all the sales made by us or subsidiary partnerships or limited liability companies are prohibited
transactions. In that case, we would be required to pay the 100% penalty tax on our allocable share of the gains resulting from any such
sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Income
from Foreclosure Property</I></FONT>. We generally will be subject to tax at the maximum corporate rate (currently 21%) on any net income
from foreclosure property, including any gain from the disposition of the foreclosure property, other than income that constitutes qualifying
income for purposes of the 75% gross income test. Foreclosure property is real property and any personal property incident to such real
property (1)&nbsp;that we acquire as the result of having bid on the property at foreclosure, or having otherwise reduced the property
to ownership or possession by agreement or process of law, after a default (or upon imminent default) on a lease of the property or a
mortgage loan held by us and secured by the property, (2)&nbsp;for which we acquired the related loan or lease at a time when default
was not imminent or anticipated, and (3)&nbsp;with respect to which we made a proper election to treat the property as foreclosure property.
Any gain from the sale of property for which a foreclosure property election has been made will not be subject to the 100% tax on gains
from prohibited transactions described above, even if the property would otherwise constitute inventory or dealer property. To the extent
that we receive any income from foreclosure property that does not qualify for purposes of the 75% gross income test, we intend to make
an election to treat the related property as foreclosure property if the election is available (which may not be the case with respect
to acquired &ldquo;distressed loans&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Failure
to Satisfy the Gross Income Tests.</I></FONT>&nbsp; If we fail to satisfy one or both the 75% and 95% gross income tests for any taxable
year, we may nevertheless qualify as a REIT for that year if we are entitled to relief under the Code. These relief provisions will be
generally available if (1)&nbsp;our failure to meet these tests was due to reasonable cause and not due to willful neglect and (2)&nbsp;following
our identification of the failure to meet the 75% and/or 95% gross income tests for any taxable year, we file a schedule with the IRS
setting forth a description of each item of our gross income that satisfies the gross income tests for purposes of the 75% or 95% gross
income test for such taxable year in accordance with Treasury Regulations. It is not possible, however, to state whether in all circumstances
we would be entitled to the benefit of these relief provisions. If these relief provisions do not apply under the circumstances, we will
fail to qualify as a REIT. As discussed above, under &ldquo;&mdash;Taxation of the Company as a REIT&mdash;General,&rdquo; even if these
relief provisions apply, a tax would be imposed based on the amount of non- qualifying income. We intend to take advantage of any and
all relief provisions that are available to us to cure any violation of the income tests applicable to REITs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Redetermined
Rents; Redetermined Deductions; Excess Interest; or Redetermined Taxable REIT Subsidiary Service Income</I></FONT>. Any redetermined rents,
redetermined deductions, excess interest or redetermined taxable REIT subsidiary service income will be subject to a 100% penalty tax.
In general, redetermined rents are rents from real property that are overstated as a result of services furnished by one of our taxable
REIT subsidiaries to any of our tenants, and redetermined deductions and excess interest represent amounts that are deducted by a taxable
REIT subsidiary for amounts paid to us that are in excess of the amounts that would have been deducted based on arm&rsquo;s-length negotiations.
Redetermined taxable REIT subsidiary service income means gross income (less allocable deductions) of a taxable REIT subsidiary attributable
to services provided to, or on behalf of, the REIT (other than to tenants) to the extent the taxable REIT subsidiary&rsquo;s income (less
deductions) attributable thereto is increased to clearly reflect income. Rents we receive will not constitute redetermined rents if they
qualify for the safe harbor provisions contained in the Code. Safe harbor provisions are provided where:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">amounts are excluded from the definition of impermissible tenant service income as a result of satisfying the 1%&nbsp;<I>de minimis</I>&nbsp;exception;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a taxable REIT subsidiary renders a significant amount of similar services to unrelated parties and the charges for such services are substantially comparable;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">rents paid to us by tenants leasing at least 25% of the net leasable space of the REIT&rsquo;s property who are not receiving services from the taxable REIT subsidiary are substantially comparable to the rents paid by the REIT&rsquo;s tenants leasing comparable space who are receiving such services from the taxable REIT subsidiary and the charge for the service is separately stated; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the taxable REIT subsidiary&rsquo;s gross income from the service is not less than 150% of the taxable REIT subsidiary&rsquo;s direct cost of furnishing the service.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">While we believe that any fees paid to our
taxable REIT subsidiaries for tenant services have and will continue to reflect arm&rsquo;s-length rates, a taxable REIT subsidiary may
under certain circumstances provide tenant services which do not satisfy any of the safe-harbor provisions described above. Nevertheless,
these determinations are inherently factual, and the IRS has broad discretion to assert that amounts paid between related parties should
be reallocated to clearly reflect their respective incomes. If the IRS successfully made such an assertion, we would be required to pay
a 100% penalty tax on the redetermined rent, redetermined deductions, excess interest or redetermined taxable REIT subsidiary service
income, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Asset Tests</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">At the close of each calendar quarter, we
must satisfy the following tests relating to the nature and diversification of our assets. For purposes of the asset tests, a REIT is
not treated as owning the stock of a qualified REIT subsidiary, an equity interest in any entity treated as a partnership for U.S. federal
income tax purposes, or an equity interest in any entity that is disregarded as separate from its owner for U.S. federal income tax purposes
(a &ldquo;disregarded entity&rdquo;). Instead, a REIT is treated as owning its proportionate share of the assets held by such entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At least 75% of the value of our total assets must be represented by some combination of &ldquo;real estate assets,&rdquo; cash, cash items and U.S. government securities.&nbsp;&nbsp;For purposes of this test, real estate assets include interests in real property, such as land and buildings, leasehold interests in real property, stock of other corporations that qualify as REITs, some types of mortgage-backed securities, mortgage loans on real property or on interests in real property, property attributable to the temporary investment of new capital (but only if such property is stock or a debt instrument and only for the one-year period beginning on the date we receive such capital), and: (i)&nbsp;personal property leased in connection with real property to the extent that rents attributable to such personal property are treated as &ldquo;rents from real property,&rdquo; and (ii)&nbsp;debt instruments issued by publicly offered REITs.&nbsp;&nbsp;Assets that do not qualify for purposes of the 75% asset test are subject to the additional asset tests described below.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not more than 25% of our total assets may be represented by securities other than those described in the first bullet above.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except for securities described in the first bullet above and securities in qualified REIT subsidiaries and taxable REIT subsidiaries, the value of any one issuer&rsquo;s securities owned by us may not exceed 5% of the value of our total assets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except for securities described in the first bullet above and securities in qualified REIT subsidiaries and taxable REIT subsidiaries, we may not own more than 10% of any one issuer&rsquo;s outstanding voting securities.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except for securities described in the first bullet above and securities in qualified REIT subsidiaries and taxable REIT subsidiaries, and certain types of indebtedness that are not treated as securities for purposes of this test, as discussed below, we may not own more than 10% of the total value of the outstanding securities of any one issuer.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Real estate assets include debt instruments issued by publicly offered REITs to the extent not secured by real property or interests in real property, but the value of such debt instruments cannot exceed 25% of the value of our total assets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not more than 20% (25% for calendar quarters beginning prior to the calendar quarter ended March&nbsp;31, 2018) of the value of our total assets may be represented by the securities of one or more taxable REIT subsidiaries.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The 10% value test does not apply to certain
 &ldquo;straight debt&rdquo; and other excluded securities, as described in the Code, including (1)&nbsp;loans to individuals or estates;
(2)&nbsp;obligations to pay rent from real property; (3)&nbsp;rental agreements described in Section&nbsp;467 of the Code; (4)&nbsp;any
security issued by other REITs; (5)&nbsp;certain securities issued by a state, the District of Columbia, a foreign government, or a political
subdivision of any of the foregoing, or the Commonwealth of Puerto Rico; and (6)&nbsp;any other arrangement as determined by the IRS.
In addition, (1)&nbsp;a REIT&rsquo;s interest as a partner in a partnership is not considered a security for purposes of the 10% value
test; (2)&nbsp;any debt instrument issued by a partnership (other than straight debt or other excluded security) will not be considered
a security issued by the partnership if at least 75% of the partnership&rsquo;s gross income is derived from sources that would qualify
for the 75% gross income test; and (3)&nbsp;any debt instrument issued by a partnership (other than straight debt or other excluded security)
will not be considered a security issued by a partnership to the extent of the REIT&rsquo;s interest as a partner in the partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For purposes of the 10% value test, debt will
meet the &ldquo;straight debt&rdquo; safe harbor if (1)&nbsp;neither us, nor any of our controlled taxable REIT subsidiaries (i.e., taxable
REIT subsidiaries more than 50% of the vote or value of the outstanding stock of which is directly or indirectly owned by us), own any
securities not described in the preceding paragraph that have an aggregate value greater than one percent of the issuer&rsquo;s outstanding
securities, as calculated under the Code, (2)&nbsp;the debt is a written unconditional promise to pay on demand or on a specified date
a sum certain in money, (3)&nbsp;the debt is not convertible, directly or indirectly, into stock, and (4)&nbsp;the interest rate and the
interest payment dates of the debt are not contingent on the borrower&rsquo;s profits, the borrower&rsquo;s discretion or similar factors.
However, contingencies regarding time of payment and interest are permissible for purposes of qualifying as a straight debt security if
either (1)&nbsp;such contingency does not have the effect of changing the effective yield of maturity, as determined under the Code, other
than a change in the annual yield to maturity that does not exceed the greater of (i)&nbsp;5% of the annual yield to maturity and (ii)&nbsp;0.25%,
or (2)&nbsp;neither the aggregate issue price nor the aggregate face amount of the issuer&rsquo;s debt instruments held by the REIT exceeds
$1,000,000 and not more than 12 months of unaccrued interest can be required to be prepaid thereunder. In addition, debt will not be disqualified
from being treated as &ldquo;straight debt&rdquo; solely because the time or amount of payment is subject to a contingency upon a default
or the exercise of a prepayment right by the issuer of the debt, provided that such contingency is consistent with customary commercial
practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We believe that the assets that we hold and
intend to hold will satisfy the foregoing asset test requirements. However, we have not and will not obtain independent appraisals to
support our conclusions as to the value of our assets. Moreover, the value of some assets may not be susceptible to a precise determination.
As a result, there can be no assurance that the IRS will not contend that our ownership of assets violates one or more of the asset tests
applicable to REITs in which case we might not satisfy the 75% asset test and the other asset tests and could fail to qualify as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Failure
to Satisfy the Asset Tests</I></FONT>. The asset tests must be satisfied not only on the last day of the calendar quarter in which we,
directly or through pass-through subsidiaries, acquire securities in the applicable issuer, but also on the last day of the calendar quarter
in which we increase our ownership of securities of such issuer, including as a result of increasing our interest in pass-through subsidiaries.
After initially meeting the asset tests at the close of any quarter, we will not lose our status as a REIT for failure to satisfy the
asset tests solely by reason of changes in the relative values of our assets. If failure to satisfy the asset tests results from an acquisition
of securities or other property during a quarter, we can cure this failure by disposing of non-qualifying assets within 30 days after
the close of that quarter. We believe that we have maintained, and we intend to continue to maintain, adequate records of the value of
our assets to ensure compliance with the asset tests, and we intend to take any available action within 30 days after the close of any
quarter as may be required to cure any noncompliance with the asset tests. Although we plan to take steps to ensure that we satisfy such
tests for any quarter with respect to which testing is to occur, there can be no assurance that such steps will always be successful.
If we fail to timely cure any noncompliance with the asset tests, we will cease to qualify as a REIT, unless we satisfy certain relief
provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The failure to satisfy the 5% asset test,
or the 10% vote or value asset tests can be remedied even after the 30-day cure period under certain circumstances. Specifically, if we
fail these asset tests at the end of any quarter and such failure is not cured within 30 days thereafter, we may dispose of sufficient
assets (generally within six months after the last day of the quarter in which our identification of the failure to satisfy these asset
tests occurred) to cure such a violation that does not exceed the lesser of 1% of our assets at the end of the relevant quarter or $10,000,000.
If we fail any of the other asset tests or our failure of the 5% and 10% asset tests is in excess of the&nbsp;<I>de minimis</I>&nbsp;amount
described above, as long as such failure was due to reasonable cause and not willful neglect, we are permitted to avoid disqualification
as a REIT, after the 30-day cure period, by taking steps including the disposing of sufficient assets to meet the asset test (generally
within six months after the last day of the quarter in which our identification of the failure to satisfy the REIT asset test occurred),
paying a tax equal to the greater of $50,000 and the highest corporate income tax rate of the net income generated by the non-qualifying
assets during the period in which we failed to satisfy the asset test, and filing in accordance with applicable Treasury Regulations a
schedule with the IRS that describes the assets that caused us to fail to satisfy the asset test(s). We intend to take advantage of any
and all relief provisions that are available to us to cure any violation of the asset tests applicable to REITs. In certain circumstances,
utilization of such provisions could result in us being required to pay an excise or penalty tax, which could be significant in amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Annual Distribution Requirements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To qualify as a REIT, we are required to distribute
dividends, other than capital gain dividends, to our shareholders each year in an amount at least equal to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the sum of: (1)&nbsp;90% of our &ldquo;REIT taxable income,&rdquo; computed without regard to the dividends-paid deduction and our net capital gain; and (2)&nbsp;90% of our after-tax net income, if any, from foreclosure property; minus</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the sum of specified items of non-cash income.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For purposes of this test, non-cash income
means income attributable to leveled stepped rents, original issue discount included in our taxable income without the receipt of a corresponding
payment, cancellation of indebtedness or a like-kind exchange that is later determined to be taxable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We generally must make dividend distributions
in the taxable year to which they relate. Dividend distributions may be made in the following year in two circumstances. First, if we
declare a dividend in October, November, or December&nbsp;of any year with a prospective record date in one of these months and pay the
dividend on or before January&nbsp;31 of the following year, such distributions are treated as both paid by us and received by each shareholder
on December&nbsp;31 of the year in which they are declared. Second, distributions (&ldquo;858 spill-over dividends&rdquo;) may be made
in the following year if (A)&nbsp;the distributions are (i)&nbsp;declared before we timely file our tax return for the prior year, (ii)&nbsp;distributed
within the 12-month period following the close of the prior taxable year to which they relate back, and (iii)&nbsp;distributed with or
before the &ldquo;first regular dividend payment&rdquo;<I>&nbsp;after</I>&nbsp;such declaration, and (B)&nbsp;we elect in our tax return
to have a specified dollar amount of such dividend (or dividends) treated as if paid in the prior year. The maximum dollar amount that
we may elect to treat as an 858 spill-over dividend is the amount by which the earnings and profits for the taxable year exceed the total
amount of distributions out of such earnings and profits that were actually made during the taxable year to which they relate back. These
distributions are taxable to our shareholders in the year in which paid, even though the distributions relate to our prior taxable year
for purposes of the 90% distribution requirement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To the extent that we do not distribute all
 our net capital gain or distribute at least 90%, but less than 100%, of our &ldquo;REIT taxable income,&rdquo; as adjusted, we will
be required to pay tax on that amount at regular corporate tax rates. We believe that we have made, and we intend to continue to make,
timely distributions to satisfy these annual distribution requirements. In certain circumstances, we may elect to retain, rather than
distribute, our net long-term capital gains and pay tax on such gains. In this case, we could elect for our shareholders to include their
proportionate share of such undistributed long-term capital gains in income, and to receive a corresponding credit for their share of
the tax that we paid. Our shareholders would then increase their adjusted basis of their shares by the difference between (1)&nbsp;the
amounts of capital gain dividends that we designated and that they included in their taxable income, minus (2)&nbsp;the tax that we paid
on their behalf with respect to that income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To the extent that in the future we may have
available net operating losses carried forward from prior taxable years, such losses may reduce the amount of distributions that we must
make in order to comply with the REIT distribution requirements. Such losses, however, (1)&nbsp;will generally not affect the character,
in the hands of our shareholders, of any distributions that are actually made as ordinary dividends or capital gains; and (2)&nbsp;cannot
be passed through or used by our shareholders. See &ldquo;&mdash;Taxation of U.S. Shareholders&mdash;Taxation of Taxable U.S. Shareholders&mdash;Distributions
Generally.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If we fail to distribute during each calendar
year at least the sum of (a)&nbsp;85% of our REIT ordinary income for such year, (b)&nbsp;95% of our REIT capital gain net income for
such year, and (c)&nbsp;any undistributed taxable income (ordinary and capital gain) from all prior periods, we would be subject to a
non-deductible 4% excise tax on the excess of such required distribution over the sum of (x)&nbsp;the amounts &ldquo;actually distributed,&rdquo;
and (y)&nbsp;the amounts of income we retained and on which we paid corporate income tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We expect that our REIT taxable income (determined
before our deduction for dividends paid) will be less than our cash flow because of depreciation and other non-cash charges included in
computing REIT taxable income. Accordingly, we anticipate that we will generally have enough cash or liquid assets to enable us to satisfy
the distribution requirements described above. However, from time to time, we may not have sufficient cash or other liquid assets to meet
these distribution requirements due to timing differences between the actual receipt of income and actual payment of deductible expenses,
and the inclusion of income and deduction of expenses in arriving at our taxable income. If these timing differences occur, we may need
to arrange for short-term, or possibly long-term, borrowings or need to pay dividends in the form of taxable dividends to meet the distribution
requirements. Furthermore, under Section&nbsp;451 of the Code, subject to certain exceptions, we must accrue income for U.S. federal income
tax purposes no later than when such income is taken into account as revenue in our financial statements, which could create additional
differences between REIT taxable income and the receipt of cash attributable to such income. In addition, Section&nbsp;162(m) of the Code
places a per-employee limit of $1 million on the amount of compensation that a publicly held corporation may deduct in any one year with
respect to its chief executive officer and certain other highly compensated executive officers. Amendments to Section&nbsp;162(m) eliminated
an exception that formerly permitted certain performance-based compensation to be deducted even if in excess of $1 million, which may
have the effect of increasing our REIT taxable income. We may be able to rectify a failure to meet the distribution requirement for a
year by paying &ldquo;deficiency dividends&rdquo; to our shareholders in a later year, which may be included in our deduction for dividends
paid for the earlier year. Thus, we may be able to avoid being taxed on amounts distributed as deficiency dividends. However, we will
be required to pay interest to the IRS based upon the amount of any deduction claimed for deficiency dividends.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Commencing in taxable years beginning after
December&nbsp;31, 2017, Section&nbsp;163(j)&nbsp;of the Code limits the deductibility of net interest expense paid
or accrued on debt properly allocable to a trade or business to 30% of &ldquo;adjusted taxable income,&rdquo; subject to certain exceptions.
Any deduction in excess of the limitation is carried forward and may be used in a subsequent year, subject to the 30% limitation. Adjusted
taxable income is determined without regard to certain deductions, including those for net interest expense, net operating loss carryforwards
and, for taxable years beginning before January&nbsp;1, 2022, depreciation, amortization and depletion. Provided the taxpayer makes a
timely election (which is irrevocable), the 30% limitation does not apply to a trade or business involving real property development,
redevelopment, construction, reconstruction, rental, operation, acquisition, conversion, disposition, management, leasing or brokerage,
within the meaning of Section&nbsp;469(c)(7)(C)&nbsp;of the Code. If this election is made, depreciable real property (including certain
improvements) held by the relevant trade or business must be depreciated under the alternative depreciation system under the Code, which
is generally less favorable than the generally applicable system of depreciation under the Code. If we do not make the election or if
the election is determined not to be available with respect to all or certain of our business activities, the new interest deduction limitation
could result in us having more REIT taxable income and thus increase the amount of distributions we must make to comply with the REIT
requirements and avoid incurring corporate level tax. Similarly, the limitation could cause our taxable REIT subsidiaries to have greater
taxable income and thus potentially greater corporate tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Record-Keeping Requirements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We are required to comply with applicable
record-keeping requirements. Failure to comply could result in monetary fines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Failure to Qualify as a REIT</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If we fail to satisfy one or more requirements
for REIT qualification other than gross income and asset tests that have the specific savings clauses, we can avoid termination of our
REIT qualification by paying a penalty of $50,000 for each such failure, provided that our noncompliance was due to reasonable cause and
not willful neglect. If we fail to qualify for taxation as a REIT in any taxable year and the relief provisions do not apply, we will
be subject to tax on our taxable income at regular corporate rates. If we fail to qualify for taxation as a REIT, we will not be required
to make any distributions to our shareholders, and any distributions that are made to our shareholders will not be deductible by us. As
a result, our failure to qualify for taxation as a REIT would significantly reduce the cash available for distributions by us to our shareholders.
In addition, if we fail to qualify for taxation as a REIT, all distributions to our shareholders, to the extent of our current and accumulated
earnings and profits, will be taxable as regular corporate dividends. For taxable years beginning before January&nbsp;1, 2026, generally
U.S. shareholders that are individuals, trusts or estates may deduct 20% of the aggregate ordinary dividends distributed by us, subject
to certain limitations. Alternatively, such dividends paid to U.S. shareholders that are individuals, trusts and estates may be taxable
at the preferential income tax rates (<I>i.e.,</I> the 20% maximum U.S. federal rate) for qualified dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Unless entitled to relief under specific statutory
provisions, we also will be disqualified from taxation as a REIT for the four taxable years following the year during which qualification
was lost. There can be no assurance that we would be entitled to any statutory relief. We intend to take advantage of any and all relief
provisions that are available to us to cure any violation of the requirements applicable to REITs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Taxation of U.S. Shareholders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Taxation of Taxable U.S. Shareholders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">This section summarizes the taxation of U.S.
shareholders that are not tax-exempt organizations. If an entity or arrangement treated as a partnership for U.S. federal income tax purposes
holds our shares, the U.S. federal income tax treatment of a partner generally will depend upon the status of the partner and the activities
of the partnership. A partner of a partnership holding our shares should consult its tax advisor regarding the U.S. federal income tax
consequences to the partner of the acquisition, ownership and disposition of our shares by the partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Distributions
Generally</I></FONT>. So long as we qualify as a REIT, distributions out of our current or accumulated earnings and profits that are not
designated as capital gains dividends or &ldquo;qualified dividend income&rdquo; will be taxable to our taxable U.S. shareholders as ordinary
income and will not be eligible for the dividends-received deduction in the case of U.S. shareholders that are corporations. However,
for taxable years prior to 2026, generally U.S. shareholders that are individuals, trusts or estates may deduct 20% of the aggregate ordinary
dividends distributed by us, subject to certain limitations. For purposes of determining whether distributions to holders of our shares
are out of current or accumulated earnings and profits, our earnings and profits will be allocated first to any preferred shares and then
to our common shares. Dividends received from REITs are generally not eligible to be taxed at the preferential qualified dividend income
rates currently available to individual U.S. shareholders who receive dividends from taxable subchapter C corporations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Capital
Gain Dividends</I></FONT>. We may elect to designate distributions of our net capital gain as &ldquo;capital gain dividends.&rdquo; Distributions
that we properly designate as &ldquo;capital gain dividends&rdquo; will be taxable to our taxable U.S. shareholders as long-term capital
gains without regard to the period for which the U.S. shareholder that receives such distribution has held its shares, to the extent that
such distributions do not exceed our actual net capital gain for the taxable year (and do not exceed our dividends paid with respect to
the taxable year, taking Section&nbsp;858 of the Code into account). Designations made by us will only be effective to the extent that
they comply with Revenue Ruling 89-81, which requires that distributions made to different classes of shares be composed proportionately
of dividends from each particular type of income. If we designate any portion of a dividend as a capital gain dividend, a U.S. shareholder
will receive an IRS Form&nbsp;1099-DIV indicating the amount that will be taxable to the shareholder as capital gain. Corporate shareholders,
however, may be required to treat up to 20% of some capital gain dividends as ordinary income. Recipients of capital gain dividends from
us that are taxed at corporate income tax rates will be taxed at the normal corporate income tax rates on these dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We may elect to retain and pay taxes on some
or all of our net long-term capital gains, in which case U.S. shareholders will be treated as having received, solely for U.S. federal
income tax purposes, our undistributed capital gains as well as a corresponding credit or refund, as the case may be, for taxes that we
paid on such undistributed capital gains. A U.S. shareholder will increase the basis in its shares by the difference between the amount
of capital gain included in its income and the amount of tax it is deemed to have paid. A U.S. shareholder that is a corporation will
appropriately adjust its earnings and profits for the retained capital gain in accordance with Treasury Regulations to be prescribed by
the IRS. Our earnings and profits will be adjusted appropriately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We will classify portions of any designated
capital gain dividend or undistributed capital gain as either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a long-term capital gain distribution, which would be taxable to non-corporate U.S. shareholders at a maximum rate of 20%, and taxable to U.S. shareholders that are corporations at a maximum rate of 21%; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an &ldquo;unrecaptured Section&nbsp;1250 gain&rdquo; distribution, which would be taxable to non-corporate U.S. shareholders at a maximum rate of 25%, to the extent of previously claimed depreciation deductions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Distributions from us in excess of our current
and accumulated earnings and profits will not be taxable to a U.S. shareholder to the extent that they do not exceed the adjusted basis
of the U.S. shareholder&rsquo;s shares in respect of which the distributions were made. Rather, the distribution will reduce the adjusted
basis of these shares. To the extent that such distributions exceed the adjusted basis of a U.S. shareholder&rsquo;s shares, the U.S.
shareholder generally must include such distributions in income as long-term capital gain, or short-term capital gain if the shares have
been held for one year or less. In addition, any dividend that we declare in October, November&nbsp;or December&nbsp;of any year and that
is payable to a shareholder of record on a prospective date in any such month will be treated as both paid by us and received by the shareholder
on December&nbsp;31 of such year,&nbsp;<I>provided</I>&nbsp;that we actually pay the dividend before the end of January&nbsp;of the following
calendar year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">To the extent that we have available net operating
losses and capital losses carried forward from prior taxable years, such losses may reduce the amount of distributions that we must make
in order to comply with the REIT distribution requirements. Under  Section&nbsp;172 of the Code, our deduction
for any net operating loss carryforwards arising from losses we sustain in taxable years beginning after December&nbsp;31, 2017, is limited
to 80% of our REIT taxable income (determined without regard to the deduction for dividends paid), and any unused portion of losses arising
in taxable years ending after December&nbsp;31, 2017, may not be carried back, but may be carried forward indefinitely. See &ldquo;&mdash;Taxation
of the Company as a REIT&rdquo; and &ldquo;&mdash;Requirements for Qualification as a REIT&mdash;Annual Distribution Requirements.&rdquo;
Such losses, however, are not passed through to U.S. shareholders and do not offset income of U.S. shareholders from other sources, nor
would such losses affect the character of any distributions that we make, which are generally subject to tax in the hands of U.S. shareholders
to the extent that we have current or accumulated earnings and profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Qualified
Dividend Income</I></FONT>. With respect to U.S. shareholders who are taxed at the rates applicable to individuals, we may elect to designate
a portion of our distributions paid to shareholders as &ldquo;qualified dividend income.&rdquo; A portion of a distribution that is properly
designated as qualified dividend income is taxable to non-corporate U.S. shareholders as capital gain, provided that the U.S. shareholder
has held the shares with respect to which the distribution is made for more than 60 days during the 121-day period beginning on the date
that is 60 days before the date on which such shares become ex-dividend with respect to the relevant distribution. The maximum amount
of our distributions eligible to be designated as qualified dividend income for a taxable year is equal to the sum of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the qualified dividend income received by us during such taxable year from non-REIT C corporations (including our taxable REIT subsidiaries);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the excess of any &ldquo;undistributed&rdquo; REIT taxable income recognized during the immediately preceding year over the U.S. federal income tax paid by us with respect to such undistributed REIT taxable income; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the excess of (i)&nbsp;any income recognized during the immediately preceding year attributable to the sale of a built-in-gain asset that was acquired in a carry-over basis transaction from a C corporation with respect to which the Company is required to pay U.S. federal income tax, over (ii)&nbsp;the U.S. federal income tax paid by us with respect to such built-in gain.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Generally, dividends that we receive will
be treated as qualified dividend income for purposes of the first bullet above if (A)&nbsp;the dividends are received from (i)&nbsp;a
U.S. corporation (other than a REIT or a RIC), (ii)&nbsp;any of our taxable REIT subsidiaries, or (iii)&nbsp;a &ldquo;qualifying foreign
corporation,&rdquo; and (B)&nbsp;specified holding period requirements and other requirements are met. A foreign corporation (other than
a &ldquo;foreign personal holding company,&rdquo; a &ldquo;foreign investment company,&rdquo; or a &ldquo;passive foreign investment company&rdquo;)
will be a qualifying foreign corporation if it is incorporated in a possession of the United States, the corporation is eligible for benefits
of an income tax treaty with the United States that the Secretary of Treasury determines is satisfactory or the stock of the foreign corporation
on which the dividend is paid is readily tradable on an established securities market in the United States. We generally expect that an
insignificant portion, if any, of our distributions from us will consist of qualified dividend income. If we designate any portion of
a dividend as qualified dividend income, a U.S. shareholder will receive an IRS Form&nbsp;1099-DIV indicating the amount that will be
taxable to the shareholder as qualified dividend income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Passive
Activity Losses and Investment Interest Limitations</I></FONT>. Distributions we make and gain arising from the sale or exchange by a
U.S. shareholder of our shares will not be treated as passive activity income. As a result, U.S. shareholders generally will not be able
to apply any &ldquo;passive losses&rdquo; against this income or gain. Distributions we make, to the extent they do not constitute a return
of capital, generally will be treated as investment income for purposes of computing the investment interest limitation. A U.S. shareholder
may elect, depending on its particular situation, to treat capital gain dividends, capital gains from the disposition of our shares and
income designated as qualified dividend income as investment income for purposes of the investment interest limitation, in which case
the applicable capital gains will be taxed as ordinary income. We will notify shareholders regarding the portions of our distributions
for each year that constitute ordinary income, return of capital and qualified dividend income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Dispositions
of Our Shares</I></FONT>. If a U.S. shareholder sells or otherwise disposes of our shares in a taxable transaction (other than redemption),
it will recognize gain or loss for U.S. federal income tax purposes in an amount equal to the difference between the amount of cash and
the fair market value of any property received on the sale or other disposition and the holder&rsquo;s adjusted basis in the shares for
tax purposes. In general, a U.S. shareholder&rsquo;s adjusted basis will equal the U.S. shareholder&rsquo;s acquisition cost, increased
by the excess for net capital gains deemed distributed to the U.S. shareholder (discussed above) less tax deemed paid on it and reduced
by returns on capital. In general, capital gains recognized by individuals and other non-corporate U.S. shareholders upon the sale or
disposition of our shares will be subject to a maximum U.S. federal income tax rate of 20%, if our shares are held for more than one year
and will be taxed as ordinary income (up to 37%) if our shares are held for one year or less. Gains recognized by U.S. shareholders that
are corporations are subject to U.S. federal income tax at a maximum rate of 21%, regardless of whether such gains are classified as long-term
capital gains or not. The IRS has the authority to prescribe, but has not yet prescribed, Treasury Regulations that would apply a capital
gain tax rate of 25% (which is higher than the long-term capital gain tax rates for non-corporate U.S. shareholders) to a portion of capital
gain realized by a non-corporate U.S. shareholder on the sale of our shares that would correspond to our &ldquo;unrecaptured Section&nbsp;1250
gain.&rdquo; U.S. shareholders should consult with their tax advisors with respect to their capital gain tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Capital losses recognized by a U.S. shareholder
upon the disposition of our shares that were held for more than one year at the time of disposition will be considered long-term capital
losses and are generally available only to offset capital gain income of the shareholder but not ordinary income (except in the case
of individuals, who may offset up to $3,000 of ordinary income each year). Similarly, capital losses recognized by a U.S. shareholder
upon the disposition of our shares that were held for one year or less at the time of disposition will be considered short-term capital
losses and are generally available only to offset capital gain income of the shareholder but not ordinary income (except in the case
of individuals, who may offset up to $3,000 of ordinary income each year). In addition, any loss upon a sale or exchange of our shares
by a U.S. shareholder who has held the shares for six months or less, after applying holding period rules, will be treated as a long-term
capital loss to the extent of distributions that we make that are required to be treated by the U.S. shareholder as long-term capital
gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If a shareholder recognizes a loss upon a
subsequent disposition of our shares in an amount that exceeds a prescribed threshold, it is possible that the provisions of Treasury
Regulations involving &ldquo;reportable transactions&rdquo; could apply, with a resulting requirement to separately disclose the loss-generating
transaction to the IRS. These regulations, though directed towards &ldquo;tax shelters,&rdquo; are broadly written, and may apply to transactions
that would not typically be considered tax shelters. The Code imposes significant penalties for failure to comply with these requirements.
U.S. shareholders should consult their tax advisors concerning any possible disclosure obligation with respect to the receipt or disposition
of our shares, or transactions that we might undertake directly or indirectly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Medicare Tax on Unearned Income</I>. The
Health Care and Reconciliation Act of 2010 requires certain U.S. shareholders that are individuals, estates or trusts to pay an additional
3.8% tax on &ldquo;net investment income&rdquo; (the &ldquo;Medicare Tax&rdquo;), which includes, among other things, dividends on and
gains from the sale or other disposition of REIT shares. The temporary 20% deduction allowed by Section&nbsp;199A of the Code with respect
to ordinary REIT dividends received by non-corporate taxpayers, is allowed only for purposes of Chapter 1 of the Code and thus is apparently
not allowed as a deduction allocable to such dividends for purposes of determining the amount of net investment income subject to the
Medicare Tax, which is imposed under Chapter 2A of the Code. U.S. shareholders should consult their tax advisors regarding this legislation.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Legislation
Relating to Foreign Accounts</I></FONT>. The Foreign Account Tax Compliance Act (&ldquo;FATCA&rdquo;), which was enacted in 2010, imposes
a 30% withholding tax on certain types of payments made to &ldquo;foreign financial institutions&rdquo; and certain other non-U.S. entities
unless certain due diligence, reporting, withholding, and certification obligations requirements are satisfied. Investors are advised
to consult their tax advisors regarding this legislation. See &ldquo;&mdash;Information Reporting and Backup Withholding Tax Applicable
to Shareholders&mdash;U.S. Shareholders&mdash;Legislation Relating to Foreign Accounts.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Redemption
of Preferred Shares</I></FONT>.&nbsp; Whenever we redeem any preferred shares, the treatment accorded to any redemption by us for cash
(as distinguished from a sale, exchange or other disposition) of our preferred shares to a holder of such shares can only be determined
on the basis of the particular facts as to each holder at the time of redemption. In general, a holder of our preferred shares will recognize
capital gain or loss measured by the difference between the amount received by the holder of such shares upon the redemption and such
holder&rsquo;s adjusted tax basis in the shares redeemed (provided the preferred shares are held as a capital asset) if such redemption
(i)&nbsp;is &ldquo;not essentially equivalent to a dividend&rdquo; with respect to the holder of the preferred shares under Section&nbsp;302(b)(1)&nbsp;of
the Code, (ii)&nbsp;is a &ldquo;substantially disproportionate&rdquo; redemption with respect to the shareholder under Section&nbsp;302(b)(2)&nbsp;of
the Code, or (iii)&nbsp;results in a &ldquo;complete termination&rdquo; of the holder&rsquo;s interest in all classes of our shares under
Section&nbsp;302(b)(3)&nbsp;of the Code. In applying these tests, there must be taken into account not only any series or class of the
shares being redeemed, but also such holder&rsquo;s ownership of other classes of our shares and any options (including share purchase
rights) to acquire any of the foregoing. The holder of our preferred shares also must take into account any such securities (including
options) which are considered to be owned by such holder by reason of the constructive ownership rules&nbsp;set forth in Sections&nbsp;318
and 302(c)&nbsp;of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If the holder of preferred shares owns (actually
or constructively) none of our voting shares, or owns an insubstantial amount of our voting shares, based upon current law, it is probable
that the redemption of preferred shares from such a holder would be considered to be &ldquo;not essentially equivalent to a dividend.&rdquo;
However, whether a distribution is &ldquo;not essentially equivalent to a dividend&rdquo; depends on the facts and circumstances,
and a holder of our preferred shares intending to rely on any of these tests at the time of redemption should consult its tax advisor
to determine their application to its particular situation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Satisfaction of the &ldquo;substantially disproportionate&rdquo;
and &ldquo;complete termination&rdquo; exceptions is dependent upon compliance with the respective objective tests set forth in Section&nbsp;302(b)(2)&nbsp;and
Section&nbsp;302(b)(3)&nbsp;of the Code. A distribution to a holder of preferred shares will be &ldquo;substantially disproportionate&rdquo;
if the percentage of our outstanding voting shares actually and constructively owned by the shareholder immediately following the redemption
of shares (treating shares of preferred stock redeemed as not outstanding) is less than 80% of the percentage of our outstanding voting
shares actually and constructively owned by the shareholder immediately before the redemption, and immediately following the redemption
the shareholder actually and constructively owns less than 50% of the total combined voting power of all of our outstanding shares of
capital stock. If our preferred shares are nonvoting shares, a shareholder would have to reduce such holder&rsquo;s holdings (if any)
in our classes of voting shares to satisfy this test.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If the redemption does not meet any of the
tests under Section&nbsp;302 of the Code, then the redemption proceeds received from our preferred shares will be treated as a distribution
on our shares as described under &ldquo;Taxation of U.S. Shareholders&mdash;Taxation of Taxable U.S. Shareholders&mdash;Distributions
Generally.&rdquo; If the redemption of a holder&rsquo;s preferred shares is taxed as a dividend, the adjusted basis of such holder&rsquo;s
redeemed shares will be transferred to any other shares held by the holder. If the holder owns no other shares, under certain circumstances,
such basis may be transferred to a related person, or it may be lost entirely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">With respect to a redemption of our preferred
shares that is treated as a distribution with respect to our shares, which is not otherwise taxable as a dividend, the IRS has proposed
Treasury regulations that would require any basis reduction associated with such a redemption to be applied on a share-by-share basis
which could result in taxable gain with respect to some shares, even though the holder&rsquo;s aggregate basis for the shares would be
sufficient to absorb the entire amount of the redemption distribution (in excess of any amount of such distribution treated as a dividend).
Additionally, these proposed Treasury regulations would not permit the transfer of basis in the redeemed shares of the preferred shares
to the remaining shares held (directly or indirectly) by the redeemed holder. Instead, the unrecovered basis in our preferred shares would
be treated as a deferred loss to be recognized when certain conditions are satisfied. These proposed Treasury regulations would be effective
for transactions that occur after the date the regulations are published as final Treasury regulations. However, we cannot assure you
as to whether, when, and in what particular form such proposed Treasury regulations will ultimately be finalized. If a redemption of shares
is not treated as a distribution taxable as a dividend, it will be treated as a taxable sale or exchange in the manner described under
 &ldquo;Taxation of U.S. Shareholders&mdash;Taxation of Taxable U.S. Shareholders&mdash;Dispositions of Our Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Conversion
of Preferred Shares into Common Shares</I></FONT>.&nbsp; Except as provided below, a U.S. shareholder generally will not recognize gain
or loss upon the conversion of our preferred shares into our common shares. Except as provided below, a U.S. shareholder&rsquo;s basis
and holding period in the common shares received upon conversion generally will be the same as those of the converted preferred shares
(but the basis will be reduced by the portion of adjusted tax basis allocated to any fractional share of common shares exchanged for cash).
Any common shares received in a conversion that is attributable to accumulated and unpaid dividends on the converted preferred shares
will be treated as a distribution on our shares as described above in &ldquo;&mdash;Taxation of U.S. Shareholders&mdash;Taxation of Taxable
U.S. Shareholders&mdash;Distributions Generally.&rdquo; Cash received upon conversion in lieu of a fractional common share generally will
be treated as a payment in a taxable exchange for such fractional common share, and gain or loss will be recognized on the receipt of
cash in an amount equal to the difference between the amount of cash received and the adjusted tax basis allocable to the fractional common
share deemed exchanged. This gain or loss will be long-term capital gain or loss if the U.S. shareholder has held the preferred shares
for more than one year. See &ldquo;&mdash;Taxation of U.S. Shareholders&mdash;Dispositions of Our Shares.&rdquo; U.S. shareholders should
consult with their tax advisor regarding the U.S. federal income tax consequences of any transaction by which such holder exchanges common
shares received on a conversion of preferred shares for cash or other property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Taxation of Tax-Exempt Shareholders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">U.S. tax-exempt entities, including qualified
employee pension and profit-sharing trusts and individual retirement accounts, generally are exempt from U.S. federal income taxation.
Such entities, however, may be subject to taxation on their unrelated business taxable income, or UBTI. While some investments in real
estate may generate UBTI, the IRS has ruled that dividend distributions from a REIT to a tax-exempt entity generally do not constitute
UBTI. Based on that ruling, and provided that (1)&nbsp;a tax-exempt shareholder has not held our shares as &ldquo;debt financed property&rdquo;
within the meaning of the Code (<I>i.e.,</I> where the acquisition or holding of the property is financed through a borrowing by the U.S.
tax-exempt shareholder), (2)&nbsp;our shares are not otherwise used in an unrelated trade or business, and (3)&nbsp;we do not hold an
asset that gives rise to &ldquo;excess inclusion income,&rdquo; distributions that we make and income from the sale of our shares generally
should not give rise to UBTI to a U.S. tax-exempt shareholder. Tax-exempt shareholders that are social clubs, voluntary employee benefit
associations, supplemental unemployment benefit trusts, or qualified group legal services plans exempt from U.S. federal income taxation
under Sections 501(c)(7), (c)(9), (c)(17) or (c)(20) of the Code, respectively, or single parent title-holding corporations exempt under
Section&nbsp;501(c)(2)&nbsp;and whose income is payable to any of the aforementioned tax-exempt organizations, are subject to different
UBTI rules, which generally require such shareholders to characterize distributions from us as UBTI unless the organization is able to
properly claim a deduction for amounts set aside or placed in reserve for certain purposes so as to offset the income generated by its
investment in our shares. These shareholders should consult with their tax advisors concerning these set aside and reserve requirements.
In certain circumstances, a pension trust (1)&nbsp;that is described in Section&nbsp;401(a)&nbsp;of the Code, (2)&nbsp;is tax exempt under
Section&nbsp;501(a)&nbsp;of the Code, and (3)&nbsp;that owns more than 10% of our shares could be required to treat a percentage of the
dividends as UBTI, if we are a &ldquo;pension-held REIT.&rdquo; We will not be a pension-held REIT unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">either (1)&nbsp;one pension trust owns more than 25% of the value of our shares, or (2)&nbsp;one or more pension trusts, each individually holding more than 10% of the value of our shares, collectively own more than 50% of the value of our shares; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we would not have qualified as a REIT but for the fact that Section&nbsp;856(h)(3)&nbsp;of the Code provides that shares owned by such trusts shall be treated, for purposes of the requirement that not more than 50% of the value of the outstanding shares of a REIT are owned, directly or indirectly, by five or fewer &ldquo;individuals&rdquo; (as defined in the Code to include certain entities), as owned by the beneficiaries of such trusts.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The percentage of any REIT dividend from a
 &ldquo;pension-held REIT&rdquo; that is treated as UBTI is equal to the ratio of the UBTI earned by the REIT, treating the REIT as if
it were a pension trust and therefore subject to tax on UBTI, to the total gross income of the REIT. An exception applies where the percentage
is less than 5% for any year, in which case none of the dividends would be treated as UBTI. The provisions requiring pension trusts to
treat a portion of REIT distributions as UBTI will not apply if the REIT is able to satisfy the &ldquo;not closely held requirement&rdquo;
without relying upon the &ldquo;look-through&rdquo; exception with respect to pension trusts. As a result of certain limitations on the
transfer and ownership of shares of our common and preferred shares contained in our certificate of incorporation, we do not expect to
be classified as a &ldquo;pension-held REIT,&rdquo; and accordingly, the tax treatment described above with respect to pension-held REITs
should be inapplicable to our tax-exempt shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Prospective shareholders who are tax-exempt
organizations should consult with their tax advisors regarding the tax consequences of investing in our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Taxation of Non-U.S. Shareholders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following discussion addresses the rules&nbsp;governing
U.S. federal income taxation of non-U.S. shareholders. For purposes of this discussion, &ldquo;non-U.S. shareholder&rdquo; is a beneficial
owner of our shares that is not a U.S. shareholder (as defined above) or an entity that is treated as a partnership for U.S. federal income
tax purposes. These rules&nbsp;are complex, and no attempt is made herein to provide more than a brief summary of such rules. Accordingly,
the discussion does not address all aspects of U.S. federal income taxation and does not address state, local, foreign, or other tax consequences
that may be relevant to a non-U.S. shareholder considering its particular circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Distributions
Generally</I></FONT>. As described in the discussion below, distributions paid by us with respect to our shares will be treated for U.S.
federal income tax purposes as either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ordinary income dividends;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">long-term capital gain; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">return of capital distributions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">This discussion assumes that our shares will
be considered regularly traded on an established securities market for purposes of the Foreign Investment in Real Property Tax Act of
1980, or FIRPTA, provisions described below. Generally, FIRPTA treats gain from the disposition of U.S. real property interests, or USRPIs,
(and certain distributions received, that are attributable to gain from disposition of USRPIs) as income effectively connected with a
non-U.S. shareholder&rsquo;s conduct of a U.S. trade or business and subjects such income to U.S. federal income tax at rates applicable
to U.S. individuals or corporations. If our shares are no longer regularly traded on an established securities market, the tax considerations
described below would materially differ.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Ordinary
Income Dividends</I></FONT>. A distribution paid by us to a non-U.S. shareholder will be treated as an ordinary income dividend if the
distribution is payable out of our earnings and profits and:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the distribution is not attributable to our net capital gain; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the distribution is attributable to our net capital gain from the sale of USRPIs, and the non-U.S. shareholder owns 10% or less of the value of our shares throughout the one-year period ending on the date of the distribution.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In general, non-U.S. shareholders will not
be deemed to be engaged in a U.S. trade or business solely as a result of their ownership of our shares. In cases where the dividend income
from a non-U.S. shareholder&rsquo;s investment in our shares is, or is treated as, effectively connected with the non-U.S. shareholder&rsquo;s
conduct of a U.S. trade or business, the non-U.S. shareholder generally will be subject to U.S. federal income tax at graduated rates,
in the same manner as U.S. shareholders are taxed with respect to such dividends. Such income must generally be reported on a U.S. federal
income tax return filed by or on behalf of the non-U.S. shareholder. The income may also be subject to the 30% branch profits tax in the
case of a non-U.S. shareholder that is a corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Generally, we will withhold and remit to the
IRS 30% of dividend distributions (including distributions that may later be determined to have been made in excess of current and accumulated
earnings and profits) that could not be treated as capital gain distributions with respect to the non-U.S. shareholder (and that are not
deemed to be capital gain dividends for purposes of the FIRPTA withholding rules&nbsp;described below) unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a lower treaty rate applies and the non-U.S. shareholder files an IRS Form&nbsp;W-8BEN or IRS&nbsp;Form&nbsp;W-8BEN-E,&nbsp;as applicable, evidencing eligibility for that reduced treaty rate with us; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the non-U.S. shareholder files an IRS Form&nbsp;W-8ECI with us claiming that the distribution is income effectively connected with the non-U.S. shareholder&rsquo;s trade or business.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Return
of Capital Distributions</I></FONT>. Unless (A)&nbsp;our shares constitute a USRPI, as described in &ldquo;&mdash;Dispositions of Our
Shares&rdquo; below, or (B)&nbsp;either (1)&nbsp;the non-U.S. shareholder&rsquo;s investment in our shares is effectively connected with
a U.S. trade or business conducted by such non-U.S. shareholder (in which case the non-U.S. shareholder will be subject to the same treatment
as U.S. shareholders with respect to such gain) or (2)&nbsp;the non-U.S. shareholder is a nonresident alien individual who was present
in the United States for 183 days or more during the taxable year and has a &ldquo;tax home&rdquo; in the United States (in which case
the non-U.S. shareholder will be subject to a 30% tax on the individual&rsquo;s net capital gain for the year), distributions that we
make which are not dividends out of our earnings and profits will not be subject to U.S. federal income tax. If we cannot determine at
the time a distribution is made whether or not the distribution will exceed current and accumulated earnings and profits, the distribution
will be subject to withholding at the rate applicable to dividends. The non-U.S. shareholder may seek a refund from the IRS of any amounts
withheld if it subsequently is determined that the distribution was, in fact, in excess of our current and accumulated earnings and profits.
If our shares constitute a USRPI, as described below, distributions that we make in excess of the sum of (1)&nbsp;the non-U.S. shareholder&rsquo;s
proportionate share of our earnings and profits, and (2)&nbsp;the non-U.S. shareholder&rsquo;s basis in its shares, will be taxed under
FIRPTA at the rate of tax, including any applicable capital gains rates, that would apply to a U.S. shareholder of the same type (<I>e.g.,</I>
an individual or a corporation, as the case may be), and the collection of the tax will be enforced by a refundable withholding tax at
a rate of 15% of the amount by which the distribution exceeds the shareholder&rsquo;s share of our earnings and profits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Capital
Gain Dividends</I></FONT>. A distribution paid by us to a non-U.S. shareholder will be treated as long-term capital gain if the distribution
is paid out of our current or accumulated earnings and profits and:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the distribution is attributable to our net capital gain (other than from the sale of USRPIs) and we timely designate the distribution as a capital gain dividend; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the distribution is attributable to our net capital gain from the sale of USRPIs and the non-U.S. shareholder owns more than 10% of the value of shares at any point during the one-year period ending on the date on which the distribution is paid.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Long-term capital gain that a non-U.S. shareholder
is deemed to receive from a capital gain dividend that is not attributable to the sale of USRPIs generally will not be subject to U.S.
federal income tax in the hands of the non-U.S. shareholder unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the non-U.S. shareholder&rsquo;s investment in our shares is effectively connected with a U.S. trade or business of the non-U.S. shareholder, in which case the non-U.S. shareholder will be subject to the same treatment as U.S. shareholders with respect to any gain, except that a non-U.S. shareholder that is a corporation also may be subject to the 30% branch profits tax; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the non-U.S. shareholder is a nonresident alien individual who is present in the United States for 183 days or more during the taxable year and has a &ldquo;tax home&rdquo; in the United States in which case the nonresident alien individual will be subject to a 30% tax on his capital gains.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Subject to the discussion below regarding
distributions to &ldquo;qualified shareholders&rdquo; and &ldquo;qualified foreign pension funds,&rdquo; under FIRPTA, distributions that
are attributable to net capital gain from the sale by us of USRPIs and paid to a non-U.S. shareholder that owns more than 10% of the value
of our shares at any time during the one-year period ending on the date on which the distribution is paid will be subject to U.S. tax
as income effectively connected with a U.S. trade or business. The FIRPTA tax will apply to these distributions regardless of whether
the distribution is designated as a capital gain dividend or not, and, in the case of a non-U.S. shareholder that is a corporation, such
distributions also may be subject to the 30% branch profits tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Subject to the discussion below regarding
distributions to &ldquo;qualified shareholders&rdquo; and &ldquo;qualified foreign pension funds,&rdquo; any distribution paid by us that
is treated as a capital gain dividend or that could be treated as a capital gain dividend with respect to a particular non-U.S. shareholder
will be subject to special withholding rules&nbsp;under FIRPTA. We will withhold and remit to the IRS 21% of any distribution that could
be treated as a capital gain dividend with respect to the non-U.S. shareholder, to the extent that the distribution is attributable to
the sale by us of USRPIs. The amount withheld is creditable against the non-U.S. shareholder&rsquo;s U.S. federal income tax liability
or refundable when the non-U.S. shareholder properly and timely files a tax return with the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Qualified
Shareholders</I></FONT>. Subject to the exception discussed below, any distribution to a &ldquo;qualified shareholder&rdquo; who holds
REIT stock directly (or indirectly through one or more partnerships) will not be subject to U.S. tax under FIRPTA with respect to that
REIT stock and thus will not be subject to withholding rules&nbsp;under FIRPTA. If a foreign investor in a &ldquo;qualified shareholder&rdquo;
directly or indirectly, whether or not by reason of such investor&rsquo;s ownership interest in the &ldquo;qualified shareholder,&rdquo;
holds more than 10% of the stock of the REIT, then a portion of the REIT stock held by the &ldquo;qualified shareholder&rdquo; (based
on the foreign investor&rsquo;s percentage ownership of the &ldquo;qualified shareholder&rdquo;) will be treated as a USRPI in the hands
of the &ldquo;qualified shareholder&rdquo; and will be subject to FIRPTA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">A &ldquo;qualified shareholder&rdquo; is a
foreign person that (i)&nbsp;either is eligible for the benefits of a comprehensive income tax treaty with the United States that includes
an exchange of information program and whose principal class of interests is listed and regularly traded on one or more recognized stock
exchanges (as defined in such comprehensive income tax treaty), or is a foreign partnership that is created or organized under foreign
law as a limited partnership in a jurisdiction that has an agreement for the exchange of information with respect to taxes with the United
States and has a class of limited partnership units representing greater than 50% of the value of all the partnership units that is regularly
traded on the NYSE or NASDAQ markets, (ii)&nbsp;is a &ldquo;qualified collective investment vehicle&rdquo; (defined below), and (iii)&nbsp;maintains
records on the identity of each person who, at any time during the foreign person&rsquo;s taxable year, is the direct owner of 5% or more
of the class of interests or units (as applicable) described in (i), above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">A &ldquo;qualified collective investment vehicle&rdquo;
is a foreign person that (i)&nbsp;would be eligible for a reduced rate of withholding under the comprehensive income tax treaty described
above, even if such entity holds more than 10% of the stock of such REIT, (ii)&nbsp;is publicly traded, is treated as a partnership under
the Code, is a withholding foreign partnership, and would be treated as a U.S. real property holding corporation (&ldquo;USRPHC&rdquo;)
if it were a domestic corporation, or (iii)&nbsp;is designated as such by the Secretary of the Treasury and is either (a)&nbsp;fiscally
transparent within the meaning of section 894 of the Code, or (b)&nbsp;required to include dividends in its gross income, but is entitled
to a deduction for distributions to its investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Qualified
Foreign Pension Funds</I></FONT>. Any distribution to a &ldquo;qualified foreign pension fund&rdquo; or an entity all of the interests
of which are held by a &ldquo;qualified foreign pension fund&rdquo; who holds REIT stock directly (or indirectly through one or more partnerships)
will not be subject to U.S. tax under FIRPTA and thus will not be subject to the withholding rules&nbsp;under FIRPTA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">A qualified foreign pension fund is any trust,
corporation, or other organization or arrangement (A)&nbsp;that is created or organized under the law of a country other than the United
States, (B)&nbsp;that is established to provide retirement or pension benefits to participants or beneficiaries that are current or former
employees (or persons designated by such employees) of one or more employers in consideration for services rendered, (C)&nbsp;that does
not have a single participant or beneficiary with a right to more than 5% of its assets or income, (D)&nbsp;that is subject to government
regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the country in which it
is established or operates, and (E)&nbsp;with respect to which, under the laws of the country in which it is established or operates,
(i)&nbsp;contributions to such organization or arrangement that would otherwise be subject to tax under such laws are deductible or excluded
from the gross income of such entity or taxed at a reduced rate, or (ii)&nbsp;taxation of any investment income of such organization or
arrangement is deferred or such income is taxed at a reduced rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Undistributed
Capital Gain</I></FONT>. Although the law is not entirely clear on the matter, it appears that amounts designated by us as undistributed
capital gains in respect of our shares held by non-U.S. shareholders generally should be treated in the same manner as actual distributions
by us of capital gain dividends. Under this approach, the non-U.S. shareholder would be able to offset as a credit against their U.S.
federal income tax liability resulting therefrom their proportionate share of the tax paid by us on the undistributed capital gains treated
as long-term capital gains to the non-U.S. shareholder, and generally receive from the IRS a refund to the extent their proportionate
share of the tax paid by us were to exceed the non-U.S. shareholder&rsquo;s actual U.S. federal income tax liability on such long-term
capital gain. If we were to designate any portion of our net capital gain as undistributed capital gain, a non-U.S. shareholder should
consult its tax advisors regarding taxation of such undistributed capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Dispositions
of Our Shares</I></FONT>. Unless our shares constitute a USRPI, a sale of our shares by a non-U.S. shareholder generally will not be subject
to U.S. federal income taxation under FIRPTA. Generally, subject to the discussion below regarding dispositions by &ldquo;qualified shareholders&rdquo;
and &ldquo;qualified foreign pension funds,&rdquo; with respect to any shareholder, our shares will constitute a USRPI only if each of
the following three statements is true:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fifty percent or more of our assets on any of certain testing dates during a prescribed testing period consist of interests in real property located within the United States, excluding for this purpose, interests in real property solely in a capacity as creditor (which we expect to be the case).</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are not a &ldquo;domestically-controlled qualified investment entity.&rdquo;&nbsp;&nbsp;A domestically controlled qualified investment entity includes a REIT, less than 50% of the value of which is held directly or indirectly by non-U.S. shareholders throughout the specified testing period.&nbsp;&nbsp;Although we believe that we are and will remain a domestically controlled REIT, because our shares are publicly traded, we cannot make any assurance that we are or will remain a domestically controlled qualified investment entity.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Either (a)&nbsp;our shares are not &ldquo;regularly traded,&rdquo; as defined by applicable Treasury Regulations, on an established securities market; or (b)&nbsp;our shares are &ldquo;regularly traded&rdquo; on an established securities market and the selling non-U.S. shareholder has held over 10% of our outstanding shares any time during the five-year period ending on the date of the sale.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">A sale of our shares by a &ldquo;qualified
shareholder&rdquo; or a &ldquo;qualified pension fund&rdquo; that holds our shares directly (or indirectly through one or more partnerships)
will not be subject to U.S. federal income taxation under FIRPTA. However, if a foreign investor in a &ldquo;qualified shareholder&rdquo;
directly or indirectly, whether or not by reason of such investor&rsquo;s ownership interest in the &ldquo;qualified shareholder,&rdquo;
holds more than 10% of the stock of the REIT, then a portion of the REIT stock held by the &ldquo;qualified shareholder&rdquo; (based
on the foreign investor&rsquo;s percentage ownership of the &ldquo;qualified shareholder&rdquo;) will be treated as a USRPI in the hands
of the &ldquo;qualified shareholder&rdquo; and will be subject to FIRPTA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Specific wash sales rules&nbsp;applicable
to sales of shares in a domestically controlled qualified investment entity could result in gain recognition, taxable under FIRPTA, upon
the sale of our shares even if we are a domestically controlled qualified investment entity. These rules&nbsp;would apply if a non-U.S.
shareholder (1)&nbsp;disposes of our shares within a 30-day period preceding the ex-dividend date of a distribution, any portion of which,
but for the disposition, would have been taxable to such non-U.S. shareholder as gain from the sale or exchange of a USRPI, and (2)&nbsp;acquires,
or enters into a contract or option to acquire, other shares during the 61-day period that begins 30 days prior to such ex-dividend date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If gain on the sale of our shares was subject
to taxation under FIRPTA, the non-U.S. shareholder would be required to file a U.S. federal income tax return and would be subject to
the same treatment as a U.S. shareholder with respect to such gain, subject to any applicable alternative minimum tax and a special alternative
minimum tax in the case of non-resident alien individuals, and the purchaser of the shares could be required to withhold 15% of the purchase
price and remit such amount to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Gain from the sale of our shares that would
not otherwise be subject to FIRPTA will nonetheless be taxable in the United States to a non-U.S. shareholder as follows: (1)&nbsp;if
the non-U.S. shareholder&rsquo;s investment in our shares is effectively connected with a U.S. trade or business conducted by such non-U.S.
shareholder, the non-U.S. shareholder will be subject to the same treatment as a U.S. shareholder with respect to such gain, or (2)&nbsp;if
the non-U.S. shareholder is a nonresident alien individual who was present in the United States for 183 days or more during the taxable
year and has a &ldquo;tax home&rdquo; in the United States, the nonresident alien individual will be subject to a 30% tax on the individual&rsquo;s
capital gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Legislation
Relating to Payments to Certain Foreign Entities</I></FONT>. FATCA imposes a 30% withholding tax on certain types of payments made to
 &ldquo;foreign financial institutions&rdquo; and certain other non-U.S. entities unless certain due diligence, reporting, withholding,
and certification obligations requirements are satisfied. Investors are advised to consult their tax advisors regarding this legislation.
See &ldquo;&mdash;Information Reporting and Backup Withholding Tax Applicable to Shareholders&mdash;Non-U.S. Shareholders&mdash;Withholding
on Payments to Certain Foreign Entities.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Redemption
of Preferred Stock and Depositary Shares</I></FONT>.&nbsp; See discussion above under &ldquo;&mdash;Taxation of Taxable U.S. Shareholders&mdash;Redemption
of Preferred Shares.&rdquo; If the redemption does not meet any of the tests described in &ldquo;&mdash;Taxation of Taxable U.S. Shareholders&mdash;Redemption
of Preferred Shares,&rdquo; then the redemption proceeds received from our shares will be treated as a distribution on our shares as described
under &ldquo;&mdash;Taxation of Non-U.S. Shareholders&mdash;Distributions Generally.&rdquo; If a redemption of shares is not treated as
a distribution taxable as a dividend, it will be treated as a taxable sale or exchange in the manner described under &ldquo;Taxation of
Non-U.S. Shareholders&mdash;Dispositions of Our Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Conversion
of Our Preferred Shares into Common Shares.</I></FONT>&nbsp; Except as provided below, a non-U.S. shareholder generally will not recognize
gain or loss upon the conversion of our preferred shares into our common shares, provided our preferred shares do not constitute a USRPI.
Even if our preferred shares do constitute a USRPI, provided our common shares also constitutes a USRPI, a non-U.S. shareholder generally
will not recognize gain or loss upon a conversion of our preferred shares into our common shares provided certain reporting requirements
are satisfied. Except as provided below, a non-U.S. shareholder&rsquo;s basis and holding period in the common shares received upon conversion
will be the same as those of the converted preferred shares (but the basis will be reduced by the portion of adjusted tax basis allocated
to any fractional common share exchanged for cash). Any common shares received in a conversion that is attributable to accumulated and
unpaid dividends on the converted preferred shares will be treated as a distribution on our shares as described under &ldquo;&mdash;Taxation
of Non-U.S. Shareholders&mdash;Ordinary Income Dividends.&rdquo; Cash received upon conversion in lieu of a fractional common share generally
will be treated as a payment in a taxable exchange for such fractional common share as described under &ldquo;&mdash;Taxation of Non-U.S.
Shareholders&mdash;Dispositions of Our Shares.&rdquo; Non-U.S. shareholders should consult with their tax advisor regarding the U.S. federal
income tax consequences of any transaction by which such holder exchanges common shares received on a conversion of preferred shares for
cash or other property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Information Reporting and Backup Withholding
Tax Applicable to Shareholders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>U.S. Shareholders&mdash;Generally</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In general, information reporting requirements
will apply to payments of distributions on our shares and payments of the proceeds of the sale of our shares to some U.S. shareholders,
unless an exception applies. Further, the payor will be required to withhold backup withholding tax on such payments (currently at the
rate of 24%) if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the payee fails to furnish a taxpayer identification number, or TIN, to the payor or to establish an exemption from backup withholding;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="background-color: lightgrey"></FONT>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the IRS notifies the payor that the TIN furnished by the payee is incorrect;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">there has been a notified payee under-reporting with respect to interest, dividends or original issue discount described in Section&nbsp;3406(c)&nbsp;of the Code; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">there has been a failure of the payee to certify under the penalty of perjury that the payee is not subject to backup withholding under the Code.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Some shareholders may be exempt from backup
withholding. Any amounts withheld under the backup withholding rules&nbsp;from a payment to a shareholder will be allowed as a credit
against the shareholder&rsquo;s U.S. federal income tax liability and may entitle the shareholder to a refund, provided that the required
information is furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>U.S. Shareholders&mdash;Legislation Relating
to Foreign Accounts</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Under FATCA certain payments made to &ldquo;foreign
financial institutions&rdquo; and &ldquo;non-financial foreign entities&rdquo; may be subject to withholding at a rate of 30%. U.S. shareholders
should consult their tax advisors regarding the effect, if any, of this legislation on their ownership and disposition of their shares.
See &ldquo;&mdash;Information Reporting and Backup Withholding Tax Applicable to Shareholders&mdash;Non-U.S. Shareholders&mdash;Withholding
on Payments to Certain Foreign Entities.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Non-U.S. Shareholders&mdash;Generally</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Generally, information reporting will apply
to payments of distributions on our shares, and backup withholding, currently at a rate of 30%, may apply, unless the payee certifies
that it is not a U.S. person or otherwise establishes an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The proceeds from a disposition by a non-U.S.
shareholder of shares to or through a foreign office of a broker generally will not be subject to information reporting or backup withholding.
However, if the broker is a U.S. person, a controlled foreign corporation for U.S. federal income tax purposes, a foreign person 50% or
more of whose gross income from all sources for specified periods is from activities that are effectively connected with a U.S. trade
or business, a foreign partnership if partners who hold more than 50% of the interest in the partnership are U.S. persons, or a foreign
partnership that is engaged in the conduct of a trade or business in the United States, then information reporting generally will apply
as though the payment were made through a U.S. office of a U.S. or foreign broker. Generally, backup withholding does not apply in such
a case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Generally, non-U.S. shareholders will satisfy
the information reporting requirements by providing a proper IRS withholding certificate (such as the Form&nbsp;W-8BEN or Form&nbsp;W-8BEN-E).
In the absence of a proper withholding certificate, applicable Treasury Regulations provide presumptions regarding the status of holders
of our shares when payments to the holders cannot be reliably associated with appropriate documentation provided to the payor. If a non-U.S.
shareholder fails to comply with the information reporting requirement, payments to such person may be subject to the full withholding
tax even if such person might have been eligible for a reduced rate of withholding or no withholding under an applicable income tax treaty.
Any payment subject to a withholding tax will not be again subject to backup withholding. Because the application of these Treasury Regulations
varies depending on the holder&rsquo;s particular circumstances, a non-U.S. shareholder is advised to consult its tax advisor regarding
the information reporting requirements applicable to it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Backup withholding is not an additional tax.
Any amounts that we withhold under the backup withholding rules&nbsp;may be refunded or credited against the non-U.S. shareholder&rsquo;s
federal income tax liability if certain required information is furnished to the IRS. Non-U.S. shareholders should consult their tax advisors
regarding application of backup withholding in their particular circumstances and the availability of and procedure for obtaining an exemption
from backup withholding under current Treasury Regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Non-U.S. Shareholders&mdash;Withholding
on Payments to Certain Foreign Entities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">FATCA imposes a 30% withholding tax on certain
types of payments to &ldquo;foreign financial institutions&rdquo; and certain non-U.S. entities unless certain due diligence, reporting,
withholding, and certification obligation requirements are satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Under the applicable Treasury Regulations
and administrative guidance, FATCA imposes a 30% withholding tax on dividends on, and (subject to the proposed Treasury Regulations discussed
below) gross proceeds from the sale or other disposition of, our shares if paid to a foreign entity unless: (i)&nbsp;the foreign entity
is a &ldquo;foreign financial institution&rdquo; that undertakes certain due diligence, reporting, withholding, and certification obligations,
or in the case of a foreign financial institution that is a resident in a jurisdiction that has entered into an intergovernmental agreement
to implement FATCA, the entity complies with the diligence and reporting requirements of such agreement, (ii)&nbsp;the foreign entity
is not a &ldquo;foreign financial institution&rdquo; and either certifies it does not have any &ldquo;substantial United States owners&rdquo;
(as defined in the Code) or identifies certain of its U.S. investors, or (iii)&nbsp;the foreign entity otherwise is exempted under FATCA.
While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our shares on
or after January&nbsp;1, 2019, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers
generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If withholding is required under FATCA on
a payment related to our shares, investors that otherwise would not be subject to withholding (or that otherwise would be entitled to
a reduced rate of withholding) generally will be required to seek a refund or credit from the IRS to obtain the benefit of such exemption
or reduction (provided that such benefit is available). Prospective investors should consult their tax advisors regarding the effect of
FATCA in their particular circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Taxation of Holders of Our Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Holders of warrants to purchase our preferred
shares or common shares will not generally recognize gain or loss upon the exercise of a warrant. A holder&rsquo;s basis in the preferred
shares or common shares, as the case may be, received upon the exercise of the warrant will be equal to the sum of the holder&rsquo;s
adjusted tax basis in the warrant and the exercise price paid. A holder&rsquo;s holding period in the preferred shares or common shares,
as the case may be, received upon the exercise of the warrant will not include the period during which the warrant was held by the holder.
Upon the expiration of a warrant, a holder will recognize a capital loss in an amount equal to his or her adjusted tax basis in the warrant.
Upon the sale or exchange of a warrant to a person other than us, a holder will recognize gain or loss in an amount equal to the difference
between the amount realized on the sale or exchange and the holder&rsquo;s adjusted tax basis in the warrant. Such gain or loss will be
capital gain or loss and will be long-term capital gain or loss if the warrant was held for more than one year. Upon the sale of the warrant
to us, the IRS may argue that a holder should recognize ordinary income on the sale. Prospective investors should consult their tax advisors
as to the consequences of a sale of a warrant to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Other Tax Consequences</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Legislative or other actions affecting
REITs</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The present U.S. federal income tax treatment
of REITs may be modified, possibly with retroactive effect, by legislative, judicial or administrative action at any time. The REIT rules&nbsp;are
constantly under review by persons involved in the legislative process and by the IRS and the U.S. Treasury Department, which may result
in statutory changes as well as revisions to regulations and interpretations. Changes to the federal tax laws and interpretations thereof
could adversely affect an investment in our shares. Investors should consult with their tax advisors regarding the effect of potential
changes to the federal tax laws and on an investment in our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>State, Local and Foreign Taxes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We may be required to pay tax in various state
or local jurisdictions, including those in which we transact business, and our shareholders may be required to pay tax in various state
or local jurisdictions, including those in which they reside. Our state and local tax treatment may not conform to the U.S. federal income
tax consequences discussed above. In addition, a shareholder&rsquo;s state and local tax treatment may not conform to the U.S. federal
income tax consequences discussed above. Consequently, investors should consult with their tax advisors regarding the effect of state
and local tax laws on an investment in our shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Tax Shelter Reporting</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">If a holder recognizes a loss as a result
of a transaction with respect to our shares of at least (i)&nbsp;for a holder that is an individual, S corporation, trust or a partnership
with at least one non-corporate partner, $2 million or more in a single taxable year or $4.0 million or more in a combination of taxable
years, or (ii)&nbsp;for a holder that is either a corporation or a partnership with only corporate partners, $10 million or more in a
single taxable year or $20 million or more in a combination of taxable years, such holder may be required to file a disclosure statement
with the IRS on IRS Form&nbsp;8886. Direct shareholders of portfolio securities are in many cases exempt from this reporting requirement,
but shareholders of a REIT currently are not excepted. The fact that a loss is reportable under these regulations does not affect the
legal determination of whether the taxpayer&rsquo;s treatment of the loss is proper. Investors should consult their tax advisors to determine
the applicability of these regulations in light of their individual circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="planofdistribution"></A>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may sell Securities to one or more underwriters or dealers for public
offering and sale by them, or we may sell the Securities to investors directly or through agents. The applicable prospectus supplement
will set forth the terms of the offering and the method of distribution and will identify any firms acting as underwriters, dealers or
agents in connection with the offering, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the name or names of any underwriters;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the purchase price of the Securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any underwriting discounts and other items constituting underwriters&rsquo; compensation;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any initial public offering price and the net proceeds we will receive from such sale;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any discounts or concessions allowed or reallowed or paid to dealers; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any Securities exchange or market on which the Securities offered in the prospectus supplement may be listed.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may distribute our Securities from time to time in one or more transactions
at a fixed price or prices, which may be changed, or at prices determined as the prospectus supplement specifies, including in &ldquo;at-the-market&rdquo;
offerings. We may sell Securities through a rights offering, forward contracts, or similar arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may authorize underwriters, dealers, or agents to solicit offers
by certain purchasers to purchase the Securities from us at the public offering price set forth in the prospectus supplement pursuant
to delayed delivery contracts providing for payment and delivery on a specified date in the future. The contracts will be subject only
to those conditions set forth in the applicable prospectus supplement, and the prospectus supplement will set forth any commissions we
pay for solicitation of these contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any underwriting discounts or other compensation which we pay to underwriters
or agents in connection with the offering of our Securities, and any discounts, concessions or commissions which underwriters allow to
dealers, will be set forth in the prospectus supplement. Underwriters may sell our Securities to or through dealers, and such dealers
may receive compensation in the form of discounts, concessions or commissions from the underwriters and commissions from the purchasers
for whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of our Securities may be deemed
to be underwriters under the Securities Act and any discounts or commissions they receive from us and any profit on the resale of our
Securities they realize may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter or agent
will be identified, and any such compensation received from us, will be described in the applicable supplement to this prospectus. Unless
otherwise set forth in the supplement to this prospectus relating thereto, the obligations of the underwriters or agents to purchase our
Securities will be subject to conditions precedent and the underwriters will be obligated to purchase all our offered Securities if any
are purchased. The public offering price and any discounts or concessions allowed or reallowed or paid to dealers may be changed from
time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any common shares sold pursuant to this prospectus and applicable prospectus
supplement, will be approved for trading, upon notice of issuance, on the NYSE American or such other stock exchange on which our Securities
are listed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Agents and underwriters may be entitled to indemnification by us against
certain civil liabilities, including liabilities under the Securities Act of 1933, as amended, or to contribution with respect to payments
which the agents or underwriters may be required to make in respect thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">An underwriter may engage in over-allotment, stabilizing transactions,
short covering transactions and penalty bids in accordance with Securities laws. Over-allotment involves sales in excess of the offering
size, which creates a short position. Stabilizing transactions permit bidders to purchase the underlying security so long as the stabilizing
bids do not exceed a specified maximum. Short covering transactions involve purchases of the Securities in the open market after the distribution
is completed to cover short positions. Penalty bids permit the underwriters to reclaim a selling concession from a dealer when the Securities
originally sold by the dealer are purchased in a covering transaction to cover short positions. Those activities may cause the price of
the Securities to be higher than it would otherwise be. The underwriters may engage in these activities on any exchange or other market
in which the Securities may be traded. If commenced, the underwriters may discontinue these activities at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain of the underwriters and their affiliates may be customers of,
engage in transactions with, and perform services for, us and our subsidiaries, if any, in the ordinary course of business at any time.
We may sell the Securities covered in this prospectus in any of these ways (or in any combination).</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="legalmetters"></A>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The validity of the shares offered hereby will
be passed upon for us by Kurzman Eisenberg Corbin Lever, LLP, White Plains, New York. Certain partners of Kurzman Eisenberg Corbin Lever,
LLP own in the aggregate 52,000 common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="experts"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our financial statements as of, and for each of the years ended, December 31, 2020 and 2019 have been so included in reliance on the report
of Hoberman &amp; Lesser CPA&rsquo;s, LLP, an independent registered public accounting firm, included in this prospectus given on the
authority of such firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="whereyoucan"></A><B>WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION
BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have filed with the SEC a registration statement on Form&nbsp;S-3
under the Securities Act with respect to the shares offered hereby. This prospectus, which constitutes a part of the registration statement,
does not contain all the information set forth in the registration statement or the exhibits and schedules filed therewith. For further
information about us and our shares offered hereby, we refer you to the registration statement and the exhibits and schedules filed thereto.
Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the
registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text
of such contract or other document filed as an exhibit to the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a reporting company and file annual, quarterly and current reports,
proxy statements and other material with the SEC. You may read and copy our reports, proxy statements and other information, including
the registration statement of which this prospectus is a part at the Public Reference Room of the SEC, 100 F Street, N. E., Room 1580,
Washington D. C. 20549. You may obtain information on the operation of the public reference rooms by calling the SEC at 1-800-SEC-0330.
The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, like us, that
file electronically with the SEC. The address of that site is&nbsp;<I>www.sec.gov</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC allows us to &ldquo;incorporate by reference&rdquo; information
into this prospectus, which means that we can disclose important information to you by referring you to another document filed separately
with the SEC. The information incorporated by reference is deemed to be part of this prospectus, except for any information superseded
by information in this prospectus or any document that we file in the future with the SEC. This prospectus incorporates by reference the
documents set forth below that we have previously filed with the SEC and all documents that we file with the SEC under Sections 13(a),
13(c), 14 or 15(d)&nbsp;of the Exchange Act (other than any portion of the respective filings that are furnished pursuant to Item 2.02
or Item 7.01 of a Current Report on Form&nbsp;8-K (including exhibits related thereto) or other applicable SEC rules, rather than filed)
after the date of this prospectus from their respective filing dates. These documents contain important information about us, our business
and our finances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="white-space: nowrap; width: 59%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Document</B></FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 39%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Filed</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2020</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921044384/sach-20201231x10k.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">March&nbsp;31, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quarterly Report on Form&nbsp;10-Q for the period ended March&nbsp;31, 2021 </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921066244/sach-20210331x10q.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May&nbsp;12, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current Reports on Form&nbsp;8-K </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921046620/tm2111963d1_8k.htm" STYLE="-sec-extract: exhibit">April&nbsp;5,
    2021</A>, </font><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921050055/tm2112914d1_8k.htm" STYLE="-sec-extract: exhibit">April&nbsp;14, 2021</A> <FONT STYLE="font-size: 10pt">and </FONT><A HREF="https://www.sec.gov/ix?doc=/Archives/edgar/data/1682220/000110465921069358/tm2116902d1_8k.htm" STYLE="-sec-extract: exhibit">May&nbsp;19, 2021</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description common shares contained in our Registration Statement on Form&nbsp;8-A </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420417003716/v457415_8a12b.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January&nbsp;25, 2017</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of 7.75% September&nbsp;2025 notes contained in Registration Statement on Form&nbsp;8-A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465920101887/tm2029900d1_8a12b.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">S</FONT>eptember&nbsp;2, 2020</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of 7.125% June&nbsp;2024 notes contained in Registration Statement on Form&nbsp;8-A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032052/tv524074_8a12b.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&nbsp;24, 2019</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of 6.875% December&nbsp;2024 notes contained in Registration Statement on Form&nbsp;8-A</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465919060499/tm1922116d1_8a12b.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November&nbsp;6, 2019</FONT></A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At your request, either orally or in writing, we will provide you with
a copy of any or all documents which are incorporated by reference. Such documents will be provided to you free of charge, but will not
contain any exhibits, unless those exhibits are specifically incorporated by reference into those documents. Requests should be addressed
to Sachem Capital Corp., 698 Main Street, Branford, Connecticut 06405, attention: Chief Financial Officer, telephone number (203) 433-4736.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART&nbsp;II<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 14. Other Expenses of Issuance and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following sets forth the estimated expenses
in connection with the issuance and distribution of our securities being registered hereby, other than underwriting discounts and commissions,
all of which will be borne by us:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 87%; font: 10pt Times New Roman, Times, Serif; text-align: left">SEC registration fee</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">16,365</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">FINRA Filing fee</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Printing and document production expenses*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Legal fees and expenses*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Accounting fees and expenses*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Trustee and registrar fees*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">NYSE American fees and expenses*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Miscellaneous*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">5,000</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Total*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">76,365</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These fees and expenses
are estimated and do not include expenses of preparing prospectus supplements and other expenses relating to offerings of specific securities.
These offering expenses cannot be estimated at this time. Each prospectus supplement will set forth the estimated aggregate offering expenses
payable in respect of the offering and sale of the securities offered thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 15. Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sections 722 and 723 of the New York Business Corporation Law grant
us the power to indemnify our officers and directors as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
corporation may indemnify any person made, or threatened to be made, a party to an action or proceeding (other than one by or in the right
of the corporation to procure a judgment in its favor), whether civil or criminal, including an action by or in the right of any other
corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise,
which any director or officer of the corporation served in any capacity at the request of the corporation, by reason of the fact that
he, his testator or intestate, was a director or officer of the corporation, or served such other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise in any capacity, against judgments, fines, amounts paid in settlement and reasonable
expenses, including attorney's fees actually and necessarily incurred as a result of such action or proceeding, or any appeal therein,
if such director or officer acted, in good faith, for a purpose which he reasonably believed to be in, or, in the case of service for
any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise, not opposed to, the best interests
of the corporation and, in criminal actions or proceedings, in addition, had no reasonable cause to believe that his conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
termination of any such civil or criminal action or proceeding by judgment, settlement, conviction or upon a plea of nolo contendere,
or its equivalent, shall not in itself create a presumption that any such director or officer did not act, in good faith, for a purpose
which he reasonably believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust,
employee benefit plan or other enterprise, not opposed to, the best interests of the corporation or that he had reasonable cause to believe
that his conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
corporation may indemnify any person made, or threatened to be made, a party to an action by or in the right of the corporation to procure
a judgment in its favor by reason of the fact that he, his testator or intestate, is or was a director or officer of the corporation,
or is or was serving at the request of the corporation as a director or officer of any other corporation of any type or kind, domestic
or foreign, of any partnership, joint venture, trust, employee benefit plan or other enterprise, against amounts paid in settlement and
reasonable expenses, including attorneys' fees, actually and necessarily incurred by him in connection with the defense or settlement
of such action, or in connection with an appeal therein, if such director or officer acted, in good faith, for a purpose which he reasonably
believed to be in, or, in the case of service for any other corporation or any partnership, joint venture, trust, employee benefit plan
or other enterprise, not opposed to, the best interests of the corporation, except that no indemnification under this paragraph shall
be made in respect of (1)&nbsp;a threatened action, or a pending action which is settled or otherwise disposed of, or (2)&nbsp;any claim,
issue or matter as to which such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the
court on which the action was brought, or, if no action was brought, any court of competent jurisdiction, determines upon application
that, in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such portion of the
settlement amount and expenses as the court deems proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the purpose of this section, a corporation shall be deemed to have requested a person to serve an employee benefit plan where the performance
by such person of his duties to the corporation also imposes duties on, or otherwise involves services by, such person to the plan or
participants or beneficiaries of the plan; excise taxes assessed on a person with respect to an employee benefit plan pursuant to applicable
law shall be considered fines; and action taken or omitted by a person with respect to an employee benefit plan in the performance of
such person's duties for a purpose reasonably believed by such person to be in the interest of the participants and beneficiaries of the
plan shall be deemed to be for a purpose which is not opposed to the best interests of the corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Payment of indemnification other than by court
award is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
person who has been successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding of the character
described in section 722 shall be entitled to indemnification as authorized in such section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as provided in paragraph (a), any indemnification under section 722 or otherwise permitted by section 721, unless ordered by a court under
section 724 (Indemnification of directors and officers by a court), shall be made by the corporation, only if authorized in the specific
case:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the board acting by a quorum consisting of directors who are not parties to such action or proceeding upon a finding that the director
or officer has met the standard of conduct set forth in section 722 or established pursuant to section 721, as the case may be, or,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a quorum under subparagraph (1)&nbsp;is not obtainable or, even if obtainable, a quorum of disinterested directors so directs;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the board upon the opinion in writing of independent legal counsel that indemnification is proper in the circumstances because the applicable
standard of conduct set forth in such sections has been met by such director or officer, or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the shareholders upon a finding that the director or officer has met the applicable standard of conduct set forth in such sections.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses
incurred in defending a civil or criminal action or proceeding may be paid by the corporation in advance of the final disposition of such
action or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amounts as, and to the extent,
required by paragraph (a)&nbsp;of section 725.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's Certificate of Incorporation provides
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;TENTH:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Right
to Indemnification</B>. Each person who was or is made a party or is threatened to be made a party to or is involved in any action, suit
or proceeding, whether civil, criminal, administrative or investigation (hereinafter a &ldquo;Proceeding&rdquo;), by reason of the fact
that he or she, or a person of whom he or she is the legal representative, is or was a director or officer, of the corporation or is or
was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such Proceeding is
alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director,
officer, employee or agent, shall be indemnified and held harmless by the corporation to the fullest extent authorized by the Business
Corporation Law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such
amendment permits the corporation to provide broader indemnification rights than said law permitted the corporation to provide prior to
such amendment), against all expense, liability and loss (including attorneys&rsquo; fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification
shall continue as to a person who has ceased to be a director, officer, employee or agent and shall incur to the benefit of his or her
heirs, executors and administrators; <I>provided, however,</I> that, except as provided in paragraph (b)&nbsp;hereof, the corporation
shall indemnify any such person seeking indemnification in connection with a Proceeding (or part thereof) initiated by such person only
if such Proceeding (or part thereof) was authorized by the Board of Directors of the corporation. The right to indemnification conferred
in this Section&nbsp;shall be a contract right and shall include the right to be paid by the corporation the expenses incurred in defending
any such Proceeding in advance of its final disposition; <I>provided, however,</I> that if the Business Corporation Law requires, the
payment of such expenses incurred by a director or officer (in his or her capacity as a director or officer and not in any other capacity
in which service was or is rendered by such person while a director or officer, including, without limitation, service to an employee
benefit plan) in advance of the final disposition of a Proceeding, shall be made only upon delivery to the corporation of an undertaking,
by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director
or officer is not entitled to be indemnified under this Section&nbsp;or otherwise. The corporation may, by action of its Board of Directors,
provide indemnification to employees and agents of the Corporation with the same scope and effect as the foregoing indemnification of
directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Right
of Claimant to Bring Suit</B>. If a claim under paragraph (a)&nbsp;of this Section&nbsp;is not paid in full by the corporation within
thirty days after a written claim has been received by the corporation, the claimant may at any time thereafter bring suit against the
corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid
also the expense of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in defending any Proceeding in advance of its final disposition where the required undertaking, if any is required,
has been tendered to the corporation) that the claimant has not met the standards of conduct which make it permissible under the Business
Corporation Law for the corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be
on the corporation. Neither the failure of the corporation (including its Board of Directors, independent legal counsel, or its shareholders)
to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances
because he or she has met the applicable standard of conduct set forth in the Business Corporation Law, nor an actual determination by
the corporation (including its Board of Directors, independent legal counsel, or its shareholders) that the claimant has not met such
applicable standard or conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable
standard of conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Non-Exclusivity
of Rights</B>. The right to indemnification and the payment of expenses incurred in defending a Proceeding in advance of its final disposition
conferred in this Article&nbsp;TENTH shall not be exclusive of any other right which any person may have or hereafter acquire under any
statute, provision of this Certificate of Incorporation, by-law, agreement, vote of shareholders or disinterested directors or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance.</B>
The corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the corporation
or another corporation, partnership, joint venture, trust or other enterprise against any such expense, liability or loss, whether or
not the corporation would have the power to indemnify such person against such expense, liability or loss under the Business Corporation
Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ELEVENTH:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
director of the corporation shall not be personally liable to the corporation or its shareholders for damages for any breach of duty in
such capacity, except for the liability of any director if a judgment or other final adjudication adverse to him establishes that his
acts or omissions were in bad faith or involved intentional misconduct or a knowing violation of law or that he personally gained in fact
a financial profit or other advantage to which he was not legally entitled or that his acts violated Section&nbsp;719 of the New York
Business Corporation Law.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 16. Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a complete list of exhibits filed as part of this
registration statement. Some of the following exhibits were filed as exhibits to registration statements filed by the Registrant under
the Securities Act of 1933, as amended, and reports filed under the Securities and Exchange Act of 1934, as amended, and are hereby incorporated
by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT&nbsp;INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="padding-right: 0; vertical-align: bottom; width: 9%; border-bottom: Black 1pt solid; padding-left: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Exhibit</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>No.</B></P></TD>
    <TD STYLE="padding-right: 0; vertical-align: top; width: 1%; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; vertical-align: bottom; width: 90%; border-bottom: Black 1pt solid; text-align: center; padding-left: 0"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">1.1</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Underwriting Agreement <SUP>&dagger;</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420416141048/v454882_ex2-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">2.1</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420416141048/v454882_ex2-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    Amended and Restated Exchange Agreement (1)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420416141048/v454882_ex1-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.1</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420416141048/v454882_ex1-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    Representative&rsquo;s Warrants issued on February&nbsp;9, 2017 in connection with the initial public offering (1)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000157104917008291/t1702800_ex1-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.2</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000157104917008291/t1702800_ex1-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    Representatives&rsquo; Warrants issued on October&nbsp;27, 2017 in connection with the follow-on underwritten public offering (3)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.3</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Indenture,
    dated as of June&nbsp;21, 2019, between the Company and U.S. Bank National Association, as Trustee (4)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.4</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-2.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">First
    Supplemental Indenture, dated as of June&nbsp;25, 2019, between the Company and U.S. Bank National Association, as Trustee (4)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.5</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000114420419032277/tv524076_ex4-3.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    7.125% Notes due 2024 (4)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465919063786/tm1919542d1_ex4-6.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.6</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465919063786/tm1919542d1_ex4-6.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Second
    Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (2)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465919060591/tm1921531d2_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.8</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465919060591/tm1921531d2_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    6.875% Notes due 2024 (5)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465920103476/tm2030503d1_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.9</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465920103476/tm2030503d1_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Third
    Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (6)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465920103476/tm2030503d1_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">4.10</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="https://www.sec.gov/Archives/edgar/data/1682220/000110465920103476/tm2030503d1_ex4-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Form&nbsp;of
    7.75% Notes due 2025 (included as Exhibit&nbsp;A to Exhibit&nbsp;4.9 above)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">4.11</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Form&nbsp;of Certificate of Designation <SUP>&dagger;</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">4.12</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Form&nbsp;of Warrant <SUP>&dagger;</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-size: 10pt">4.13</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Form&nbsp;of Debt Security <SUP>&dagger;</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="tm2119189d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">5</FONT>.1</A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="tm2119189d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Legal</FONT> Opinion*</A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="tm2119189d1_ex8-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">8.1</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="tm2119189d1_ex8-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Tax Opinion*</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="tm2119189d1_ex23-1.htm"><FONT STYLE="font-size: 10pt">23.1</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="tm2119189d1_ex23-1.htm"><FONT STYLE="font-size: 10pt">Consent of Hoberman&nbsp;&amp; Lesser CPA&rsquo;s, LLP,
    dated June&nbsp;9, 2021*</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="tm2119189d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">23.2</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="tm2119189d1_ex5-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Consent of Kurzman Eisenberg Corbin&nbsp;&amp; Lever,
    LLP (included in Exhibit&nbsp;5.1)*</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify"><A HREF="#p_001"><FONT STYLE="font-size: 10pt">24.1</FONT></A></TD>
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><A HREF="#p_001"><FONT STYLE="font-size: 10pt">Power of Attorney (included on signature
    page)</FONT></A></TD></TR>
  </TABLE>





















































































































































































<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">*</TD><TD>Filed herewith.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&dagger;</SUP></FONT></TD><TD>To be filed by amendment or in a Current Report on Form&nbsp;8-K in connection with the offering of specific securities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Previously filed as an exhibit to the Registration Statement on Form&nbsp;S-11, as amended, (SEC File No.: 333-214323) and incorporated
herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>Previously filed as an exhibit to the Quarterly Report on Form&nbsp;10-Q for the period ended September&nbsp;30, 2019 and incorporated
herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>Previously filed on October&nbsp;20, 2017, as Exhibit&nbsp;A to Exhibit&nbsp;1.1 of the Registration Statement on Form&nbsp;S-11,
as amended, (SEC File No.: 333-218954) and incorporated herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD>Previously filed as an exhibit to the Current Report on Form&nbsp;8-K on June&nbsp;25, 2019 and incorporated herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(5)</TD><TD>Previously filed as an exhibit to the Current Report on Form&nbsp;8-K on November&nbsp;6, 2019 and incorporated herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(6)</TD><TD>Previously filed as an exhibit to the Current Report on Form&nbsp;8-K on September&nbsp;9, 2020 and incorporated herein by reference.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17. Undertakings.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 72px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The undersigned registrant hereby undertakes:</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 144px">&nbsp;</TD>
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 144px">&nbsp;</TD>
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to include any prospectus required by Section&nbsp;10(a)(3)&nbsp;of the Securities Act of 1933;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule&nbsp;424(b)&nbsp;if, in the aggregate, the changes
in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the &quot;Calculation of Registration
Fee&quot; table in the effective registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>provided</I></FONT>,
<I>however</I>, That: paragraphs (a)(l)(i), (a)(l)(ii)&nbsp;and (a)(l)(iii)&nbsp;of this section do not apply if the registration statement
is on Form&nbsp;S-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports
filed with or furnished to the Commission by such registrant pursuant to section 13 or section 15(d)&nbsp;of the Securities Exchange Act
of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule&nbsp;424(b)&nbsp;that
is part of the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial <I>bona fide</I> offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination
of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the registrant
is relying on Rule&nbsp;430B:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus filed by such registrant pursuant to Rule&nbsp;424(b)(3)&nbsp;shall be deemed to be part of the registration statement as of
the date the filed prospectus was deemed part of and included in the registration statement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
prospectus required to be filed pursuant to Rule&nbsp;424(b)(2), (b)(5)&nbsp;or (b)(7)&nbsp;as part of a registration statement in reliance
on Rule&nbsp;430B relating to an offering made pursuant to Rule&nbsp;415(a)(1)(i), (vii)&nbsp;or (x)&nbsp;for the purpose of providing
the information required by Section&nbsp;10(a)&nbsp;of the Securities Act of 1933 shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of
sale of securities in the offering described in the prospectus. As provided in Rule&nbsp;430B, for liability purposes of the issuer and
any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating
to the securities in the registration statement to which the prospectus relates, and the offering of such securities at that time shall
be deemed to be the initial <I>bona fide</I> offering thereof; <I>provided</I>, <I>however</I>, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract
of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately prior to such effective date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the&nbsp;registrant&nbsp;is
subject to Rule&nbsp;430C, each prospectus filed pursuant to Rule&nbsp;424(b)&nbsp;as part of a registration statement relating to an
offering, other than registration statements relying on Rule&nbsp;430B or other than prospectuses filed in reliance on Rule&nbsp;430A,
shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.&nbsp;<I>Provided,
however,</I>&nbsp;that no statement made in a registration statement or prospectus that is part of the registration statement or made
in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was
made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.25in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities: the undersigned registrant hereby undertakes that in a primary offering of securities of such undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, such undersigned registrant will be a seller to
the purchaser and will be considered to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
preliminary prospectus or prospectus of such undersigned registrant relating to the offering required to be filed pursuant to Rule&nbsp;424;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
free writing prospectus relating to the offering prepared by or on behalf of such undersigned registrant or used or referred to by such
undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
portion of any other free writing prospectus relating to the offering containing material information about an undersigned registrant
or its securities provided by or on behalf of such undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: 0.5in">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other communication that is an offer in the offering made by such registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the registrant's annual report pursuant to Section&nbsp;13(a)&nbsp;or 15(d)&nbsp;of the Securities Exchange Act of 1934 (and, where
applicable, each filing of an employee benefit plan's annual report pursuant to Section&nbsp;15(d)&nbsp;of the Securities Exchange Act
of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial <I>bona fide</I> offering
thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons
of the undersigned registrant pursuant to the foregoing provisions, or otherwise, the undersigned registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by such registrant of expenses
incurred or paid by a director, officer or controlling person of such registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, such registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication
of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under
subsection (a)&nbsp;of section 310 of the Trust Indenture Act (&quot;Act&quot;) in accordance with the rules&nbsp;and regulations prescribed
by the Commission under section&nbsp;305(b)(2)&nbsp;of the Act.<BR STYLE="clear: both">
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all the requirements for filing on Form&nbsp;S-3
and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in town of Branford,
State of Connecticut, on June&nbsp;9, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sachem Capital Corp.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 47%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By: </FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ John L. Villano</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John L. Villano, CPA</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="p_001"></A>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We, the undersigned officers and directors of Sachem Capital Corp.,
hereby severally constitute and appoint John L. Villano, as our true and lawful attorney-in-fact and agent, with full power of substitution
and in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and
any other registration statement for the same offering pursuant to Rule&nbsp;462(b)&nbsp;under the Securities Act of 1933, and to file
the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting
unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite or necessary to
be done in and about the premises, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming
all that said attorney-in-fact and agent may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities and on the date indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 35%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 15%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 48%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ John L. Villano</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&nbsp;9, 2021</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman, Chief Executive Officer (Principal Executive Officer), President, Chief Financial Officer (Principal Financial Officer) and Director</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John L. Villano, CPA</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Arthur Goldberg</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&nbsp;9, 2021</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Arthur Goldberg</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Leslie Bernhard</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&nbsp;9, 2021</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leslie Bernhard</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Brian Prinz</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June&nbsp;9, 2021</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brian Prinz</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
  </TABLE>
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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>tm2119189d1_ex5-1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<HTML>
<HEAD>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"><B>Exhibit 5.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[KURZMAN EISENBERG CORBIN &amp; LEVER, LLP LETTERHEAD]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: blue"><U>ksteiner@kelaw.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(914) 993-6054</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">698 MainStreet</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Branford, Connecticut 06405</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Re: Shelf Registration Statement on Form S-3</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;We have acted as special
counsel to Sachem Capital Corp., a New York corporation (the &ldquo;Company&rdquo;), in connection with the Shelf Registration Statement
on Form S-3 (the &ldquo;Registration Statement&rdquo;) filed by the Company with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;)
under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) on June 9, 2021.&nbsp;&nbsp;Under the Registration Statement,
the Company may offer and sell from time to time, as set forth in the prospectus that is a part of the Registration Statement (the &ldquo;Base
Prospectus&rdquo;) and as may be set forth in one or more supplements to the Base Prospectus (each, a &ldquo;Prospectus Supplement&rdquo;):
(i) the Company&rsquo;s common shares, $0.001 par value per share (the &ldquo;Common Shares&rdquo;); (ii) the Company&rsquo;s preferred
shares, $0.001 par value per share, in one or more series (the &ldquo;Preferred Shares&rdquo;); (iii) the Company&rsquo;s debt securities,
in one or more series, consisting of notes, debentures, bonds and other evidences of indebtedness (the &ldquo;Debt Securities&rdquo;);
(iv) guarantees of the Company&rsquo;s debt securities (&ldquo;Guaranties&rdquo;); (v) warrants of the Company (the &ldquo;Warrants&rdquo;)
to purchase Common Shares, Preferred Shares, Common Shares, Debt Securities or Units (hereinafter defined); and (vi) units of the Company
consisting of two or more of the Securities (hereinafter defined) (the &ldquo;Units&rdquo;).&nbsp;&nbsp;The Common Shares, Preferred Shares,
Debt Securities, Guaranties, Warrants and Units are collectively referred to as the &ldquo;Securities.&rdquo;&nbsp;&nbsp;The maximum aggregate
public offering price of the Securities being registered is $150,000,000.&nbsp;&nbsp;The Securities may be offered separately or as part
of units with other Securities, in separate series, in amounts, at prices, and on terms to be set forth in a prospectus supplement to
be filed in connection with the offer and sale of such Securities.&nbsp;&nbsp;With your permission, all assumptions herein have been made
without any independent investigation or verification on our part except to the extent otherwise expressly stated, and we express no opinion
with respect to the accuracy of such assumptions or items relied upon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">For
purposes of this opinion letter, we have examined copies of such agreements, instruments and documents as we have deemed an appropriate
basis on which to render the opinions hereinafter expressed.&nbsp; In our examination of the aforesaid documents, we have assumed the
genuineness of all signatures, the legal capacity of all natural persons, the accuracy and completeness of all documents submitted to
us, the authenticity of all original documents, and the conformity to authentic original documents of all documents submitted to us as
copies (including pdfs).&nbsp; As to all matters of fact, we have relied on the representations and statements of fact made in the documents
so reviewed and officers and representatives of the Company as we have deemed necessary or appropriate for this opinion. We have not independently
established the facts so relied on.&nbsp;This opinion letter is given, and all statements herein are made, in the context of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">For purposes of this opinion
letter, we have assumed that (i)&nbsp;the issuance, sale, amount and terms of any Securities to be offered from time to time will have
been duly authorized and established by proper action of the board of directors of the Company (the &ldquo;<B>Board</B>&rdquo;) or a duly
authorized committee of the Board (&ldquo;<B>Board Action</B>&rdquo;), consistent with the procedures and terms described in the Registration
Statement and in accordance with the Company&rsquo;s charter and bylaws and applicable New York corporate law in a manner that does not
violate any law, government or court-imposed order or restriction or agreement or instrument then binding on the Company or otherwise
impair the legal or binding nature of the obligations represented by the applicable Securities; (ii)&nbsp;at the time of the offer, issuance
and sale of any Securities, the Registration Statement will have been declared effective under the Securities Act of 1933, as amended
(the &ldquo;<B>Act</B>&rdquo;), and no stop order suspending its effectiveness will have been issued and remain in effect; (iii)&nbsp;any
necessary prospectus supplement with respect to the applicable Security shall have been timely filed with the Commission and any required
exhibits shall have been timely filed with the Commission in an amendment to the Registration Statement; (iv) any Debt Securities will
be issued pursuant to an indenture for Debt Securities substantially in the form of such indenture filed as Exhibit 4.3 to the Registration
Statement or any other indenture for Debt Securities filed in an amendment to the Registration Statement with a qualified trustee named
therein; (v)&nbsp;the applicable indenture under which any Debt Securities are issued will be qualified under the Trust Indenture Act
of 1939, as amended; (vi)&nbsp;any Warrants will be issued under one or more warrant agreements, each to be between the Company and a
financial institution or other party identified therein as warrant agent, for which the governing law shall be the laws of the State of
New York; (vii)&nbsp;any Units will be issued under one or more unit agreements, each to be between the Company and a financial institution
or other party identified therein as a unit agent, for which the governing law shall be the laws of the State of New York; (viii)&nbsp;if
being sold by the Company, the Securities will be delivered against payment of valid consideration therefor and in accordance with the
terms of the applicable Board Action authorizing such sale and any applicable underwriting agreement or purchase agreement and as contemplated
by the Registration Statement and/or the applicable prospectus supplement; (ix)&nbsp;the Securities will not be issued in violation of
the ownership limit contained in the Company&rsquo;s charter; (x) none of the terms of any Security to be established subsequent to the
date hereof, nor the issuance and delivery of such Security, nor the compliance by the Company with the terms of such Security will violate
any applicable law or will result in a violation of any provision of any instrument or agreement then binding upon the Company or any
restriction imposed by any court or governmental body having jurisdiction over the Company; and (xi)&nbsp;the Company, at the time of
the issuance of the Security, will be a New York corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that the obligations of the Company with respect to the Securities may depend on such matters, we assume for purposes of this
opinion that the other party under the indenture for any Debt Securities, under the warrant agreement for any Warrants or under the unit
agreement for any Units, namely, the trustee, the warrant agent, or the unit agent, respectively, is duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization; that such other party is duly qualified to engage in the activities
contemplated by such indenture, warrant agreement, or unit agreement, as applicable; that such indenture, warrant agreement, or unit agreement,
as applicable, has been duly authorized, executed and delivered by the other party and constitutes the legal, valid and binding obligation
of the other party enforceable against the other party in accordance with its terms; that such other party is in compliance with respect
to performance of its obligations under such indenture, warrant agreement, or unit agreement, as applicable, with all applicable laws,
rules and regulations; and that such other party has the requisite organizational and legal power and authority to perform its obligations
under such indenture, warrant agreement, or unit agreement, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 3</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the foregoing and
subject to the limitations, qualifications and assumptions set forth herein, we are of the opinion that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">(a)
The Common Shares (including any Common Shares that are duly issued upon the exchange or conversion of Debt Securities or Preferred Shares
that are exchangeable for or convertible into Common Shares or upon the exercise of Warrants and, if applicable, receipt by the Company
of any additional consideration payable upon such conversion, exchange or exercise), upon due execution and delivery on behalf of the
Company of certificates therefor, including global certificates, or the entry of the issuance thereof in the books and records of the
Company, as the case may be, will be validly issued, fully paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">(b)
The Preferred Shares (including any shares of Preferred Shares that are duly issued upon the exercise of Warrants and receipt by the Company
of any additional consideration payable upon such exercise), upon due execution and delivery on behalf of the Company of certificates
therefor, including global certificates, or the entry of the issuance thereof in the books and records of the Company, as the case may
be, will be validly issued, fully paid and nonassessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">(c)
The Warrants, upon due execution and delivery of a warrant agreement relating thereto on behalf of the Company and the warrant agent named
therein and due authentication of the Warrants by such warrant agent, and upon due execution and delivery of the Warrants on behalf of
the Company, will constitute valid and binding obligations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">(d)
The Debt Securities (including any Debt Securities duly issued upon the exercise of Warrants), upon due execution and delivery of an indenture
relating thereto on behalf of the Company and the applicable trustee named therein, and upon authentication by such trustee and due execution
and delivery on behalf of the Company in accordance with the applicable indenture and any supplemental indenture relating thereto, will
constitute valid and binding obligations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">(e)
The Units, upon due execution and delivery of a unit agreement relating thereto on behalf of the Company and upon due execution and delivery
of such Units and the underlying Common Shares, Preferred Shares, Debt Securities and/or Warrants that are components of such Units in
accordance with the applicable unit agreement and the applicable indenture (in the case of underlying Debt Securities), and/or warrant
agreement (in the case of underlying Warrants), and assuming that any underlying Securities not issued by the Company that are components
of such Units have been duly and properly authorized for issuance and constitute valid and binding obligations enforceable against the
issuer thereof in accordance with their terms, such Units will constitute valid and binding obligations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
opinions expressed in paragraphs (c), (d) and (e)&nbsp;above with respect to the valid and binding nature of obligations may be limited
by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditors&rsquo; rights (including, without
limitation, the effect of statutory and other law regarding fraudulent conveyances, fraudulent transfers and preferential transfers) and
by the exercise of judicial discretion and the application of principles of equity, good faith, fair dealing, reasonableness, conscionability
and materiality (regardless of whether the Securities are considered in a proceeding in equity or at law).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 4</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">The foregoing opinions are
limited to the laws of the State of New York (but not including any laws, statutes, ordinances, administrative decisions, rules or regulations
of any political subdivision below the state level) including the statutory provisions, all applicable provisions of the Constitutions
of the State of New York and reported judicial provisions interpreting these laws, each as in effect on the date on which the Commission
declares the Registration Statement effective (the &ldquo;Effective Date&rdquo;), and no opinion is expressed with respect to such laws
as subsequently amended, or any other laws, or any effect that such amended or other laws may have on the opinions expressed herein.&nbsp;&nbsp;The
foregoing opinions are limited to matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated
herein.&nbsp;&nbsp;The foregoing opinions are given as of the Effective Date, and we undertake no obligation to advise you of any changes
in applicable laws after the Effective Date or of any facts that might change the opinions expressed herein that we may become aware of
after the Effective Date.&nbsp;&nbsp;Our opinions are also subject to the following exceptions, limitations and qualifications: (i) the
effect of applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws relating to or affecting
creditors&rsquo; rights and remedies; and (ii) the effect of general principles of equity, whether raised in an action at law or in equity
(including the possible unavailability of specific performance or injunctive relief), concepts of materiality, reasonableness, good faith
and fair dealing, and the discretion of the court before which any proceeding therefor may be brought.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">We consent to the filing
of this opinion as an exhibit to the Registration Statement and to the reference to us under the heading &ldquo;Legal Matters&rdquo; in
the Base Prospectus and each related Prospectus Supplement.&nbsp;&nbsp;In giving this consent, we do not admit that we are experts, or
within the category of persons whose consent is required under Section 7 of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Very truly yours,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; width: 62%; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 3%; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 35%; text-indent: 0">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">KURZMAN EISENBERG CORBIN &amp; LEVER, LLP</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="padding: 0; border-bottom: Black 1pt solid; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ Katherine R. Steiner</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Katherine R. Steiner, Partner</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-8.1
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<FILENAME>tm2119189d1_ex8-1.htm
<DESCRIPTION>EXHIBIT 8.1
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"><B>Exhibit 8.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[KURZMAN EISENBERG CORBIN &amp; LEVER, LLP LETTERHEAD]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: blue"><U>ksteiner@kelaw.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(914) 993-6054</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">698 MainStreet</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Branford, Connecticut 06405</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are acting as tax
counsel to Sachem Capital Corp., a New York corporation (the &ldquo;<B>Company</B>&rdquo;), in connection with a registration statement
on&nbsp;Form&nbsp;S-3,&nbsp;as amended (the &ldquo;<B>Registration Statement</B>&rdquo;), filed with the Securities and Exchange Commission
relating to the proposed offering of up to $150,000,000 in the aggregate amount of one or more series of the following securities (collectively,
the &ldquo;<B>Securities</B>&rdquo;): (i)&nbsp;common shares of the Company, $0.001 par value per share (the &ldquo;<B>Common Shares</B>&rdquo;);
(ii)&nbsp;preferred shares of the Company, $0.001 par value per share (the &ldquo;<B>Preferred Shares</B>&rdquo;); (iii)&nbsp;debt securities
of the Company (the &ldquo;<B>Debt Securities</B>&rdquo;); (iv) guarantees of debt securities (the &ldquo;<B>Guaranties</B>&rdquo;); (v)&nbsp;
warrants to purchase Common Shares, Preferred Shares, Debt Securities or (Units (as defined below); and (vi) units comprised of two or
more of any of the Securities (the &ldquo;<B>Units</B>&rdquo;), all of which may be sold from time to time and on a delayed or continuous
basis, as set forth in the prospectus which forms a part of the Registration Statement (the &ldquo;<B>Prospectus</B>&rdquo;), and as to
be set forth in one or more supplements to the Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In connection with the
filing of the Registration Statement, we have been asked to provide you with opinions regarding the U.S. federal income tax matters specifically
set forth below under the caption titled &ldquo;Opinions.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The opinions set forth
in this letter are based on relevant current provisions of the Internal Revenue Code of 1986, as amended (the &ldquo;<B>Code</B>&rdquo;),
the Treasury Regulations thereunder (including proposed and temporary Treasury Regulations), and interpretations of the foregoing as expressed
in court decisions, applicable legislative history, and the administrative rulings and practices of the Internal Revenue Service (the
 &ldquo;<B>IRS</B>&rdquo;), including its practices and policies in issuing private letter rulings, which are not binding on the IRS except
with respect to a taxpayer that receives such a ruling, all as of the date hereof. These provisions and interpretations are subject to
change by the IRS, Congress and the courts (as applicable), which may or may not be retroactive in effect and which might result in material
modifications of our opinions. Our opinions do not foreclose the possibility of a contrary determination by the IRS or a court of competent
jurisdiction, or of a contrary position taken by the IRS or the Treasury Department in regulations or rulings issued in the future. In
this regard, an opinion of counsel with respect to an issue represents counsel&rsquo;s best professional judgment with respect to the
outcome on the merits with respect to such issue, if such issue were to be litigated, but an opinion is not binding on the IRS or the
courts, and is not a guarantee that the IRS will not assert a contrary position with respect to such issue or that a court will not sustain
such a position asserted by the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In rendering the following
opinions, we have examined such statutes, regulations, records, agreements, certificates and other documents as we have considered necessary
or appropriate as a basis for the opinions (including all exhibits and schedules thereto), which we have, with your consent, relied upon
without any independent investigation or review thereof, including but not limited to: (1) the Registration Statement, including the Prospectus;
and (2)&nbsp;certain organizational documents of the Company and certain of its subsidiaries (those documents referred to in clauses (1)&nbsp;and
(2), the &ldquo;<B>Reviewed Documents</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The opinions set forth
in this letter are premised on, among other things, the written representations of the Company contained in a letter to us (including
all exhibits and attachments thereto) dated as of the date hereof (the &ldquo;<B>Management Representation Letter</B>&rdquo;). Although
we have discussed the Management Representation Letter with the signatories thereto, for purposes of rendering our opinions we have not
made an independent investigation or audit of the facts set forth in the Reviewed Documents and the Management Representation Letter.
We consequently have relied upon the representations and statements of the Company as described in the Reviewed Documents and the Management
Representation Letter and assumed that the information presented in such documents or otherwise furnished to us is accurate and complete
in all material respects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In this regard, we have
assumed with your consent the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">that (A)&nbsp;all of the representations and statements as to factual matters set forth in the Reviewed Documents and the Management Representation Letter are true, correct, and complete as of the date hereof, (B)&nbsp;any representation or statement in the Reviewed Documents and the Management Representation Letter made as a belief or made &ldquo;to the knowledge of&rdquo; or similarly qualified is true, correct, and complete as of the date hereof, without such qualification, (C)&nbsp;each agreement described in the Reviewed Documents is valid and binding in accordance with its terms and (D)&nbsp;each of the obligations of the Company, and its subsidiaries, as described in the Reviewed Documents, has been or will be performed or satisfied in accordance with its terms;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the genuineness of all signatures, the proper execution of all documents, the authenticity of all documents submitted to us as originals, the conformity to originals of documents submitted to us as copies, and the authenticity of the originals from which any copies were made;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">that any documents as to which we have reviewed only a form were or will be duly executed without material changes from the form reviewed by us; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">that from and after the date of this letter, the Company will comply with its representations contained in the Management Representation Letter that the Company will utilize all appropriate &ldquo;savings provisions&rdquo; (including the provisions of Sections 856(c)(6), 856(c)(7), and 856(g) of the Code, and the provision included in Section&nbsp;856(c)(4) of the Code (flush language) allowing for the disposal of assets within 30 days after the close of a calendar quarter, and all available deficiency dividend procedures) available to the Company under the Code in order to correct any violations of the applicable real estate investment trust (&ldquo;<B>REIT</B>&rdquo;) qualification requirements of Sections 856 and 857 of the Code, to the full extent the remedies under such provisions are available, but only to the extent available.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 3</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Any material variation
or difference in the facts from those set forth in the documents that we have reviewed and upon which we have relied (including, in particular,
the Reviewed Documents and the Management Representation Letter) may adversely affect the conclusions stated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Based upon and subject
to the assumptions and qualifications set forth herein, including, without limitation, the discussion in the next paragraph below, we
are of the opinion that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the Company has been organized and has operated in conformity with the requirements for qualification and taxation as a REIT under the Code for each of its taxable years beginning with its taxable year ended December&nbsp;31, 2017, and the Company&rsquo;s current organization and current and proposed method of operation (as described in the Prospectus and the Management Representation Letter) will enable it to meet the requirements for qualification and taxation as a REIT under the Code for its taxable year ended December&nbsp;31, 2019, and future taxable years; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the portions of the discussion in the Prospectus under the heading &ldquo;Material U.S. Federal Income Tax Considerations&rdquo; that describe provisions of applicable U.S. federal income tax law are correct in all material respects as of the date hereof.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company&rsquo;s qualification
and taxation as a REIT under the Code depends upon the ability of the Company to meet on an ongoing basis (through actual quarterly and
annual operating results, distribution levels, diversity of stock ownership and otherwise) the various qualification tests imposed under
the Code, and upon the Company utilizing any and all appropriate &ldquo;savings provisions&rdquo; (including the provisions of Sections
856(c)(6), 856(c)(7), and 856(g) of the Code and the provision included in Section&nbsp;856(c)(4) of the Code (flush language) allowing
for the disposal of assets within 30 days after the close of a calendar quarter, and all available deficiency dividend procedures) available
to the Company under the Code to correct violations of specified REIT qualification requirements of Sections 856 and 857 of the Code.
Our opinions set forth above do not foreclose the possibility that the Company may have to utilize one or more of these &ldquo;savings
provisions&rdquo; in the future, which could require the Company to pay an excise or penalty tax (which could be significant in amount)
in order to maintain its REIT qualification. We have not undertaken at this time and will not undertake to review the Company&rsquo;s
compliance with these requirements on a continuing basis, nor will we do so in the future. Accordingly, no assurance can be given that
the actual results of the Company&rsquo;s operations, the sources of its income, the nature of its assets, the level of its distributions
to stockholders and the diversity of its stock ownership for any given taxable year will satisfy the requirements under the Code for qualification
and taxation as a REIT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This opinion letter addresses
only the specific U.S. federal income tax matters set forth above and does not address any other U.S. federal, state, local or foreign
legal or tax issues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This opinion letter
has been prepared for your use in connection with the filing of the Registration Statement and speaks as of the date hereof. We assume
no obligation by reason of this opinion letter or otherwise to advise you of any changes in our opinions subsequent to the effective
date of the Registration Statement. Except as provided in the last paragraph, this opinion letter may not be distributed, quoted in whole
or in part or otherwise reproduced in any document, or filed with any governmental agency without our express written consent.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sachem Capital Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Page 4</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We hereby consent to
the filing of this opinion letter as Exhibit 8.1 to the Registration Statement and to the reference to Kurzman Eisenberg Corbin &amp;
Lever, LLP under the caption &ldquo;Legal Matters&rdquo; in the Prospectus. In giving this consent, however, we do not admit thereby that
we are an &ldquo;expert&rdquo; within the meaning of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Very truly yours,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 62%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 35%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">KURZMAN EISENBERG CORBIN &amp; LEVER, LLP</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Katherine R. Steiner</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Katherine R. Steiner, Partner</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>tm2119189d1_ex23-1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit&nbsp;23.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We consent to the incorporation by reference in this registration statement
on Form S-3 of Sachem Capital Corp. (the &ldquo;Company&rdquo;) of our report dated March 30, 2021, relating to the financial statements
of the Company as of December 31, 2020 and 2019, and for the years then ended, included in the Company&rsquo;s Annual Report on Form 10-K
for the year ended December 31, 2020. We also consent to the reference to us under the heading &ldquo;Experts&rdquo; in the prospectus,
which is part of this registration statement on Form S-3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>/s/ Hoberman &amp; Lesser CPA&rsquo;s, LLP</U><BR>
Hoberman &amp; Lesser CPA&rsquo;s, LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">New York, New York</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 9, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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