Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Q1 2024 Earnings Presentation
24 slides from Sachem Capital's earnings presentation, May 10, 2024
Slide 1: Sachem Capital Corp. Investor Presentation – May 2024
Sachem Capital Corp. Investor Presentation – May 2024 NYSE - American: SACH
Slide 2: Safe Harbor
Safe Harbor This presentation includes forward-looking statements. All statements in this presentation, other than statements of historical facts, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, a
Slide 3: Company Overview
Company Overview Specialized Real Estate Finance Company Focused on Originating, Servicing and Managing a Portfolio of First Mortgage Loans ▪ Experienced and Reliable Financial Intermediary o Cycle-Tested Team with Decades of Experience o Comprehensive Underwriting Process that Includes Personal-Lev
Slide 4: Investment Highlights
Investment Highlights Strong Diversified ▪ $490.7 million portfolio as of March 31, 2024 Portfolio with Excellent ▪ $8.1 million allowance for credit losses as of March 31, 2024 Credit Metrics ▪ Target LTV (loan-to-value) of 70%; Target LTC (loan-to-cost) of 85% ▪ Multiple asset classes to maximize
Slide 5: Key Metrics
Key Metrics1 > $1 billion in > 2,000+ loans funded in 88% of loans origination since inception transactions completed 15 states have term of less than 1 year total assets: $1.8M 273 13% $626 million average loan size Mortgage loans in average yield portfolio NYSE - American: SACH 5 1All data as of M
Slide 6: Strategic Approach to Drive Sustained Growth
Strategic Approach to Drive Sustained Growth Disciplined, Highly-Scalable Strict Process-Oriented Originations Platform Underwriting Requirements ▪ Virtual lead-generation platform ▪ Target LTV (loan-to-value) of 70% ▪ Preliminary term sheet within 48 ▪ Significant repeat business ▪ Target LTC (loan
Slide 7: Positioned to Outperform
Positioned to Outperform Economic Backdrop Position The faltering of SVB and other regional banks has triggered a Opens up possibilities for exploring previously unexplored tightening phase in lending standards avenues, fostering a more diversified investment portfolio that holds the potential for i
Slide 8: Focused Loan Products
Focused Loan Products Fix-and-Flip Loans Distressed / Bridge Loans Foreclosure Loans Mission: To create value for our clients and shareholders with tailored solutions across real estate assets, that help build better communities New Construction Loans Commercial Real Estate Development NYSE - Americ
Slide 9: Loan Portfolio Overview
Loan Portfolio Overview SUMMARY DISTRIBUTION BY STATE SUMMARY DISTRIBUTION BY REAL ESTATE TYPE CT FL NY Other Residential Commercial Land Mixed Use 6.2% 20.7% 7.6% 39.8% 49.7% 13.3% 36.5% 26.2% NYSE - American: SACH 9 *All data as of March 31, 2024
Slide 10: Origination Locations
Origination Locations Strong Eastern Seaboard Presence Complemented by Local Lending Capability ➢ California ➢ Connecticut ➢ Florida ➢ Georgia ➢ Massachusetts Branford, CT ➢ Maryland ➢ Maine ➢ North Carolina ➢ New Jersey ➢ New York ➢ Pennsylvania ➢ Rhode Island ➢ South Carolina ➢ Tennessee Naples, F
Slide 11: First Quarter 2024 Key Metrics
First Quarter 2024 Key Metrics ▪ Revenue grew $2.5 million, up 17.0% compared to the same quarter of 2023 Earnings ▪ GAAP Net income of $3.6 million, or $0.08 per share ▪ Weighted average portfolio interest rate of 12.7%, not inclusive of fees ▪ $18.4 million cash and cash equivalents and $38.4 mill
Slide 12: Consistent Portfolio Growth & Strong Performance
Consistent Portfolio Growth & Strong Performance ANNUAL SUMMARY MORTGAGE LOAN PORTFOLIO OVERVIEW Total Asset Growth ($ in Millions) $700.0 Dec- Dec- Dec- Dec- ($ in Thousands) $600.0 2023 2022 2021 2020 $500.0 Total Assets $625,539 $565,662 $417,962 $226,670 $400.0 $300.0 $200.0 Number of Mortgage L
Slide 13: Compelling Growth Strategy
Compelling Growth Strategy ▪ Goal: To deploy larger amounts of capital with potentially higher returns, ▪ better sponsorship, and lower risk Take advantage of dislocation within the real estate lending sector Capitalize on opportunities due to structural changes that limit competitors’ lending Grow
Slide 14: Multiple Competitive Advantages
Multiple Competitive Advantages Favorably Positioned to Grow Proven record with ▪ Able to structure loans to meet the thousands of unique needs and business plans completed of borrowers transactions ▪ Many banks and other traditional lenders still have restrictive lending Conducting More than criter
Slide 15: Targeted Acquisition Contributes to Future Growth
Targeted Acquisition Contributes to Future Growth Since acquiring Urbane New Haven, LLC, a top real estate firm with 21+ years of experience in development and construction, we've seen strong synergies: Case Studies #1: Loan Workout & Modification ▪ Negotiated and modified $17M loan, achieving full
Slide 16: Target Market and Opportunity
Target Market and Opportunity Developers, builders, and investors are ▪ Demand for property has outstripped supply facing tightening restrictions in the ▪ SBA can take 6+ months or longer to close on a large loan capital markets ▪ Competitors have tightened lending criteria ▪ Ability to close loans
Slide 17: Meaningful Market Expansion Opportunities
Meaningful Market Expansion Opportunities Before Turning Liabilities Into Assets - Vacant, Unused, and Abandoned Properties: ▪ Vacant and abandoned properties present daunting challenges to communities nationwide; they drag down local economies, impede population growth, depress property values, inc
Slide 18: Loan Diversification and Expansion
Loan Diversification and Expansion Case Studies ▪ $19.5 million loan for the purchase and conversion of a warehouse in Brighton, MA, into a 28-unit condominium complex within an up- Commercial and-coming residential community. The loan was cross- collateralized with other properties owned by the bor
Slide 19: Management Team
Management Team John L. Villano CPA, Chairman, Chief Executive Officer, President and Treasurer ▪ Chairman and Chief Executive Officer since the company’s inception in 2010 ▪ Responsible for overseeing all aspects of business operations, including loan origination and servicing, investor relations,
Slide 20: Corporate Responsibility
Corporate Responsibility Environmental Social Governance ▪ Commitment to Responsible Investing ▪ Human Capital ▪ Alignment o Stabilizing and revitalizing previously o Excluding retirements, over 95% employee o Management and Board own 5% of shares, vacant, abandoned or uninhabitable retention rate i
Slide 21: Appendix
Appendix NYSE - American: SACH 21
Slide 22: Investment Highlights
Investment Highlights Strong Diversified Portfolio with Excellent Credit Metrics Multi-pronged Growth Strategy Proven Management Team Strong Capital Structure to Support Growth Strategy Compelling Valuation NYSE - American: SACH 22
Slide 23: Balance Sheet Summary
Balance Sheet Summary March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 18,413,401 $ 12,598,256 Investment securities, net (at fair value) 38,432,752 37,776,032 Mortgages receivable 490,743,670 499,235,371 Less: Allowance for credit losses (8,053,252) (7,523,160) Mortgages receivab
Slide 24: Income Statement Summary
Income Statement Summary Three Months Ended March 31, 2024 2023 Revenue: Interest income from loans $ 12,641,444 $ 10,983,326 Investment gain, net 527,824 274,796 Income from partnership investments 1,195,300 549,723 Origination and modification fees, net 1,461,966 1,475,920 Fee and other income 1,1
Sachem Capital Corp. Common Shares — Q1 2024 Earnings Presentation on 6ix