Sachem Capital Corp. · AMEX:SACH
Sachem Capital — IPO Roadshow (January 2017)
19 slides from Sachem Capital's IPO roadshow presentation, Jan 25, 2017
Slide 1: Investor Presentation - Free Writing Prospectus
Investor Presentation FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration No. 333 - 214323 January 25, 2017
Slide 2: Forward Looking Statement
2 Forward Looking Statement This presentation includes forward - looking statements . All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, strategy and plans, and our expectation
Slide 3: Free Writing Prospectus Statement
Free Writing Prospectus Statement 3 This presentation highlights basic information about us and the proposed public offering. Because this presentation is a summary, it does not contain all of the information you should consider before investing in our securities. We have filed a registration statem
Slide 4: Offering Summary
Offering Summary 4 Issuer Sachem Capital Corp. Type of Offering Initial Public Offering Book - Running Manager Joseph Gunnar & Co. Co - Manager Axiom Capital Management Expected Offering Price $5.00 per Share Offering Size 3,000,000 Shares (100% Primary) Shares Outstanding Post - Offering 11,533,237
Slide 5: Management Team
Management Team ▪ Co - founder and Chairman, Co - Chief Executive Officer, Chief Financial Officer and Secretary. ▪ Co - founder of Sachem Capital Partners (“SCP”), and Co - founder and Managing Partner of JJV, LLC, manager of SCP since their inception in December 2010. ▪ Mr. Villano, a certified pu
Slide 6: Overview
Overview 6 ▪ Connecticut - based real estate finance company specializing in originating, underwriting, funding, servicing and managing a portfolio of short - term (“hard money”) loans on property located primarily in Connecticut ▪ Since inception in 2010, we have made approximately 400 loans in the
Slide 7: Business Model
Business Model 7 ▪ Grow first mortgage loan portfolio while protecting and preserving capital ▪ Provide investors with risk adjusted returns through dividends ▪ Disciplined underwriting and extensive due diligence culture focusing primarily on value of underlying collateral as well as the borrower a
Slide 8: Annual Interest Income Growth
Annual Interest Income Growth 8 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2011 2012 2013 2014 2015 2016 Nine months ended 9/30/16
Slide 9: Strategy
▪ 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 ▪ Take advantage of the prevailing economic environment as well as economic, political and social tr
Slide 10: Loan Structure
Loan Structure Principal Amount $25,000 to $1.1 million (maximum loan amount cannot exceed 10% of portfolio) Loan - to - Value Ratio Up to 65% Interest Rate Fixed rate between 9% and 12% with a default rate of 18% Origination 2.0% for loans of one year to 5.0% for three - year loans Terms One to thr
Slide 11: Loan Portfolio
Amount Number of Loans Aggregate Principal Amount Less than $100,000 93 $5,512,328 $100,001 to $250,000 80 $12,196,624 $250,001 to $500,000 22 $7,591,396 $500,001 to $1,000,000 6 $4,257,619 Over $1,000,000 1 $1,000,000 Total 202 $30,557,967 Loan Portfolio ▪ Approximately 86% of the loans had an orig
Slide 12: Loan Portfolio
As of September 30 , 2016 As of December 31, 2015 As of December 31, 2014 Developer – Residential Mortgages $20,229,805 $15,475,268 $10,482,448 Developer – Commercial Mortgages $8,160,181 $3,235,311 $3,369,620 Land Mortgages $1,964,297 $1,687,449 $649,951 Mixed Use $203,684 $367,000 $347,000 Total M
Slide 13: Financing Strategies and Sources of Capital
We utilize a combination of equity capital and debt financing to fund operations: ▪ At September 30, 2016, members’ equity totaled $26.7 million ▪ We also have a $15.0 million Bankwell Credit Line of which $8.5 million has been drawn Financing Strategies Sources of Capital September 30, 2016 Debt Li
Slide 14: Loan Portfolio
Nine months ended September 30 Year ended December 31 2016 2015 2015 2014 Principal amount of loans earning interest $30,557,967 $24,917,678 $27,532,867 $14,849,019 Loans originated $14,355,922 $15,188,417 $19,412,438 $8,864,700 Loans repaid $10,921,370 $5,119,758 $5,812,116 $3,714,059 Mortgage lend
Slide 15: Portfolio Performance
Portfolio Performance 2014 2015 As of 9/30/16 Change (’16 vs ‘15) Total Assets $21,455,568 $30,795,486 $36,173,341 17.5% No. of loans in Portfolio 106 179 202 12.8% Principal Amount of Loans in Portfolio $14,849,019 $27,532,867 $30,557,967 11.0% Annual Interest Income $1,418,814 $2,477,876 $3,583,61
Slide 16: Financial Highlights
Financial Highlights 16 Nine Months Ended September 30, 2016 Year Ended December 31, 2015 Interest income from loans $2,687,711 $2,477,876 Total revenue $3,288,544 $2,891,002 Total operating costs and expenses $959,727 $841,414 Net income $2,328,817 $2,049,588 Pro forma net income per common share –
Slide 17: Investment Highlights
Investment Highlights ▪ We intend to qualify as a REIT and distribute at least 90% of our taxable income to shareholders annually through regular quarterly distributions ▪ Our current expectation is to pay quarterly dividends on our common shares at an annualized rate of approximately 8.0% based upo
Slide 18: Comparable Public Companies
Comparable Public Companies 18 Source: Bloomberg LP As of 1/24/17 * As of 9/30/16, pro forma post offering; dividend yield is based on current expectations only Market Cap Dividend Yield (%) Price/Book Debt/Equity (%) NLY ANNALY CAPITAL MANAGEMENT REIT INC 10,453,604,589$ 11.70 0.89 466 AGNC AGNC IN
Slide 19: Contact: John L. Villano, CPA
John L. Villano, CPA 23 Laurel Street Branford, Connecticut 06405 203 - 433 - 4736 jlv@sachemcapitalpartners.com