Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (January 2018)
20 slides from Sachem Capital's investor presentation, Jan 18, 2018
Slide 1: Investor Presentation January 16, 2018
Investor Presentation January 16, 2018
Slide 2: Forward Looking Statement
2 Forward Looking Statement 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 f
Slide 3: Background
Background 3 The Company Sachem Capital Corp. Established December 2010 Equity Financing IPO - February 2017 - $13 Million Gross Proceeds at $5.00/share Follow - on Offering - November 2017 $17.25 Million Gross Proceeds at $4.00/share Listing NYSE MKT Symbol SACH Long - term Debt $20MM revolving lin
Slide 4: 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 its inception in December 2010. ▪ Certified public accountant,
Slide 5: Overview
Overview 5 ▪ Connecticut - based real estate finance company specializing in originating, underwriting, funding, servicing and managing a portfolio of short - term (“hard money”) loans secured by first mortgage liens. ▪ Since inception in 2010 through September 30, 2017, made approximately 592 loans
Slide 6: Investment Highlights
Investment Highlights ▪ Internally managed, with the co - founders owning approximately 19.5% of the company, aligning management’s interests with our equity investors ▪ Strong asset level return with nominal leverage and low cost structure generates attractive risk adjusted return on equity ▪ Exper
Slide 7: Capital Structure - Equity Capital
Capital Structure - Equity Capital ▪ Equity Capital. Authorized capital includes 50,000,000 common shares and 5,000,000 preferred shares of which 15,415,737 common shares and 0 preferred shares are currently outstanding. Total shareholders’ equity is $39.2 million at September 30, 2017. • Exchange.
Slide 8: Capital Structure - Debt
Capital Structure - Debt ▪ Debt: • $20 million Revolving Loan Credit Facility. Interest on the outstanding balance is equal to the three - month LIBOR rate plus 4.5% and is adjusted quarterly. Interest only is payable in arrears and the Credit Line expires June 30, 2019. At maturity, outstanding bal
Slide 9: Dividends Paid
Dividends Paid ▪ Dividends: • $0.05 per share paid on April 27, 2017, for the half - quarter period from the date of IPO through March 31, 2017. • $0.105 per share for the quarter ended June 30, 2017, paid on July 27, 2017 to shareholders of record on July 17, 2017. The $0.105 dividend was a 5% incr
Slide 10: Business Model
Business Model 10 ▪ Grow first mortgage loan portfolio while protecting and preserving capital ▪ Provide investors with risk adjusted returns through dividends and capital appreciation ▪ Disciplined underwriting and extensive due diligence culture focusing primarily on value of underlying collateral
Slide 11: Annual Interest Income Growth
Annual Interest Income Growth 11 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2012 2013 2014 2015 2016 2017* * 9/30/17 annualized
Slide 12: Strategy
▪ Capitalize on opportunities created by the long - term structural changes in the real estate lending market and the continuing limited 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 13: Loan Structure
Loan Structure Principal Amount $10,000 to $1.2 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% - 5% for one - to - three year loans Portfolio average as of 9/30/2017:
Slide 14: Mortgage Loan Portfolio as of September 30, 2017
Amount Number of Loans Aggregate Principal Amount $100,000 or less 147 $9,838,815 $100,001 to $250,000 106 16,723,998 $250,001 to $500,000 46 15,866,037 $500,001 to $1,000,000 8 5,864,755 Over $1,000,000 4 4,400,052 Total 311 $52,693,657 Mortgage Loan Portfolio as of September 30, 2017 ▪ Approximate
Slide 15: Sources of Capital as of September 30, 2017
: Sources of Capital As of September 30, 2017 Debt Line of Credit Mortgage Payable $15,921,186 303,568 Total Debt 16,224,754 Other Liabilities 1,494,801 Capital (equity) 39,155,450 Total sources of capital $56,875,005 Assets Mortgages receivable $52,693,657 Other assets 4,181,348 Total assets $56,87
Slide 16: Loan Portfolio
2017 2016 2015 Principal amount of loans earning interest $52,693,657 $33,750,610 $27,532,867 Loans originated in period $35,229,865 21,580,103 $19,412,438 Total revenue $4,745,973 $4,133,495 $2,786,724 Total operating costs and expenses $1,574,658 $1,082,868 $479,821 Number of loans outstanding 311
Slide 17: Loan Portfolio
As of September 30, 2017 As of December 31, 2016 As of December 31, 2015 Developer – Residential Mortgages $35,512,825 $21,343,927 $18,820,509 Developer – Commercial Mortgages $12,375,768 $9,049,942 $5,712,566 Land Mortgages $4,545,931 $3,149,602 $2,619,792 Mixed Use $259,133 $207,139 $380,000 Tot
Slide 18: Financial Highlights
18 Nine Months Ended September 30, 2016 2017 % Change Interest income from loans $2,687,711 $3,831,636 42.5% Total revenue $2,989,733 $4,745,973 58.7% Total operating costs and expenses $762,685 $1,574,658 106.5% Net income $2,227,048 $3,171,315 42.4% Financial Highlights
Slide 19: Portfolio Performance
Portfolio Performance Year Ended 2015 Year Ended 2016 Change (`16 vs `15) Nine months Ended 9/30/16 Nine Months Ended 9/30/17 Change (`17 vs `16) Total Assets $30,795,486 $38,369,421 24.6% $36,173,341 $56,875,005 57.23% No. of loans in Portfolio 180 217 20.5% 202 311 54.0% Principal Amount of Loans
Slide 20: John L. Villano, CPA contact details
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com
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