Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Shareholder Meeting (October 2020)
16 slides from Sachem Capital's shareholder meeting presentation, Oct 15, 2020
Slide 1: Annual Meeting of Shareholders October 15, 2020
Annual Meeting of Shareholders October 15, 2020
Slide 2: Forward Looking Statement
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 fut
Slide 3: Management Team
Management Team 2 ▪ Co - founder and Chairman, Chief Executive Officer and Chief Financial Officer ▪ 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 ▪ Certified public accountant, previously eng
Slide 4: Sachem Capital Corp. Overview
Sachem Capital Corp. Overview 3 ▪ Sachem Capital Corp. is a mortgage REIT specializing in originating, underwriting, funding, servicing and managing a portfolio of short - term, high yielding real estate loans conservatively secured by first lien mortgages ▪ With the aging housing stock and lack of
Slide 5: Investment Highlights
Investment Highlights 4 x Internally managed, with insiders owning approximately 7.4% of the company, aligning management’s interests with investors x High yielding assets and low cost structure generates attractive risk adjusted return on equity x Conservative leverage profile x Experienced managem
Slide 6: Aging U.S. Housing Stock
Source: RealtyTrac , U.S. Census Aging U.S. Housing Stock ▪ The fix - and - flip market will remain robust as the aging U.S. housing stock requires renovation and updating ▪ Aging inventory stokes demand for remodeled homes » Recently, the median age of housing stock has increased each year by appro
Slide 7: Fix-and-Flip Activity Growing
Fix - and - Flip Activity Growing U.S. H OME F LIPPING - T OTAL F INANCED P URCHASE D OLLAR V OLUME U.S. I NVESTOR H OME B UYING R ATES ($ in billions) 6 7% 7% 7% 8% 8% 9% 9% 10% 11% 10% 10% 10% 11% 11% 12% Source: ATTOM Data Solutions, CoreLogic $9 $8 $7 $9 $11 $12 $14 $17 $21 $27 $32
Slide 8: Robust Business Model
Robust Business Model 7 ▪ Grow first mortgage loan portfolio while protecting and preserving capital ▪ Disciplined underwriting and extensive due diligence culture focusing primarily on value of underlying collateral ▪ Intimate knowledge of Connecticut and surrounding area real estate market and abi
Slide 9: Key Strategic Initiatives
Key Strategic Initiatives 8 Capitalize on opportunities arising from structural changes in the real estate lending market and continued limited liquidity Remain flexible to capitalize on changing investment opportunities at various points of the economic cycle Capitalize on competitor policies that
Slide 10: Typical Loan Structure
Typical Loan Structure (1) 9 Sachem generates high yielding, short term business - purpose real estate loans that are not provided by traditional lenders Principal Amount ▪ Average loan amount: $233,000 ▪ Range of $12,500 to $2.0 million (1) ▪ Maximum loan amount cannot exceed 10% of portfolio Loan
Slide 11: Loan Portfolio Overview
Loan Portfolio Overview 10 ▪ Of the total number of loans at year - end 2019, 76% are $250,000 or less, and 93% are $500,000 or less ▪ 67% of loans are for residential fix and flip projects, primarily homes and multifamily buildings with no more than 4 units ($ in millions) Portfolio has grown consi
Slide 12: Income Statement Overview
(1) 6/30/2020 annualized for return on assets and return on equity Income Statement Overview 11 Sachem’s business model generates strong returns and a significant cash flow coverage of interest Six Months Ended June, 2020 (1) 2019 2018 Principal amount of loans earning interest $111,431 $94,349 $78,
Slide 13: Balance Sheet Overview
12 Balance Sheet Overview As of June 30, 2020, the debt - to equity ratio was approximately 67% while the asset coverage ratio exceeded 250% ($ in Thousands) June 30, 2020 December 31, 2019 Assets Mortgage Receivables $111,431 $94,349 Other Assets 32,017 46,863 Total Assets $143,448 $141,211 Debt Un
Slide 14: Portfolio Performance
Portfolio Performance 13 (1) Weighted average contractual interest rate does not include origination fee income. (2) Without giving effect to extension fees. ($ in Thousands) Six Months Ended Year - End Year - End 6/30/2020 12/31/2019 12/31/2018 Total Assets $143,448 $141,211 $86,014 No. of loans in
Slide 15: Dividends Paid
Dividends Paid 14 Quarter Dividend Q 2 2020 $0.12 Q 1 2020 - Q 4 2019 ( 1 ) $0.12 Q 3 2019 $0.12 Q 2 2019 $0.12 Q 1 2019 $0.12 Q 4 2018 ( 2 ) $0.17 Q 3 2018 $0.12 Q 2 2018 $0.11 Q 1 2018 ( 3 ) $0.105 Q 4 2017 ( 4 ) $0.105 Q 3 2017 $0.105 Plan to distribute 90+% of taxable income to shareholders annu
Slide 16: Main Street Branford, CT 06405 https://www.sachemcapitalcorp.com/
698 Main Street Branford, CT 06405 https://www.sachemcapitalcorp.com/