Sachem Capital Corp. · AMEX:SACH
Sachem Capital — IPO Roadshow (October 2017)
19 slides from Sachem Capital's IPO roadshow presentation, Oct 20, 2017
Slide 1: Investor Presentation October 2017
Investor Presentation October 2017 FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration No. 333 - 218954 October 19, 2017
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: 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. Expected Offering Size $15,000,000 of Common Shares (100% Primary) Over - Allotment Option 15% for 45 days (100% Primary) Exchange / Symbol NYSE American: SACH Shares Outstanding Pre - Offering 11,103,237 common shares Market Cap (as of 10/18/17) $49.7
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 its inception in December 2010. ▪ Mr. Villano, a certified publ
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 secured by first mortgage liens. ▪ Since inception in 2010 through September 30, 2017, we have made approximately 5
Slide 7: Investment Highlights
Investment Highlights ▪ Internally managed, with the co - founders owning approximately 28% of the company (pre - offering), 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
Slide 8: Recent Developments
Recent Developments ▪ Since our IPO, the volume of our business has exceeded expectations. On June 30, 2017, we modified our credit line with Bankwell Bank, our lender, to, among other things: • Increase the amount of the facility from $15 million to $20 million to increase our ability to fund mortg
Slide 9: Business Model
Business Model 9 ▪ 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 10: Annual Interest Income Growth
Annual Interest Income Growth 10 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2012 2013 2014 2015 2016 2017* * 6/30/17 annualized
Slide 11: 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 12: 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 13: 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 Recent Developments Mortgage Loan Portfolio as of September 30
Slide 14: Financing Strategies: Sources of Capital
We utilize a combination of equity capital and debt financing to fund operations: 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 A
Slide 15: 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 16: Financial Highlights
16 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% Recent Developments Financial Highlights
Slide 17: Loan Portfolio
As of June 30, 2017 As of December 31, 2016 As of December 31, 2015 Developer – Residential Mortgages $33,321,877 $21,343,927 $18,820,509 Developer – Commercial Mortgages $10,697,017 $9,049,942 $5,712,566 Land Mortgages $3,527,587 $3,149,602 $2,619,792 Mixed Use $260,764 $207,139 $380,000 Total Mo
Slide 18: Portfolio Performance
Portfolio Performance Year Ended 2015 Year Ended 2016 Change (`16 vs `15) Six months Ended 6/30/16 Six Months Ended 6/30/17 Change (`17 vs `16) Total Assets $30,795,486 $38,369,421 24.6% $34,092,045 $52,988,136 55.4% No. of loans in Portfolio 180 217 20.5% 193 280 45.1% Principal Amount of Loans in
Slide 19: John L. Villano, CPA contact details
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com