Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (May 2018)
20 slides from Sachem Capital's investor presentation, May 24, 2018
Slide 1: Investor Presentation May 24, 2018
Investor Presentation May 24, 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 Secondary Offering - November 2017 $15 Million Gross Proceeds at $4.00/share Secondary Offering - Over allotment shares - November 2017 $2.25 Milli
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. ▪ Mr. Villano, a certified publ
Slide 5: Overview
Overview 5 ▪ We are a 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 March 31, 2018, we have made approximat
Slide 6: Investment Highlights
Investment Highlights ▪ Internally managed, with the co - founders owning approximately 20% 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: 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 approximately $55.0 million at March 31, 2018. • Exchange. In February 2017, SACH co
Slide 8: Capital Structure - Debt
Capital Structure - Debt ▪ Since our IPO, the volume of our business has exceeded expectations requiring us to seek additional capital funding. ▪ $35 million Revolving Loan Credit Facility. On May 11, 2018 (the “Closing Date”), we consummated an agreement with Webster Business Credit Corporation, Ba
Slide 9: Dividends Paid
Dividends Paid 9 ▪ Dividends: • $0.05 per share on April 27, 2017, for the half - quarter period from the date of our IPO through March 31, 2017. • $0.105 per share for the quarter ended June 30, 2017, and paid the dividend on July 27, 2017 to shareholders of record on July 17, 2017. The $0.105 divi
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 $7,000,000 $8,000,000 $9,000,000 2012 2013 2014 2015 2016 2017 2018* * 3/31/18 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 $15,000 to $2.0 million (maximum loan amount cannot exceed 10% of portfolio) Loan - to - Value Ratio Up to 70% Interest Rate Fixed rate between 9.5% and 12% with a default rate of 18% Origination 2% - 5% for one - to - three year loans Portfolio average as of 3/31/201
Slide 14: Mortgage Loan Portfolio as of March 31, 2018
Loan Amount Number of Loans Aggregate Principal Amount $100,000 or less 146 $9,977,876 $100,001 to $250,000 152 23,669,040 $250,001 to $500,000 50 17,796,954 $500,001 to $1,000,000 10 7,376,579 Over $1,000,000 7 10,762,051 Total 366 $69,582,500 Mortgage Loan Portfolio as of March 31, 2018 ▪ Approxim
Slide 15: Sources of Capital as of March 31, 2018
Sources of Capital As of March 31, 2018 Debt Line of Credit Mortgage Payable $14,147,465 298,569 Total Debt $14,446,034 Other Liabilities 4,063,297 Capital (equity) 54,920,278 Total sources of capital $73,429,609 Assets Mortgage receivable $69,582,500 Other assets 3,847,109 Total assets $73,429,609
Slide 16: Loan Portfolio
Three Months Ended March 31, Years Ended December 31, 2018 2017 2016 Principal amount of loans earning interest $69,582,500 $63,270,959 $33,750,610 Loans originated in period $10,345,784 $53,468,949 21,580,103 Total revenue $2,716,650 $6,996,877 $4,133,495 Total operating costs and expenses $744,000
Slide 17: Loan Portfolio
As of March 31, As of December 31, 2018 2017 2016 Developer – Residential Mortgages $44,179,820 $43,855,827 $21,343,927 Developer – Commercial Mortgages 18,831,376 12,480,612 9,049,942 Land Mortgages 5,755,939 6.676,060 3,149,602 Mixed Use 815,365 258,460 207,139 Total Mortgages Receivable $69,582,5
Slide 18: Financial Highlights
18 Three Months Ended March 31, 2017 2018 % Change Interest income from loans $1,036,840 $1,962,373 89.3% Total revenue $1,289,216 $2,716,650 110.7% Total operating costs and expenses $392,438 $744,000 89.6% Net income $896,778 $1,972,650 120.0% Financial Highlights
Slide 19: Portfolio Performance
Portfolio Performance Year Ended 2016 Year Ended 2017 Change (`17 vs `16) Three Months Ended 3/31/17 Three Months Ended 3/31/18 Change (`18 vs `17) Total Assets $38,369,421 67,494,537 75.9% $44,658,164 $73,429,609 64.5% No. of loans in Portfolio 217 337 55.3% 245 366 49.4% Principal Amount of Loans
Slide 20: John L. Villano, CPA
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com