Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Q3 2024 Earnings Presentation
29 slides from Sachem Capital's earnings presentation, Nov 14, 2024
Slide 1: Sachem Capital Corp. Investor Presentation – November 2024
Sachem Capital Corp. Investor Presentation – November 2024 NYSE - American: SACH
Slide 2: Safe Harbor
Safe Harbor 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 future operations, a
Slide 3: Mission Statement
Mission Statement “Sachem Capital Corp. empowers real estate investors through innovative financing solutions, offering tailored products and support to build vibrant communities and fuel project success. With integrity and expertise, we drive industry growth, create value for stakeholders, and maxi
Slide 4: Executive Summary
Executive Summary Sachem Capital Corp. (NYSE:SACH) is non-bank real estate finance company focused on originating, servicing and managing a portfolio of short-term loans secured by first mortgage liens on commercial real estate property Clients are real estate investors or developers seeking to
Slide 5: Strategy
SACHEM CAPITAL Strategy
Slide 6: Targeted Market Strategy
Targeted Market Strategy Addressing Market Gaps Left by Traditional Lenders Flexibility in Structuring Loans to Larger Loans with Financially Developers, Builders, and Investors Better Meet Borrower Needs Stable, Experienced Developers Demand for property has outstripped Ability to close loans q
Slide 7: Strategic Approach to Drive Sustained Growth
Strategic Approach to Drive Sustained Growth Results in Strong Performance and Minimal Realized Loan Losses Disciplined, Highly-Scalable Strict Underwriting Requirements Process-Oriented Originations Platform Virtual lead-generation platform Maximum LTV (loan-to-value) of Review and prepare lo
Slide 8: Portfolio Overview
SACHEM CAPITAL Portfolio Overview
Slide 9: Portfolio Summary
Portfolio Summary Total Mortgages Receivable, Net ($ in millions) Average Yield1 Percentage 13.10% $491.7 $460.6 $456.9 12.56% $292.3 11.57% 11.50% 2021 2022 2023 30-Sep-24 2021 2022 2023 30-Sep-24 Cumulative Loan Originations ($ in millions) Average Loan Size ($ in thousands) $1,140.7 $1,080.5 $2,0
Slide 10: Portfolio Summary Continued
Portfolio Summary Continued Loans funded in $2.1MM > 2,000+ $1.1BN in 15 states Average loan size Transactions completed Origination since inception 13.1% $555MM 91% of Loans 226 have term of less than Average yield(1) Total assets one year Mortgage loans $81.8MM $16.5MM $4.3MM $27.2MM Net foreclosu
Slide 11: Strong Credit Profile
Strong Credit Profile Over 90% of underlying borrowers have a FICO score above 600 and the majority of loans have an LTV below 50%, demonstrating the strength of the underlying loan and borrower 43.7% 37.8% 33.6% 29.5% 27.2% 20.8% 19.5% 18.3% 12.9% 11.9% 8.8% 6.8% 7.0% 4.8% 4.2% 3.5% 3.3% 1.3% 1.9%
Slide 12: Loan Portfolio Overview
Loan Portfolio Overview Distribution by Property Type Distribution by State Residential Commercial Land Mixed Use CT FL NY Other 6.6% 6.1% 22.9% 34.0% 28.0% 59.3% 13.5% 29.6% *All data as of September 30, 2024 12
Slide 13: Origination Locations
Origination Locations Strong Eastern Coastal & Sunbelt Presence Complemented by Local Market Knowledge California Connecticut Florida Georgia Branford, CT Massachusetts Maryland Maine North Carolina New Jersey New York Pennsylvania Rhode Island Naples, FL South Carolina T
Slide 14: Loan Products
Loan Products Construction Loans Acquisition/Bridge Refinance Specialty Finance 14
Slide 15: Loan Diversification and Expansion
Loan Diversification and Expansion Select Case Studies $7.0 million loan to experienced sponsors purchase, Commercial / Industrial renovate and stabilize a storage facility in Columbia, SC. The loan provided the borrowers the ability to expand their storage facility. Disciplined $13.4 million lo
Slide 16: Recently Completed Projects
Recently Completed Projects BEFORE AFTER PROJECT DETAILS: PROJECT DETAILS: PROJECT DETAILS: LOAN AMOUNT : $1,663,000 LOAN AMOUNT : $6,810,000 LOAN AMOUNT : $22,094,000 RATE: 12.90% RATE: 13.5% RATE: 10.90% ORIGINATION: 2.00% ORIGINATION: 3.00% ORIGINATION: 1.75% LIEN: 1st POSITION LIEN: 1st POSITION
Slide 17: Active Projects
Active Projects BEFORE AFTER PROJECT DETAILS: PROJECT DETAILS: PROJECT DETAILS: LOAN AMOUNT : $2,775,416 LOAN AMOUNT: $10,477,000 LOAN AMOUNT : $17,425,000 RATE: 12.00% RATE: 10.50% RATE: 12.90% ORIGINATION: 1.00% ORIGINATION: 1.00% ORIGINATION: 2.00% LIEN: 1st POSITION LIEN: 1st POSITION LIEN: 1st
Slide 18: Strategic Partnerships
SACHEM CAPITAL Strategic Partnerships
Slide 19: Shem Creek Investment
Shem Creek Investment Shem Creek Capital is a commercial real estate finance company with a focus on providing debt capital solutions to commercial real estate owners, with a portfolio diversified across the Northeastern United States Loan Partnership Interest As of September 30, 2024, the Company
Slide 20: Vertical Integration of Urbane Capital, LLC
Vertical Integration of Urbane Capital, LLC Select Case Study I Select Case Study II Company: Urbane Capital, LLC Acquisition Date: 2022 $22 million Loan: Enhanced Loan Workout $17 million Phase 1 Project Optimization & Modification Capabilities Industry Type: Construction and Development Expanded
Slide 21: Sachem & Urbane Past Collaboration
Sachem & Urbane Past Collaboration Bankside House PROPERTY HIGHLIGHTS Units: 12 Acres: 1.02 Avg Unit Size: 2,609 Total SQFT: 31,306 FINANCIAL HIGHLIGHTS Total Sale Amount: $41,052,480 Avg. Price Per SQFT: $1,311 21
Slide 22: Current Collaborations
Current Collaborations PROPERTY DETAILS PROPERTY LOCATION: MIAMI, FLORIDA PROPERTY TYPE: SINGLE FAMILY HOME LOAN TYPE: NEW CONSTRUCTION SQUARE FEET: 5,046 PROPERTY DETAILS PROPERTY LOCATION: MIAMI, FLORIDA PROPERTY TYPE: SINGLE FAMILY HOME LOAN TYPE: REHAB/RENOVATION SQUARE FEET: 4,600 PROPERTY DETA
Slide 23: Current Collaborations Continued
Current Collaborations Continued 1 Glendinning Place PROPERTY HIGHLIGHTS Property Location: Westport, CT Property Type: Class A – Commercial Office Acres: 15 Total SQFT: ~ 50,000 (50% pre-leased upon acquisition) CONSTRUCTION HIGHLIGHTS All building core currently being fully renovated, expected c
Slide 24: Executive Management
SACHEM CAPITAL Executive Management
Slide 25: Executive Management Profiles
John L. Villano, CPA Jeffery C. Walraven Chairman, Chief Executive Officer, President & Interim Chief Financial Officer Treasurer Over 20 years of public accounting experience, Chairman and Chief Executive Officer since the serving many public REIT clients since 1999 company’s inception in 2010
Slide 26: Consolidated Financial Summary
Consolidated Financial Summary
Slide 27: Financial Statements Summary
Financial Statements Summary 12 Months Ended / As of: 3 Months Ended / As of: Financial Summary 12/31/2021 12/31/2022 12/31/2023 9/30/2023 9/30/2024 (US$ Mn's) Operating Metrics Total assets $ 418.0 $ 565.7 $ 625.5 $ 637.8 $ 555.5 Mortgages receivable, net 292.3 460.6 491.7 495.9 456.9 Real estate o
Slide 28: Financial Summary – CECL Impact
Financial Summary – CECL Impact Provision for credit losses related to The Company adopted the current Balance as of December 31, 2023 loans Balance as of September 30, 2024 expected credit loss (“CECL”) standard effective January 1, 2023 (in thousands) in accordance with ASU 2016-13, Mortgage rec
Slide 29: Sachem Capital
SACHEM /:CAPITAL
Sachem Capital Corp. Common Shares — Q3 2024 Earnings Presentation on 6ix