Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Shareholder Meeting (October 2021)
24 slides from Sachem Capital's shareholder meeting presentation, Oct 14, 2021
Slide 1: Annual Meeting of Shareholders
Sachem Capital Corp. Annual Meeting of Shareholders October 13, 2021 NYSE: SACH
Slide 2: Safe Harbor
NYSE: SACH 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
Slide 3: Senior Management Team
NYSE: SACH Senior Management Team John L. Villano CPA, Chairman, Chief Executive Officer, Chief Financial Officer, President and Treasurer John has been Sachem’s Chairman and Chief Executive Officer since the company’s inception in 2010. Mr. Villano is responsible for overseeing all aspects of busin
Slide 4: Company Overview
NYSE: SACH Company Overview ▪ Sachem Capital Corp. is a mortgage REIT headquartered in Branford, Connecticut ▪ Sachem specializes in originating, investing, underwriting, funding, servicing, and managing a portfolio of short - term, high - yielding real estate loans, historically targeting the “fix
Slide 5: Investment Highlights
NYSE: SACH Investment Highlights x Sachem’s loan portfolio has grown to $172.8M as of June 30, 2021 from $33.8M at year - end 2016 • Favorable competitive landscape with robust loan pipeline • Disciplined underwriting with a conservative loan - to - value ratio x Sachem has opportunistically expande
Slide 6: Sachem Loan Products
NYSE: SACH Sachem Loan Products 6 Fix - and - Flip Loans Bridge Loans Distressed / Foreclosure Loans Commercial Real Estate Development New Construction Loans Mission: To create value for our clients and shareholders with tailored solutions across real estate assets, that help build better communiti
Slide 7: Strong Economic Backdrop Supporting Our Market
NYSE: SACH 4.56% 2.60% 13.20% 13.69% 13.31% 14.99% 10.45% 10.12% 4.75% 12.33% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2014 or Later 2010 - 2013 2000 - 2009 1990 - 1999 1980 - 1989 1970 - 1979 1960 - 1969 1950 - 1959 1940 - 1949 1939 or Earlier 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2000 2001 2002 2003 2004 2005
Slide 8: Market Overview: Sustainable Fix-and-Flip Activity
NYSE: SACH $30,000 $33,599 $37,400 $36,750 $48,611 $53,900 $52,000 $55,100 $60,769 $65,000 $64,000 $62,188 $66,300 $0 $20,000 $40,000 $60,000 $80,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Market Overview: Sustainable Fix - and - Flip Activity ▪ The broader market backdrop
Slide 9: Market Overview: Favorable Home Prices
NYSE: SACH Market Overview: Favorable Home Prices ▪ Sachem’s historical primary market (Connecticut) has benefitted from several trends accelerated by the COVID - 19 pandemic: • Movement out of dense urban locations, including New York City, to suburban neighborhoods • Increased demand for larger, m
Slide 10: Target Market and Opportunity
NYSE: SACH Target Market and Opportunity 10 • It can take the SBA 6+ months to close on a large loan • Competitors have tightened their lending criteria • Demand for property has outstripped supply Developers, builders, and investors are facing tightening restrictions in the capital markets • Sachem
Slide 11: The Sachem Advantage
NYSE: SACH The Sachem Advantage Over 1,450 transactions completed More than $400M in origination since inception Loss on REO / foreclosures since inception: ½ of 1 percent* Conduct lending services in 12 states 11 Favorable competitive landscape ▪ Sachem is able to structure loans to meet the unique
Slide 12: Loan Process
NYSE: SACH Loan Process 12 Origination • Developed virtual lead platform that can be scaled as needed • 4 underwriters and a senior credit officer focusing on deep relationships with borrowers • Significant repeat business • Target states with favorable demographic trends and lending laws Underwriti
Slide 13: Sales Presence
NYSE: SACH Sales Presence Origination Locations 13 Strong core Eastern Seaboard presence complemented by local lending capability Austin, TX Naples, FL Branford, CT
Slide 14: Loan Portfolio Summary Terms
NYSE: SACH Loan Portfolio Summary Terms 14 Range of $100,000 to $20,000,000 Principal Amount Up to 70% loan - to - value Loan to Value Ratio 1 to 3 years Term 2.0% to 5.0% Origination Fee Interest rate offered as low as 6.9% Interest Rate Interest - only monthly with principal at maturity Payment Te
Slide 15: Loan Portfolio Overview
NYSE: SACH 77.0% 9.6% 4.1% 9.2% CT FL NY Other Loan Portfolio Overview 15 S UMMARY D ISTRIBUTION BY L OAN A MOUNT (1) S UMMARY D ISTRIBUTION BY L OAN M ATURITIES (2) S UMMARY D ISTRIBUTION BY S TATE (1) S UMMARY D ISTRIBUTION BY R EAL E STATE T YPE (2) 52.2% 21.7% 20.0% 6.1% $500k or More $100k - $2
Slide 16: Summary Financial Performance
NYSE: SACH Summary Financial Performance 16 R EVENUE B REAKDOWN ($ IN M ILLIONS ) E ARNINGS P ER S HARE $0.9 $1.1 $1.3 $1.5 $1.7 $2.0 $1.8 $1.8 $2.1 $1.9 $1.9 $1.0 $1.8 $2.1 $2.2 $2.4 $2.3 $2.4 $0.2 $0.3 $0.4 $0.6 $0.8 $0.7 $0.7 $0.7 $0.6 $0.8 $0.9 $0.6 $1.3 $1.0 $0.8 $1.3 $0.9 $1.9 $1.1 $1.4 $1.6 $
Slide 17: Attractive Returns at Modest Leverage
NYSE: SACH Attractive Returns at Modest Leverage 17 A NNUALIZED T OTAL E CONOMIC R ETURN (1) T OTAL D EBT - TO - E QUITY R ATIO (1) Total economic return represents the change in book value per common share plus dividends per common share paid (2) Shareholders’ equity does not include net proceeds o
Slide 18: Sachem Growth Strategy
NYSE: SACH Sachem Growth Strategy 18 Goal: To deploy larger amounts of capital with potentially higher returns, better sponsorship, and lower risk Take advantage of positive trends within the real estate sector Capitalize on opportunities due to structural changes that limit competitors’ lending Gro
Slide 19: Successful Initiatives
NYSE: SACH Successful Initiatives 19 6 States Average loan: $196,000 Average term maturity: 11 months 2018 Loan origination: $42 Million / $1.4 Million Net 12 States Average loan: $314,000 Average term maturity: 8 months 2020 Loan origination: $117 Million / $1.9 Million Net Multi - State Expansion
Slide 20: Loan Portfolio Performance
NYSE: SACH Loan Portfolio Performance 20 Year - Ending Quarter - ending ($ in Thousands) Dec - 2018 Dec - 2019 Dec - 2020 June - 2021 Total Assets $86,014 $141,211 $226,670 $296,317 Number of Loans in Portfolio 403 438 495 477 Principal Amount of Loans in Portfolio $78,891 $94,349 $155,616 $172,793
Slide 21: Balance Sheet Summary
NYSE: SACH Balance Sheet Summary 21 ($ in Thousands) June 30, 2021 December 31, 2020 Assets Cash and cash equivalents 62,225,813 19,408,028 Short - term marketable securities 44,502,267 37,293,703 Mortgages receivable 172,793,975 155,616,300 Interest and fees receivable 2,017,996 1,820,067 Due from
Slide 22: Income Statement Summary
NYSE: SACH Income Statement Summary 22 ($ in Thousands) June 30, 2021 June 30, 2020 Revenue Interest income from loans 4,682,295 3,265,677 Investment income 180,120 33,162 Income from partnership investment 36,868 - G ain (loss) on sale of investment securities 85,471 (8,925) Origination fees 831,89
Slide 23: Key Statistics
NYSE: SACH Key Statistics 23 NYSE American: SACH Share price (as of 10/1/21): $5.48 Common Shares Outstanding (8/13/21): 28.3 M Market Capitalization: $155.2 M Shareholders’ Equity (6/3/21): $146.3M Dividends (TTM): $0.48 Insider Ownership (fully diluted): 7.5%
Slide 24: Sachem Capital Corp. Q & A
Sachem Capital Corp. Investor Presentation – October 2021 NYSE: SACH Q & A Sachem Power Point Script Slide 2 – Safe Harbor Please take a moment to review the forward-looking statement included in our presentation. You should fully understand the risks of reliance on these statements and should evalu