Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (May 2019)
18 slides from Sachem Capital's investor presentation, May 3, 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
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: 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 4: Overview
Overview 4 ▪ Connecticut - based real estate finance company o Specializing in originating, underwriting, funding, servicing and managing a portfolio of short - term, “hard money” loans o All loans are secured by first mortgage liens ▪ Since inception in 2010 through December 31, 2018 Sachem has mad
Slide 5: Business Model
Business Model 5 ▪ 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 6: Loan Structure
Loan Structure Principal Amount $8,000 to $2.04 million (maximum loan amount cannot exceed 10% of portfolio) Loan - to - Value Ratio Up to 70% Interest Rate Fixed rate between 5.0% and 12.5% with a default rate of 18%. Average portfolio yield 12.85% Origination 2% - 5% for one - to - three year loan
Slide 7: Mortgage Loan Portfolio as of December 31, 2018
Loan Amount Number of Loans Aggregate Principal Amount $100,000 or less 133 $ 8,862,738 $100,001 to $250,000 185 29,318,462 $250,001 to $500,000 67 23,286,736 $500,001 to $1,000,000 10 6,472,817 Over $1,000,000 8 10,950,357 Total 403 $ 78,891,110 Mortgage Loan Portfolio as of December 31, 2018 ▪ App
Slide 8: Sources of Capital
Sources of Capital As of December 31, 2018 Debt Line of Credit Mortgage Payable $ 27,219,123 290,984 Total Debt 27,510,107 Other Liabilities 5,701,128 Capital (equity) 52,802,815 Total sources of capital $ 86,014,050 Assets Mortgage receivable $ 78,891,110 Other assets 7,122,940 Total assets $ 86,01
Slide 9: Loan Portfolio
Years Ended December 31, 2018 2017 2016 Principal amount of loans earning interest $ 78,891,110 $ 63,270,959 $ 33,750,610 Loans originated in period $ 42,078,191 $ 53,468,949 $ 21,580,103 Total revenue $ 11,713,370 $ 6,996,877 $ 4,133,495 Total operating costs and expenses $ 3,941,585 $ 2,136,029 $
Slide 10: Loan Portfolio
As of December 31, 2018 2017 2016 Developer – Residential Mortgages $ 52,980,472 $ 43,855,827 $ 21,343,927 Developer – Commercial Mortgages 19,250,618 12,480,612 9,049,942 Land Mortgages 5,638,113 6,676,060 3,149,602 Mixed Use 1,021,907 258,460 207,139 Total Mortgages Receivable $ 78,891,110 $ 63,27
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: Portfolio Performance
Portfolio Performance Year Ended 2016 Year Ended 2017 Change (`17 vs `16) Year Ended 2018 Change (`18 vs `17) Total Assets $ 38,369,421 $ 67,494,537 75.9% $ 86,014,050 27.4% No. of loans in Portfolio 217 337 55.3% 403 19.6% Principal Amount of Loans in Portfolio $ 33,750,610 $ 63,270,959 87.5% $ 78,
Slide 13: Annual Interest Income Growth
Annual Interest Income Growth 13 $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 $10,000,000 2012 2013 2014 2015 2016 2017 2018
Slide 14: Financial Highlights
14 Years Ended December 31, 2018 2017 % Change Interest income from loans $ 8,960,883 $ 5,434,502 64.9% Total revenue $ 11,713,370 $ 6,996,877 67.4% Total operating costs and expenses $ 3,941,585 $ 2,136,029 84.6% Net income $ 7,771,785 $ 4,860,848 59.9% Financial Highlights
Slide 15: Dividends Paid
Dividends Paid 15 Quarter Dividend Q2 2017 $ 0.105 Q3 2017 $ 0.105 Q4 2017 $ 0.105 Q1 2018 $ 0.105 Q2 2018 $ 0.110 Q3 2018 $ 0.120 Q4 2018 $ 0.170* Q1 2019 $ 0.120 Plan to distribute 90+% of taxable income to shareholders annually 2018 Dividends $7.4 Million † 2018 Net Income $7.8 Million † This amo
Slide 16: Investment Highlights
Investment Highlights x Internally managed, with co - founders owning approximately 16% (as of April 30, 2019) of the company aligning management’s interests with equity investors x Strong asset level return with nominal leverage and low cost structure generates attractive risk adjusted return on eq
Slide 17: Key Statistics
Key Statistics 17 Ticker Symbol: SACH Exchange: NYSE American Closing Share Price on 4/30/19: $4.66 Shares Outstanding as of 4/30/19: 18.6 M Market Cap as of 4/30/19: $86.73M Shareholders’ Equity as of 12/31/18: $52.8 M Dividends (TTM): $0.52/share Insider Ownership as of 4/30/19: 17.93% Fiscal Year
Slide 18: Contact
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com