Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (December 2018)
18 slides from Sachem Capital's investor presentation, Dec 13, 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 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: 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 Loans secured by first mortgage liens ▪ Since inception in 2010 through September 30, 2018 Sachem has made appr
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 $6,000 to $2.0 million (maximum loan amount cannot exceed 10% of portfolio) Loan - to - Value Ratio Up to 70% Interest Rate Fixed rate between 5.0% (note purchased at discount) and 12.5% with a default rate of 18%. Average portfolio yield 12.48% Origination 2% - 5% fo
Slide 7: Mortgage Loan Portfolio as of September 30, 2018
Loan Amount Number of Loans Aggregate Principal Amount $100,000 or less 132 $9,002,827 $100,001 to $250,000 182 28,625,922 $250,001 to $500,000 63 22,156,355 $500,001 to $1,000,000 10 6,869,834 Over $1,000,000 8 11,150,371 Total 395 $77,805,309 Mortgage Loan Portfolio as of September 30, 2018 ▪ Appr
Slide 8: Sources of Capital as of September 30, 2018
Sources of Capital As of September 30, 2018 Debt Line of Credit Mortgage Payable $27,260,147 293,566 Total Debt $27,553,713 Other Liabilities 1,684,336 Capital (equity) 55,794,781 Total sources of capital $85,032,830 Assets Mortgage receivable $77,805,309 Other assets 7,227,521 Total assets $85,032,
Slide 9: Loan Portfolio
Nine Months ended September 30, Years Ended December 31, 2018 2017 2016 Principal amount of loans earning interest $77,805,309 $63,270,959 $33,750,610 Loans originated in period $37,278,346 $53,468,949 21,580,103 Total revenue $8,810,066 $6,996,877 $4,133,495 Total operating costs and expenses $2,67
Slide 10: Loan Portfolio
As of September 30, As of December 31, 2018 2017 2016 Developer – Residential Mortgages $52,432,930 $43,855,827 $21,343,927 Developer – Commercial Mortgages 19,326,891 12,480,612 9,049,942 Land Mortgages 5,342,393 6.676,060 3,149,602 Mixed Use 703,095 258,460 207,139 Total Mortgages Receivable $77,8
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) Nine Months Ended 9/30/17 Nine Months Ended 9/30/18 Change (`18 vs `17) Total Assets $38,369,421 67,494,537 75.9% $56,875,005 $85,032,830 49.5% No. of loans in Portfolio 217 337 55.3% 311 395 27.0% Principal Amount of Loans in
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* • 9/30/18 annualized
Slide 14: Financial Highlights
14 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 % Change 2018 2017 % Change Interest income from loans $2,272,100 $1,570,877 44.6% $6,610,273 $3,831,636 72.5% Total revenue $3,051,124 $1, 938,930 57.4% $8,810,066 $4,745,973 85.6% Total operating costs and expenses $1,08
Slide 15: Dividends Paid
Dividends Paid 15 Quarter Dividend Yield Q2 2017 $0.105 8.75% Q3 2017 $0.105 9.40% Q4 2017 $0.105 11.20% Q1 2018 $0.105 12.50% Q2 2018 $0.110 12.00% Q3 2018 $0.120 11.51% Dividend Paid YTD 2018 $4.9 million Net Income YTD 2018 $6.1 million Plan to distribute 90+% of taxable income to shareholders an
Slide 16: Investment Highlights
Investment Highlights x Internally managed, with co - founders owning approximately 20% 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 equity x Experienced man
Slide 17: Key Statistics
Key Statistics 17 Ticker: SACH Exchange: NYSE Amer Share Price (9/28/18): $4.17 Shares Outstanding (9/30/18): 15.4 M Market Cap (9/28/18): $64.3M Shareholders’ Equity (09/30/18): $55.8 M Dividends (TTM): $0.43/share Insider Ownership 21.7% Fiscal Year End: December 31
Slide 18: John L. Villano, CPA contact details
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com
Sachem Capital — Investor Presentation (December 2018) on 6ix