Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (April 2019)
18 slides from Sachem Capital's investor presentation, Apr 12, 2019
Slide 1: Investor Presentation April 2019
Investor Presentation April 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 Loans secured by first mortgage liens ▪ Since inception in 2010 through December 31, 2018 Sachem has made appro
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% (note purchased at discount) and 12.5% with a default rate of 18%. Average portfolio yield 12.85% Origination 2% - 5% f
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 ▪ Appro
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 $86,014,0
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 $1,082,868 Num
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 $63,270,959
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% $78,891,110
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 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 $0.11 12.00% Q3 2018 $0.12 11.51% Q4 2018 $0.12 12.28%* Yield does not include incremental ($0.05) year - end dividend to comply with REIT requirements Plan to distr
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 American Share Price (12/31/18): $3.91 Shares Outstanding (12/31/18): 15.4 M Market Cap (12/31/18): $60.4M Shareholders’ Equity (12/31/18): $52.8 M Dividends (TTM): $0.505/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