Sachem Capital Corp. · AMEX:SACH
Sachem Capital — IPO Roadshow (July 2017)
19 slides from Sachem Capital's IPO roadshow presentation, Jul 10, 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017 FREE WRITING PROSPECTUS Filed Pursuant to Rule 433 Registration No. 333 - 218954 July 10, 2017
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: Free Writing Prospectus Statement
Free Writing Prospectus Statement 3 This presentation highlights basic information about us and the proposed public offering. Because this presentation is a summary, it does not contain all of the information you should consider before investing in our securities. We have filed a registration statem
Slide 4: Offering Summary
Offering Summary 4 Issuer Sachem Capital Corp. Expected Offering Size $12,000,000 of Common Shares (100% Primary) Over - Allotment Option 15% for 45 days (100 % Primary) Exchange / Symbol NYSE MKT: SACH Shares Outstanding (Pre - Offering) 11,103,237 common shares Market Cap (as of 7/7/17 ) $53.3 Mil
Slide 5: 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 their inception in December 2010. ▪ Mr. Villano, a certified pu
Slide 6: Overview
Overview 6 ▪ We are a Connecticut - based real estate finance company specializing in originating, underwriting, funding, servicing and managing a portfolio of short - term (“hard money”) loans on property located primarily in Connecticut ▪ Since inception in 2010, we have made approximately 470 loa
Slide 7: Investment Highlights
Investment Highlights ▪ Experienced management team with intimate knowledge of the Connecticut and surrounding area real estate market ▪ Significant demand for real estate loans under $500k in Connecticut and surrounding areas as traditional lenders are unable to satisfy demand ▪ Disciplined lending
Slide 8: Recent Developments
Recent Developments ▪ On June 30, 2017, we modified our credit line with Bankwell Bank, our lender, to, among other things: • Increase the amount of the facility from $15 million to $20 million to increase our ability to fund mortgage loans. • Modify the method of calculating the interest rate on th
Slide 9: Business Model
Business Model 9 ▪ Grow first mortgage loan portfolio while protecting and preserving capital ▪ Provide investors with risk adjusted returns through dividends ▪ Disciplined underwriting and extensive due diligence culture focusing primarily on value of underlying collateral as well as the borrower a
Slide 10: Annual Interest Income Growth
Annual Interest Income Growth 10 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2012 2013 2014 2015 2016 2017* * 3/31/17 annualized
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: Loan Structure
Loan Structure Principal Amount $21,000 to $1.1 million (maximum loan amount cannot exceed 10% of portfolio) Loan - to - Value Ratio Up to 65% Interest Rate Fixed rate between 9% and 12% with a default rate of 18% Origination 2.0% for loans of one year to 5.0% for three - year loans Terms One to thr
Slide 13: Mortgage Loan Portfolio as of March 31, 2017
Amount Number of Loans Aggregate Principal Amount Less than $100,000 105 $7,071,020 $100,001 to $250,000 97 $14,857,073 $250,001 to $500,000 32 $10,654,066 $500,001 to $1,000,000 6 $4,290,665 Over $1,000,000 3 $3,200,051 Total 243 $40,072,875 Mortgage Loan Portfolio as of March 31, 2017 ▪ Approximat
Slide 14: Loan Portfolio
As of March 31, 2017 As of December 31, 2016 As of December 31, 2015 Developer – Residential Mortgages $ 25,853,550 $21,343,927 $18,820,509 Developer – Commercial Mortgages $10,742,594 $9,049,942 $5,712,566 Land Mortgages $3,220,067 $3,149,602 $2,619,792 Mixed Use $256,664 $207,139 $380,000 Total
Slide 15: Financing Strategies and Sources of Capital
We utilize a combination of equity capital and debt financing to fund operations: Financing Strategies Sources of Capital As of March 31, 2017 * Debt Line of Credit Mortgage Payable $4,150,100 308,343 Total Debt $4,458,443 Other Liabilities $1,597,807 Capital (equity) $38,601,914 Total sources of ca
Slide 16: Loan Portfolio
2017 2016 2016 2015 Principal amount of loans earning interest $40,072,075 $29,270,142 $33,750,610 $27,532,867 Loans originated in period $10,091,528 $5,113,384 $21,580,103 $19,412,438 Loans repaid $3,938,601 $3,376,109 $14,861,360 $5,812,116 Total revenue $1,289,216 $878,297 $4,133,495 $2,786,724 T
Slide 17: Portfolio Performance
Portfolio Performance Year Ended 2015 Year Ended 2016 Change (`16 vs `15) Quarter Ended 3/31/16 Quarter Ended 3/31/17 Change (`17 vs `16) Total Assets $30,795,486 $38,369,421 24.6% $32,193,606 $44,658,164 38.7% No. of loans in Portfolio 180 217 20.5% 188 243 29.3 % Principal Amount of Loans in Portf
Slide 18: Financial Highlights
Financial Highlights 18 2015 2016 2016 2017 Interest income from loans $2,477,876 $3,648,427 $803,484 $1,036,840 Total revenue $2,786,724 $4,133,495 $878,297 $1,289,216 Total operating costs and expenses $479,821 $1,082,868 $195,229 $392,438 Net income $2,306,903 $3,050,627 $683,068 $896,778 Quarter
Slide 19: John L. Villano, CPA contact details
John L. Villano, CPA 23 Laurel Street Branford, CT 06405 203 - 433 - 4736 jlv@sachemcapitalcorp.com