Sachem Capital Corp. · AMEX:SACH
Sachem Capital — Investor Presentation (May 2017)
17 slides from Sachem Capital's investor presentation, May 2, 2017
Slide 1: Investor Presentation May 2, 2017
Investor Presentation May 2, 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: Background
www.sachemcapitalcorp.com Background 3 The Company Sachem Capital Corp. Established December 2010 IPO February 2017 - $13 Million Gross Proceeds at $5.00/share Listing NYSE MKT Symbol SACH Bank Bankwell Bank, New Canaan, CT - 15MM revolving line of credit Market Cap (a/o 4/25/17) Approx. $57.2 Milli
Slide 4: Investment Highlights
Investment Highlights ▪ We intend to qualify as a REIT and distribute at least 90% of our taxable income to shareholders annually through regular quarterly distributions ▪ Our current expectation is to pay quarterly dividends on our common shares at an annualized rate of approximately 8.0% based upo
Slide 5: Overview
Overview 5 ▪ 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 415 loans in the
Slide 6: Business Model
Business Model 6 ▪ 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 7: Annual Interest Income Growth
Annual Interest Income Growth 7 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2011 2012 2013 2014 2015 2016
Slide 8: 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 9: Loan Structure
Loan Structure Principal Amount $35,000 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 10: Loan Portfolio as of December 31, 2016
Amount Number of Loans Aggregate Principal Amount Less than $100,000 98 $6,473,420 $100,001 to $250,000 89 $13,332,281 $250,001 to $500,000 22 $7,354,043 $500,001 to $1,000,000 7 $5,498,665 Over $1,000,000 1 $1,092,201 Total 217 $33,750,610 Loan Portfolio as of December 31, 2016 ▪ Approximately 86%
Slide 11: Loan Portfolio
As of December 31, 2016 As of December 31, 2015 Developer – Residential Mortgages $21,343,927 $18,820,509 Developer – Commercial Mortgages $9,049,942 $5,712,566 Land Mortgages $3,149,602 $2,619,792 Mixed Use $207,139 $380,000 Total Mortgages Receivable $33,750,610 $27,532,867 Loan Portfolio 11
Slide 12: Financing Strategies
We utilize a combination of equity capital and debt financing to fund operations: Financing Strategies Sources of Capital December 31, 2016 Debt Line of Credit Mortgage Payable $8,113,943 310,000 Total Debt $8,423,943 Other Liabilities $1,459,863 Capital (equity) $28,485,615 Total sources of capital
Slide 13: Loan Portfolio
2016 2015 Principal amount of loans earning interest $33,750,610 $27,532,867 Loans originated $21,580,103 $19,412,438 Loans repaid $14,861,360 $5,812,116 Mortgage lending revenues $4,133,495 $2,786,724 Mortgage lending expenses $1,082,868 $479,821 Number of loans outstanding 217 180 Average outstand
Slide 14: Portfolio Performance
Portfolio Performance 2015 2016 Change (’16 vs ‘15) Total Assets $30,795,486 $38,369,421 24.6% No. of loans in Portfolio 180 217 21.2% Principal Amount of Loans in Portfolio $27,532,867 $33,750,610 22.6% Annual Interest Income $2,477,876 $3,648,427 47.2% Gross Origination Fee Income (1) $721,284 $82
Slide 15: Financial Highlights
Financial Highlights 15 Year Ended December 31, 2016 Year Ended December 31, 2015 Interest income from loans $3,648,427 $2,477,876 Total revenue $4,133,495 $2,786,724 Total operating costs and expenses $1,082,868 $479,821 Net income $3,050,627 $2,306,903
Slide 16: 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 17: John L. Villano, CPA contact details
John L. Villano, CPA 23 Laurel Street Branford, Connecticut 06405 203 - 433 - 4736 [email protected]