Sachem Capital Corp. (NYSE American: SACH) announced its financial results for the year ended December 31, 2022. The company will host a conference call on Friday, March 31, 2023 at 8:00 a.m. Eastern Time to discuss in greater detail its financial and operating results for 2022.

John Villano, CPA, the company’s Chief Executive Officer, stated: “2022 was another record year for our company with revenue of $52.3 million and net income attributable to common shareholders of $17.2 million. Earnings per share was $0.46 per share compared to $0.44 for the prior year. Further we achieved approximately $20.2 million of non-GAAP adjusted earnings or $0.53 per share in earnings, reflecting the strength of our business and specifically our loan portfolio in a very challenging interest rate environment. We fully understand the effects of rapid interest rate increases on our business and, more importantly, our borrowers and will continue to take appropriate measures to further reduce risk and insulate our loan portfolio, including additional enhancements to our underwriting process and limiting the term of new loans.

“In 2022, we acquired Urbane New Haven, LLC, which added construction finance service expertise in all phases of our business. This acquisition provides us the ability to reduce risks associated with distressed properties, as well as new income streams to help ensure the highest level of oversight and planning diligence on all construction financing. We are extremely pleased with the addition of the Urbane team and their operational excellence.

“Certainly, the process of lending has undergone significant changes the past year and despite the ongoing crosscurrents, our business model has proven to be highly scalable and resilient, as evidenced by our continued strong performance during the year.”

Results of operations for year ended December 31, 2022

Total revenue grew 71.8% to approximately $52.3 million compared to approximately $30.4 million for the year ended December 31, 2021. The growth in revenue was due primarily to an increase in lending operations. For 2022, interest income was approximately $42.6 million, origination fees were approximately $7.3 million and various other fees relating to the company’s lending activities were approximately $3.0 million.

Total operating costs and expenses for the year ended December 31, 2022 were approximately $31.4 million compared to approximately $17.1 million for 2021, an increase of approximately $14.3 million. Given the company’s implementation of its growth strategies, the largest contributor to this increase was interest and amortization of deferred financing costs, which were $21.5 million in 2022 compared to $10.4 million in 2021. The balance of the increases was attributable to (i) approximately $2.2 million of compensation (including stock-based compensation), fees and taxes and (ii) approximately $854,000 general and administrative expenses. These increases are attributable to the implementation of certain growth strategies.

Net income for 2022 attributable to common shareholders was approximately $17.2 million compared to approximately $11.5 million for 2021, an increase of approximately $5.8 million or 50.2%. Net income per weighted average common share outstanding for 2022 was $0.46 compared to $0.44 for 2021.

Balance Sheet

Total assets at December 31, 2022 were approximately $565.7 million compared to approximately $418.0 million at December 31, 2021, an increase of approximately $147.7 million, or 35.3%. The increase was due primarily to the growth in the company’s mortgage loan portfolio, which increased approximately $168.3 million, and an approximately $24.8 million increase in partnership investments. Total liabilities were approximately $348.0 million compared to approximately $237.9 million.

Total indebtedness at December 31, 2022 included $280.0 million of notes payable (net of $8.4 million of deferred financing costs), $3.6 million balance on our margin loan account with Wells Fargo Advisors, $42.5 million outstanding on the company’s master repurchase financing facility with an affiliate of Churchill Real Estate and $750,000 outstanding on a mortgage with New Haven Bank.

Total shareholders’ equity at December 31, 2022 increased approximately $37.6 million to $217.7 million compared to approximately $180.1 million at December 31, 2021. The change was primarily due to net income of approximately $20.9 million, net proceeds from the sale of common shares of $39.3 million, and approximately $1.0 million related to the acquisition of Urbane New Haven’s assets.

Dividends

The company declared and paid dividends of approximately $14.9 million on common shares approximately $3.7 million on Series A preferred shares, and reported approximately $5.3 million of accrued dividends.

The company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income taxes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders and the company intends to comply with this requirement for the current year.

Investor Conference Call

The company will host a conference call on Friday, March 31, 2023, at 8:00 a.m., Eastern Time, to discuss in greater detail its financial results for the year ended December 31, 2022.

Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or +1 201-389-0920 for international callers. A webcast of the call may be accessed on Sachem’s website at https://ir.sachemcapitalcorp.com/ir-calendar.

The webcast will also be archived on the company’s website and a telephone replay of the call will be available through Friday, April 14, 2023 and can be accessed by dialing 1-844-512-2921 for U.S. callers or +1 412-317-6671 for international callers and by entering replay passcode: 13737135.

About Sachem Capital Corp

Sachem Capital Corp. is a financing REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of first mortgage loans. It offers short-term (i.e., three years or less) secured, non­banking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The company will also make opportunistic real estate purchases apart from its lending activities.

Forward Looking Statements

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management’s current expectations and projections about future events and trends that management believes may affect the company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2022 to be filed with the U.S. Securities and Exchange Commission on March 31, 2023. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.

Investor & Media Contact:Email: investors@sachemcapitalcorp.com

 
SACHEM CAPITAL CORP.
CONSOLIDATED BALANCE SHEETS
     
    December 31, 2022   December 31, 2021
         
Assets:        
Cash and cash equivalents   $ 23,713,097     $ 41,938,897  
Investment securities     24,576,462       60,633,661  
Mortgages receivable     460,633,268       292,301,209  
Interest and fees receivable     6,309,845       3,693,645  
Due from borrowers     5,276,967       3,671,016  
Real estate owned     5,216,149       6,559,010  
Investments in partnerships     30,831,180       6,055,838  
Property and equipment, net     4,121,721       2,172,185  
Other assets     4,983,173       936,290  
Total assets   $ 565,661,862     $ 417,961,751  
         
         
Liabilities and Shareholders' Equity:        
Liabilities:        
Notes payable (net of deferred financing costs of $8,352,597 and $5,747,387)   $ 280,049,153     $ 160,529,363  
Repurchase facility     42,533,466       19,087,189  
Mortgage payable     750,000       750,000  
Line of credit     3,587,894       33,178,031  
Accrued dividends payable     5,342,160       3,927,600  
Accounts payable and accrued liabilities     1,439,219       697,403  
Advances from borrowers     9,892,164       15,066,114  
Deferred revenue     4,360,452       4,643,490  
Total liabilities     347,954,508       237,879,190  
         
Commitments and Contingencies        
         
Shareholders' equity:        
Preferred shares - $.001 par value; 5,000,000 shares authorized; 1,903,000 shares of   Series A Preferred Stock issued and outstanding     1,903       1,903  
Common stock - $.001 par value; 200,000,000 shares authorized; 41,093,536 and 32,730,004   issued and outstanding     41,094       32,730  
Paid-in capital     226,220,990       185,516,394  
Accumulated other comprehensive loss     (561,490 )     (476,016 )
Accumulated deficit     (7,995,143 )     (4,992,450 )
Total shareholders' equity     217,707,354       180,082,561  
Total liabilities and shareholders' equity   $ 565,661,862     $ 417,961,751  
         
         
The accompanying notes are an integral part of these financial statements.
         

       
SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
       
  Years Ended
  December 31,
   
    2022       2021  
Revenue:      
Interest income from loans $ 42,618,817     $ 22,305,530  
Investment gain (loss), net   521,662       1,069,374  
Income from partnership investments   1,809,564       142,026  
Origination and modification fees, net   7,320,625       4,322,883  
Fee and other income   2,969,117       2,299,970  
Unrealized losses on investment securities   (2,963,760 )     284,769  
Total revenue   52,276,025       30,424,552  
       
Operating costs and expenses:      
Interest and amortization of deferred financing costs   21,549,859       10,422,101  
Compensation, fees and taxes   5,315,455       3,122,934  
Other expenses   544,684       432,868  
General and administrative expenses   3,097,219       2,243,038  
Loss (Gain) on sale of real estate   (44,752 )     165,915  
Impairment loss   904,909       719,000  
Total operating costs and expenses   31,367,374       17,105,856  
Net income   20,908,651       13,318,696  
Preferred stock dividend   (3,687,062 )     (1,853,855 )
Net income attributable to common shareholders   17,221,589       11,464,841  
       
Other comprehensive loss      
Unrealized gain (loss) on investment securities   (85,474 )     (476,016 )
Comprehensive income $ 17,136,115     $ 10,988,825  
Basic and diluted net income per common share outstanding:      
Basic $ 0.46     $ 0.44  
Diluted $ 0.46     $ 0.44  
Weighted average number of common shares outstanding:      
Basic   37,741,657       26,316,286  
Diluted   37,749,169       26,324,986  
       
       
The accompanying notes are an integral part of these financial statements.
       

   
SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
               
                      Accumulated        
                  Additional   Other        
  Preferred Stock   Common Stock   Paid in   Comprehensive   Accumulated    
  Shares   Amount   Shares   Amount   Capital   Loss   Deficit   Totals
                                                   
Balance, January 1, 2021 -     -   22,124,801     22,125     83,814,376       (25,992 )     (2,890,969 )   $ 80,919,540  
                                                   
Issuance of Preferred Stock, Net of expenses 1,903,000     1,903               45,460,723                       45,462,626  
                                                   
Issuance of Common Stock, Net of expenses           10,490,188     10,490     56,049,982                       56,060,472  
                                                   
Exercise of warrants           5,334     5     (5 )                     -  
                                                   
Stock based compensation           109,681     110     191,318                       191,428  
                                                   
Unrealized loss on investments                               (450,024 )             (450,024 )
                                                   
Dividends paid on Common shares                                       (9,638,722 )     (9,638,722 )
                                                   
Dividends paid on Series A Preferred Stock                                       (1,853,855 )     (1,853,855 )
                                                   
Dividends declared and payable                                       (3,927,600 )     (3,927,600 )
                                                   
Net income for the year ended December 31, 2021                                       13,318,696       13,318,696  
                                                   
Balance, December 31, 2021 1,903,000     1,903   32,730,004     32,730     185,516,394       (476,016 )     (4,992,450 )     180,082,561  
                                                   
Issuance of Preferred Stock, net of expenses -     -               (70,000 )                     (70,000 )
                                                   
Issuance of Common Stock, net of expenses           7,879,907     7,880     39,284,065                       39,291,945  
                                                   
Acquisition of Urbane New Haven assets           300,000     300     995,700                       996,000  
                                                   
Exercise of warrants           19,658     20     (20 )                     -  
                                                   
Stock based compensation           163,967     164     494,851                       495,015  
                                                   
Unrealized loss on investments                               (85,474 )             (85,474 )
                                                   
Dividends paid on Common shares                                       (14,882,122 )     (14,882,122 )
                                                   
Dividends paid on Series A Preferred Stock                                       (3,687,062 )     (3,687,062 )
                                                   
Accrued Dividends                                       (5,342,160 )     (5,342,160 )
                                                   
Net income for the year ended December 31, 2022                                       20,908,651       20,908,651  
Balance, December 31, 2022 1,903,000   $ 1,903   41,093,536   $ 41,094   $ 226,220,990     $ (561,490 )   $ (7,995,143 )   $ 217,707,354  
                                                   
                                                   
The accompanying notes are an integral part of these financial statements.
                               

 
SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOW
       
  Years Ended
  December 30,
   
    2022       2021  
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 20,908,651     $ 13,318,696  
       
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of deferred financing costs and bond discount   2,104,093       1,215,200  
Write-off of deferred financing costs   -       72,806  
Depreciation expense   106,414       83,525  
Stock based compensation   495,015       191,318  
Impairment loss   904,909       719,000  
(Gain) Loss on sale of real estate   (44,752 )     165,915  
Unrealized loss on investment securities   2,963,760       (284,769 )
Gain on sale of investment securities   (521,662 )     -  
Changes in operating assets and liabilities:      
(Increase) decrease in:      
Interest and fees receivable   (2,616,200 )     (1,873,578 )
Other assets   (3,599,779 )     (26,801 )
Due from borrowers   (1,605,951 )     (1,645,353 )
Accrued Dividends Payable   (1,414,560 )  
Other Assets - Prepaid Expenses   -       (199,978 )
(Decrease) increase in:      
Accrued Interest   158,687       161,385  
Accounts payable and accrued liabilities   766,723       129,091  
Deferred revenue   (283,038 )     2,544,159  
Advances from borrowers   (5,173,950 )     13,235,575  
Total adjustments   (7,760,291 )     14,487,495  
       
NET CASH PROVIDED BY OPERATING ACTIVITIES   13,148,360       27,806,191  
       
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of investment securities   (51,651,930 )     (204,064,590 )
Proceeds from the sale of investment securities   85,113,227       180,533,333  
Purchase of interests in investment partnerships, net   (24,775,342 )     (6,055,838 )
Proceeds from sale of real estate owned   2,090,879       2,399,557  
Acquisitions of and improvements to real estate owned, net   (126,442 )     (981,873 )
Purchase of property and equipment   (1,581,350 )     (822,322 )
Security deposits held   -       (13,415 )
Principal disbursements for mortgages receivable   (300,277,303 )     (251,832,318 )
Principal collections on mortgages receivable   131,840,244       115,147,409  
Other Assets - Pre-offering Costs   (170,606 )     (306,440 )
NET CASH USED FOR INVESTING ACTIVITIES   (159,538,623 )     (165,996,497 )
       
CASH FLOWS FROM FINANCING ACTIVITIES      
Net proceeds from (repayment of) line of credit   (29,590,137 )     5,122,383  
Net proceeds from repurchase facility   23,446,277       19,087,189  
Proceeds from mortgage   -       750,000  
Repayment of mortgage payable   -       (767,508 )
Accounts payable and accrued liabilities - principal payments on other notes   (24,907 )     (23,761 )
Dividends paid on Common Stock   (18,809,722 )     (12,267,706 )
Dividends paid on Preferred Stock   (3,687,062 )     (1,853,855 )
Financings costs incurred   -       (461,357 )
Repayment of other loans   -       (257,845 )
Proceeds from issuance of common shares, net of expenses   39,291,945       56,060,472  
Proceeds from issuance of Series A Preferred Stock, net of expenses   (70,000 )     45,462,626  
Gross proceeds from issuance of fixed rate notes   122,125,000       51,750,000  
Financings costs incurred in connection with fixed rate notes   (4,516,931 )     (1,879,463 )
NET CASH PROVIDED BY FINANCING ACTIVITIES   128,164,463       160,721,175  
       
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (18,225,800 )     22,530,869  
       
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR   41,938,897       19,408,028  
       
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 23,713,097     $ 41,938,897  
       
       
The accompanying notes are an integral part of these financial statements.
       

 
SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOW (Continued)
         
    Years Ended
    December 30,
     
    2022   2021
         
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS    
INFORMATION        
Interest paid   $ 19,286,819   $ 9,097,631
         
SUPPLEMENTAL INFORMATION-NON-CASH        
Dividends declared and payable   $ 5,342,160   $ 3,927,600
         
         
Real estate acquired in connection with the foreclosure of certain mortgages, inclusive of interest and other fees receivable, during the period ended December 31, 2022 amounted to $1,376,733. Additionally, Property and Equipment, Goodwill, and Intangibles acquired in connection with the acquisition from Urbane New Haven during the period ended December 31, 2022 amounted to $996,000.
             
         
The accompanying notes are an integral part of these financial statements.

Sachem Capital (AMEX:SACH)
Graphique Historique de l'Action
De Fév 2024 à Mar 2024 Plus de graphiques de la Bourse Sachem Capital
Sachem Capital (AMEX:SACH)
Graphique Historique de l'Action
De Mar 2023 à Mar 2024 Plus de graphiques de la Bourse Sachem Capital