Sachem Capital Corp. (SACH) Bundle
A Brief History of Sachem Capital Corp. (SACH)
Company Overview
Company Overview
Sachem Capital Corp. is a publicly traded real estate investment trust (REIT) founded to provide financing directly to real estate investors and operators. It focuses on short-term loans, primarily for residential and commercial properties, with attractive risk-adjusted returns.
Initial Public Offering and Growth
Founded in 2016, Sachem Capital Corp. went public on March 29, 2017. The initial public offering priced at $5.00 per share, raising approximately $3.5 million in capital. Since then, the company has expanded its financial capacity significantly, focusing on real estate markets in Connecticut, New York, and other regions.
Financial Performance
As of the most recent fiscal year ended December 31, 2022, Sachem Capital Corp. reported the following financial highlights:
| Financial Metric | 2022 Amount | 2021 Amount | 2020 Amount |
|---|---|---|---|
| Total Revenue | $14.5 million | $10.2 million | $6.5 million |
| Net Income | $6.9 million | $4.7 million | $2.9 million |
| Total Assets | $65.0 million | $52.1 million | $38.9 million |
| Total Liabilities | $29.0 million | $21.4 million | $16.0 million |
| Dividends Paid | $5.2 million | $3.8 million | $2.5 million |
Strategic Focus and Lending Practices
Sachem Capital focuses on providing short-term bridge loans to real estate investors. The average loan amount ranges from $250,000 to $1.5 million, with terms typically spanning from six months to three years. The company emphasizes quick funding and a streamlined application process.
Market Presence and Portfolio
As of December 31, 2022, Sachem Capital Corp.'s loan portfolio consisted of over 200 active loans, distributed across various asset classes. The company has successfully maintained a default rate of under 3%, reflecting its rigorous underwriting standards.
Stock Performance
As of October 2023, Sachem Capital Corp.'s stock is trading at approximately $4.25 per share, with a market capitalization of around $45 million. The company has established a consistent dividend payout, currently yielding approximately 8.5% based on the latest dividend declarations.
Outlook and Future Plans
Looking forward, Sachem Capital plans to expand its market reach by entering new geographic regions and increasing its loan offerings. The management aims to enhance shareholder value through strategic acquisitions and partnerships.
Conclusion
This chapter provided a detailed overview of the history and financial performance of Sachem Capital Corp. With a focus on short-term real estate financing, the company has established a strong presence in the market, demonstrating growth in revenue and profitability.
A Who Owns Sachem Capital Corp. (SACH)
Shareholder Composition
Shareholder Composition
Sachem Capital Corp. (SACH) has a diverse shareholder base comprising institutional investors, retail investors, and insiders. As of the latest filings, institutional ownership stands at approximately 32%, while insiders hold around 8% of the total shares.
| Category | Percentage Ownership |
|---|---|
| Institutional Investors | 32% |
| Insider Ownership | 8% |
| Retail Investors | 60% |
Major Institutional Investors
Significant institutional investors include:
- BlackRock, Inc. – holds approximately 5.2% of shares
- Wellington Management Group – owns around 4.8% of shares
- Vanguard Group, Inc. – owns about 4.5% of shares
Insider Ownership
Insider ownership is primarily composed of the company's executives and board members. The following table outlines the key insiders and their ownership percentages:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John J. Villano | CEO | 1,000,000 | 4% |
| Michael J. Villano | President | 600,000 | 2.4% |
| Lisa Decker | CFO | 200,000 | 0.8% |
Share Performance and Market Capitalization
As of the latest trading data, Sachem Capital Corp. has a market capitalization of approximately $150 million. The stock has demonstrated volatility, with a year-to-date performance of approximately 15% increase.
Recent Developments
Recently, Sachem Capital issued a quarterly dividend of $0.12 per share, reflecting a yield of 8% based on its current stock price. This financial decision has been positively received by investors.
Conclusion on Ownership Structure
The ownership structure of Sachem Capital Corp. represents a well-distributed mix of institutional and retail investors, with a notable percentage held by insiders, which indicates confidence in the company’s future.
Sachem Capital Corp. (SACH) Mission Statement
Company Overview
Sachem Capital Corp. (SACH) is a real estate finance company specializing in originating, underwriting, financing, and managing a portfolio of first mortgage loans secured by real estate. As of October 2023, SACH primarily focuses on providing financing to residential and commercial property owners, striving to deliver competitive solutions in the market.
Mission Statement
The mission of Sachem Capital Corp. is to provide efficient and accessible financing solutions to real estate investors and property owners, fostering long-term relationships built on trust and integrity. The company aims to generate attractive risk-adjusted returns for its shareholders by executing its business strategy effectively.
Core Values
- Integrity: Upholding transparency and ethical standards in all transactions.
- Customer Focus: Prioritizing clients' needs and tailoring financial solutions to meet those needs.
- Innovation: Continuously improving processes and exploring new market opportunities.
- Accountability: Taking responsibility for actions and adhering to commitments.
Financial Performance
As of the third quarter of 2023, Sachem Capital Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $89.0 million |
| Total Liabilities | $73.1 million |
| Stockholders' Equity | $15.9 million |
| Total Revenue (Q3 2023) | $5.1 million |
| Net Income (Q3 2023) | $1.2 million |
| Earnings Per Share (EPS) | $0.11 |
| Dividends Paid (2023) | $0.40 per share |
Strategic Objectives
- Growth: Expanding the loan portfolio through strategic acquisitions and partnerships.
- Diversification: Broadening the types of real estate financing solutions offered to clients.
- Efficiency: Streamlining operations to reduce costs and improve service delivery.
- Market Position: Enhancing brand recognition and reputation within the real estate finance sector.
Community Engagement
Sachem Capital Corp. is committed to supporting local communities through various initiatives, including:
- Financial Education: Offering workshops to educate property owners on financing options.
- Local Investments: Focusing on providing loans to projects that revitalize neighborhoods.
- Partnerships: Collaborating with local organizations to promote sustainable development.
Conclusion
The mission of Sachem Capital Corp. is underscored by its commitment to providing reliable financial solutions while maintaining core values that prioritize integrity, customer satisfaction, and community engagement.
How Sachem Capital Corp. (SACH) Works
Business Model
Business Model
Sachem Capital Corp. operates primarily in the financial sector, focusing on real estate lending. The company provides short-term loans secured by real estate, catering to real estate investors and developers.
Investment Strategy
The company's investment strategy includes:
- Providing capital to fix-and-flip real estate investors.
- Offering bridge loans for residential and commercial properties.
- Funding construction projects.
Financial Performance
As of September 30, 2023, Sachem Capital Corp. reported the following financial data:
| Metric | Q3 2023 | Q2 2023 | Q1 2023 |
|---|---|---|---|
| Revenue | $6.4 million | $5.8 million | $5.2 million |
| Net Income | $2.1 million | $1.9 million | $1.5 million |
| Total Assets | $104 million | $98 million | $95 million |
| Stockholders' Equity | $25 million | $24 million | $23 million |
Loan Portfolio
The company's loan portfolio consists of diverse investments, including:
- Residential properties: 65%
- Commercial properties: 25%
- Land development projects: 10%
Recent Developments
In 2023, Sachem Capital announced:
- a $10 million line of credit to enhance liquidity.
- an increase in the loan origination volume by 20% compared to the previous year.
- expansion plans into new geographies.
Market Position
Sachem Capital Corp. operates in a competitive market with several key players. As of 2023, its market capitalization is approximately $58 million. The company's stock price has shown resilience, with performance metrics indicating a year-to-date return of around 15%.
Dividend Policy
Sachem Capital has a consistent dividend policy, with the following details:
| Dividend Type | Annual Dividend (2023) | Yield |
|---|---|---|
| Quarterly Dividend | $0.40 per share | 7.0% |
Investor Relations
For investor communication, Sachem Capital maintains:
- Regular press releases detailing financial performance.
- Quarterly conference calls with analysts.
- Annual shareholder meetings.
Risk Management
The company employs various strategies to mitigate risks, such as:
- Diversifying its loan portfolio across different regions.
- Implementing strict underwriting standards.
- Monitoring market conditions closely to adjust lending practices.
How Sachem Capital Corp. (SACH) Makes Money
Commercial Real Estate Financing
Sachem Capital Corp. primarily generates revenue through providing short-term financing solutions for commercial real estate projects. The company predominantly focuses on multi-family and mixed-use properties, as well as other real estate-backed loans. The loan origination amounts typically range from $0.5 million to $10 million, with interest rates often between 10% to 14%.
Interest Income
Interest income is one of the main sources of revenue for Sachem Capital Corp. For the year ended December 31, 2022, the company reported a total interest income of approximately $12.5 million, representing an increase from the prior year’s interest income of $10.8 million.
| Year | Interest Income |
|---|---|
| 2022 | $12.5 million |
| 2021 | $10.8 million |
Loan Fees and Other Income
Sachem Capital also earns revenue from loan fees and other income generated from the loans they provide. In 2022, the company reported loan fees totaling $1.2 million, compared to $1 million in 2021.
Dividend Income
As a publicly traded company, Sachem Capital Corp. pays dividends to its shareholders. The company consistently pays quarterly dividends, which was $0.20 per share in 2022, leading to a total annual dividend payout of $3 million based on the number of outstanding shares.
| Year | Dividend per Share | Total Dividend Payout |
|---|---|---|
| 2022 | $0.20 | $3 million |
| 2021 | $0.18 | $2.7 million |
Capital Gains from Investments
Sachem Capital Corp. also explores capital gains through the acquisition and subsequent sale of real estate assets and loans. In 2022, the company reported capital gains of $1.5 million, which is a notable increase from $1 million in the previous year.
Operational Efficiency and Cost Management
Effective operational management plays a critical role in the profitability of Sachem Capital. For 2022, the company reported operating expenses of $3 million, which is consistent with their strategic focus on maintaining a lean operational framework while maximizing loan originations.
Market Position and Demand for Financing
The demand for real estate financing has been on the rise, particularly in suburban and urban markets. According to market statistics, the U.S. commercial real estate market saw approximately $800 billion in transactions in 2022, contributing to a robust lending environment.
Future Growth Prospects
Looking ahead, Sachem Capital is focused on expanding its loan portfolio and potentially increasing its market share. The anticipated growth in the multi-family housing sector is expected to drive future revenues, with projections indicating an increase in loan demand by 10-15% over the next few years.
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