Conference Call and Webcast to be held at 8:00 AM ET on Friday, April 1, 2022
BRANFORD, Conn., March 31, 2022 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) announces its financial results for the year ended December 31, 2021. The company will host a conference call on Friday, April 1, 2022 at 8:00 a.m. Eastern Time to discuss in greater detail its financial condition and operating results for the year ended December 31, 2021, as well as its outlook for 2022.
John Villano, CPA, the company’s Chief Executive and Chief Financial Officer stated: “We continued to generate solid year-over-year revenue growth and achieved record net income attributable to common shareholders of $11.5 million, or $0.44 per share, for 2021. We believe these results illustrate the success and scalability of our business model. Heading into 2022, we have maintained our momentum with a robust loan pipeline. To support our continued growth, in December 2021 and March 2022 alone, we announced two registered public offerings of unsecured notes, for gross proceeds of $101.8 million, which provides us additional non-dilutive capital to accelerate our lending activities without compromising our goal, which is to provide our shareholders with attractive risk-adjusted returns.
“In addition to diversifying our holdings, including larger loans with established developers, we continue to expand our lending operations across the U.S. and now have a presence in 14 states, with a strong core focus along the Eastern seaboard. Importantly, we are witnessing demand for our loan products due to our ability to close quickly and our flexibility in structuring loans to suit the needs of borrowers. Despite the rise in interest rates, we continue to believe that there exists significant market opportunity for a well-capitalized “hard money” lender to originate attractively priced loans to small and mid-scale real estate developers with good collateral. As a result, we remain encouraged by the outlook for our business and look forward to building upon our strong historical financial performance.”
Results of operations
Total revenue for the year ended December 31, 2021 was approximately $30.4 million compared to approximately $18.6 million for the year ended December 31, 2020, an increase of approximately $11.8 million, or 63.5%. The increase in revenue was due primarily to an increase in lending operations. For 2021, interest income was approximately $22.3 million, origination fees were approximately $3.4 million and various other fees relating to our lending activities were approximately $3.2 million, for a total of approximately $28.9 million, an increase of $11.7 million over the same items in 2020.
Total operating costs and expenses for the year ended December 31, 2021 were approximately $17.1 million compared to approximately $9.6 million for 2020, an increase of approximately $7.5 million, or 78.0%. The largest contributor to this increase was interest and amortization of deferred financing costs, which were $10.4 million in 2021 compared to $5.5 million in 2020, an increase of approximately 87.9%. The increase is directly related to interest paid on our outstanding unsecured unsubordinated five-year notes. The balance of the increase in operating expenses was attributable to (i) compensation (including stock-based compensation), fees and taxes, which increased approximately $1.3 million; (ii) professional fees, which increased approximately $513,000; (iii) general and administrative expenses, which increased approximately $538,000; and (iv) other expenses, which increased approximately $142,000. These increases are attributable to our increased level of operations and the implementation of certain of our growth strategies.
Net income for 2021 attributable to common shareholders was approximately $11.5 million compared to approximately $9.0 million for 2020, an increase of approximately $2.5 million or 27.5%. Our net income per weighted average common share outstanding for 2021 was $0.44 compared to $0.41 for 2020.
Financial Condition
Total assets at December 31, 2021 were approximately $418.0 million compared to approximately $226.7 million at December 31, 2020, an increase of approximately $191.3 million, or 84.4%. The increase was due primarily to the growth in our mortgage loan portfolio, which increased approximately $136.7 million, and an approximately $45.9 million increase in cash and short-term marketable securities.
Total liabilities at December 31, 2021 were approximately $237.9 million compared to approximately $145.8 million at December 31, 2020, an increase of approximately $92.1 million, or approximately 63.2%. This increase is principally due to an overall increase in our total indebtedness, which at December 31, 2021 was approximately $213.5 million compared to approximately $138.7 million at December 31, 2020 (in each case, net of deferred financing costs), an increase of $80.6 million. Total indebtedness at December 31, 2021 included $160.5 million of notes payable (net of $5.7 million of deferred financing costs), $33.2 million balance on our margin loan account with Wells Fargo Advisors, $19.1 million outstanding on our master repurchase financing facility with an affiliate of Churchill Real Estate and $750,000 outstanding on our mortgage with New Haven Bank.
Total shareholders’ equity at December 31, 2021 was approximately $180.1 million compared to approximately $81.0 million at December 31, 2020, an increase of approximately $99.1 million. This increase was due primarily to our net income of approximately $13.3 million, net proceeds from the sale of common shares of $56.0 million, net proceeds from the sale of Series A Preferred Stock of approximately $45.5 million, offset by approximately $13.6 million of dividends paid and declared with respect to our common shares and approximately $1.9 million of dividends paid with respect to our Series A Preferred Stock. In 2021, the company paid a total of approximately $12.3 million of dividends on the common shares, of which approximately $2.7 million was attributable to 2020. In addition, on January 10, 2022, the company paid a dividend of $0.12 per share, or $3.9 million in the aggregate, to common shareholders of record as of December 31, 2021, which was attributable to 2021.
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, April 1, 2022, at 8:00 a.m., Eastern Time, to discuss in greater detail its financial results for the year ended December 31, 2021, as well as its outlook for the balance of 2022.
Interested parties can access the conference call via telephone by dialing toll free 1-888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering the entry code: 295196. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2304/45135 or 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 approximately one hour following the call through Friday, April 15, 2022 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and by entering replay passcode: 45135.
About Sachem Capital Corp.
Sachem Capital Corp. 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 (sometimes referred to as “hard money” loans) to real estate investors to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. The company does not lend to owner occupants. The company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the company’s 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. Each loan is also personally guaranteed by the principal(s) of the borrower, which guaranty may be collaterally secured by a pledge of the guarantor’s interest in the borrower. The company also makes opportunistic real estate purchases apart from its lending activities. The company believes that it qualifies as a real estate investment trust (REIT) for federal income tax purposes and has elected to be taxed as a REIT beginning with its 2017 tax year.
Forward Looking Statements
Thispressreleasemaycontainforward-lookingstatements.Allstatementsotherthanstatementsofhistoricalfactscontainedinthispressrelease,includingstatementsregardingourfutureresultsofoperationsandfinancialposition,strategyandplans,andourexpectationsforfutureoperations,areforward-lookingstatements.Thewords“anticipate,”“estimate,”“expect,”“project,”“plan,”“seek,”“intend,”“believe,”“may,”“might,”“will,”“should,”“could,”“likely,”“continue,”“design,”andthenegativeofsuchtermsandotherwordsandtermsofsimilarexpressionsareintendedtoidentifyforward-looking statements.
Wehavebasedtheseforward-lookingstatementslargelyonourcurrentexpectationsandprojectionsaboutfutureeventsandtrendsthatwebelievemayaffectourfinancialcondition,resultsofoperations,strategy,short-termandlong-termbusinessoperationsandobjectivesandfinancialneeds.Theseforward-lookingstatementsaresubjectto severalrisks,uncertaintiesandassumptions as described in our Annual Report on Form 10-K for 2021 filed with the U.S. Securities and Exchange Commission on March 31, 2022. Because of theserisks,uncertaintiesandassumptions,theforward-lookingeventsandcircumstancesdiscussedinthispressreleasemaynotoccur,andactualresultscoulddiffermateriallyandadverselyfromthoseanticipatedorimpliedin theforward-looking statements.
Youshouldnotrelyuponforward-lookingstatementsaspredictionsoffutureevents.Althoughwebelievethattheexpectationsreflectedintheforward-lookingstatementsarereasonable,wecannotguaranteefutureresults, levelofactivity,performanceorachievements.Inaddition,neitherwenoranyotherpersonassumesresponsibilityfortheaccuracyandcompletenessofanyoftheseforward-lookingstatements.Wedisclaimanyduty to updateanyoftheseforward-looking statements.
Allforward-lookingstatementsattributabletousareexpresslyqualifiedintheirentiretybythesecautionarystatementsaswellasothersmadeinthispressrelease. Youshouldevaluateall forward-looking statementsmadebyusinthe contextoftheserisksand uncertainties.
Investor & Media Contact:
Crescendo Communications, LLC
Email: sach@crescendo-ir.com
Tel: (212) 671-1021
(tables follow)
SACHEM CAPITAL CORP.
BALANCE SHEETS
|
|
December 31, 2021 |
|
December 31, 2020 |
| Assets |
|
|
|
|
|
|
| Assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
41,938,897 |
|
|
$ |
19,408,028 |
|
| Investment securities |
|
|
60,633,661 |
|
|
|
37,293,703 |
|
| Mortgages receivable |
|
|
292,301,209 |
|
|
|
155,616,300 |
|
| Interest and fees receivable |
|
|
3,693,645 |
|
|
|
1,820,067 |
|
| Other receivables |
|
|
94,108 |
|
|
|
67,307 |
|
| Due from borrowers |
|
|
3,671,016 |
|
|
|
2,025,663 |
|
| Prepaid expenses |
|
|
271,291 |
|
|
|
71,313 |
|
| Property and equipment, net |
|
|
2,172,185 |
|
|
|
1,433,388 |
|
| Real estate owned |
|
|
6,559,010 |
|
|
|
8,861,609 |
|
| Investments in partnerships |
|
|
6,055,838 |
|
|
|
— |
|
| Other assets |
|
|
306,440 |
|
|
|
— |
|
| Deferred financing costs, net |
|
|
264,451 |
|
|
|
72,806 |
|
| Total assets |
|
$ |
417,961,751 |
|
|
$ |
226,670,184 |
|
|
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
| Notes payable (net of deferred financing costs of $5,747,387 and $4,866,058) |
|
$ |
160,529,363 |
|
|
$ |
109,640,692 |
|
| Repurchase facility |
|
|
19,087,189 |
|
|
|
— |
|
| Mortgage payable |
|
|
750,000 |
|
|
|
767,508 |
|
| Line of credit |
|
|
33,178,031 |
|
|
|
28,055,648 |
|
| Accrued dividends payable |
|
|
3,927,600 |
|
|
|
2,654,977 |
|
| Accounts payable and accrued expenses |
|
|
501,753 |
|
|
|
372,662 |
|
| Other loans |
|
|
— |
|
|
|
257,845 |
|
| Security deposits held |
|
|
— |
|
|
|
13,416 |
|
| Advances from borrowers |
|
|
15,066,114 |
|
|
|
1,830,539 |
|
| Deferred revenue |
|
|
4,643,490 |
|
|
|
2,099,331 |
|
| Notes payable |
|
|
30,921 |
|
|
|
54,682 |
|
| Accrued interest |
|
|
164,729 |
|
|
|
3,344 |
|
| Total liabilities |
|
|
237,879,190 |
|
|
|
145,750,644 |
|
|
|
|
|
|
|
|
| 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 |
|
|
|
— |
|
| Common stock - $.001 par value; 100,000,000 shares authorized; 32,730,004 and 22,124,801 issued and outstanding |
|
|
32,730 |
|
|
|
22,125 |
|
| Paid-in capital |
|
|
185,516,394 |
|
|
|
83,814,376 |
|
| Accumulated other comprehensive loss |
|
|
(476,016 |
) |
|
|
(25,992 |
) |
| Accumulated deficit |
|
|
(4,992,450 |
) |
|
|
(2,890,969 |
) |
| Total shareholders’ equity |
|
|
180,082,561 |
|
|
|
80,919,540 |
|
| Total liabilities and shareholders’ equity |
|
$ |
417,961,751 |
|
|
$ |
226,670,184 |
|
The accompanying notes are an integral part of these financial statements.
SACHEM CAPITAL CORP.
STATEMENTS OF COMPREHENSIVE INCOME
|
|
Year Ended |
|
|
December 31, |
|
|
2021 |
|
|
2020 |
| Revenue: |
|
|
|
|
|
|
| Interest income from loans |
|
$ |
22,305,530 |
|
|
$ |
13,821,831 |
| Investment income |
|
|
1,069,374 |
|
|
|
399,493 |
| Income from partnership investments |
|
|
142,026 |
|
|
|
— |
| Gain on sale of investment securities |
|
|
284,769 |
|
|
|
903,257 |
| Origination fees, net |
|
|
3,389,615 |
|
|
|
1,893,143 |
| Late and other fees |
|
|
519,087 |
|
|
|
85,469 |
| Processing fees |
|
|
193,492 |
|
|
|
167,833 |
| Rental income, net |
|
|
30,663 |
|
|
|
85,339 |
| Other income |
|
|
2,489,996 |
|
|
|
1,246,530 |
| Total revenue |
|
|
30,424,552 |
|
|
|
18,602,895 |
|
|
|
|
|
|
|
| Operating costs and expenses: |
|
|
|
|
|
|
| Interest and amortization of deferred financing costs |
|
|
10,422,101 |
|
|
|
5,547,406 |
| Professional fees |
|
|
1,142,038 |
|
|
|
628,797 |
| Compensation, fees and taxes |
|
|
3,122,934 |
|
|
|
1,799,889 |
| Exchange fees |
|
|
50,000 |
|
|
|
49,054 |
| Other expenses and taxes |
|
|
299,343 |
|
|
|
157,194 |
| Depreciation |
|
|
83,525 |
|
|
|
61,865 |
| General and administrative expenses |
|
|
1,101,000 |
|
|
|
562,607 |
| Loss on sale of real estate |
|
|
165,915 |
|
|
|
7,218 |
| Impairment loss |
|
|
719,000 |
|
|
|
795,000 |
| Total operating costs and expenses |
|
|
17,105,856 |
|
|
|
9,609,030 |
| Net income |
|
|
13,318,696 |
|
|
|
8,993,865 |
| Preferred stock dividend |
|
|
(1,853,855 |
) |
|
|
— |
| Net income attributable to common shareholders |
|
|
11,464,841 |
|
|
|
8,993,865 |
|
|
|
|
|
|
|
| Other comprehensive (loss) income |
|
|
|
|
|
|
| Unrealized (loss) gain on investment securities |
|
|
(476,016 |
) |
|
|
24,886 |
| Comprehensive income |
|
$ |
10,988,825 |
|
|
$ |
9,018,751 |
| Basic and diluted net income per common share outstanding: |
|
|
|
|
|
|
| Basic |
|
$ |
0.44 |
|
|
$ |
0.41 |
| Diluted |
|
$ |
0.44 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding: |
|
|
|
|
|
|
| Basic |
|
|
26,316,286 |
|
|
|
22,118,522 |
| Diluted |
|
|
26,324,986 |
|
|
|
22,118,522 |
The accompanying notes are an integral part of these financial statements.
SACHEM CAPITAL CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
Preferred Stock |
|
Common Stock |
|
Paid in |
|
|
Comprehensive |
|
Accumulated |
|
|
|
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Capital |
|
Loss |
|
Deficit |
|
Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, January 1, 2020 |
|
— |
|
|
— |
|
22,117,301 |
|
$ |
22,117 |
|
$ |
83,856,308 |
|
|
$ |
(50,878 |
) |
|
$ |
(1,266,729 |
) |
|
$ |
82,560,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Offering costs - ATM |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
(58,353 |
) |
|
|
— |
|
|
|
— |
|
|
|
(58,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock based compensation |
|
— |
|
|
— |
|
7,500 |
|
|
8 |
|
|
16,421 |
|
|
|
— |
|
|
|
— |
|
|
|
16,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized gain on marketable securities |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
24,886 |
|
|
|
— |
|
|
|
24,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid on Common Stock |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(7,963,128 |
) |
|
|
(7,963,128 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared and payable |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(2,654,977 |
) |
|
|
(2,654,977 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income for the year ended December 31, 2020 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
8,993,865 |
|
|
|
8,993,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance, December 31, 2020 |
|
— |
|
|
— |
|
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 marketable securities |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
(450,024 |
) |
|
|
— |
|
|
|
(450,024 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid on Common Stock |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(9,638,722 |
) |
|
|
9,638,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared and payable |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,927,600 |
) |
|
|
(3,927,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid on Preferred Stock |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,853,855 |
) |
|
|
(1,853,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
The accompanying notes are an integral part of these financial statements.
SACHEM CAPITAL CORP.
STATEMENTS OF CASH FLOW
|
|
Years Ended |
|
|
December 31, |
|
|
2021 |
|
|
2020 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
| Net income |
|
$ |
13,318,696 |
|
|
$ |
8,993,865 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
| Amortization of deferred financing costs and bond discount |
|
|
1,215,200 |
|
|
|
601,959 |
|
| Write-off of deferred financing costs |
|
|
72,806 |
|
|
|
— |
|
| Depreciation expense |
|
|
83,525 |
|
|
|
61,865 |
|
| Stock based compensation |
|
|
191,318 |
|
|
|
16,429 |
|
| Impairment loss |
|
|
719,000 |
|
|
|
795,000 |
|
| Loss on sale of real estate |
|
|
439,525 |
|
|
|
7,218 |
|
| Gain on sale of marketable securities |
|
|
(284,769 |
) |
|
|
(903,257 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
| (Increase) decrease in: |
|
|
|
|
|
|
| Interest and fees receivable |
|
|
(1,873,578 |
) |
|
|
(504,578 |
) |
| Other receivables |
|
|
(26,801 |
) |
|
|
74,090 |
|
| Due from borrowers |
|
|
(1,645,353 |
) |
|
|
(1,537,768 |
) |
| Prepaid expenses |
|
|
(199,978 |
) |
|
|
(46,579 |
) |
| Deposits on property and equipment |
|
|
— |
|
|
|
71,680 |
|
| (Decrease) increase in: |
|
|
|
|
|
|
| Accrued interest |
|
|
161,385 |
|
|
|
(72 |
) |
| Accounts payable and accrued expenses |
|
|
129,091 |
|
|
|
122,098 |
|
| Deferred revenue |
|
|
2,544,159 |
|
|
|
893,591 |
|
| Advances from borrowers |
|
|
13,235,575 |
|
|
|
982,271 |
|
| Total adjustments |
|
|
14,761,105 |
|
|
|
633,947 |
|
|
|
|
|
|
|
|
| NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
|
28,079,801 |
|
|
|
9,627,812 |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
| Purchase of investment securities |
|
|
(204,064,590 |
) |
|
|
(97,555,422 |
) |
| Proceeds from the sale of investment securities |
|
|
180,533,333 |
|
|
|
77,139,664 |
|
| Purchase of interests in investment partnerships, net |
|
|
(6,055,838 |
) |
|
|
— |
|
| Proceeds from sale of real estate owned |
|
|
2,387,721 |
|
|
|
1,816,522 |
|
| Acquisitions of and improvements to real estate owned |
|
|
(1,243,646 |
) |
|
|
(1,811,980 |
) |
| Purchase of property and equipment |
|
|
(822,322 |
) |
|
|
(148,857 |
) |
| Security deposits held |
|
|
(13,416 |
) |
|
|
5,616 |
|
| Principal disbursements for mortgages receivable |
|
|
(251,832,318 |
) |
|
|
(117,230,923 |
) |
| Principal collections on mortgages receivable |
|
|
115,147,409 |
|
|
|
54,961,570 |
|
| Costs in connection with investment activities |
|
|
(306,440 |
) |
|
|
— |
|
| NET CASH USED FOR INVESTING ACTIVITIES |
|
|
(166,270,107 |
) |
|
|
(82,823,810 |
) |
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
| Net proceeds from line of credit |
|
|
5,122,383 |
|
|
|
28,055,648 |
|
| Net proceeds from repurchase facility |
|
|
19,087,189 |
|
|
|
— |
|
| Proceeds from mortgage |
|
|
750,000 |
|
|
|
— |
|
| Repayment of mortgage payable |
|
|
(767,508 |
) |
|
|
— |
|
| Principal payments on mortgage payable |
|
|
— |
|
|
|
(16,573 |
) |
| Principal payments on notes payable |
|
|
(23,761 |
) |
|
|
(20,751 |
) |
| Dividends paid on Common Stock |
|
|
(12,267,706 |
) |
|
|
(7,963,128 |
) |
| Dividends paid on Preferred Stock |
|
|
(1,853,855 |
) |
|
|
— |
|
| Financings costs incurred |
|
|
(461,357 |
) |
|
|
(114,559 |
) |
| Proceeds from other loans |
|
|
— |
|
|
|
257,845 |
|
| Repayment of other loans |
|
|
(257,845 |
) |
|
|
— |
|
| Proceeds from issuance of common shares, net of expenses |
|
|
56,060,472 |
|
|
|
— |
|
| Proceeds from issuance of Series A Preferred Stock, net of expenses |
|
|
45,462,626 |
|
|
|
— |
|
| Gross proceeds from issuance of fixed rate notes |
|
|
51,750,000 |
|
|
|
56,083,750 |
|
| Financings costs incurred in connection with fixed rate notes |
|
|
(1,879,463 |
) |
|
|
(2,520,143 |
) |
| NET CASH PROVIDED BY IN FINANCING ACTIVITIES |
|
|
160,721,175 |
|
|
|
73,762,089 |
|
|
|
|
|
|
|
|
| NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
22,530,869 |
|
|
|
566,091 |
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR |
|
|
19,408,028 |
|
|
|
18,841,937 |
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS - END OF YEAR |
|
$ |
41,938,897 |
|
|
$ |
19,408,028 |
|
The accompanying notes are an integral part of these financial statements.
SACHEM CAPITAL CORP.
STATEMENTS OF CASH FLOW (Continued)
|
|
Years Ended |
|
|
December 31, |
|
|
2021 |
|
2020 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION |
|
|
|
|
|
|
| Interest paid |
|
$ |
9,097,631 |
|
$ |
4,945,448 |
| SUPPLEMENTAL INFORMATION-NON-CASH |
|
|
|
|
|
|
| Dividends declared and payable |
|
$ |
3,927,600 |
|
$ |
2,654,976 |
