Sachem Capital Reports Third Quarter Results; Announces Third Quarter Dividend

Sachem Capital Corp. (NYSE American: SACH) announced today financial results for the three- and nine-month periods ended September 30, 2017. The company also announced that it has declared a quarterly dividend of $0.105 per common share for the third quarter of 2017. This dividend will be payable on November 17, 2017 to common shareholders of record at the close of business on November 7, 2017.

Financial Results

Total revenue for the three and nine-month periods ended September 30, 2017 increased 90.8% and 58.7%, respectively, compared to the comparable 2016 periods. Net income for the three and nine months ended September 30, 2017 increased 95.3% and 42.4%, respectively, in comparison to the comparable 2016 periods. These increases were due principally to an increase in the company’s lending activity, which was driven, in part, by the completion of the company’s initial public offering in February 2017.

Total revenue for the three months ended September 30, 2017 was approximately $1.9 million compared to approximately $1.0 million for the three months ended September 30, 2016. For the 2017 period, interest income was approximately $1.6 million and net origination fees were approximately $197,000. In comparison, for the three months ended September 30, 2016, interest income was approximately $953,000 and net origination fees were approximately $43,500. Prior to the completion of the company’s IPO in February 2017, 75% of gross origination fees were paid to JJV, LLC, the managing member of the company’s predecessor, Sachem Capital Partners, LLC, a Connecticut limited liability company.

Total operating costs and expenses for three months ended September 30, 2017 were approximately $621,000 compared to approximately $341,000 for the three months ended September 30, 2016 period, an increase of approximately 81.9%. The increase in operating costs and expenses is primarily attributable to: (i) an increase in interest expense and amortization of deferred financing costs of approximately $164,000; (ii) an increase in compensation and taxes of approximately $189,000; (iii) an increase in professional fees of approximately $27,000; and an (iv) an increase in general and administrative expenses of approximately $35,000. These increases are primarily due to the increase in the company’s lending activities, the follow-on public offering that commenced late in the second quarter of 2017 and conversion from a privately-held limited liability company to a publicly-held corporation. Year-to-year comparisons may not be meaningful in light of the changes to the company’s corporate structure, the IPO and the company’s operation as a REIT.