Sachem Capital Corp. (NYSE MKT:SACH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 15, 2019 • 11:00 am ET

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Sachem Capital Corp. (NYSE MKT:SACH) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. The floor is now open for questions. [Operator Instructions]. Our first question comes from Ben Zucker from Aegis Capital. Go ahead, Ben.

Analyst
Ben Zucker

Thanks. Good morning, John. Thanks for taking my question. I may bounce around a little bit here, but I heard you mention some possible expansion into new geographies. Could you tell us what areas that might include and what your current strategy is for breaking into those markets?

Executive
John L. Villano

I'm going to backtrack on your question, Ben. Expansion is at the top of the list here. We have a commitment from our Board to grow beyond our boundaries. We are exploring opportunities in other locations other than Connecticut, New York and Massachusetts. At this point, I can't really point to an opportunity because we're not even really at the letter of intent stages.

As they say, the world is open here, and with our Board behind us and significant capital, we can move in many directions. But I will say this, expansion will be slow. It will be steady. We will be under control. We are going to test markets as opposed to fund aggressively, and we're going to try to take the strategy to help make Sachem a great company and try to put a multiplier on it. And in truth, we're trying to cultivate small Sachems in other areas. That's kind of where we're at.

Analyst
Ben Zucker

That's helpful. It sounds like you're kind of teeing up the idea, so that investors and people shouldn't be surprised if we see something popping up outside of what's kind of been your historical target market.

Executive
John L. Villano

Ben, in truth, it's hard to find the right culture in other places, and that's key for us. We can -- have money. We can go haphazard, buy crazy stuff. That's not how we play. We want to buy a culture that fits with us. We like profits. We have to see our way to the exit should the move into an area doesn't work, so there's a lot of things we're considering here.

And while our space is very aggressive, Wall Street is aggressive in our space, we move a little slower and we're a little more conservative than that. We put a lot of faith in our shareholders to follow us there. We're going to be very respective of the capital that they've given us, and it's going to take some time. But we have Board approvals to grow, and so we're going to take that very seriously.

Analyst
Ben Zucker

It sounds like you guys are being very thoughtful about the process. I think I also heard you mention maybe looking at some other types of lending outside of the fix-and-flip residential. Would that be kind of along the lines of like the commercial bridge lending that already makes up like a quarter of your portfolio, something like that type of loan product?

Executive
John L. Villano

The general answer is yes. We are seeing a lot of different types of things here. While resi fix-and-flip is and will