AFC Gamma Inc

Announcement: AFCG 8-K Special Filing

AFC Gamma, Inc. has announced its results for the first quarter ended March 31, 2023, reporting a net income of $5.8 million, or $0.57 per basic weighted average common share. The company has taken a conservative approach to deploying and managing its capital due to market and interest rate volatility since mid-2022. Brandon Hetzel has been appointed as the company's Chief Financial Officer and Treasurer for the first quarter of 2023.

AFC Gamma, Inc. is a publicly-traded institutional lender that specializes in originating, structuring, and underwriting loans secured by commercial real estate and other types of financing solutions. The company has lent over $100 million across multiple real estate sectors, with a specialization in lending to state-law compliant cannabis operators.

The company's distributable earnings, a non-GAAP financial measure that excludes the effects of certain transactions and GAAP adjustments, were $7.1 million, or $0.56 per common share for the first quarter of 2023.

AFC Gamma, Inc. has filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, with the Securities and Exchange Commission on May 10, 2023. The company plans to use its webpage as a means of complying with its disclosure obligations under Regulation FD and posting investor presentations and similar materials on a regular basis. AFC Gamma encourages investors to monitor the Investors section of its website and to follow its press releases, SEC filings, public conference calls, presentations, webcasts, and other information posted from time to time.

Overall, AFC Gamma, Inc.'s financial performance for the first quarter of 2023 has been stable, despite taking a conservative approach to capital deployment in the current market and interest rate environment. Investors can expect to see continued growth and expansion in the company's specialized lending services for state-law compliant cannabis operators.

Form 8-K - Current report - Item 2.02 Item 9.01

$AFCG Reports Stable First Quarter 2023 Results with Net Income of $5.8 Million and New CFO Appointment

Part 1: Analysis of Performance

During the first quarter of 2023, AFC Gamma, Inc. expanded its investment guidelines to deploy capital in attractive lending opportunities secured by commercial real estate, including first and second lien loans secured by mortgages to non-cannabis-related businesses, ownership of non-cannabis related real property assets, and mortgage-backed securities. The company also continued to focus on providing loans to real estate developers and state law compliant cannabis companies. AFC Gamma reported $2.0 million in interest income for the first quarter of 2023, compared to $0.9 million in the first quarter of 2022. The increase in interest income was mainly attributable to increased loan growth and larger loan sizes in the cannabis industry compared to the prior period. Furthermore, the company reported total revenue of $2.1 million for the first quarter of 2023 compared to $1.1 million for the same quarter in 2022.

The company's net income also increased from $0.3 million in the first quarter of 2022 to $1.1 million in the first quarter of 2023, attributed to an increase in interest income and more stringent cost management strategies implemented by management. AFC Gamma was also successful in strengthening its balance sheet, with total assets of $301.1 million and total shareholders’ equity of $160.5 million as of March 31, 2023. In addition, during the first quarter of 2023, the company issued $16.0 million of 2027 Senior Notes, which resulted in the increase of interest expense compared to the prior year period. However, the transaction improved the cash position of the company and facilitated further investment in the cannabis industry.

Part 2: Forward-Looking Analysis

AFC Gamma is a real estate investment trust focused on providing loans to the real estate and cannabis industries. As a result of changing dynamics in the real estate market, the management team identified several opportunities to provide attractive rates of financing to commercial real estate owners, operators, and related businesses for acquisition and construction financing purposes. With the company's sound underwriting criteria, size, and scale of operations, it could create a sustainable source of financing for the potential cannabis industry operators in states that have legalized medical and/or adult use. Management has also stated that the company intends to operate its business in a manner that will permit it to maintain its exemption from registration under the Investment Company Act.

In the short term, AFC Gamma's focus lies in the cannabis sector, given the increasing number of companies operating in this industry that require financing, and the company's access to capital markets. In the coming years, there will be an increasing number of states legalizing cannabis for medical and adult-use, which presents significant opportunities for AFC Gamma. To capitalize on the growing demand for loans in the cannabis industry, the company has expanded its investment guidelines to deploy capital in non-cannabis-related commercial real estate financing opportunities that have emerged from the prevalent interest rate environment. This expansion of investment guideline provides the company with multiple sources of revenue, which is a sound strategy, given the evolving regulatory environment of the cannabis industry. In addition, the company has established a wholly-owned subsidiary, AFCG TRS1, LLC, that operates as a taxable REIT subsidiary, to operate in a more tax-efficient manner.

Overall, AFC Gamma has established itself as a prudent financing source to cannabis industry operators. The company's growth strategy is well aligned with the emerging market trends and demands, thereby providing a solid platform for future growth in the cannabis industry. Furthermore, the expansion of investment guidelines in non-cannabis-related commercial real estate financing opportunities provides additional opportunities for the company to deploy capital and generate additional revenue streams. AFC Gamma‘s management team remains committed to the execution of its growth plans, with careful oversight of balance sheet management and cost structures to generate sustainable and profitable growth for all shareholders.

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Form 10-Q - Quarterly report [Sections 13 or 15(d)]

AFC Gamma posts increased revenue of $2.1M in Q1 2023 with expanded investment guidelines and focus on cannabis industry.

Form 8-K - Current report - Item 5.02 Item 7.01 Item 9.01

Form 8-K - Current report - Item 2.02 Item 5.02 Item 9.01

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Announcement: AFCG 8-K Special Filing

Announcement: AFCG 8-K Special Filing

$AFCG Reports Stable First Quarter 2023 Results with Net Income of $5.8 Million and New CFO Appointment

$AFCG Reports Stable First Quarter 2023 Results with Net Income of $5.8 Million and New CFO Appointment

AFC Gamma posts increased revenue of $2.1M in Q1 2023 with expanded investment guidelines and focus on cannabis industry.

AFC Gamma posts increased revenue of $2.1M in Q1 2023 with expanded investment guidelines and focus on cannabis industry.

Announcement: AFCG 8-K Special Filing

Announcement: AFCG 8-K Special Filing

Announcement: AFCG 8-K Special Filing

Announcement: AFCG 8-K Special Filing

Announcement: AFCG 10-K Annual Report

Announcement: AFCG 10-K Annual Report