AFC Gamma, Inc. (NASDAQ:AFCG) (“AFCG” or “AFC Gamma”) today announced its results for the second quarter of 2022.
Second Quarter 2022 Highlights
- Net income of $11.4 million in Q2 2022, or $0.58 per basic weighted average share of common stock
- Distributable earnings1 of $13.6 million in Q2 2022, or $0.69 per basic weighted average share of common stock
- Paid a dividend of $0.56 per common share on July 15, 2022 for Q2 2022, representing a 47% increase from Q2 2021
- Distributable earnings exceeded the declared dividend for the fifth consecutive quarter
- Book value of $17.03 per share as of June 30, 2022, an increase of $0.42, or 2.5%, compared to December 31, 2021
“Given the current market environment with operators experiencing pricing pressures and longer lead times to raise equity, we continue to act disciplined in our approach towards deploying capital. We are focused on supporting existing operators as well as new operators with strong track-records in the industry,” stated Leonard Tannenbaum, AFC Gamma’s Chief Executive Officer. “Despite the slower than expected pace of originations, we have the capacity to do more deals and expect to close some in the coming quarter. We look forward to continue supporting the industry as it expands and matures.”
Portfolio and Investment Activity
- Closed $154.7 million of new commitments and funded $135.5 million of new and existing commitments year-to-date as of August 1, 2022, including approximately $32.0 million which was refinanced from existing borrowers
- Total loan commitments of $483.2 million ($423.1 million of which has been funded) across 12 portfolio companies as of August 1, 2022
- The portfolio’s weighted average yield to maturity was approximately 18% as of June 30, 2022 and 19% as of December 31, 2021
- All loans are current and performing
Results of Operations for the Quarter Ended June 30, 2022
- Total net interest income of $19.9 million, an increase of $11.2 million, or 128%, compared to Q2 2021
- Distributable earnings1 of $13.6 million, an increase of $7.8 million, or 135%, compared to Q2 2021
Dividend Payments
- On July 15, 2022, AFCG paid a regular quarterly cash dividend of $0.56 per share of common stock to its stockholders of record as of June 30, 2022
- The aggregate amount of the regular cash dividend payment of $0.56 per share was approximately $11.1 million, which represents a 47% increase per share compared to the quarter ended June 30, 2021
Capitalization and Liquidity
- In April 2022, AFCG entered into a senior secured revolving credit facility with $60 million of current commitments from two FDIC-insured banks and the ability to increase the facility to $100 million (subject to available borrowing base and additional commitments)
Additional Information
AFCG issued a presentation of its second quarter 2022 results, titled “Second Quarter 2022 Earnings Presentation,” which can be viewed at www.afcgamma.com under the Investor Resources section. AFCG also filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, with the Securities and Exchange Commission on August 9, 2022.
AFC Gamma routinely posts important information for investors on its website, www.afcgamma.com. AFCG intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC Gamma encourages investors, analysts, the media and others interested in AFCG to monitor the Investors section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section.
Conference Call & Discussion of Financial Results
AFC Gamma, Inc. will host a conference call at 10:00 am (Eastern Time) on Tuesday, August 9, 2022, to discuss its quarterly financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC Gamma’s website found here: AFC Gamma — Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of AFC Gamma’s website.
