AFC Gamma, Inc. (NASDAQ:AFCG) (“AFCG” or “AFC Gamma”) today announced its results for the first quarter of 2022.
First Quarter 2022 Highlights
- Net income of $10.2 million in Q1 2022, or $0.53 per basic weighted average share of common stock
- Distributable earnings1 of $11.9 million in Q1 2022, or $0.62 per basic weighted average share of common stock
- Paid a dividend of $0.55 per common share on April 15, 2022 for Q1 2022, representing a 10% increase from the prior quarter
- Distributable earnings significantly exceeded the declared dividend for the fourth consecutive quarter
- Book value of $17.04 per share as of March 31, 2022, an increase of $0.43, or 2.6%, compared to December 31, 2021
“We are pleased with our strong performance in the first quarter and continued growth so far into 2022, which is evidenced by AFC Gamma’s results and steady dividend growth. At this time, the Board expects that the quarterly dividend should remain at least $0.55 per common share over the course of 2022,” stated Leonard Tannenbaum, AFC Gamma’s Chief Executive Officer. “Additionally, the entry into our $60 million senior secured revolving credit facility led by two FDIC-insured banks was another significant milestone for AFC Gamma’s debt cost of capital and enables continued expansion of the portfolio. We look forward to continuing to amplify our presence as a leading lender and driving shareholder value.”
Portfolio and Investment Activity
- Closed $154.2 million of new commitments since the start of Q1 2022 and funded $131.5 million of new and existing commitments
- Total loan commitments of $482.7 million ($419.1 million of which has been funded) across 12 portfolio companies as of May 9, 2022
- The portfolio’s weighted average yield to maturity was approximately 19% as of March 31, 2022 and December 31, 2021
- All loans are current and performing
Results of Operations for the Quarter Ended March 31, 2022
- Total net interest income of $16.9 million, an increase of $12.3 million, or 261%, compared to Q1 2021
- Total expenses of $6.4 million before provision for CECL (as defined below), an increase of $3.3 million, or 108%, compared to Q1 2021
- Distributable earnings1 of $11.9 million, an increase of $8.7 million, or 271%, compared to Q1 2021
Dividend Payments
- On April 15, 2022, AFCG paid a regular quarterly cash dividend of $0.55 per share of common stock to its stockholders of record as of March 31, 2022
- The aggregate amount of the regular cash dividend payment of $0.55 per share was approximately $10.9 million, which represents a 10% increase per share compared to the prior quarter
Capitalization and Liquidity
- In January 2022, AFCG completed its follow-on offering of 3,291,832 shares of common stock (including the partial underwriters’ overallotment option) at $20.50 per share, raising approximately $63.0 million of additional net capital
- 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)
—————————————————————
1 See “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.
Additional Information
AFCG issued a presentation of its first quarter 2022 results, titled “First 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 March 31, 2022, with the Securities and Exchange Commission on May 10, 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, May 10, 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 AFCG’s website at www.afcgamma.com, or live by calling 866-374-5140. All callers will need to enter the Conference ID number 56597812 and reference “AFC Gamma Q1 2022 Earnings Call” after being connected with the operator. The complete webcast will be archived for 90 days on the Investor Relations section of AFCG’s website.
