AFC Gamma Q2 2022 Net Income Grows 147%, What About Distributable Earnings?

AFC Gamma, Inc. AFCG released its results for the second quarter of 2022, revealing net income of $11.4 million in Q2 2022, or $0.58 per basic weighted average share of common stock, an increase of 147% compared to net income of $4.6 million in Q2 2021.

Q2 2022 Financial Highlights

• Distributable earnings of $13.6 million in Q2 2022, or $0.69 per basic weighted average share of common stock, an increase of 135% compared to Q2 2021.

• 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 CEO. “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 earnings 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.

Photo by Mackenzie Marco on Unsplash

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