AFC Gamma 2022 Net Income Grows 71%, What About Distributable Earnings?

AFC Gamma, Inc. AFCG Q4 2022 net income was $2.9 million, an unfavorable decrease of 58.6% compared to net income of $7.0 million in Q4 2021. Distributable earnings in Q4 2022 were $12.6 million or $0.62 per basic weighted average common share, compared to distributable earnings of $8.5 million in Q4 2021, or $0.52 per basic weighted average common share.

Full year 2022 net income was $35.9 million, a favorable increase of 71% compared to $21 million in 2021. Distributable earnings for full year 2022 were $49.9 million or $2.51 per basic weighted average common share, compared to distributable earnings of $24.7 million in 2021, or $1.85 per basic weighted average common share.

“AFC Gamma ended the year by delivering strong earnings in a difficult macro environment for cannabis and the broader market,” stated the company’s chairman and CEO, Leonard M. Tannenbaum. “Looking forward, we are pleased with our liquidity position, which is generally in-line with our cash position as of December 31, 2022. Our liquidity was enhanced by repayments over the course of 2022 and includes our currently undrawn revolving credit facility. We believe our focus on credit quality, coupled with our ample liquidity, will prove valuable as we look to deploy capital both in commercial real estate assets and state-compliant cannabis operators over the course of 2023.”

Common Stock Dividend

On December 15, 2022, the board of directors of the company declared a regular cash dividend of $0.56 per common share for the fourth quarter of 2022. For the fourth quarter of 2022, AFC Gamma distributed $11.4 million in dividends, or $0.56 per common share, compared to distributable earnings of $0.62 per basic weighted average common share for such period. For the full year 2022, AFC Gamma distributed $44.8 million in dividends, or $2.23 per common share, compared to distributable earnings of $2.51 per basic weighted average common share for such period.

On March 2, 2023, the board of directors of the company declared a regular cash dividend of $0.56 per common share for the first quarter of 2023. The first quarter 2023 dividend will be payable on April 14, 2023 to common shareholders of record as of March 31, 2023.

Leadership Appointment

The board of directors of the company has appointed Robyn Tannenbaum, previously the company’s managing director, head of originations and investor relations, to serve as its president.

2023 Annual Shareholders Meeting

The company’s board of directors set May 18, 2023 as the date for the company’s 2023 Annual shareholders meeting, with a record date of March 21, 2023.

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