AFC Gamma Q1 FY23 Net Income Declines 1.3% To $10M

AFC Gamma, Inc. AFCG released its results for the quarter ended March 31, 2023, revealing net income of $10.0 million, a decrease of 1.3% compared to $10.2 million in Q1 2022, and distributable earnings of $11.6 million or $0.57 per basic weighted average common share, a decrease of 2.5% compared to $11.9 million or $0.62 per basic weighted average common share in Q1 2022.

“Since mid-2022, given the market and interest rate volatility, AFC Gamma has taken a conservative view to deploying and managing our capital. During the first quarter of 2023 we maintained an ample level of liquidity, which we believe will prove valuable in this environment as we look to capitalize on investment opportunities as they arise,” stated the company’s chairman and CEO, Leonard M. Tannenbaum.

Common Stock Dividend

On April 14, 2023, the company paid a regular cash dividend of $0.56 per common share for the first quarter of 2023. For the first quarter of 2023, AFC Gamma distributed $11.5 million in dividends, or $0.56 per common share, compared to distributable earnings of $0.57 per basic weighted average common share for such period.

Bond Repurchase

In the first quarter of 2023, the company repurchased $10.0 million in principal amount of its 2027 senior notes at 77.4% of par value, plus accrued interest. This resulted in a gain on extinguishment of debt of approximately $2.0 million, recorded within the unaudited interim consolidated statements of operations. Following this transaction, as of March 31, 2023, the company had $90.0 million in principal amount of the 2027 senior notes outstanding.

Photo by Giorgio Trovato on Unsplash

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