Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q3 2021 Earnings Presentation
23 slides from Advanced Flower Capital's earnings presentation, Nov 4, 2021
Slide 1: AFC Gamma, Inc. Q3 2021 Earnings Presentation
AFC Gamma, Inc. Q3 2021 Earnings Presentation November 4, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we intend su
Slide 3: Legal Disclaimers
Legal Disclaimers Important Notices This presentation is by AFC Gamma, Inc., a publicly traded company that has elected to be taxed as a REIT for federal income tax purposes and is being furnished in connection with AFCG’s results. This presentation is provided for investors in AFCG for informationa
Slide 4: Management Presenters
Management Presenters Leonard Jonathan Brett Robyn Brandon Tannenbaum Kalikow Kaufman Tannenbaum Hetzel Founder & Chief Executive Head of Real Estate Head of Origination and Controller Chief Financial Officer Officer Investor Relations Over 22 years of experience in credit Over 15 years experience i
Slide 5: Agenda
Agenda 1 Why AFC Gamma? 4 Corporate Overview 2 Q3 2021 Financial Highlights 5 Appendix 3 Market Opportunity Corporate Overview 5
Slide 6: Why AFC Gamma?
Why AFC Gamma? Backed by years of combined lending expertise and real estate experience, AFC Gamma is well-positioned in the high-growth cannabis industry A Leading Institutional Loan Rapidly Growing Addressable Market Origination Platform • First-mover advantage results in capturing market • Premie
Slide 7: AFCG Company Overview: A Leading Lender to the Cannabis Space
AFCG Company Overview A Leading Lender to the Cannabis Space (1) Premier Commercial Mortgage REIT NASDAQ: AFCG • AFC Gamma, Inc. is a leading NASDAQ-listed provider of institutional loans to the cannabis industry $342MM ~20% • Originates and funds loans to established cannabis operators in states wi
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Legalization Fuels Expanding Market Size(1) 68% ~20% ≥$22.0Bn $ > 38.4Bn Americans Support Projected Adult-Use Retail Projected Cannabis Market Expected Legal Market Size Legalization Cannabis Market CAGR Size in 2021 by 2025 2020-2025 Potential Reform a
Slide 9: AFCG's Market Opportunity
AFCG’s Market Opportunity Limited Supply of Capital • Institutional banks generally decline to provide full services to cannabis- related businesses • Alternative sources of financing needed to complete commitments, allowing lenders to demand strong risk-adjusted returns with significant collateral
Slide 10: Impact of COVID-19
Impact of COVID-19 Medical cannabis users with Most state governments Of the 29 states with 91% mental health conditions reported a 91% increase in around the nation have deemed medical marijuana operational cannabis programs, all but one have use on average since companies “essential” during deemed
Slide 11: From Origination to Management
From Origination to Management Given our commitment to sourcing loans with high return potential and controlled risk, AFCG is involved in all key phases of the lending process 1 Origination 2 Underwriting 3 Investment Committee 4 Ongoing Review AFCG maintains a direct- AFCG screens potential Our Inv
Slide 12: AFC Gamma's Underwriting Criteria
AFC Gamma’s Underwriting Criteria Borrower & Operations Real Estate & Structure State-by-State Analysis • Type of operations – cultivation, processing, • Type of cultivation (outdoor, greenhouse, indoor), processing • Legislative environment of every state a company operates manufacturing and distri
Slide 13: AFC Gamma Maintains a Strong Deal Funnel and Pipeline
AFC Gamma Maintains a Strong Deal Funnel and Pipeline Deals Sourced Deals Sourced $9.4Bn(1) (1) $9.4B Through AFC Gamma’s direct Potential Funding of Active Deals Potential$952MM Funding(2)of Active Deals origination platform, AFCG continues $952MM(2) to source deals across the cannabis Total Commit
Slide 14: Investment Portfolio Activity
Investment Portfolio Activity (1) Current Commitments (in millions) $400 $350 $51.6 $300 $53.9 $250 Weighted average yield to maturity of $200 $150 $24.0 $296.6 $290.3 $341.9 ~20% (2) $243.0 $100 $33.5 $187.7 as of November 1, 2021 $163.7 $97.2 $130.7 $50 $0 Q1 2021 Q2 2021 Q3 2021 As of 11/1/21 Fun
Slide 15: Diversified Portfolio Across Geography Type
Diversified Portfolio Across Geography Type 37 states + DC have legalized medicinal cannabis, of those, Cannabis is a rapidly expanding market AFCG’s active loan portfolio includes 15 18 + DC have legalized adult use cannabis and 2 states with a limited supply of institutional capital loans across 1
Slide 16: AFCG Portfolio Summary
AFCG Portfolio Summary AFCG has reviewed 409 deals, representing $9.4 billion in Aggregate Value* 15 Funded 3 Committed 75 In Review 302 Rejected Principal Original Loan AFCG Loan, net % of Total TOTAL Cash Interest Paid In Kind Fixed/ Amortization Loan Names Status (1) (2)(3) Balance as of YTM (2)(
Slide 17: AFC Gamma Q3 2021 Book Value
AFC Gamma Q3 2021 Book Value* (1) 97.2 * September 30, 2021 values per share based on 16,442,812 shares of common stock outstanding as of September 30, 2021. Year to Date (“YTD”) for the nine months ended September 30, 2021. 17
Slide 18: Distributable Earnings & Dividends
Distributable Earnings & Dividends Dividends Distributable Earnings $0.50 $0.50 $0.45 (1) $0.45 (3) $0.40 $0.40 $0.35 (1) $0.35 $0.30 $0.30 $0.25 (2) (2) $0.25 (3) (4) (6) (1) $0.43 $0.43 $0.44 (5) $0.20 $0.38 $0.20 $0.15 $0.15 $0.10 $0.10 $0.05 $0.05 (4) $0.00 $0.00 Q2 2021 Q3 2021 Q2 2021 Q3 2021
Slide 19: Questions? Appendix
Questions? APPENDIX Q3 2021 Financial Overview
Slide 20: Appendix A: AFC Gamma Balance Sheet
APPENDIX A September 30, 2021 As of December 31, 2020 (unaudited) Assets Loans held for investment at fair value (cost of $73,934,116 and $46,994,711 at September 30, 2021 and December 31, 2020, respectively, net) $ 76,293,824 $ 48,558,051 AFC Gamma Balance Sheet Loans held for investment at carryin
Slide 21: Appendix B: AFC Gamma Income Statement
APPENDIX B For the three months ended Period from July 31, 2020 to For the nine months ended Period from July 31, 2020 to September 30, September 30, September 30, September 30, 2021 2020 2021 2020 (unaudited) (unaudited) AFC Gamma Income Statement Revenue Interest Income $ 10,616,538 $ 1,594,769 $
Slide 22: Appendix C: Reconciliation of Distributable Earnings to GAAP Net Income
APPENDIX C Reconciliation of Distributable Earnings to GAAP Net Income For the three Period from For the nine Period from months ended July 31, 2020 to months ended July 31, 2020 to September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net Income $ 7,930,680 $ 2,106,250 $ 13,95
Slide 23: www.afcgamma.com
www.afcgamma.com
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