Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q3 2022 Earnings Presentation
22 slides from Advanced Flower Capital's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation November 8, 2022
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 financial results. This presentation is provided for informational purposes o
Slide 4: Table of Contents
Table of Contents 1. Why AFC Gamma? 2. Market Opportunity 3. Corporate Overview 4. Q3 2022 Financial Highlights 5. Appendix
Slide 5: Management Team
Management Team Leonard Jonathan Brett Robyn Brandon Tannenbaum Kalikow Kaufman Tannenbaum Hetzel Founder, Chief Executive Founder, Head of Real Chief Financial Officer and Founder, Head of Vice President, Controller Officer Estate Treasurer Originations and Investor Relations Over 23 years of exper
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 Leading Institutional Loan Rapidly Growing Addressable Market Origination Platform • First-mover advantage results in capturing • A premier fina
Slide 7: AFC Gamma Company Overview
AFC Gamma Company Overview A Premier Commercial Mortgage REIT (NASDAQ: AFCG) A Leading Lender to the Cannabis Space(2) • AFC Gamma, Inc. is a leading NASDAQ-listed provider of institutional loans to the cannabis industry • Originates and funds loans to established cannabis operators in states with a
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Legalization Fuels Expanding Market Size(1) 68% ~20% $24.0Bn >$38.4Bn Americans Projected Adult-Use U.S. Legal Cannabis Expected Legal Market Support Cannabis Retail Cannabis Market Size in 2021(2) Size by 2025 Legalization Market CAGR 2020-2025 Potentia
Slide 9: AFC Gamma's Market Opportunity
AFC Gamma’s Market Opportunity Limited Supply Market Challenges Opportunistic of Capital for Operators Solutions Institutional banks Stringent state-by-state Rapidly growing industry generally decline to provide regulations and lengthy with numerous cannabis full services to marijuana- license
Slide 10: From Origination to Management
From Origination to Management AFCG is involved in all key phases of the lending process in order to source loans with high return potential and downside risk protection AFCG maintains a direct-origination platform, which works to create enhanced yields and allows us to put in greater controls for l
Slide 11: 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, • Legislative environment of every state a manufacturing, distribution and retail hybrid, indoor), proce
Slide 12: AFCG Maintains a Strong Deal Funnel and Pipeline
AFCG Maintains a Strong Deal Funnel and Pipeline(1) $17.0Bn Through its direct Deals Sourced(2) origination platform, AFC $680MM Deals Sourced Gamma continues to source $9.4B (1) Total Commitments deals across the cannabis SinceFunding Potential Inception (3) of Active Deals industry in various stat
Slide 13: Investment Portfolio Activity
Investment Portfolio Activity Current Commitments(1) ($ in millions) $502 $500 $483 $56 $450 $419 $420 $62 $426 $400 $446 $56 $49 $421 $58 $350 $364 $371 $369 Weighted average $297 $300 yield-to-maturity of $54 $250 $200 $188 $243 ~20% $150 $131 $24 as of $164 $100 $34 November 1, 2022(2) $97 $50 $0
Slide 14: Diversified Portfolio Across the United States
Diversified Portfolio Across the United States Cannabis is a rapidly expanding 39 states and DC have legalized medical As of November 1, 2022, AFCG’s market in the United States cannabis; of those, 19 states and DC have loan portfolio included 13 loans with a limited supply of legalized adult-use ca
Slide 15: AFC Gamma Portfolio Summary
AFC Gamma Portfolio Summary AFCG’s manager has reviewed 661 deals, representing $17.0 billion in aggregate value* 580 Rejected* 58 In Review 13 Current Funded Principal Original Funding Loan AFCG Loan, net % of Total TOTAL Cash Interest Paid In Kind Fixed/ Amortization (2)(3) Loan Names Status (1) (
Slide 16: AFC Gamma Q3 2022 Book Value
AFC Gamma Q3 2022 Book Value(1) * * Distributable Earnings is a non-GAAP financial measure. See Appendix C of this presentation for a reconciliation of GAAP Net Income to Distributable Earnings. (1) September 30, 2022 values per share based on 20,364,000 shares of common stock outstanding as of Sept
Slide 17: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings & Dividends $0.70 $0.60 $0.50 $0.40 (9) (7) $0.69 (11) $0.30 (5) (6) $0.62 $0.55 (8) (10) $0.56 $0.59 $0.56 (12) (1) (3) (4) $0.52 $0.50 $0.20 $0.43 $0.38(2) $0.44 $0.43 $0.10 $- Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Distributable E
Slide 18: Appendix
APPENDIX Q3 2022 Financial Overview
Slide 19: Appendix A: Balance Sheet
Appendix A AFC Gamma A s Of Balance Sheet Sep t emb er 3 0 , 2 0 2 2 (unaudited) D ecemb er 3 1, 2 0 2 1 A sset s Loans held for investment at fair value (cost of $93,454,875 and $74,913,157 at September 30, 2022 and December 31, 2021, respectively, net) $ 94,076,146 $ 77,096,319 Debt securities ava
Slide 20: Appendix B: Income Statement
Appendix B AFC Gamma Income Statement F o r t he t hr ee mo nt hs end ed F o r t he nine mo nt hs end ed (unaudited) 2022 2021 2022 2021 R evenue Interest income $ 19,785,583 $ 10,616,538 $ 60,072,643 $ 24,050,062 Interest expense (1,644,088) - (5,091,207) - N et int er est inco me 18,141,495 10,616
Slide 21: Appendix C: Reconciliation of GAAP Net Income to Distributable Earnings
Appendix C Reconciliation of GAAP Net Income to Distributable Earnings T hr ee mo nt hs end ed Sep t emb er 3 0 , N i ne mo nt hs end ed Sep t emb er 3 0 , 2022 2021 2022 2021 N et I nco me $ 11,480,519 $ 7,930,680 $ 32,994,312 $ 13,959,222 Adjust ment s t o net income St ock-based compensation expe
Slide 22: www.afcgamma.com
24 AFC Yamma ADVANCED FLOWER CAPITAL www.afcgamma.com
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