Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q4 2022 Earnings Presentation
21 slides from Advanced Flower Capital's earnings presentation, Mar 7, 2023
Slide 1: Fourth Quarter and Full Year 2022 Investor Presentation
Fourth Quarter and Full Year 2022 Investor Presentation March 7, 2023
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. (“AFCG” or the “Company”), 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 fo
Slide 4: Sections
Sections 1. Why AFC Gamma? 2. Market Opportunity 3. Corporate Overview 4. Q4 2022 Financial Highlights 5. Appendix
Slide 5: Why AFC Gamma?
Why AFC Gamma? Backed by its management team’s years of collective lending and real estate experience, AFC Gamma is well-positioned for expansion into the commercial real estate (“CRE”) sector Institutional Commercial Experienced, Cycle-Tested Poised to Capitalize on Target Mortgage REIT Leadership
Slide 6: AFC Gamma Company Overview
AFC Gamma Company Overview Institutional Commercial Mortgage REIT Company Highlights(2) (NASDAQ: AFCG) • AFC Gamma is an institutional lender to the commercial real estate sector, with a specialization in loans backed by real estate collateral, cash flows and licenses to state law compliant cannabis
Slide 7: Experienced, Cycle-Tested Leadership Team
Experienced, Cycle-Tested Leadership Team Leonard Jonathan Brett Robyn Brandon Tannenbaum, CFA Kalikow Kaufman Tannenbaum Hetzel Founder, Chief Partner, Head of Chief Financial Officer Partner, President Executive Vice Executive Officer Real Estate and Treasurer President • 23+ years of experience •
Slide 8: Attractive Market Opportunity in CRE
Attractive Market Opportunity in CRE Macroeconomic Environment + State of the CRE Sector…(1) • Real GDP increased 2.1% YoY in 2022, compared Net New CRE Loans by Large US Banks(4) with a bigger increase of 5.9% in 2021(2) $13.7 • The Federal Reserve began to raise the Fed Funds $11.8 rate in 2022 in
Slide 9: Poised to Capitalize on Target Market Opportunity
Poised to Capitalize on Target Market Opportunity AFC Gamma is expanding the Company’s strategy to include CRE lending with an aim to take advantage of market opportunities in this environment AFCG’s Competitive Advantages ✓Leadership team’s extensive credit and real estate knowledge resulting in di
Slide 10: Disciplined and Selective Investment Process
Disciplined and Selective Investment Process AFC Gamma is involved in all key phases of the lending process, with an aim 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
Slide 11: Rigorous Underwriting Criteria
Rigorous Underwriting Criteria Borrower & Operations Real Estate & Structure State-by-State / Local Analysis • Type of operations – industrial, land, retail, • Type of real estate – industrial, land, • Population statistics in location area condo, office, rental, etc. retail, office, multifamily, ho
Slide 12: AFCG Maintains a Strong Deal Funnel and Pipeline
AFCG Maintains a Strong Deal Funnel and Pipeline(1) Through its direct origination platform, AFC Gamma sources deals via various leads in select jurisdictions, maintaining a robust pipeline of active opportunities $5.5Bn $17.7Bn >$23Bn Total Deals Sourced(2) Deals Sourced $701MM $9.4B (1) Total Comm
Slide 13: Investment Portfolio Activity
Investment Portfolio Activity Current Commitments(1) ($ in millions) $502 $500 $483 $56 $447 $450 $419 $420 $62 $421 $400 $446 $46 $32 Weighted average $56 $49 $421 $350 $401 $389 yield-to-maturity of $364 $371 $300 $297 $54 ~21% $250 $243 as of $188 $200 $24 March 1, 2023(2) $150 $131 $164 $34 $100
Slide 14: AFC Gamma Portfolio Summary
AFC Gamma Portfolio Summary AFCG’s manager AFCM has reviewed 846 deals, representing over $23 billion in aggregate value* Current 783 20 14 13 Current Rejected* CRE Deals Cannabis Deals Current Funded in Review in Review Principal Original Funding Loan AFCG Loan, net % of Total TOTAL Cash Interest P
Slide 15: AFC Gamma Q4 2022 Book Value
AFC Gamma Q4 2022 Book Value(1) $2.45 $0.40 $16.61 $16.65 ($2.20) ($0.61) Book Value 2022 Equity 2022 2022 Regular 2022 CECL, Book Value December 31, Raises Distributable Dividend OCI and December 31, 2021 Earnings * FV Adjustments 2022 * Distributable Earnings is a non-GAAP financial measure. See A
Slide 16: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings & Dividends $0.70 $0.60 $0.50 $0.40 (9) (7) $0.69 (11) (13) $0.30 (5) $0.62 (8) (10) $0.56 $0.59 $0.56 (12) $0.62 $0.56 (14) (1) (3) (4) $0.52 $0.50 (6) $0.55 $0.20 $0.43 $0.38(2) $0.44 $0.43 $0.10 $- Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q
Slide 17: Appendix
QWAFC GAMMA Appendix
Slide 18: Appendix A: Balance Sheet
Appendix A AFC Gamma Balance Sheet A s o f D ecemb er 3 1, 2022 2021 A sset s Loans held for investment at fair value (cost of $100,635,985 and $74,913,157 at December 31, 2022 and 2021, respectively, net) $ 99,226,051 $ 77,096,319 Debt securities available for sale held at fair value (cost of $16,0
Slide 19: Appendix B: Income Statement
Appendix B AFC Gamma Income Statement Y ear end ed D ecemb er 3 1, 2022 2021 R evenue Interest income $ 81,498,717 $ 38,140,487 Interest expense (6,814,075) (1,126,846) N et int er est inco me 74,684,642 37,013,641 Exp enses M anagement and incentive fees, net (less rebate of $1,785,916 and $1,029,3
Slide 20: Appendix C: Reconciliation of GAAP Net Income to Distributable Earnings
Appendix C Reconciliation of GAAP Net Income to Distributable Earnings Y ear end ed D ecemb er 3 1, 2022 2021 N et inco me $ 35,932,397 $ 21,000,497 Adjustments to net income Stock-based compensation expense 1,338,469 1,745,872 Depreciation and amortization - - Unrealized losses, (gains) or other no
Slide 21: www.afcgamma.com
www.afcgamma.com
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