Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q1 2024 Earnings Presentation
22 slides from Advanced Flower Capital's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Investor Presentation
First Quarter 2024 Investor Presentation May 9, 2024
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. Corporate Overview 2. Why AFC Gamma 3. Market Opportunity 4. Q1 2024 Financial Highlights 5. Appendix
Slide 5: 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 6: Why AFC Gamma
Why AFC Gamma Experienced, Significant lending, investment management and operator experience Management team aligned through significant investment; beneficially own or Cycle-Tested control over 20% of Company Leadership Team Experience navigating rapidly evolving markets and underwriting com
Slide 7: Experienced, Cycle-Tested Leadership Team
Experienced, Cycle-Tested Leadership Team Leonard Dan Robyn Brandon Tannenbaum, CFA Neville Tannenbaum Hetzel Founder, Executive Chief Executive Partner, President Chief Financial Officer Chairman Officer and Treasurer • 25+ years of experience in • 15+ years of experience in • 15+ years of experien
Slide 8: Attractive Market Opportunity in CRE
Attractive Market Opportunity in CRE Macroeconomic Environment + State of the CRE Sector…(1) • Real GDP has increased 2.5% in 2023, compared to Net New CRE Loans by Large US Banks(4) an increase of 2.1% YoY in 2022, and a bigger ($ in billions) increase of 5.9% in 2021(2) • The Federal Reserve began
Slide 9: Cannabis Market Opportunity Continues to Grow
Cannabis Market Opportunity Continues to Grow Legalization Fuels Expanding Market Size(1)(2)(3) 70% ~11% $32.4Bn >$46.0Bn Americans Support Projected Adult-Use Expected US Legal Expected US Legal Legalization Retail Cannabis Market Cannabis Market Size in Cannabis Market Size by CAGR 2023-2028 2024
Slide 10: Diversified Cannabis Portfolio Across the United States
Diversified Cannabis Portfolio Across the United States 41 states and DC have legalized AFCG's loan portfolio includes Cannabis is a rapidly expanding medical cannabis; of those, 24 13 cannabis loans to borrowers market in the United States with states and DC have legalized with significant operatio
Slide 11: 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 1 Origination and allow
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 $26.3B $19.7B $46.0B Total Deals Sourced(2) Deals Sourced $835MM $9.4B (1) Total Commi
Slide 13: Poised to Capitalize on Target Market Opportunity
Poised to Capitalize on Target Market Opportunity AFCG’s Competitive Advantages Leadership team’s extensive credit and operating knowledge resulting in disciplined capital deployment Timely execution to meet borrower needs r Proactive asset management with experienced professionals in-house, incl
Slide 14: Investment Portfolio Activity
Investment Portfolio Activity Current Commitments(1) (In MM) $502 $501 $493 $483 $447 $431 $15 $13 $56 $409 $433 $420 $62 $421 $10 $10 $46 $32 $12 $49 $486 $480 $421 $446 $423 $421 $371 $401 $389 $397 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 May 1, 2024 Funded Unfunded
Slide 15: AFC Gamma Portfolio Summary
AFC Gamma Portfolio Summary AFCG’s manager has reviewed 1,339 deals, representing over $46 billion in aggregate value* 1,292 Deals Rejected* 22 Current Cannabis Deals in Review 15 CurrentDeals Cannabis & CRE Funded Principal Original Funding Loan AFCG Loan, net TOTAL Cash Interest Paid In Kind Fixed
Slide 16: Q1 2024 Book Value
Q1 2024 Book Value(1) (In $ per share) $0.49 $15.64 $15.03 ($0.48) ($0.62) Book Value YTD 2024 YTD 2024 Regular YTD 2024 CECL, Book Value December 31, 2023 Distributable Dividend FV Adjustments and March 31, 2024 Earnings(2) Stock Compensation (1) March 31, 2024 values per share based on 20,667,094
Slide 17: Distributable Earnings & Dividends
Distributable Earnings & Dividends(1) (In $ per share) $0.69 $0.62 $0.59 $0.56 $0.62 $0.55 $0.56 $0.56 $0.57 $0.56 $0.49 $0.48 $0.49 $0.48 $0.49 $0.48 $0.49 $0.48 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Distributable Earnings Dividends For Q1 2024, AFC Gamma declared
Slide 18: Appendix
QWAFC GAMMA Appendix
Slide 19: Appendix A – Balance Sheet
Appendix A – Balance Sheet March 31, 2024 December 31, 2023 (unaudited) Assets Loans held for investment at fair value (cost of $68,514,273 and $71,644,003 at March 31, 2024 and December 31, 2023, respectively, net) $ 54,977,282 $ 61,720,705 Loans held for investment at carrying value, net 357,852,4
Slide 20: Appendix B – Income Statement
Appendix B – Income Statement Three months ended March 31, (unaudited) 2024 2023 Revenue Interest income $ 16,361,060 $ 18,500,486 Interest expense (1,603,163) (1,668,160) Net interest income 14,757,897 16,832,326 Expenses Management and incentive fees, net (less rebate of $374,803 and $478,645, res
Slide 21: Appendix C - Reconciliation of GAAP Net Income to Distributable Earnings
Appendix C - Reconciliation of GAAP Net Income to Distributable Earnings Three months ended March 31, 2024 2023 Net (loss) income $ (54,116) $ 10,025,274 Adjustments to net (loss) income: Stock-based compensation expense 543,222 280,578 Depreciation and amortization — — Unrealized (gains) losses, or
Slide 22: www.afcgamma.com
www.afcgamma.com
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