Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q1 2023 Earnings Presentation
21 slides from Advanced Flower Capital's earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Investor Presentation
First Quarter 2023 Investor Presentation May 10, 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. Q1 2023 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 T
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 Robyn Brandon Tannenbaum, CFA Kalikow Tannenbaum Hetzel Founder, Chief Partner, Head of Partner, President Chief Financial Officer Executive Officer Real Estate and Treasurer • 23+ years of experience in • 16+ years of experience in • 10+ ye
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) ($ in billions) $13.5 $13.8 • The Federal Reserve began to raise the Fed Funds
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 $6.8Bn $17.9Bn >$24Bn Total Deals Sourced(2) $701MM Deals Sourced $9.4B (1) Total Comm
Slide 13: Investment Portfolio Activity
Investment Portfolio Activity Current Commitments(1) ($ in millions) $502 $483 $56 $447 $419 $420 $62 $421 $415 $446 $46 $32 $16 Weighted average $56 $49 $421 $401 $389 $400 yield-to-maturity of $364 $371 $297 $54 ~21% $243 as of $188 $24 May 1, 2023(2) $131 $164 $34 $97 Q1 2021 Q2 2021 Q3 2021 Q4 2
Slide 14: AFC Gamma Portfolio Summary
AFC Gamma Portfolio Summary AFCG’s manager AFCM has reviewed 925 deals, representing over $24 billion in aggregate value* Current 846 35 15 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 Q1 2023 Book Value
AFC Gamma Q1 2023 Book Value(1) $0.57 $16.65 $16.49 ($0.56) ($0.17) Book Value YTD 2023 YTD 2023 Regular YTD 2023 CECL, Book Value December 31, 2022 Distributable Dividend FV Adjustments and March 31, 2023 Earnings* Stock Compensation * Distributable Earnings is a non-GAAP financial measure. See App
Slide 16: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings & Dividends (9) (7) $0.69 (11) (13) $0.62 (8) $0.56 (10) $0.59 $0.56 (12) $0.62 $0.56 (14) (15) $0.57 $0.56 (16) (1) (3) (4) (5) $0.52 $0.50 (6) $0.55 $0.43 $0.38 (2) $0.44 $0.43 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Slide 17: Appendix
QvAFC GAMMA Appendix
Slide 18: Appendix A: Balance Sheet
Appendix A AFC Gamma Balance Sheet As of M ar ch 3 1, 2 0 2 3 D ecemb er 3 1, 2 0 2 2 (unaudited) A sset s Loans held f or investment at f air value (cost of $102,811,826 and $100,635,985 at M arch 31, 2023 and December 31, 2022, respectively, net ) $ 99,924,201 $ 99,226,051 Loans held f or investme
Slide 19: Appendix B: Income Statement
Appendix B AFC Gamma Income Statement T hr ee mo nt hs end ed M ar ch 3 1, (unaudited) 2023 2022 R evenue Int erest income $ 18,500,486 $ 18,635,853 Int erest expense (1,668,160) (1,700,115) N et int er est i nco me 16 , 8 3 2 ,3 2 6 16 , 9 3 5,73 8 Exp enses M anagement and incentive f ees, net (le
Slide 20: 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 M ar ch 3 1, 2023 2022 N et i nco me $ 10 , 0 2 5, 2 74 $ 10 ,16 2 , 12 0 Adjust ment s t o net income: St ock-based compensat ion expense 280,578 990,023 Depreciat ion and amort izat ion - - Unrealized lo
Slide 21: www.afcgamma.com
www.afcgamma.com
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