Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — AFC Gamma — Q2 2021 Earnings Presentation
23 slides from Advanced Flower Capital's earnings presentation, Aug 5, 2021
Slide 1: AFC Gamma, Inc. Q2 2021 Earnings Presentation
AFC Gamma, Inc. Q2 2021 Earnings PresentationAugust 5, 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 will elect 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 informational
Slide 4: Management Presenters
Management Presenters Leonard TannenbaumFounder & Chief Executive Officer Jonathan Kalikow Head of Real Estate Thomas Geoffroy Chief Financial Officer Robyn TannenbaumPartner, Head of Origination and Investor Relations Brandon Hetzel Controller Over 22 years of experience in credit investingFounder
Slide 5: Agenda
Agenda Why AFC Gamma? Q2 2021 Financial HighlightsMarket Opportunity Corporate OverviewCorporate OverviewAppendix 5 1 2 3 4 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 and poised to deliver enhanced value for shareholders A Leading Institutional Loan Origination PlatformPremier financing source for cannabis oper
Slide 7: AFCG Company Overview
AFCG Company Overview Only NASDAQ-listed provider of institutional loans to the cannabis industryOriginates and funds loans to established high-quality cannabis operators in states with attractive licensing and favorable supply/demand environmentsOur objective is to provide compelling risk-adjusted
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Sources: Gallup Poll: “Support for Legal Marijuana Inches Up to New High of 68%” Gallup. 9 November 2020; 2021 Marijuana Business Factbook; United Nations 2020 World Drug Report.Sources: Secure And Fair Enforcement (“SAFE”) Banking Act of 2019; The Marij
Slide 9: AFCG's Market Opportunity
AFCG’s Market Opportunity 9 Limited Supply of CapitalInstitutional 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 Mark
Slide 10: Impact of COVID-19
Impact of COVID-19 Source: Marijuana Business Daily (4/2/20), “US Markets that have Allowed Marijuana Businesses to Remain Open During Coronavirus Pandemic”, Forbes, “Medical Cannabis Use For Mental Health Increased During Covid-19 Pandemic, Study Finds.”*Massachusetts is the only state that deemed
Slide 11: From Origination to Management
Other tools include, but are not limited to appraisals, quality of earnings, environmental reports, site visits, AML compliance, comparable analysis and background searches. From Origination to Management Given our commitment to sourcing loans with high return potential and controlled risk, AFCG is
Slide 12: Underwriting Analysis: Borrower, Real Estate, State-by-State
Borrower & Operations Real Estate & Structure State-by-State Analysis Type of operations – cultivation, processing, manufacturing and distribution Mix analysis – wholesale vs. retail State regulatory approval Quality of management – cultivation experience and financial expertise, among other factors
Slide 13: AFC Gamma Maintains a Strong Deal Funnel and Pipeline
AFC Gamma Maintains a Strong Deal Funnel and Pipeline Potential Funding of Active Deals $855MM(2) Deals Sourced $6.7Bn(1) Total Commitments Since Inception by the Manager $237.4MM(3)(4) Outstanding + Committed $195.3MM(4)(5) Outstanding $175.3MM(6) Through AFC Gamma’s direct origination platform, th
Slide 14: Investment Portfolio Activity
Weighted average yield to maturity of ~21% as of August 1, 2021 Investment Portfolio Activity $97.2 (1) $187.7 (3) Current Commitments represents the total committed principal value at closing of our outstanding loans (as of March 31, 2021, June 30, 2021, and August 1, 2021). This amount does not in
Slide 15: Diversified Portfolio Across Geography and Type
The 2018 Farm Bill permits state regulation of the increased cannabidiol (“CBD”) and lower tetrahydrocannabinol (“THC”) programs. As of August 1, 2021. Diversified Portfolio Across Geography Type Cannabis is a rapidly expanding market with a limited supply of institutional capital AFCG’s active loan
Slide 16: Loan Portfolio Details
All loans originated prior to July 31, 2020 were purchased from an affiliated entity at fair value which approximated accreted and/or amortized cost plus accrued interest on July 31, 2020.Estimated YTM includes a variety of fees and features that affect the total yield, which may include, but is not
Slide 17: AFC Gamma Q2 2021 Book Value
AFC Gamma Q2 2021 Book Value* 97.2 *June 30, 2021 values per share based on 16,116,877 shares of common stock outstanding as of June 30, 2021. Year to Date (“YTD”) for the six months ended June 30, 2021. (1)
Slide 18: Distributable Earnings & Dividends
Distributable Earnings & Dividends (2) Distributable earnings per share based on 7,144,670 basic weighted average common shares outstanding at March 31, 2021.Q1 2021 dividend of $2.2 million / $0.36 per share paid on 3/31/2021 to pre-IPO shareholders of record on March 31, 2021.Distributable earning
Slide 19: Appendix: Q2 2021 Financial Overview
Questions? APPENDIXQ2 2021 Financial Overview
Slide 20: Appendix A: Second Quarter Balance Sheets
APPENDIX A Second Quarter Balance Sheets
Slide 21: Appendix B: Second Quarter Income Statements
APPENDIX B Second Quarter Income Statements
Slide 22: Appendix C: Reconciliation of Distributable Earnings to GAAP Net Income
APPENDIX C Reconciliation of Distributable Earnings to GAAP Net Income For the threemonths endedJune 30, 2021 For the sixmonths endedJune 30, 2021 Net Income $ 4,627,787 $ 6,028,542 Adjustments to net income Non-Cash Equity compensation expense 11,457 1,610,572 Depreciation and amortization - - Unre
Slide 23: www.afcgamma.com
www.afcgamma.com