Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q2 2022 Earnings Presentation
22 slides from Advanced Flower Capital's earnings presentation, Aug 9, 2022
Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation August 9, 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 RE IT for federal income tax purposes and is being furnished in connection with AFC G ’s financial results. This presentation is provided for informational purpose
Slide 4: Table of Contents
Table of Contents 1. Why AFC Gamma? 2. Market Opportunity 3. Corporate Overview 4. Q2 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 r Chief Financial Officer Founder, Head of Vice President, Controller Officer E state and Treasurer Originations and Investor Relations Over 23 years of ex
Slide 6: Why AFC Gamma?
Why AFC Gamma? Backed by years of combined lending expertise and real estate experience, AFC G amma 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 NAS DAQ-listed provider of institutional loans to the cannabis industry • Originates and funds loans to established cannabis operators in states with
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 Retail Cannabis Market Size in Size by 2025 Cannabis Market CAG R 2021(2) Legalization 2020-2025 Potent
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 regulations and lengthy with numerous cannabis provide full services to license approval p
Slide 10: From Origination to Management
From Origination to Management AFC G is involved in all key phases of the lending process in order to source loans with high return potential and downside risk protection AFC G maintains a direct-origination platform, which works to create enhanced yields and allows us to put in greater controls for
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 manufacturing, distribution and retail hybrid, indoor), process
Slide 12: AFCG Maintains a Strong Deal Funnel and Pipeline
AFCG Maintains a Strong Deal Funnel and Pipeline(1) $15.8Bn Through its direct Deals Sourced(2) origination platform, AFC $631MM Deals Sourced Gamma continues to source $9.4B(1) Total Commitments Since deals across the cannabis InceptionFunding Potential by the Manager of Active Deals industry in va
Slide 13: Investment Portfolio Activity
Investment Portfolio Activity Current Commitments(1) ($ in millions) $483.2 $500.0 $450.0 $419.2 $420.1 $62.0 $400.0 $55.5 $49.4 $421.2 $350.0 $363.7 $370.7 Weighted average $296.9 $300.0 yield-to-maturity of $53.9 $250.0 $200.0 $187.7 $243.0 ~18% $150.0 $130.7 $24.0 as of $163.7 $100.0 $33.5 August
Slide 14: Diversified Portfolio Across the United States
Diversified Portfolio Across the United States Cannabis is a rapidly 39 states and DC have legalized medical As of August 1, 2022, AFC G ’s expanding market in the United cannabis; of those, 19 states and DC have loan portfolio included 13 loans States with a limited supply of legalized adult-use ca
Slide 15: AFC Gamma Portfolio Summary
AFC Gamma Portfolio Summary AFC G ’s manager has reviewed 610 deals, representing $15.8 billion in aggregate value* 549 Rejected* 42 In Review 13 Current Funded Principal Original Loan AFCG Loan, net % of Total TOTAL Cash Interest Paid In Kind Fixed/ Amortization Loan Names Status Balance as of YTM
Slide 16: AFC Gamma Q2 2022 Book Value
AFC Gamma Q2 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) June 30, 2022 values per share based on 19,857,872 shares of common stock outstanding as of June 30,
Slide 17: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings & Dividends $0.70 $0.60 $0.50 $0.40 (9) (7) $0.69 $0.30 (5) $0.62 (8) $0.55 (10) $0.56 (1) (3) (4) $0.52 $0.50 (6) $0.20 $0.43 $0.38 (2) $0.44 $0.43 $0.10 $- Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Distributable Earnings Dividends For Q2 2022
Slide 18: Appendix
APPENDIX Q2 2022 Financial Overview
Slide 19: Appendix A
Appendix A AFC Gamma A s Of Balance S heet June 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 $93,940,582 and $74,913,157 at June 30, 2022 and December 31, 2021, respectively, net) $ 95,199,132 $ 77,096,319 Debt securities available for s
Slide 20: Appendix B
Appendix B AFC Gamma Income Statement For the three months ended June 30, For the six months ended June 30, (unaudited) 2022 2021 2022 2021 Revenue Interest income $ 21,651,207 $ 8,748,519 $ 40,287,060 $ 13,433,524 Interest expense (1,747,004) - (3,447,119) - Net interest income 19,904,203 8,748,519
Slide 21: Appendix C
Appendix C Reconciliation of G AAP Net Income to Distributable E arnings T hr ee mo nt hs end ed June 3 0 , Six mo nt hs end ed June 3 0 , 2022 2021 2022 2021 N et Inco me $ 11,351,673 $ 4,627,787 $ 21,513,793 $ 6,028,542 Adjustments to net income Stock-based compensation expense 117,397 11,457 1,10
Slide 22: www.afcgamma.com
ols = AF nme ADVANCED FLOWER CAPITAL www.afcgamma.com
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