Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q1 2022 Earnings Presentation
23 slides from Advanced Flower Capital's earnings presentation, May 10, 2022
Slide 1: Q1 2022 Earnings Presentation
AFC Gamma, Inc. Q1 2022 Earnings Presentation May 10, 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 REIT for federal income tax purposes and is being furnished in connection with AFCG’s financial results. This presentation is provided for informational purposes o
Slide 4: Agenda
Agenda 1 Why AFC Gamma? 4 Corporate Overview 2 Q1 2022 Financial Highlights 5 Appendix 3 Market Opportunity 4
Slide 5: Management Presenters
Management Presenters Leonard Jonathan Brett Robyn Brandon Tannenbaum Kalikow Kaufman Tannenbaum Hetzel Founder, Chief Executive Founder, Head of Real Estate Chief Financial Officer and Founder, Head of Originations Vice President, Controller Officer Treasurer and Investor Relations Over 22 years of
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 A Leading Institutional Loan Rapidly Growing Addressable Market Origination Platform • A premier financing source for cannabis operators • First-
Slide 7: AFCG Company Overview
AFCG Company Overview A Leading Lender A Premier Commercial Mortgage REIT to the Cannabis Space (1) NASDAQ: AFCG • AFC Gamma, Inc. is a leading NASDAQ-listed provider of institutional loans to the cannabis industry • Originates and funds loans to established cannabis operators in states $483MM ~18%
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Legalization Fuels Expanding Market Size(1) ~20% $24.0Bn 68% >$38.4Bn Americans Support Projected Adult-Use Retail US Legal Cannabis Market Expected Legal Market Size Legalization Cannabis Market CAGR Size in 2021(2) by 2025 2020-2025 Potential Reform at
Slide 9: AFCG's Market Opportunity
AFCG’s Market Opportunity Limited Supply of Capital • Institutional banks generally decline to provide full services to marijuana-related businesses • Alternative sources of financing are needed to complete commitments, allowing lenders to demand strong risk-adjusted returns with significant collate
Slide 10: From Origination to Management
From Origination to Management Given our commitment to sourcing loans with high return potential and controlled risk, AFCG is involved in all key phases of the lending process 1 Origination 2 Underwriting 3 Investment Committee 4 Ongoing Review AFCG maintains a direct- AFCG screens potential Our Inv
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, indoor), • Legislative environment of every state a manufacturing and distribution processing capabiliti
Slide 12: AFC Gamma Maintains a Strong Deal Funnel and Pipeline
AFC Gamma Maintains a Strong Deal Funnel and Pipeline(1) Deals Sourced Deals Sourced $9.4(2) $14.5Bn B(1) Through its direct origination platform, AFC Gamma continues to source deals Potential Potential Funding Funding of Active of Active Deals Deals $952(3) MM (2) across the cannabis industry in va
Slide 13: Investment Portfolio Activity
Investment Portfolio Activity (1) Current Commitments (in millions) $500 $450 $63.6 $400 $55.5 $49.4 $419.1 $350 $370.7 $363.7 $300 Weighted average yield to maturity of $53.9 $250 $200 $243.0 $419.2 $420.1 $482.7 ~18% $24.0 as of May 9, 2022(2) $150 $296.6 $163.7 $33.5 $100 $187.7 $97.2 $130.7 $50
Slide 14: Diversified Portfolio Across Geography and Type
Diversified Portfolio Across Geography Type 38 states + DC have legalized medical cannabis; Cannabis is a rapidly expanding market AFCG’s loan portfolio includes 13 loans of those, 18 states + DC have legalized adult use cannabis and with a limited supply of institutional capital across 16 states as
Slide 15: AFCG Portfolio Summary
AFCG Portfolio Summary AFCG has reviewed 557 deals, representing $14.5 billion in Aggregate Value* 13 Funded 3 Committed 112 In Review 419 Rejected * Represents period beginning January 1, 2020 through May 9, 2022. (1) All loans originated prior to July 31, 2020 were purchased from an affiliated ent
Slide 16: Continuous Strong Momentum In Capital Deployment
Continuous Strong Momentum In Capital Deployment Capital Raised – Gross Proceeds ($ in Millions) $67.5 $455.0 $100.0 2022 YTD Commitments(2) $61.9 ◼ Public Co. F: $26.6M $136.6 ◼ Private Co. A: $15.3M ~92% $89.0 of Capital Raised Has Been ◼ Private Co. B: $5.0M Successfully Deployed ◼ Private Co. L:
Slide 17: AFC Gamma Q1 2022 Book Value
AFC Gamma Q1 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) March 31, 2022 values per share based on 19,742,940 shares of common stock outstanding as of March 31
Slide 18: Distributable Earnings & Dividends
Distributable Earnings & Dividends Dividends Distributable Earnings* $0.60 $0.60 $0.50 $0.50 (3) $0.40 $0.40 (8) $0.62 $0.30 (3) $0.55 (4) $0.30 (7) $0.50 (6) $0.52 $0.43 (5) $0.44 $0.20 $0.38 (1) $0.43 (2) $0.20 $0.10 $0.10 $- $- Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 For Q
Slide 19: Questions? Appendix
Questions? APPENDIX Q1 2022 Financial Overview
Slide 20: Appendix A: AFC Gamma Balance Sheet
APPENDIX A March 31, 2022 As Of December 31, 2021 Assets Loans held for investment at fair value (cost of $92,808,827 and $74,913,157 at March 31, 2022 and December 31, 2021, respectively, net) $ 95,072,832 $ 77,096,319 AFC Gamma Balance Sheet Debt securities available for sale held at fair value -
Slide 21: Appendix B: AFC Gamma Income Statement
APPENDIX B Three months ended AFC Gamma Income Statement 2022 March 31, 2021 Revenue Interest income $ 18,635,853 $ 4,685,005 Interest expense (1,700,115) - Net interest income 16,935,738 4,685,005 Expenses Management and incentive fees, net (less rebate of $387,493 and $237,743, respectively) 3,847
Slide 22: 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, 2022 2021 Net Income $ 10,162,120 $ 1,400,755 Adjustments to net income Stock-based compensation expense 990,023 1,599,115 Depreciation and amortization - - Unrealized (gain), losses or other non-cash
Slide 23: www.afcgamma.com
www.afcgamma.com
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