Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — AFC Gamma — Q1 2021 Earnings Presentation
25 slides from Advanced Flower Capital's earnings presentation, May 11, 2021
Slide 1: AFC Gamma Q1 2021 Earnings Presentation
AFC Gamma Q1 2021 Earnings Presentation May 11, 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 First Quarter 2021 results. This presentation is provided for investors in AFC
Slide 4: Management Presenters
Management Presenters Leonard Jonathan Thomas Robyn Brandon Tannenbaum Kalikow Geoffroy Tannenbaum Hetzel Founder & Chief Executive Head of Real Estate Chief Financial Officer Partner, Head of Origination Controller Officer and Investor Relations Over 22 years of experience in credit Over 15 years e
Slide 5: Agenda
Agenda 1 Why AFC Gamma? 5 Conclusion 2 Q1 2021 Financial Highlights 6 Why AFC Gamma? 3 Market Opportunity 7 Appendix 4 Corporate Overview 5
Slide 6: Why AFC Gamma?
Why AFC Gamma? Backed by years of combined lending expertise and real estate experience, AFC Gamma is ideally positioned in the high-growth cannabis industry and poised to deliver enhanced value for shareholders Leading Institutional Loan Origination Rapidly Growing Addressable Market Platform • Fir
Slide 7: AFCG Company Overview: A Leading Lender to the Cannabis Space
AFCG Company Overview A Leading Lender to the Cannabis Space (1) Premier Commercial Mortgage REIT NASDAQ: AFCG ▪ Only NASDAQ-listed provider of institutional loans to the cannabis industry $204MM ~21% ▪ Originates and funds loans to established cannabis best-in- Total Loan Amount Yield on Existing c
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Legalization Fuels Expanding Market Size(1) 26% ~192MM $37Bn 68% Americans Support Projected Adult-Use Retail People Worldwide Use Expected Legal Market Size Legalization Cannabis Market CAGR Cannabis as of 2018 by 2024 2019-2024 Potential Reform at the
Slide 9: AFCG's Market Opportunity
AFCG’s Market Opportunity Limited Supply of Capital ▪ Institutional banks 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 Market Cha
Slide 10: Impact of COVID-19
Impact of COVID-19 Medical cannabis users with Most state governments Of the 29 states with 91% mental health conditions reported a 91% increase in around the nation have deemed medical marijuana operational cannabis programs, all but one have use on average since companies “essential” during deemed
Slide 11: 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 In
Slide 12: 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), processing • Legislative environment of every state a company operates manufacturing and distri
Slide 13: AFC Gamma Maintains a Strong Deal Funnel and Pipeline
AFC Gamma Maintains a Strong Deal Funnel and Pipeline Deals Sourced $5.3Bn (1) Potential Funding of Active Deals Through AFC Gamma’s direct origination $545MM(2) platform, the Company continues to source deals across the cannabis industry in various Total Loan Amount Since states and maintains a rob
Slide 14: Investment Portfolio Activity
Investment Portfolio Activity Total Commitments(1) (in millions) $180 $160 $32.4 $140 $120 Weighted average yield to maturity of $33.5 $100 $80 $133.2 $165.6 ~21% (2) $130.7 $60 $97.2 as of April 30, 2021 $40 $20 $0 Q1 2021 As of 5/10/21 Funded Unfunded (1) Total commitments funded and unfunded meas
Slide 15: Diversified Portfolio Across Geography Type
Diversified Portfolio Across Geography Type Cannabis is a rapidly expanding market 36 states + DC have legalized medicinal cannabis and of AFCG’s active loan portfolio includes 11 with a limited supply of institutional capital those, 15 states + DC have legalized adult use cannabis loans across 12 s
Slide 16: AFCG Portfolio Summary
AFCG Portfolio Summary* AFCG has reviewed 289 deals, representing $5.3 billion in Aggregate Value 11 Funded* 2 Committed 48 In Review 230 Rejected Principal Original Loan AFCG Loan, net % of Total Cash Interest Paid In Kind Fixed/ Amortization Loan Names Status Balance as of YTM (2) Funding Date(1)
Slide 17: AFC Gamma Q1 2021 Book Value Per Share
AFC Gamma Q1 2021 Book Value Per Share B C D Q1 2021 12/31/2020 Q1 Offering 3/31/2021 Distributable As Reported (net proceeds) Stock Option CECL and FV Q1 Regular As Reported Earnings Adjustment Adjustment Dividend Book Value 91.6 million $123.9 million $3.2 million ($1.6) million ($0.2) million ($2
Slide 18: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings On May 7, 2021, the AFCG Board of $0.60 Directors declared a dividend of $0.50 $0.49 approximately $5.1 million or $0.40 $0.45 (2) $0.43 $0.38 per common share $0.30 to be paid on June 30, 2021 to stockholders of record on June 15, 2021 $0.20
Slide 19: Questions? Conclusion
Questions? Conclusion
Slide 20: Why AFC Gamma?
Why AFC Gamma? Backed by years of combined lending expertise and real estate experience, AFC Gamma is ideally positioned in the high-growth cannabis industry and poised to deliver enhanced value for shareholders Leading Institutional Loan Origination Rapidly Growing Addressable Market Platform • Fir
Slide 21: Appendix: Q1 2021 Financial Overview
Questions? APPENDIX Q1 2021 Financial Overview
Slide 22: Appendix A: First Quarter Balance Sheet
As Of March 31, 2021 December 31, 2020 APPENDIX A (unaudited) Assets Loans held for investment at fair value (cost of $48,833,111 and $46,994,711 at March 31, 2021 and December 31, 2020, respectively, $50,252,049 $48,558,051 First Quarter Balance Sheet net) Loans held for investment at carrying valu
Slide 23: Appendix B: First Quarter Income Statement
APPENDIX B For the three months First Quarter Income Statement ended March 31, 2021 (unaudited) Revenue Interest Income $ 4,685,005 Total revenue 4,685,005 Expenses Management and incentive fees, net (less rebate of $[237,743]) 876,662 General and administrative expense 2,061,633 Professional fees 1
Slide 24: Appendix C: Reconciliation of Distributable Earnings to GAAP Net Income
APPENDIX C Reconciliation of Distributable Earnings to GAAP Net Income For the three months ended March 31, 2021 Net Income $ 1,400,755 Adjustments to net income Non-Cash Equity compensation expense 1,599,115 Depreciation and amortization - Unrealized (gain), losses or other non-cash items 144,402 P
Slide 25: www.afcgamma.com
www.afcgamma.com