Financial Data and Key Metrics Changes - For Q3 2024, the company generated distributable earnings of $0.35 per basic weighted average share of common stock, with a GAAP net income of $1.4 million or $0.06 per share [14][26]. - The Board declared a post-spin dividend of $0.33 per share, marking the first dividend since the spin-off [15][32]. - Total assets as of September 30, 2024, were $366.6 million, with cash and cash equivalents of $122.2 million [29]. Business Line Data and Key Metrics Changes - The company originated approximately $59 million in new loans during Q3 2024, exceeding the annual target of $100 million, with total new originations reaching $116 million [8][24]. - The portfolio had a weighted average yield to maturity of approximately 18% as of both September 30 and November 1, 2024 [28][20]. Market Data and Key Metrics Changes - The company reported a modest exposure of 10% to the Florida market, focusing on current market conditions rather than future projections [44]. - The demand for debt capital in the cannabis sector is increasing, driven by refinancing activity and expansions, while traditional lenders remain cautious [19]. Company Strategy and Development Direction - The company aims to move up the quality curve while targeting a portfolio yielding mid- to high-teens internal rates of return (IRRs) [21]. - The strategy includes deploying capital into strong operators in limited license states and diversifying the portfolio [18][20]. Management's Comments on Operating Environment and Future Outlook - Management noted that the cannabis industry is facing challenges with revenue growth, particularly in mature markets like Illinois and New Jersey [40]. - The company remains optimistic about its ability to capitalize on opportunities in cannabis lending, despite a cautious lending environment [19][48]. Other Important Information - The company raised capital through its ATM stock offering program, generating net proceeds of approximately $12.2 million [30]. - The CECL reserve increased to $25.3 million, representing about 10.7% of loans at carrying value [31]. Q&A Session Summary Question: Guidance for 2025 loan origination targets - Management indicated that while they aim to be fully invested, they will cautiously deploy capital into good credits and new vintage loans, with a similar target for 2025 likely to be discussed in the fourth quarter call [35][36]. Question: Current risks in the cannabis industry compared to six months ago - Management acknowledged that revenue growth has been challenging, with competitive pressures in mature markets affecting profitability, but noted that as a debt lender, the current environment is manageable [40][41]. Question: Insights on Florida market exposure - Management stated that their Florida exposure is modest and they underwrite based on current market conditions, emphasizing the importance of being a challenger in the market [44][45]. Question: Trends in regional banks and lending activity - Management observed that more lenders are becoming cautious rather than entering the market, indicating that recent favorable rates are exceptions rather than the norm [47][48].

A D V A N C E D F L O W E R C A P I T A L | I N V E S TO R P R E S E N T AT IO N Advancing The Industry A Thoughtful Lending Partner Flexible Capital Solutions Deep Industry Experience Investor Presentation NASDAQ: AFCG Q3 2024 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N D I S C L A I M E R 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 ...

Core Insights - AFC Gamma Inc. reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, but down from $0.49 per share a year ago, indicating an earnings surprise of 2.94% [1] - The company posted revenues of $10.46 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 27.95% and down from $16.81 million year-over-year [2] - The stock has underperformed, losing about 21.5% since the beginning of the year compared to the S&P 500's gain of 25.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $14.86 million, and for the current fiscal year, it is $1.75 on revenues of $62.79 million [7] - The estimate revisions trend for AFC Gamma is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The REIT and Equity Trust industry, to which AFC Gamma belongs, is currently in the top 50% of over 250 Zacks industries, indicating a favorable outlook as top-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Advanced Flower Capital reported GAAP net income of $1.4 million, or $0.06 per basic weighted average common share, for Q3 2024[2]. - Distributable Earnings for Q3 2024 were $7.2 million, or $0.35 per basic weighted average common share[2]. - The reconciliation of GAAP net income to Distributable Earnings showed adjustments including stock-based compensation of $218,643 and unrealized gains of $4.6 million for Q3 2024[17]. - The basic weighted average shares of common stock outstanding were 20,684,149 for Q3 2024[17]. Dividend Policy - The company paid a dividend of $0.33 per common share for Q3 2024, distributing a total of $7.2 million in dividends[4]. - The company is committed to maintaining its dividend policy, aiming to distribute at least 90% of its annual REIT taxable income[14]. Growth and Strategy - The company surpassed its 2024 target of $100 million in new originations, highlighting strong portfolio management and origination efforts[3]. - The company anticipates continued growth and is focused on identifying high-quality operators in key markets[18]. - Advanced Flower Capital's management emphasizes the importance of Distributable Earnings as a measure for assessing overall business performance[11]. Regulatory Filings - The company filed its Quarterly Report on Form 10-Q with the SEC on November 13, 2024, providing detailed financial information[5].

Core Insights - Advanced Flower Capital Inc. reported a GAAP net income of $1.4 million or $0.06 per basic weighted average common share for Q3 2024, with Distributable Earnings of $7.2 million or $0.35 per share [1][2] - The company paid its first post-spin dividend of $0.33 per common share for the third quarter of 2024, distributing a total of $7.2 million in dividends [1][4] Financial Performance - The company achieved a GAAP net income of $1,383,734 for the three months ended September 30, 2024, compared to $7,979,875 for the same period in 2023 [14] - Distributable Earnings for Q3 2024 were reported at $7,246,005, down from $9,939,408 in Q3 2023 [15] - The basic weighted average shares of common stock outstanding increased to 20,684,149 in Q3 2024 from 20,324,125 in Q3 2023 [15] Operational Highlights - The CEO emphasized a strong quarter driven by active portfolio management and origination, surpassing the 2024 target of $100 million in new originations [3] - The company focuses on providing institutional loans to state law compliant cannabis operators in the U.S., with loans typically ranging from $10 million to over $100 million [8] Dividend Information - The regular cash dividend of $0.33 per common share reflects the company's commitment to returning value to shareholders, aligning with its REIT obligations to distribute at least 90% of annual taxable income [4][12] Additional Information - Advanced Flower Capital has made its Q3 2024 results available through a presentation on its website and filed its Quarterly Report on Form 10-Q with the SEC [5] - The company will host a conference call to discuss its quarterly financial results, allowing interested parties to participate [7]

Financial Performance - Distributable Earnings for Q3 2024 was $7,246,005, a decrease of 27.1% from $9,939,408 in Q3 2023 [195]. - Net income for Q3 2024 was $1,383,734, down 82.7% from $7,979,875 in Q3 2023 [194]. - Interest income decreased by $6.3 million, or 37.8%, for Q3 2024 compared to Q3 2023, primarily due to lower income from nonaccrual loans [200]. - Interest expense increased by $39.8 thousand, or 2.6%, for Q3 2024 due to higher borrowings on the Revolving Credit Facility [202]. - The book value per share as of September 30, 2024, was approximately $9.42, down from $15.64 as of December 31, 2023 [196]. Dividends and Shareholder Returns - The company declared cash dividends totaling $30.1 million for the nine months ended September 30, 2024, with a per-share amount of $1.44 [181]. - A one-time dividend of $0.15 per share was declared in connection with the Spin-Off, amounting to approximately $3.1 million [181]. Debt and Credit Facilities - The company entered into a $11.0 million senior secured credit facility with Private Company Q, with approximately $5.2 million drawn as of September 30, 2024, and a maturity date of September 1, 2028 [174]. - In October 2024, the company entered into a $41.0 million senior secured credit facility with Private Company R, fully funded at closing, maturing on November 1, 2027 [182]. - The company amended its credit agreement with Private Company J, increasing the total aggregate commitment by an additional $5.5 million, with $3.0 million funded as of September 30, 2024 [172]. - As of September 30, 2024, the company had $60.0 million of borrowings outstanding under its Revolving Credit Facility, with zero availability [248]. - The Revolving Credit Facility has aggregate commitments of $60.0 million, which may be increased to $100.0 million, and has a maturity date of April 29, 2025 [249]. Loan Portfolio and Investments - The total loan portfolio as of September 30, 2024, had an outstanding principal balance of approximately $298.7 million [219]. - The weighted average cash interest rate for the total loan portfolio was 12.9% as of September 30, 2024 [219]. - The company funded approximately $4.6 million in new loans and received approximately $4.5 million of principal repayments for loans held at fair value for the nine months ended September 30, 2024 [223]. - The company sold $19.3 million of its investment in Private Company B during the nine months ended September 30, 2024 [223]. - The portfolio of loans held at carrying value included eleven loans as of September 30, 2024, with an outstanding principal of approximately $242.8 million, down from $314.4 million as of December 31, 2023 [228]. Cash Flow and Liquidity - The company generated net cash from operating activities of approximately $19.3 million for the nine months ended September 30, 2024, which was less than dividend payments of $32.8 million during the same period [241]. - As of September 30, 2024, the company had unrestricted cash totaling approximately $122.2 million, an increase from $90.4 million as of December 31, 2023 [242]. - Net cash provided by operating activities of continuing operations for the nine months ended September 30, 2024 was approximately $16.1 million, an increase of approximately $1.1 million from the same period in 2023 [259]. - Net cash provided by investing activities of continuing operations during the nine months ended September 30, 2024 was approximately $99.3 million, compared to approximately $18.5 million for the same period in 2023 [260]. - Net cash used in financing activities of continuing operations during the nine months ended September 30, 2024 was approximately $(70.9) million, a decrease of approximately $29.8 million from the same period in 2023 [261]. Risk Management and Compliance - The company primarily provides loans to the cannabis industry, which involves significant risks due to federal illegality and potential regulatory changes [292]. - Management plans to monitor the legal landscape to mitigate risks associated with the cannabis industry [294]. - The company has evaluated the effectiveness of its disclosure controls and procedures, concluding they are effective for timely reporting as required by SEC rules [296]. - There have been no changes in internal control over financial reporting that materially affected the company's reporting during the quarter ended September 30, 2024 [298]. - As of September 30, 2024, the company is not subject to any material legal proceedings [299]. Future Outlook and Strategy - The company expects to raise additional equity and/or debt funds to increase liquidity for future investments in loans [247]. - The company anticipates that cash on hand, capacity under the Revolving Credit Facility, and cash flows from operations will be sufficient to service outstanding debt over the next twelve months [257]. - The company intends to maintain a leverage ratio of no more than 1 times equity, using prudent amounts of leverage for acquisitions and refinancing [270]. - The company plans to distribute at least 90% of its REIT taxable income annually to shareholders, with potential tax implications for undistributed income [271].

Wall Street expects a year-over-year decline in earnings on lower revenues when AFC Gamma Inc. (AFCG) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 13, 2024, might help the stock move higher if these key numbers are better th ...

WEST PALM BEACH, Fla., Sept. 13, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (Nasdaq:AFCG) (“AFC”) today announced its dividend for the quarter ending September 30, 2024. The Board of Directors of AFC declared a quarterly dividend of $0.33 for the quarter ending September 30, 2024 per outstanding share of common stock, payable on October 15, 2024 to the common stockholders of record on September 30, 2024. About AFC Gamma, Inc. AFC Gamma, Inc. (Nasdaq: AFCG) is a leading commercial mortgage REIT that provides i ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and ...

4x6 I initially covered AFC Gamma (NASDAQ:AFCG) in May, rating it a Hold. This decision was informed by a mostly positive view of its role as a real estate lender for the cannabis industry, where supply of capital is low and allows for attractively high yields on its loans. AFCG's story, however, was complicated by its portfolio of distressed, non-cannabis loans in commercial real estate that were pending SEC approval for a spinoff into Sunrise Realty Trust (SUNS). Since then, the spinoff was approved a ...