Record Date for Distribution of Sunrise Realty Trust to be July 8, 2024Distribution Date Expected to be July 9, 2024Board of Directors Declares $0.15 per Share Spin-Off Special Dividend WEST PALM BEACH, Fla., June 27, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that the previously announced spin-off of its commercial real estate portfolio is expected to be completed on July 9, 2024. The commercial real estate portfolio will spin-off into a new independent, publicly-t ...

WEST PALM BEACH, Fla., June 04, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) ("AFC Gamma") today announced that it has successfully exited its $84.0 million loan to Subsidiary of Public Company H. This was AFC Gamma's largest loan in its portfolio and during our last earnings call, we noted that the borrower failed to make its April interest payment in May. Through active portfolio management, AFC Gamma is pleased to announce that it has sold the loan to a third-party at par plus accrued, which ge ...

WEST PALM BEACH, Fla., June 04, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma”) today announced that it has successfully exited its $84.0 million loan to Subsidiary of Public Company H. This was AFC Gamma’s largest loan in its portfolio and during our last earnings call, we noted that the borrower failed to make its April interest payment in May. Through active portfolio management, AFC Gamma is pleased to announce that it has sold the loan to a third-party at par plus accrued, which ge ...

WEST PALM BEACH, Fla., May 20, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) ("AFC Gamma") today announced the anticipated composition of the Boards of Directors for each of AFC Gamma and Sunrise Realty Trust, Inc. ("SUNS") following the spin-off of AFC Gamma's commercial real estate portfolio, which is currently held in its wholly-owned subsidiary, SUNS (the "Spin-Off"). The Spin-Off is expected to be completed in mid-2024, at which time SUNS will operate as a separate company that intends to elec ...

AFC Gamma, Inc. (NASDAQ:AFCG) Q1 2024 Results Conference Call May 9, 2024 10:00 AM ET Company Participants Gabriel Katz - Chief Legal Officer Daniel Neville - Chief Executive Officer Robyn Tannenbaum - President Brandon Hetzel - Chief Financial Officer Operator Good morning, and welcome to AFC Gamma's First Quarter 2024 Earnings Call [Operator Instructions]. As a reminder, this call is being recorded. I would now like to turn the call over to Gabriel Katz, Chief Legal Officer. Please go ahead. Gabriel Katz ...

First quarter 2024 GAAP net loss of $(0.1) million or $(0.01) per basic weighted average common share and Distributable Earnings(1) of $10.0 million or $0.49 per basic weighted average common share Paid dividend of $0.48 per common share for first quarter 2024 WEST PALM BEACH, Fla., May 09, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) ("AFC Gamma" or the "Company") today announced its results for the first quarter ended March 31, 2024. AFC Gamma reported generally accepted accounting principles (" ...

AFC Gamma, Inc. Announces Financial Results for First Quarter 2024 First quarter 2024 GAAP net loss of $(0.1) million or $(0.01) per basic weighted average common share and Distributable Earnings(1) of $10.0 million or $0.49 per basic weighted average common share Paid dividend of $0.48 per common share for first quarter 2024 WEST PALM BEACH, FL, May 9, 2024 (GLOBE NEWSWIRE) – AFC Gamma, Inc. (NASDAQ:AFCG) (“AFC Gamma” or the “Company”) today announced its results for the first quarter ended March 31, 2024. ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2024 report a net loss of **$54,116**, a significant decline from **$10.0 million** net income in Q1 2023, with total assets increasing to **$476.4 million** and liabilities rising to **$165.8 million** [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202024%20(unaudited)%20and%20December%2031%2C%202023) Total assets increased to **$476.4 million** as of March 31, 2024, driven by growth in loans, while total liabilities rose to **$165.8 million** due to increased borrowings, leading to a decrease in shareholders' equity to **$310.6 million** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$476,406** | **$466,585** | | Cash and cash equivalents | $82,298 | $121,626 | | Loans held for investment, net | $383,522 | $338,717 | | **Total Liabilities** | **$165,785** | **$146,533** | | Line of credit payable, net | $60,000 | $42,000 | | Senior notes payable, net | $88,163 | $88,015 | | **Total Shareholders' Equity** | **$310,621** | **$320,052** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20months%20ended%20March%2031%2C%202024%20and%202023%20(unaudited)) The company reported a net loss of **$54,116** for Q1 2024, a significant decline from **$10.0 million** net income in Q1 2023, primarily due to decreased net interest income, increased credit loss provisions, and unrealized losses on loans Statements of Operations Highlights (in thousands) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $14,758 | $16,832 | | Total Expenses | $6,015 | $6,412 | | Provision for current expected credit losses | $(4,932) | $(702) | | Change in unrealized (losses) on loans at fair value, net | $(3,614) | $(1,478) | | **Net (Loss) Income** | **$(54)** | **$10,025** | | **Diluted (Loss) Earnings Per Share** | **$(0.01)** | **$0.49** | [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20three%20months%20ended%20March%2031%2C%202024%20and%202023%20(unaudited)) Shareholders' equity decreased to **$310.6 million** as of March 31, 2024, primarily due to **$9.9 million** in common stock dividends and a net loss of **$54,116**, partially offset by stock-based compensation - Dividends declared on common shares were **$0.48 per share** in Q1 2024, totaling **$9.9 million**, compared to **$0.56 per share** in Q1 2023, which totaled **$11.5 million**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031%2C%202024%20and%202023%20(unaudited)) Cash and cash equivalents decreased by **$39.3 million** in Q1 2024, with **$6.4 million** provided by operating activities, **$53.9 million** used in investing activities, and **$8.2 million** provided by financing activities Cash Flow Summary (in thousands) | Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,373 | $4,383 | | Net cash (used in) provided by investing activities | $(53,881) | $14,992 | | Net cash provided by (used in) financing activities | $8,180 | $(79,141) | | **Net (decrease) in cash** | **$(39,328)** | **$(59,767)** | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements%20(unaudited)) The notes detail accounting policies, loan portfolio composition, credit loss provisions, and debt structure, highlighting the company's specialization in cannabis industry loans and expansion into commercial real estate, with several loans on non-accrual status - The company primarily originates, structures, and manages senior secured loans, with a specialization in loans to cannabis industry operators and, more recently, to the broader commercial real estate sector[26](index=26&type=chunk)[28](index=28&type=chunk) - The Current Expected Credit Loss (CECL) Reserve increased to **$31.4 million** as of March 31, 2024, from **$26.4 million** at year-end 2023, representing **8.71%** of total loans held at carrying value[56](index=56&type=chunk)[58](index=58&type=chunk) - As of March 31, 2024, the company had **$60.0 million** outstanding on its Revolving Credit Facility and **$90.0 million** in principal outstanding on its **5.75% 2027 Senior Notes**[63](index=63&type=chunk)[69](index=69&type=chunk) - Subsequent to the quarter's end, in April 2024, a borrower (Subsidiary of Public Company H) defaulted on its interest payment, and the lenders are evaluating their rights and remedies[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of the company's business, recent developments including the planned spin-off of its CRE portfolio, and financial performance, noting a decrease in net income due to lower interest income and higher credit loss provisions, with Distributable Earnings at **$0.49 per share** for Q1 2024 [Overview and Spin-Off](index=29&type=section&id=Overview%20and%20Spin-Off) The company, a lender specializing in cannabis industry loans, has expanded into commercial real estate lending and announced a plan to spin off its CRE portfolio into Sunrise Realty Trust, Inc. (SUNS) to refocus on its core cannabis business - The company has expanded its investment guidelines from solely cannabis-related loans to include a broader range of commercial real estate (CRE) lending opportunities[126](index=126&type=chunk)[128](index=128&type=chunk) - Announced a plan to spin-off its CRE portfolio into a new, independent, publicly-traded REIT, Sunrise Realty Trust, Inc. (SUNS), to allow AFCG to focus on its core cannabis lending strategy[135](index=135&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) [First Quarter Developments and Loan Portfolio](index=31&type=section&id=First%20Quarter%20Developments%20and%20Loan%20Portfolio) In Q1 2024, the company funded **$85.8 million** in new loans, primarily in CRE, managed several non-accrual loans, and received a full repayment from Private Company I, with the total loan portfolio outstanding principal at **$439.2 million** - Funded two new CRE mezzanine loans (CRE Private Co. A and B) with a combined principal of **$46.7 million**[140](index=140&type=chunk)[141](index=141&type=chunk) - Private Company I, previously on non-accrual, was fully repaid, with the company receiving **$3.8 million** in principal and recognizing **$0.7 million** in past-due cash interest[149](index=149&type=chunk) - Placed Private Company A on non-accrual status effective March 1, 2024, and continued to manage non-accrual loans with Private Company G and Private Company K through forbearance agreements[143](index=143&type=chunk)[145](index=145&type=chunk)[147](index=147&type=chunk) [Results of Operations and Key Metrics](index=32&type=section&id=Results%20of%20Operations%20and%20Key%20Metrics) Q1 2024 saw a net loss of **$(0.1) million**, a significant decline from **$10.0 million** net income in Q1 2023, primarily due to decreased interest income and increased credit loss provisions, with Distributable Earnings at **$0.49 per share** GAAP Net (Loss) Income to Distributable Earnings Reconciliation (in millions) | Metric (in millions) | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Net (loss) income | $(0.1) | $10.0 | | Stock-based compensation | $0.5 | $0.3 | | Unrealized losses | $3.6 | $1.5 | | Provision for credit losses | $4.9 | $0.7 | | TRS (income) loss, net | $0.9 | $(0.9) | | **Distributable earnings** | **$10.0** | **$11.6** | | **Distributable earnings per share** | **$0.49** | **$0.57** | - Interest income decreased by **$2.1 million** (**11.6%**) YoY, primarily due to a loan to Subsidiary of Private Company G being on non-accrual status[166](index=166&type=chunk) - The provision for current expected credit losses increased by **$4.2 million** YoY, driven by changes in macroeconomic factors and borrower-specific conditions[176](index=176&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held **$82.3 million** in cash and cash equivalents, with its **$60.0 million** revolving credit facility fully drawn and **$90.0 million** in senior notes outstanding, while no shares were sold or repurchased during the quarter - Cash and cash equivalents stood at **$82.3 million** as of March 31, 2024, down from **$121.6 million** at the end of 2023[199](index=199&type=chunk) - The company had **$60.0 million** of borrowings outstanding under its Revolving Credit Facility, with zero remaining availability as of March 31, 2024[203](index=203&type=chunk) - No shares were sold under the At-the-Market (ATM) program or repurchased under the Share Repurchase Program during Q1 2024[200](index=200&type=chunk)[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk disclosures highlight exposure to interest rate, credit, and real estate risks, with **51%** of the loan portfolio being floating-rate and the top four borrowers representing **58.3%** of outstanding principal - The company is exposed to interest rate risk, with **51%** of its loan portfolio (by principal) having floating interest rates as of March 31, 2024[227](index=227&type=chunk) - A hypothetical **100 basis point** increase in floating benchmark rates would increase annual interest income by approximately **$2.3 million**, while a **100 basis point** decrease would lower it by approximately **$1.9 million**[234](index=234&type=chunk) - The loan portfolio has significant credit risk concentration, with the top four borrowers representing approximately **58.3%** of the aggregate outstanding principal balance as of March 31, 2024[242](index=242&type=chunk) - The company faces unique risks related to its cannabis industry loans, including the federal illegality of cannabis and potential inability to take possession of collateral, which management mitigates by monitoring the legal landscape and planning to sell defaulted loans rather than foreclose[244](index=244&type=chunk)[246](index=246&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[249](index=249&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[251](index=251&type=chunk) [Part II. Other Information](index=52&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company was not subject to any material legal proceedings as of March 31, 2024 - As of March 31, 2024, the company was not subject to any material legal proceedings[253](index=253&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the Risk Factors disclosed in the Annual Report for the fiscal year ended December 31, 2023 - There were no material changes to the Risk Factors disclosed in the company's Annual Report for the fiscal year ended December 31, 2023[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no share repurchases during the quarter, with **$20.0 million** remaining in its repurchase program - The company did not have any unregistered sales of equity securities during the period[255](index=255&type=chunk) - No shares of common stock were repurchased during the three months ended March 31, 2024, under the company's **$20.0 million** share repurchase program[256](index=256&type=chunk)[257](index=257&type=chunk) [Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None reported[258](index=258&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[259](index=259&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) None reported - None reported[260](index=260&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the 10-Q report, including amendments to agreements and CEO/CFO certifications - The report includes a list of all exhibits filed, such as the Indenture for the 2027 Senior Notes and CEO/CFO certifications[261](index=261&type=chunk)

Cannabis real estate investment trusts (REIT) could see higher highs on a few key catalysts. For one, hedge fund manager Dougie Kass of Seabreeze Capital recently said the Food and Drug Administration (FDA) would soon reschedule cannabis to a less restrictive category. Two, there is growing speculation cannabis could be favorably mentioned as we near the presidential election this year. Three, 88% of the American public wants to see cannabis legalized, as noted in a recent Pew Research poll. “The use and po ...

WEST PALM BEACH, Fla., April 10, 2024 (GLOBE NEWSWIRE) -- AFC Gamma, Inc. (NASDAQ:AFCG) ("AFC Gamma") today announced that it plans to report earnings for the quarter ended March 31, 2024 on Thursday, May 9, 2024. AFC Gamma will host a conference call at 10:00 am Eastern Time on Thursday, May 9, 2024 to discuss its quarterly financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC Gamma's website at ...