AFC Gamma Inc
NASDAQ:AFCG
AFC Gamma Inc
AFC Gamma, Inc. provides commercial real estate finance services. The company is headquartered in West Palm Beach, Florida and currently employs 0 full-time employees. The company went IPO on 2021-02-11. The firm is primarily focused on financing senior secured loans and other types of loans for established cannabis industry operators in states where medical and/or adult use cannabis is legal. These loans are generally held for investment and are secured, directly or indirectly, by real estate, equipment, licenses and/or other assets of borrowers depending on the applicable laws and regulations governing such borrowers. Its activity includes cash distributions and capital appreciation by providing loans to state law compliant cannabis companies. The Company’s loans typically have up to a five-year maturity and contain amortization and/or cash flow sweeps.
AFC Gamma, Inc. provides commercial real estate finance services. The company is headquartered in West Palm Beach, Florida and currently employs 0 full-time employees. The company went IPO on 2021-02-11. The firm is primarily focused on financing senior secured loans and other types of loans for established cannabis industry operators in states where medical and/or adult use cannabis is legal. These loans are generally held for investment and are secured, directly or indirectly, by real estate, equipment, licenses and/or other assets of borrowers depending on the applicable laws and regulations governing such borrowers. Its activity includes cash distributions and capital appreciation by providing loans to state law compliant cannabis companies. The Company’s loans typically have up to a five-year maturity and contain amortization and/or cash flow sweeps.
BDC Conversion: Shareholders strongly approved AFC's plan to convert from a REIT to a business development company (BDC), expanding its investment universe beyond cannabis and real estate.
Dividend Suspension: AFC will not pay a dividend in Q4 2025 due to an anticipated $4 million taxable loss from a settled nonaccrual loan; year-to-date, $0.53 per share has been distributed.
Financial Performance: Q3 distributable earnings were $0.16 per share; GAAP net loss was $12.5 million, or $0.57 per share.
Portfolio Activity: AFC received $43 million in principal repayments since Q2 and is redeploying capital into higher-yielding opportunities.
Expanded Pipeline: The deal pipeline totals about $415 million, with $60 million in cannabis and the remainder in non-cannabis, industry-agnostic opportunities.
Credit Challenges: Legacy underperforming loans continue to impact results, with ongoing work to maximize recoveries.
