On August 7, 2024, AFC Gamma Inc (AFCG, Financial) released its 8-K filing for the second quarter of 2024. AFC Gamma Inc is a commercial real estate finance company that originates, structures, underwrites, and manages senior secured loans and other types of loans for established cannabis industry operators in states that have legalized medicinal and/or adult-use cannabis.
Performance Overview
AFC Gamma Inc (AFCG, Financial) reported GAAP net income of $16.4 million, or $0.80 per basic weighted average common share, significantly surpassing the analyst estimate of $0.44 per share. The company also reported Distributable Earnings of $11.4 million, or $0.56 per basic weighted average common share, for the second quarter of 2024.
Key Financial Achievements
The company achieved a revenue of $15.74 million, aligning with the analyst estimate. This performance is crucial for AFC Gamma Inc (AFCG, Financial) as it highlights the company's ability to generate consistent income from its loan portfolio, which is essential for a real estate investment trust (REIT) focused on the cannabis industry.
Income Statement Highlights
According to the income statement, AFC Gamma Inc (AFCG, Financial) reported net income of $16.4 million for the second quarter of 2024, compared to $12.1 million in the same period last year. This increase in net income demonstrates the company's effective portfolio management and strategic initiatives.
Balance Sheet and Cash Flow
The balance sheet shows a strong financial position with reduced reserves and increased book value. The cash flow statement indicates healthy cash flow from operations, which is vital for maintaining liquidity and funding future loan originations.
Dividend and Shareholder Returns
On July 15, 2024, AFC Gamma Inc (AFCG, Financial) paid a regular cash dividend of $0.48 per common share for the second quarter of 2024. The company distributed $9.9 million in dividends, reflecting its commitment to returning value to shareholders.
Commentary and Future Outlook
“We are excited to announce that AFC is now a pure-play cannabis lender after the spin-off of our commercial real estate portfolio on July 9, 2024. This transition positions us well to capitalize on cannabis market opportunities, and we are on track to meet or exceed our $100 million origination goal for this year. This quarter has been marked by strong performance. Our active portfolio management is showing positive momentum, with reduced reserves and increased book value, highlighting the effectiveness of our strategic initiatives,” said Daniel Neville, the Company’s Chief Executive Officer.
Conclusion
AFC Gamma Inc (AFCG, Financial) has demonstrated robust financial performance in the second quarter of 2024, exceeding analyst estimates and showcasing strong earnings and revenue growth. The company's strategic focus on the cannabis lending market and effective portfolio management have positioned it well for future growth. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from AFC Gamma Inc for further details.
