AFC Gamma (NASDAQ:AFCG) – AFC Gamma Q2 2022 net income increases 147%, what about distributable earnings?


AFC Gamma, Inc. AFCG released its second quarter 2022 results, revealing notand revenue of $11.4 million in the second quarter of 2022, or $0.58 per basic weighted average share of common stock, a 147% increase compared to net income of $4.6 million in Q2 2021.

Q2 2022 Financial Strong points

  • Distributable income of $13.6 million in the second quarter of 2022, or $0.69 per basic weighted average share of common stock, an increase of 135% compared to Q2 2021.

  • Paid a dividend of $0.56 per common share July 15, 2022 for Q2 2022, representing a 47% increase from Q2 2021

  • distributable profit exceeded the declared dividend for the fifth consecutive year trimester

  • Book value of $17.03 per share as of June 30, 2022, an increase of $0.42, or 2.5%, from December 31, 2021

“Given the current market environment with operators under price pressure and longer lead times to raise capital, we continue to be disciplined in our approach to capital deployment. We are focused on supporting existing operators as well as new operators with strong track records in the industry,” said Leonard Tannenbaum, CEO of AFC Gamma. “Despite the slower-than-expected pace of originations, we have the capacity to close more deals and expect to close some over the next quarter. We look forward to continuing to support the industry as it grows. and mature.

Portfolio and investment activity

  • Closed $154.7 million in new commitments and funded $135.5 million in new and existing commitments year-to-date through August 1, 2022, including approximately $32.0 million that was refinanced by existing borrowers

  • Total loan commitments of $483.2 million (of which $423.1 million have been funded) in 12 portfolio companies as of August 1, 2022

  • The weighted average yield to maturity of the portfolio was approximately 18% as of June 30, 2022 and 19% as of December 31, 2021

  • All loans are current and performing

Operating results for the quarter ended June 30, 2022

  • Total net interest income of $19.9 million, an increase of $11.2 million, or 128%, over Q2 2021

  • Distributable income of $13.6M, up $7.8M, or 135%, from Q2 2021

Dividend payments

  • On July 15, 2022, AFCG paid a regular quarterly cash dividend of $0.56 per common share to its shareholders of record as of June 30, 2022

  • The total amount of the regular cash dividend payment of $0.56 per share was approximately $11.1 million, representing a 47% increase per share from the quarter ended June 30, 2021

Capitalization and liquidity

In April 2022, AFCG entered into a senior secured revolving credit facility with $60 million of current commitments from two FDIC-insured banks and the option to increase the facility to $100 million.

picture by Marco Mackenzie on Unsplash

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