AFC Gamma, Inc. (NASDAQ: AFCG) announced its financial results for the third quarter of 2022. with a net income of $11.5 million or $0.57 per basic weighted average share of common stock. This is a 45% increase in net income from last year’s third quarter. It missed Zack’s estimate which was listed at $0.67 per share.
AFC Gamma said it paid a dividend of $0.56 per common share on October 14, 2022, for the quarter, representing a 30% increase from last year’s third quarter.
The distributable earnings were $11.8 million in the quarter or $0.59 per basic weighted average share of common stock, representing a 64% increase to distributable earnings from last year. AFC noted that the distributable earnings exceeded the declared dividend for the seventh consecutive quarter since going public.
“We are pleased with our third quarter performance and that AFC Gamma’s distributable earnings per share has now exceeded its dividend for the seventh consecutive quarter since going public,” stated Leonard Tannenbaum, AFC Gamma’s Chief Executive Officer. “Given the current broader market environment, we continue to act disciplined in our approach towards deploying capital to new and existing operators. Given substantial repayments subsequent to quarter end, our balance sheet remains strong, and we have ample capacity to complete additional deals with strong risk-adjusted returns.”
AFC said all loans were current and performing. A couple of weeks ago AFC Gamma reported that it had amended its previously announced $100 million credit facility with Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF). AFC made an additional $25 million available for an immediate draw by Acreage, with a further $25 million available in future periods under a committed accordion option. The terms of these additional draws replace the prior $50 million accordion option. The Amended Credit Facility now includes a variable interest rate equal to U.S. prime plus 5.75 % per annum, payable monthly in arrears, with a Prime floor of 5.50%.
AFC Gamma had a busy quarter as it closed $203.8 million of new commitments and funded $167.6 million of new and existing commitments year-to-date as of November 1, 2022, including approximately $32.0 million which was refinanced from existing borrowers. the company has total loan commitments of $426.2 million ($368.6 million of which has been funded) across 12 portfolio companies as of November 1, 2022.
Egan Jones reaffirmed its BBB+ investment grade rating of AFC Gamma.