AFC Gamma, Inc. (NASDAQ:AFCG) released its results for the third quarter of 2022, revealing net income of $11.5 million in Q3 2022, or $0.57 per basic weighted average share of common stock, representing a 45% increase to net income from Q3 2021.
Third Quarter 2022 Highlights
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Distributable earnings of $11.8 million in Q3 2022, or $0.59 per basic weighted average share of common stock, representing a 64% increase to distributable earnings from Q3 2021
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Paid a dividend of $0.56 per common share on October 14, 2022 for Q3 2022, representing a 30% increase from Q3 2021
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Distributable earnings exceeded the declared dividend for the seventh consecutive quarter since going public
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Book value of $17.06 per share as of September 30, 2022, an increase of $0.45, or 2.7%, compared to December 31, 2021
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Egan Jones reaffirmed its BBB+ investment grade rating of AFC Gamma
“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 CEO. “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.”
Portfolio and Investment Activity
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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
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Total loan commitments of $426.2 million ($368.6 million of which has been funded) across 12 portfolio companies as of November 1, 2022
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The portfolio’s weighted average yield to maturity was approximately 20% as of November 1, 2022
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All loans are current and performing
Results of Operations for the Quarter Ended September 30, 2022
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Total net interest income of $18.1 million, an increase of $7.5 million, or 71%, compared to Q3 2021
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Distributable earnings of $11.8 million, an increase of $4.6 million, or 64%, compared to Q3 2021
Dividend Payments
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On October 14, 2022, AFCG paid a regular quarterly cash dividend of $0.56 per share of common stock to its stockholders of record as of September 30, 2022
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The aggregate amount of the regular cash dividend payment of $0.56 per share was approximately $11.4 million, which represents a 30% increase per share compared to the quarter ended September 30, 2021
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