Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — AFC Gamma — Q2 2021 Earnings Presentation
23 slides from Advanced Flower Capital's earnings presentation, Aug 5, 2021
Slide 1: AFC Gamma, Inc. Q2 2021 Earnings Presentation
AFC Gamma, Inc. Q2 2021 Earnings Presentation August 5, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we intend su
Slide 3: Legal Disclaimers
Legal Disclaimers Important Notices This presentation is by AFC Gamma, Inc., a publicly traded company that will elect to be taxed as a REIT for federal income tax purposes and is being furnished in connection with AFCG’s results. This presentation is provided for investors in AFCG for informational
Slide 4: Management Presenters
Management Presenters Leonard Jonathan Thomas Robyn Brandon Tannenbaum Kalikow Geoffroy Tannenbaum Hetzel Founder & Chief Executive Head of Real Estate Chief Financial Officer Partner, Head of Origination Controller Officer and Investor Relations Over 22 years of experience in credit Over 15 years e
Slide 5: Agenda
Agenda 1 Why AFC Gamma? 4 Corporate Overview 2 Q2 2021 Financial Highlights 5 Appendix 3 Market Opportunity Corporate Overview 5
Slide 6: Why AFC Gamma?
Why AFC Gamma? Backed by years of combined lending expertise and real estate experience, AFC Gamma is well-positioned in the high-growth cannabis industry and poised to deliver enhanced value for shareholders A Leading Institutional Loan Rapidly Growing Addressable Market Origination Platform • Prem
Slide 7: AFCG Company Overview: A Leading Lender to the Cannabis Space
AFCG Company Overview A Leading Lender to the Cannabis Space (1) Premier Commercial Mortgage REIT NASDAQ: AFCG • Only NASDAQ-listed provider of institutional loans to the cannabis industry $237MM ~21% • Originates and funds loans to established high-quality cannabis operators in states with attracti
Slide 8: Market Opportunity in the Current Environment
Market Opportunity in the Current Environment Legalization Fuels Expanding Market Size(1) 68% ~20% ~192MM $ > 38.4Bn Americans Support Projected Adult-Use Retail People Worldwide Use Expected Legal Market Size Legalization Cannabis Market CAGR Cannabis as of 2018 by 2025 2020-2025 Potential Reform a
Slide 9: AFCG's Market Opportunity
AFCG’s Market Opportunity Limited Supply of Capital • Institutional banks generally decline to provide full services to cannabis- related businesses • Alternative sources of financing needed to complete commitments, allowing lenders to demand strong risk-adjusted returns with significant collateral
Slide 10: Impact of COVID-19
Impact of COVID-19 Medical cannabis users with Most state governments Of the 29 states with 91% mental health conditions reported a 91% increase in around the nation have deemed medical marijuana operational cannabis programs, all but one have use on average since companies “essential” during deemed
Slide 11: From Origination to Management
From Origination to Management Given our commitment to sourcing loans with high return potential and controlled risk, AFCG is involved in all key phases of the lending process 1 Origination 2 Underwriting 3 Investment Committee 4 Ongoing Review AFCG maintains a direct- AFCG screens potential Our Inv
Slide 12: AFC Gamma's Underwriting Criteria
AFC Gamma’s Underwriting Criteria Borrower & Operations Real Estate & Structure State-by-State Analysis • Type of operations – cultivation, processing, • Type of cultivation (outdoor, greenhouse, indoor), processing • Legislative environment of every state a company operates manufacturing and distri
Slide 13: AFC Gamma Maintains a Strong Deal Funnel and Pipeline
AFC Gamma Maintains a Strong Deal Funnel and Pipeline Deals Sourced $6.7Bn(1) Through AFC Gamma’s direct Potential Funding of Active Deals origination platform, the Company $855MM(2) continues to source deals across the Total Commitments Since cannabis industry in various states and Inception by the
Slide 14: Investment Portfolio Activity
Investment Portfolio Activity (1) Current Commitments (in millions) $250 $200 $20.7 $24.0 $150 Weighted average yield to maturity of $100 $33.5 $130.7 $163.7 $187.7 $174.6 $195.3 ~21% (3) as of August 1, 2021 $50 $97.2 $0 (2) Q1 2021 Q2 2021 As of 8/1/21 Funded Unfunded $17.7 (1) Current Commitments
Slide 15: Diversified Portfolio Across Geography Type
Diversified Portfolio Across Geography Type 36 states + DC have legalized medicinal cannabis, of those, Cannabis is a rapidly expanding market AFCG’s active loan portfolio includes 15 18 + DC have legalized adult use cannabis and 2 states with a limited supply of institutional capital loans across 1
Slide 16: AFCG Portfolio Summary
AFCG Portfolio Summary AFCG has reviewed 344 deals, representing $6.7 billion in Aggregate Value* 15 Funded Original Funding 3 Committed AFCG Loan, net % of Total Principal Balance 65 In Review Cash Interest Paid In Kind Fixed/ Amortization 261 Rejected Loan Names Status Loan Maturity YTM (2)(3) Dat
Slide 17: AFC Gamma Q2 2021 Book Value
AFC Gamma Q2 2021 Book Value* (1) 97.2 *June 30, 2021 values per share based on 16,116,877 shares of common stock outstanding as of June 30, 2021. Year to Date (“YTD”) for the six months ended June 30, 2021. 17
Slide 18: Distributable Earnings & Dividends
Distributable Earnings & Dividends Distributable Earnings $0.60 $0.50 (3) (1) $0.43 $0.40 $0.45 $0.30 (4) $0.20 (2) $0.38 $0.36 $0.10 $0.00 Q1 2021 Q2 2021 (Private) Dividend Distributable Earnings (1) Distributable earnings per share based on 7,144,670 basic weighted average common shares outstandi
Slide 19: Questions? Appendix
Questions? APPENDIX Q2 2021 Financial Overview
Slide 20: Appendix A: Second Quarter Balance Sheets
As Of June 30, 2021 December 31, 2020 (unaudited) APPENDIX A Assets Loans held for investment at fair value (cost of $43,916,537 and $46,994,711 at June 30, 2021 and December 31, 2020, respectively, net) $ 44,852,315 $ 48,558,051 Loans held for investment at carrying value 105,404,185 31,837,031 Sec
Slide 21: Appendix B: Second Quarter Income Statements
APPENDIX B For the three For the six months months Second Quarter Income Statements ended ended June 30, June 30, 2021 2021 (unaudited) (unaudited) Revenue Interest Income $ 8,748,519 $ 13,433,524 Total revenue 8,748,519 13,433,524 Expenses Management and incentive fees, net (less rebate of $182,707
Slide 22: Appendix C: Reconciliation of Distributable Earnings to GAAP Net Income
APPENDIX C Reconciliation of Distributable Earnings to GAAP Net Income For the three For the six months ended months ended June 30, 2021 June 30, 2021 Net Income $ 4,627,787 $ 6,028,542 Adjustments to net income Non-Cash Equity compensation expense 11,457 1,610,572 Depreciation and amortization - -
Slide 23: www.afcgamma.com
www.afcgamma.com