AFC Gamma, Inc. (NASDAQ:AFCG) reported its results for the first quarter of 2022.
“We are pleased with our strong performance in the first quarter and continued growth so far into 2022, which is evidenced by AFC Gamma’s results and steady dividend growth,” Leonard Tannenbaum, the company’s CEO, said. “At this time, the Board expects that the quarterly dividend should remain at least $0.55 per common share over the course of 2022.”
Q1 2022 Financial Highlights
- Net income of $10.2 million, or $0.53 per basic weighted average share of common stock.
- Distributable earnings of $11.9 million, or $0.62 per basic weighted average share of common stock.
- Paid a dividend of $0.55 per common share on April 15, 2022, representing a 10% increase from the prior quarter.
- Distributable earnings significantly exceeded the declared dividend for the fourth consecutive quarter.
- Book value of $17.04 per share as of March 31, 2022, an increase of $0.43, or 2.6%, compared to December 31, 2021.
- Total net interest income of $16.9 million, an increase of $12.3 million, or 261%, year-over-year.
- Total expenses of $6.4 million before provision for CECL, an increase of $3.3 million, or 108%, compared to the same quarter of the last fiscal year.
Portfolio & Investment Activity
- Closed $154.2 million of new commitments since the start of Q1 2022 and funded $131.5 million of new and existing commitments.
- Total loan commitments of $482.7 million ($419.1 million of which has been funded) across 12 portfolio companies as of May 9, 2022.
- The portfolio’s weighted average yield to maturity was approximately 19% as of March 31, 2022 and December 31, 2021.
- All loans are current and performing.
Dividend Payments
- On April 15, 2022, AFCG paid a regular quarterly cash dividend of $0.55 per share of common stock to its stockholders of record as of March 31, 2022.
- The aggregate amount of the regular cash dividend payment of $0.55 per share was approximately $10.9 million, which represents a 10% increase per share compared to the prior quarter.
Capitalization & Liquidity
- In January 2022, AFCG completed its follow-on offering of 3,291,832 shares of common stock (including the partial underwriters’ overallotment option) at $20.50 per share, raising approximately $63.0 million of additional net capital.
- 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 ability to increase the facility to $100 million (subject to available borrowing base and additional commitments).
Photo: Courtesy of Giorgio Trovato on Unsplash
