U.S. Markets closed

Cannabis REIT AFC Gamma Reports 276% Net Income Growth Reaching $7.9M In Q2

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • AFCG

AFC Gamma Inc. (NASDAQ: AFCG) released its results Thursday for the quarter ended September 30, 2021, reporting net income of $7.9 million versus net income of $2.11 million in the same period of the prior year. The cannabis-focused commercial real estate finance company also disclosed adjusted earnings per share of $0.44, compared to adjusted EPS of $0.22 in the same quarter of 2020.

Q2 Financial Highlights

  • Distributable earnings reached $7.2 million, which compares to $542,450 in the second quarter of the previous year;

  • Closed $119.2 million of new commitments and funded $89.3 million of new and existing commitments.

Milestones Subsequent To The Second Quarter

  • Closed $50 million of new commitments and funded $52.3 million of new and existing commitments in the fourth quarter as of November 1, 2021;

  • Paid a dividend of $0.43 per common share on October 15, 2021 for Q3 2021, representing a 13.2% increase from the prior quarter;

  • Received a BBB+ investment grade rating from Egan-Jones in October 2021;

  • Closed its $100 million 5.75% senior unsecured debt offering.

“We are pleased with the progress we are making on our business plan. Since the start of the third quarter, AFC Gamma closed on over $165 million in new commitments, and our pipeline remains robust,” Leonard Tannenbaum, AFC Gamma’s CEO stated. “Importantly, our successful completion of a $100 million unsecured debt offering established AFC Gamma’s initial debt cost of capital and enables the continued expansion of our loan portfolio. As a result of our growth and performance, we were also pleased to increase our quarterly dividend by 13.2% and reward our shareholders. We look forward to continuing to amplify our presence as a lender within the growing cannabis industry while delivering enhanced shareholder value.”

Price Action

View more earnings on AFCG

AFC Gamma’s shares were trading 3.67% higher at $24.04 per share at the time of writing Thursday morning.

Photo: Courtesy of Diyahna Lewis on Unsplash

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.