AFC Gamma (NASDAQ:AFCG) Issues Earnings Results

AFC Gamma (NASDAQ:AFCG) issued its quarterly earnings data on Thursday. The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of $0.19 by $0.04, FiscalAI reports. The firm had revenue of $6.77 million for the quarter, compared to analyst estimates of $8.59 million. AFC Gamma had a positive return on equity of 1.48% and a negative net margin of 43.21%.

Here are the key takeaways from AFC Gamma’s conference call:

• Net asset value increased to $8.25 per share, up $0.35 sequentially, driven by $0.15 of net investment income, $0.17 of accretion from share repurchases, and approximately $0.08 of unrealized appreciation. Net investment income covered the $0.05 quarterly distribution by three times.
• AFC reported a $1.3 billion lower-middle-market pipeline and more than $70 million of available liquidity, supporting continued investment despite management’s expectation that originations will remain lumpy. The company also committed $7 million to a behavioral-health credit facility after quarter-end.
• The company repurchased approximately $2.8 million of stock during the quarter at an average price of $3.29 per share, leaving $2.2 million under its authorized $5 million program. Management said the buybacks were $0.17 accretive to NAV per share.
• Legacy cannabis credit issues remain a key risk: the Justice Grown loan is in maturity default and AFC has begun Article 9 foreclosure proceedings, while other non-accrual cannabis investments continue through liquidation or repayment processes.
• AFC’s portfolio totaled $290 million across 17 companies, consisting entirely of senior secured first-lien investments with a 13.2% weighted-average yield excluding non-accrual loans. Leverage was 1.1 times debt-to-equity, while management said it remains cautious on new cannabis lending because borrowers still face limited access to equity capital.

AFC Gamma Stock Performance

NASDAQ:AFCG opened at $2.98 on Friday. The company has a market cap of $70.24 million, a price-to-earnings ratio of -4.78 and a beta of 0.91. AFC Gamma has a fifty-two week low of $2.06 and a fifty-two week high of $5.10. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.41 and a current ratio of 1.41. The stock has a fifty day moving average price of $3.00 and a 200-day moving average price of $2.84.

AFC Gamma Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date was Tuesday, June 30th. AFC Gamma’s dividend payout ratio is presently -31.25%.

Wall Street Analyst Weigh In

AFCG has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of AFC Gamma in a research report on Friday, July 17th. Zacks Research raised shares of AFC Gamma from a “strong sell” rating to a “hold” rating in a report on Monday, April 20th. Finally, Wall Street Zen lowered shares of AFC Gamma from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $4.50.

About AFC Gamma

AFC Gamma, Inc is a specialty finance real estate investment trust that focuses on providing structured financing solutions to companies operating and developing digital infrastructure and life science real estate assets. As a REIT, AFC Gamma seeks to generate attractive risk-adjusted returns through a diversified portfolio of loans, preferred equity and other financing structures that are secured by tangible property collateral or contractual revenue streams.

The company’s primary business activities include originating, acquiring and managing secured loans and equity investments that support wireless and broadband network deployment, data center expansion, and life sciences facility development.