Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more background on what you have accomplished since joining AFC Gamma? A: Daniel Neville, Chief Executive Officer, explained that his three priorities were managing underperforming credits, focusing on origination, and enhancing underwriting. Significant progress has been made in recycling capital into new operators with attractive credit profiles and yields. The company has also been active in the cannabis space, closing $57 million in originations and engaging with quality operators. Additionally, Neville's operational experience aids in evaluating new credits effectively.
Q: Are there any changes on the supply side of capital for cannabis companies? A: Daniel Neville noted that the refinancing landscape remains largely unchanged, with the same players participating. Regional banks are not significantly involved, and AFC Gamma's bespoke credit solutions are valued over the more standardized approaches of regional banks.
Q: Can you provide any pro forma numbers or guidance on the new dividend range post-spin-off? A: Robyn Tannenbaum, President, stated that the Board will continue to declare dividends on the normal cadence. Historically, a $0.48 dividend has been declared for the last five quarters. Post-spin-off, AFC Gamma retained about two-thirds of its assets, spinning off approximately $5.56 of book value per share.
Q: What is the current status of the cannabis pipeline and origination targets for 2024? A: Daniel Neville mentioned that the company is making substantial progress towards its $100 million origination target for 2024, having closed $57.3 million in deals year-to-date. The cannabis pipeline is growing, currently standing at $346 million, with two additional deals in documentation.
Q: How does AFC Gamma view the current industry trends and capital market conditions? A: Daniel Neville expressed optimism about industry growth, driven by legalization efforts and increasing demand for capital. The company aims to capitalize on the supply-demand imbalance for debt capital, focusing on quality credits and targeting mid to high teens IRRs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.