AFC Gamma, Inc. AFCG declared dividends for the quarter ending June 30, 2023 and announced a share repurchase program.
The board of directors of AFC Gamma declared a quarterly dividend for the quarter ending June 30, 2023 of $0.48 per outstanding share of common stock, payable on July 14, 2023 to the common stockholders of record on June 30, 2023. The $0.48 quarterly dividend represents an annual run rate of $1.92. Management anticipates that the June quarterly dividend represents a sustainable dividend level on the current portfolio, assuming no significant non-accruals and without any additional investments. The $0.48 dividend level takes into account recent repayments the company has received and cash drag associated with the current liquidity on its balance sheet, including from those recent repayments. The company remains focused on deploying capital into deals with strong risk adjusted returns both in cannabis and traditional real estate loans, but expects reduced earnings until the cash is deployed and leverage is drawn.
AFC Gamma’s stated policy is to pay dividends between 85% and 100% of ordinary income for each calendar year. If the company’s annual dividend falls below the stated range due to increased earnings, the company will consider paying a special dividend at the end of the year to stay within the stated range.
Share Repurchase Program
Since the beginning of 2023, certain executives of the company have purchased approximately $2.9 million worth of AFC Gamma stock in the aggregate. Given the current volatility in AFC Gamma’s share price, the board of directors has approved a share repurchase program, authorizing the company to repurchase up to $20 million of its outstanding common stock.