WEST PALM BEACH, Fla. - AFC Gamma, Inc. (NASDAQ:AFCG), a commercial real estate lender, today announced the expected board compositions for itself and for Sunrise Realty Trust, Inc. (SUNS), following the planned mid-2024 spin-off of its real estate portfolio into SUNS. Upon completion of the spin-off, SUNS aims to become a separate publicly-traded company and elect Real Estate Investment Trust (REIT) status on the Nasdaq exchange.
The company disclosed that Jodi Hanson Bond and Jim Fagan will step down from the AFC Gamma Board of Directors effective upon the spin-off's completion. They are slated to join the SUNS Board of Directors thereafter. Alexander Frank is also expected to be appointed to the SUNS Board but will retain his position on the AFC Gamma Board.
After the spin-off, the anticipated board composition will be as follows:
AFC Gamma, Inc.:
- Leonard Tannenbaum, Executive Chairman and Chief Investment Officer
- Thomas Harrison, Lead Independent Director
- Alexander Frank, Independent, Chair of Audit & Valuation Committee
- Robert Levy, Independent
- Marnie Sudnow, Independent
Sunrise Realty Trust, Inc.:
- Leonard Tannenbaum, Executive Chairman of SUNS
- Brian Sedrish, Chief Executive Officer of SUNS
- Alexander Frank, Lead Independent Director, Chair of Audit & Valuation Committee
- Jodi Hanson Bond, Independent
- Jim Fagan, Independent
AFC Gamma specializes in originating, structuring, and underwriting secured loans, typically ranging from $10 million to $100 million, and has a focus on lending to state-law compliant cannabis operators. The forward-looking statements in the announcement are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This news is based on a press release statement from AFC Gamma, Inc.
InvestingPro Insights
In light of AFC Gamma, Inc.'s (NASDAQ:AFCG) announcement regarding its strategic spin-off, investors may find the following metrics and InvestingPro Tips useful in evaluating the company's financial health and future prospects:
According to InvestingPro data, AFC Gamma has a market capitalization of approximately $256.07 million and is trading at a P/E ratio of 23.83, which adjusts to 20.68 when considering the last twelve months as of Q1 2024. The company's revenue for the same period stands at $45.74 million, though it has experienced a decline of 28.09% year-over-year. Despite this, AFC Gamma remains profitable with a gross profit margin of 100% and an operating income margin of 54.81%.
Investors may be particularly interested in the company's dividend yield, which is notably high at 15.69%. This aligns with one of the InvestingPro Tips highlighting that AFC Gamma pays a significant dividend to shareholders. Moreover, the company's liquid assets surpass its short-term obligations, suggesting a strong liquidity position.
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Furthermore, the company's return on assets for the last twelve months as of Q1 2024 is 2.35%, which, coupled with analyst predictions that the company will be profitable this year, may provide a positive outlook for potential investors.
It's also noteworthy that two analysts have revised their earnings downwards for the upcoming period, which may warrant further investigation. For more detailed analysis and to access exclusive metrics, investors can visit https://www.investing.com/pro/AFCG.
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