AFC Gamma Announces Changes to Composition of Board of Directors Following Planned Spin-Off of Commercial Real Estate Portfolio
AFC Gamma, Inc. (NASDAQ: AFCG) has announced the anticipated composition of the Boards of Directors for AFC Gamma and Sunrise Realty Trust, Inc. (SUNS) following the planned spin-off of AFC Gamma’s commercial real estate portfolio. This portfolio is currently held in its wholly-owned subsidiary, SUNS. The spin-off is expected to be completed in mid-2024, with SUNS operating as a separate company and seeking REIT status on the Nasdaq exchange.
In the first quarter of 2024, AFC Gamma achieved a return on average invested assets (ROI) of 2.36%, which is below its average return on investment of 6%. Despite net income growth from the fourth quarter of 2023, ROI fell compared to the previous quarter. Within the Services sector, 137 other companies had a higher return on investment. The total ranking of AFC Gamma’s ROI deteriorated from 702 in the fourth quarter of 2023 to 938.
Prior to the spin-off announcement, AFC Gamma declared a dividend of $0.48 per share for the quarter ending September 30, 2023. This dividend demonstrates AFC Gamma’s ability to generate consistent returns in the cannabis industry, where it specializes in providing loans.
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