AFCG - Uncertainty Amid AFC Gamma's Credit Stress And Spinoff
2024-05-10 13:00:21 ET
Summary
- AFC Gamma is an mREIT focusing on loan origination for cannabis properties and commercial real estate (CRE).
- Cannabis' limited access to capital creates investment opportunities but also complicates some processes as a lender, creating risks.
- AFC Gamma reported a loss in Q1 2024, but its balance sheet remains stable.
- The major question is the recently announced spinoff of their CRE assets into Sunrise Realty Trust, pending approval later this year.
AFC Gamma, Inc. ( AFCG ) is a mortgage REIT that primarily focuses on investments in the cannabis industry. Launched in 2020, it has a limited operating history, and some might be nervous about the movement of its common shares in that time....
Uncertainty Amid AFC Gamma's Credit Stress And Spinoff