- AFCG operates an extremely profitable business model of lending at high yields to state-licensed cannabis companies.
- AFCG's spread between its cost of capital and its asset yields is one of the highest in REITdom.
- However, this crucial spread would narrow considerably, and probably quite quickly, if federal legislation passed that allows institutional lenders to compete in the space.
- Loan yields are already compressing for the highest credit borrowers.
- AFCG currently trades at a 44% premium to book value.
For further details see:
AFC Gamma: Attractive 7.2% Yield As Long As Federal Legislation Remains Unchanged