Nasdaq-Traded AFC Gamma Reports 41% YoY Drop In Net Income, Plans To Be Pure-Play Cannabis Lender In 2024
Portfolio Pulse from Jelena Martinovic
AFC Gamma Inc. (NASDAQ:AFCG) reported a 41% year-over-year drop in net income for fiscal year 2023, with net interest income falling to $64.2 million from $74.7 million in 2022. The company also announced a shift towards becoming a pure-play cannabis lender by 2024. Despite a challenging cannabis market, AFC Gamma distributed $40.9 million in dividends for 2023 and declared a $0.48 per share dividend for Q1 2024. The company's shares slightly declined by 0.09% to $11.38.
March 07, 2024 | 3:29 pm
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AFC Gamma Inc. reported a significant drop in net income and a decrease in net interest income for FY 2023, but continues to pay dividends and plans to focus solely on cannabis lending by 2024.
The reported drop in net income and net interest income for AFC Gamma could concern investors, potentially impacting the stock price negatively in the short term. However, the company's commitment to dividends and strategic focus on becoming a pure-play cannabis lender by 2024 could offset negative sentiment and stabilize the stock. The slight decline in share price following the announcement indicates a mixed investor reaction.
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RELEVANCE 100