This Cannabis Lender Is Sitting On A Stack Of Capital: 100% Dividends Meet Equity-Like Returns
Portfolio Pulse from Nicolás Jose Rodriguez
AFC Gamma, Inc. (NASDAQ:AFCG) is spinning off its commercial real estate business into Sunrise Realty Trust (NASDAQ:SONS). AFC Gamma will focus on cannabis lending, while Sunrise Realty Trust will explore growth in the commercial real estate market. The spin-off aims to enhance shareholder value and streamline operations.
July 20, 2024 | 4:47 pm
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AFC Gamma, Inc. (NASDAQ:AFCG) is spinning off its commercial real estate business into Sunrise Realty Trust. AFC Gamma will now focus solely on cannabis lending, aiming for mid-to-high teen returns.
The spin-off allows AFC Gamma to focus on its core business of cannabis lending, which is expected to improve financial performance and shareholder value. The company's proactive portfolio management and stringent underwriting standards position it well for future growth.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Sunrise Realty Trust (NASDAQ:SONS) is the newly formed entity from AFC Gamma's spin-off, focusing on commercial real estate with an initial portfolio of $50 million in deals and $65 million in cash.
The spin-off provides Sunrise Realty Trust with a strong cash position and a new portfolio, allowing it to explore growth opportunities in the commercial real estate market. This strategic move is expected to enhance value for its investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100