AFC Gamma and Ascend Wellness: Key Earnings Calls for Cannabis Investors
The cannabis industry is abuzz with anticipation as two prominent players, AFC Gamma and Ascend Wellness, prepare to unveil their third-quarter 2024 financial results. These earnings calls offer valuable insights into the health of the industry and provide a glimpse into the future of these companies.
AFC Gamma: A Leader in Cannabis Lending
AFC Gamma, Inc. (AFCG), based in West Palm Beach, Florida, is a leading lender in the cannabis sector. It distinguishes itself as one of only two major externally managed REITs specifically focused on the cannabis industry.
AFC Gamma’s success stems from its strategic approach to lending. As explained by senior analyst Pablo Zuanic of Zuanic & Associates, the company secures favorable terms due to limited capital access for cannabis operators, a direct result of federal illegality. This unique position allows AFC Gamma to provide essential financial support while maximizing returns.
The company’s loan book has been steadily growing, with four new deals totaling over $70 million secured between March and June 2024. Notable borrowers include Sunburn Cannabis in Florida, SocietyC in Michigan, a Tier-2 licensee in Georgia, and Gron Edibles.
AFC Gamma’s commitment to its shareholders is evident in its recent declaration of third-quarter 2024 dividends of $0.33 per common share, payable on October 15, 2024. This marks AFC Gamma’s first dividend since its spin-off, showcasing its strong financial position and dedication to shareholder value.
Ascend Wellness: Expanding Reach and Refinancing Efforts
Ascend Wellness Holdings, Inc. (AAWH) is a multi-state cannabis operator with a growing presence across the U.S. The company will host a conference call on Tuesday, November 12, 2024, to discuss its third-quarter 2024 financial performance.
Ascend Wellness’ second-quarter 2024 results, released in August, revealed robust year-over-year growth. Revenue reached $141.54 million, a 15% increase compared to the same period in 2023. Adjusted EBITDA also saw a significant rise, reaching 33% year-over-year growth.
The company has been actively pursuing strategic initiatives to strengthen its financial position and expand its operations. In July, Ascend closed a private placement of $235 million of 12.75% senior secured notes due 2029. This refinancing effort reflects the company’s commitment to long-term growth and stability.
What to Watch for in the Earnings Calls
Investors will be keenly interested in the following key areas during AFC Gamma and Ascend Wellness’ earnings calls:
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Financial Performance:
Detailed analysis of revenue, profitability, and key metrics to gauge the companies’ financial health.*
Lending Activities:
Updates on AFC Gamma’s loan book, including new deals, loan origination, and overall lending strategy.*
Growth Strategies:
Insights into Ascend Wellness’ expansion plans, new market entry strategies, and initiatives to increase market share.*
Industry Trends:
Commentary on the evolving cannabis landscape, including regulatory developments, consumer demand, and competitive dynamics.These earnings calls provide valuable insights into the future direction of two key players in the cannabis industry. Investors will be closely watching to see how AFC Gamma and Ascend Wellness are navigating the evolving landscape and capitalizing on the growing opportunities in the cannabis sector.
