AFC Gamma : AFCG Q2 2023 Earnings Presentation

Second Quarter 2023 Investor Presentation

August 8, 2023

Forward-Looking Statements

Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and we intend such statements to be covered by the safe harbor provisions contained therein. The information contained in this section should be read in conjunction with our financial statements and notes thereto appearing elsewhere in our quarterly report on Form 10-Q for the quarter ended June 30, 2023. This description contains forward-looking statements that involve risks and uncertainties. We use words such as "anticipate," "believe," "project," "expect," "intends," "will," "should," "may" and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words.

Actual results could differ significantly from the results discussed in the forward-looking statements due to the factors set forth in "Risk Factors" in our quarterly report on Form 10-Q for the quarter ended June 30, 2023. In addition, some of the statements in this presentation constitute forward-looking statements, which relate to future events or the future performance or financial condition of AFC Gamma, Inc. ("AFCG" and the "Company," "we," "us" and "our"). The forward-looking statements contained in this presentation involve a number of risks and uncertainties, including statements concerning: our business and investment strategy; our projected operating results including our projections for distributable earnings, originations and repayments; the estimated growth in and evolving market dynamics of the (i) commercial real estate and (ii) cannabis markets; the impact of economic conditions on our business and the United States; the ability of our Manager to locate suitable loan opportunities for us, monitor, service and administer our loans and execute our investment strategy; allocation of loan opportunities to us by our Manager; our projected operating results; actions and initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law; the state of the United States and Canadian economies generally or in specific geographic regions; the demand for cannabis cultivation and processing facilities; shifts in public opinion regarding cannabis; the state of the U.S. economy generally or in specific geographic regions; economic trends and economic recoveries; the collectability and timing of cash flows, if any, from our loans; our ability to obtain and maintain financing arrangements; our expected leverage; changes in the value of our loans; our expected portfolio of loans; our expected investment and underwriting process; rates of default or decreased recovery rates on our loans; the degree to which our hedging strategies may or may not protect us from interest rate volatility; changes in interest rates of our loans and impacts of such changes on our results of operations, cash flows and the market value of our loans; interest rate mismatches between our loans and our borrowings used to fund such loans; the departure of any of the executive officers or key personnel supporting and assisting us from our Manager or its affiliates; impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940 (the "1940 Act"); our ability to qualify and maintain our qualification as a real estate investment trust ("REIT") for United States federal income tax purposes; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; market trends in our industry, interest rates, real estate values, the securities markets or the general economy.

We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, registration statements on Form S-11, quarterly reports on Form 10-Q and current reports on Form 8-K.

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Legal Disclaimers

Important Notices

This presentation is by AFC Gamma, Inc. ("AFCG" or the "Company"), a publicly traded company that has elected to be taxed as a REIT for federal income tax purposes and is being furnished in connection with AFCG's financial results. This presentation is provided for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy, any security or instrument. AFCG is not a registered investment adviser. AFCG is managed by AFC Management, LLC ("AFCM"), a registered investment adviser. This presentation is not a communication by AFCM and is not designed to maintain any existing AFCM client or investor or solicit new AFCM clients or investors.

We routinely post important information for investors on our website, www.afcgamma.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFCG encourages investors, analysts, the media and others interested in AFCG to monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit the "Email Alerts" section of our website under the "IR Resources" section and enter the required information to enable notifications. Past performance is no guarantee of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. The information contained herein is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations for AFCG or any of its affiliates. Certain information contained in the presentation discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.

Non-GAAP Financial Measures

This presentation includes certain non-GAAP financial measures, including Distributable Earnings to evaluate our performance excluding the effects of certain transactions and certain GAAP adjustments that we believe are not necessarily indicative of our current loan activity and operations. We believe the non-GAAP financial measures are useful for management, investors, analysts, and other interested parties in evaluating our performance but should not be viewed in isolation and are not a substitute for financial measures computed in accordance with GAAP.

The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Fees earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated prior to Incentive Fee expense, while the calculation of Distributable Earnings accounts for any Incentive Fees earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) (decrease) increase in provision for current expected credit losses, (v) taxable REIT subsidiary ("TRS") (income) loss, net of any dividends received from TRS, and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.

We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs. We have not provided reconciliations of expected distributable earnings for the future period(s), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include changes in unrealized gains, non-cash equity compensation expenses and the impact of non-cash adjustments for current expected credit losses that are difficult to predict in order to include in a GAAP estimate.

Please see the section entitled "Reconciliation of Distributable Earnings to GAAP Net Income" in the attached Appendix C for a reconciliation to the most directly comparable GAAP financial measures.

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Sections

1. Why AFC Gamma
2. Market Opportunity
3. Corporate Overview
4. Q2 2023 Financial Highlights

5. Appendix

Why AFC Gamma

Backed by its management team's years of collective lending and real estate experience, AFC Gamma is well-positioned in the commercial real estate ("CRE") sector

Institutional Commercial

Mortgage REIT

• Provider of reliable, efficient & flexible solutions across the entire capital stack
• Extensive, disciplined loan sourcing, underwriting, structuring and portfolio management expertise
• Current Commitments of $437 million and Outstanding Principal Balance of $400 million(1)

Experienced, Cycle-Tested

Leadership Team

• Over 50 years of combined lending and investment management experience
• Experience navigating rapidly evolving markets and underwriting complex credits
• Management team aligned through significant investment; beneficially own or control over 20% of the Company

Poised to Capitalize on Target

Market Opportunity

• Current rising interest rate environment has created an opportunity in cannabis and commercial real estate lending
• Less capital available in the marketplace to finance commercial real estate and cannabis projects
• AFCG expanded to invest in attractive CRE opportunities

Disciplined and Selective

Investment Process

• Rigorous, repeatable and dependable investment process enables us to effectively source, screen and deploy capital at attractive risk-adjusted returns
• Established method of capital allocation and on-going investment monitoring

Compelling Risk-Adjusted

Returns on Investment

• Attractive supply-demand imbalance created by constrained financing environment
• Targeting annual gross yields on our portfolio within the range of 12% - 20%
• Current estimated weighted average yield-to-maturity ("YTM") of ~20%(2)

Strong Balance Sheet

and Valuation

• Low leverage balance sheet with over $100 million of accessible liquidity(3)
• Raised $100 million Senior Notes due 2027 with a 5.75% fixed rate in Q4 '21(4)
• Entered into a $60 million senior secured revolving credit facility in April 2022, which is currently undrawn(5)
• Current dividend yield of ~14%(6)

(1)	Current Commitments represents the total committed principal value at closing of our outstanding loans. Outstanding Principal Balance represents the current
	principal value of our outstanding loans, which includes impact from amortizations, repayments and capitalized Payment-in-Kind ("PIK") payments. All current
	outstanding loans are senior real estate corporate loans to cannabis operators. Figures as of August 4, 2023.
(2)	Estimated weighted average YTM on the existing portfolio of senior real estate corporate loans to cannabis operators as of August 4, 2023. See footnote #2 on p. 14
	for management assumptions on calculation of YTM.
(3)	Includes cash and cash equivalents and availability under our currently undrawn revolving credit facility.	5
(4)	In Q1 2023, the Company repurchased $10.0 million in principal amount at 77.4% of par value, plus accrued interest. Following this transaction, as of June 30, 2023,

the Company had $90.0 million in principal amount of the 2027 Senior Notes outstanding.

1. Ability to increase the facility to $100 million senior secured revolving credit facility is subject to available borrowing base and additional commitments.
2. Q2 2023 dividend of $0.48 per share annualized and divided by closing stock price of $13.79 as of August 4, 2023.