Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We think we did a good job |
| The main takeaway from my travels is that AFC’s portfolio is well positioned in a volatile yet rapidly growing cannabis industry |
| We firmly believe that AFC is uniquely positioned to be the go-to provider of capital for this growing industry |
| We have decided to pursue this transaction because we believe that both AFC and SUNS will be better positioned to grow and realize their full potential as independent, pure-play capital providers in the cannabis and commercial real estate space, respectively |
| They are taking lower LTCs and that opportunity set is going to be phenomenal for SUNS and we are excited about – I am excited about the opportunity set there and the cannabis |
| As Executive Chairman and the largest shareholder of both entities post spin-off, I am very excited about the future for AFC and SUNS |
| Leonard Tannenbaum I think the positives that happened was Ohio going rec, Pennsylvania probably going rec, and really a very good experience that we had in Missouri with our borrowers and that’s really helped out a lot of the quality of the earnings |
| I firmly believe that our investment thesis has and will continue to set us up well to generate strong, risk-adjusted returns |
| We are pleased to report strong results in the fourth quarter and fiscal year 2023 |
| So, I think you have got two really great opportunities that are going to be led by two great leaders |
| With both of these attractive assets, in the hands of skilled operators with significant cannabis experience, we anticipate better performance from these assets in the coming quarters |
| I was one of the first employees at Ascend and have the valuable opportunity to help grow the company’s operation across 7 states to 2,200 employees and over $500 million in revenue |
| I am actually very excited about Georgia |
| I am particularly pleased with the quality of the operators and the deals in the pipeline |
| It’s largely comprised of people who have done it before, know how to execute, and we’re confident we’ll be able to create value for all of their stakeholders |
| So, I am excited about cannabis, and I am equally excited about real estate |
| I am pleased with the progress the team has made on some of our underperforming assets |
| And I am pretty excited about that too |
| When we look at a state flipping and $360 million of capital – incremental capital demand, that seems like a pretty good opportunity |
| We are happy to get the liquidations and exits that we did |
| CRE debt markets today represent a significant opportunity to capitalize on market dislocations, precipitated by the rise in interest rates, declining liquidity and a pullback of regional banks from CRE lending |
| Next, let’s take a look at our balance sheet, which remains strong |
| Dan’s done a phenomenal job really from an operating lens, taking a look at these – the operating businesses, what they are worth and how they should be run |
| Also, through our existing borrowers, we have good exposure to early-stage and expected near-term adult-use transition states such as Missouri, New Jersey, Ohio and Pennsylvania |
| Two borrowers remain in receivership to optimize operations and maximize value for the benefit of all stakeholders |
| Looking ahead in 2024, my key priorities are: first, to substantially address the issues at select portfolio companies through an active portfolio management approach; second, to continue to underwrite new deals with an operator’s eye and diversify our portfolio; and third and finally, to originate over $100 million of new deals with strong risk-adjusted returns |
| I think Georgia is going to be a great state too |
| It’s a very attractive market and it probably implements a medical program sometime in the next year or 2 years |
| Subsequent to December 31, 2023, AFC committed $56.4 million, of which $48.9 million was funded across two commercial real estate mezzanine loans, and we continue to see attractive CRE deals and have an active pipeline of $701 million |
| We are excited to finance many of these operators that have clean capital stacks and are unburdened with debt, sale-leasebacks or legacy tax liabilities |
| Statement |
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| as the opportunities to expand AFC’s platform in a market that has continually experienced a lack of access to capital |
| As we have discussed during the last several quarters, we are working closely with subsidiary of private company G, which continues to have cash flow challenges |
| I think a lot of the legacy players have a lot of problems |
| On the one hand, we see more deflation, more licensing in some states, creating more competition, so tougher industry conditions |
| As the March toward legalization continues, demand for capital will only increase |
| And I think there continues to be a mismatch between the supply of available institutional capital and the demand for that capital |
| These statements are subject to inherent uncertainties in predicting future results |
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