AFC Gamma Converts to BDC, Originates $53M Commitments and $117M Paydowns
AFC Gamma secured $117 million of loan paydowns in 2025 and originated $53 million of new commitments, plus $89.7 million closed post-year-end. The company converted from a REIT to a business development company as of January 1, 2026, broadening its lending mandate beyond real estate loans.
1. 2025 Portfolio Management and Paydowns
In 2025, AFC Gamma actively managed underperforming credits, securing $117 million of paydowns from both performing and underperforming loans to strengthen its balance sheet and create capital redeployment opportunities.
2. New Commitments and Post-Year-End Closings
During fiscal 2025, the company originated $53 million of new loan commitments and subsequently closed $89.7 million of additional commitments in the lower middle market after year-end, signaling growing deal activity.
3. Conversion to Business Development Company
Effective January 1, 2026, AFC Gamma completed its conversion from a real estate investment trust to a business development company, expanding its investable universe beyond real estate-backed loans to include cash-flow-based credits.
4. Non-Accrual Loans and Recovery Efforts
Management highlighted three loans currently on non-accrual status and outlined ongoing efforts to obtain paydowns from these positions, with plans to redeploy recovered capital into performing assets to enhance future earnings power.