Good day, and thank you for standing by. Welcome to the AFC Gamma First Quarter 2023 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Gabriel Katz, Chief Legal Officer. Please go ahead.

Good morning, and thank you all for joining AFC Gamma's earnings call for the quarter ended March 31, 2023. I'm joined this morning by Leonard Tannenbaum, our Chairman and Chief Executive Officer; Brandon Hetzel, our Chief Financial Officer; and Robyn Tannenbaum, our President. Before we begin, I would like to note that this call is being recorded. Replay information is included in our April 25, 2023 press release and is posted on the Investor Relations section of AFC Gamma's website at afcgamma.com, along with our first quarter earnings release and investor presentation. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, future market developments, anticipated portfolio yield and financial performance and projections in 2023 and beyond. These statements are subject to the inherent uncertainties in predicting future results and conditions. Please refer to AFC Gamma's most recent periodic filings with the SEC for certain significant factors that could cause actual results to differ materially from these forward-looking statements and projections. During this call, we will refer to distributable earnings, which is a non-GAAP financial measure. Reconciliations of non income -- of net income, the most comparable GAAP measure to distributable earnings, can be found in AFP Gamma's earnings release and investor presentation available on AFC Gamma's website. The format for today's call is as follows. Len will provide introductory remarks and overview of our first quarter 2023 performance and strategic commentary, Brandon will summarize our financial results and we will then open the line for Q&A. With that, I will now turn the call over to our Chief Executive Officer, Leonard Tannenbaum.

Thank you, Gabe, and good morning, and welcome to AFC Gamma's earnings call for the quarter ended March 31, 2023. I would like to thank our analysts and investors for joining us today to discuss our results. Before turning to the quarterly results, I want to take a moment to congratulate Brandon Hetzel on his promotion to Chief Financial Officer. We are excited to have Brandon as our CFO as he's been integral to the company's success since he joined in September 2020, most recently serving as Executive Vice President and Controller. Brandon brings with him a detailed knowledge of our business and over a decade of real estate experience, which will be valuable as we expand our investment strategy to include traditional commercial real estate investments. Turning to the quarterly results. For the first quarter of 2023, AFC Gamma generated distributable earnings of $0.57 per weighted average share of common stock. As a reminder, distributable earnings is the primary metric that the Board considers when declaring AFC Gamma's quarterly dividend. The Board of Directors declared a $0.56 dividend per share for the March quarter, which was in line with the previous 3 quarters. Since going public, we have generated distributable earnings in excess of our dividend in each quarter and paid out $4.10 in dividends per share. We are pleased that we have continually outearned our dividend, yet we are cognizant that payment in kind interest currently makes up a meaningful portion of our earnings. The majority of the payment in kind interest earned in the March quarter is due to 1 loan, which we expect to revert to cash pay beginning in June. Should this borrower, which is rated a category 4 under a CECL reserve, pay its June interest in cash, we would anticipate the level of…

Thank you, Len. We are pleased to report strong results in the first quarter of 2023. For the quarter ended March 31, 2023, we had GAAP net income of $10 million or earnings of $0.49 per basic weighted average common share and generated net interest income of $16.8 million and distributable earnings of $11.6 million or $0.57 per basic weighted average common share. As previously mentioned, we believe providing distributable earnings is helpful to shareholders in assessing the overall performance of AFC Gamma's business. Distributable earnings represents the net income computed in accordance with GAAP, excluding noncash items such as stock compensation expense, any unrealized gains or losses, provisions for current expected credit losses, also known as CECL, taxable REIT subsidiary income or loss, net of dividends and other noncash items recorded in net income or loss for the period. We ended the first quarter of 2023 with $390.9 million of principal outstanding spread across 12 borrowers. Subsequent to March 31, 2023, we funded an additional $9 million to a subsidiary of public company H. As of May 1, 2023, AFC Gamma's portfolio consisted of $415.4 million of current commitments with $399.8 million funded across 12 borrowers. As of March 31, 2023, the CECL reserve represents approximately 5.4% of our loans at carrying value compared to 4.97% at December 31, 2022. We currently have 1 borrower on nonaccrual, which represents 0.9% of our portfolio. The weighted average portfolio yield to maturity, which is measured for each loan over the life of such loans was approximately 21% as of March 31, 2023, and May 1, 2023. During the first quarter of 2023, we repurchased $10 million in principal amount of our 2027 senior notes at 77.4% of par value. This resulted in a gain on extinguishment of debt of approximately $2…

We did such a good job describing everything. I guess there is no questions today. So I want to thank everyone for being on the call and look forward to reporting next quarter.

This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.