Advanced Flower Capital Moves Forward with BDC Conversion to Foster Long-Term Growth and Value Creation

Written by Emily J. Thompson, Senior Investment Analyst

AFCG-0.86%

Source: Yahoo Finance

Updated: Sep 16 2025

0mins

Source: Yahoo Finance

Shareholder Meeting Announcement: Advanced Flower Capital Inc. (AFC) has scheduled a special meeting for shareholders on November 6, 2025, to vote on proposals necessary for its conversion from a real estate investment trust (REIT) to a business development company (BDC).
Board Recommendations: The AFC Board of Directors unanimously recommends that shareholders vote "FOR" the proposals, which include a new investment advisory agreement and the application of reduced asset coverage requirements, to facilitate the strategic shift and enhance portfolio diversification.

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AFCG

$2.3+Infinity%1D

Analyst Views on AFCG

Wall Street analysts forecast AFCG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFCG is 9.00 USD with a low forecast of 9.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Analyst Rating

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 2.320

Low

9.00

Averages

9.00

High

9.00

Current: 2.320

Low

9.00

Averages

9.00

High

9.00

TD Cowen

Buy

downgrade

$10 -> $9

2025-11-14

Reason

TD Cowen

Price Target

$10 -> $9

AI Analysis

2025-11-14

downgrade

Buy

Reason

TD Cowen lowered the firm's price target on Advanced Flower Capital to $9 from $10 and keeps a Buy rating on the shares. The firm said they reported a mixed 3Q, with downside sales and EBIT but in line DE/share.

Alliance Global Partners

Buy -> Neutral

downgrade

$4.50

2025-08-15

Reason

Alliance Global Partners

Price Target

$4.50

2025-08-15

downgrade

Buy -> Neutral

Reason

Alliance Global Partners downgraded Advanced Flower Capital to Neutral from Buy with a $4.50 price target.

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About AFCG

Advanced Flower Capital Inc. is a commercial mortgage real estate investment trust (REIT) that provides institutional loans to state-law compliant cannabis operators in the United States. It originates, structures, underwrites and manages loans ranging from $10 million to over $100 million, secured by real estate assets, license value and cash flows. Its objective is to provide risk-adjusted returns over time through cash distributions and capital appreciation primarily by providing loans to real estate developers and state-law compliant cannabis companies. The loans it originates are primarily structured as senior loans secured by real estate, equipment, cashflows and the value associated with licenses (where applicable) and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. It is externally managed by AFC Management, LLC.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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Top News

Advanced Flower Capital Inc. Reports Q3 2025 Financial Results

Nov 12 2025Newsfilter

Financial Performance: Advanced Flower Capital Inc. reported a GAAP net loss of $(12.5) million for Q3 2025, with Distributable Earnings of $3.5 million, equating to $(0.57) and $0.16 per share, respectively.
Conversion to BDC: Shareholders approved the company's conversion from a mortgage REIT to a business development company (BDC), allowing AFC to expand its investment scope beyond real estate-backed loans.
Dividend Payment: The company paid a cash dividend of $0.15 per common share for Q3 2025 to shareholders of record as of September 30, 2025.
Future Outlook: AFC's management expressed optimism about identifying lending opportunities in the lower-middle market, which they believe can yield attractive risk-adjusted returns for shareholders.