Advanced Flower Capital announces Q3 distributable EPS of 16 cents, down from 35 cents last year.
Progress in Loan Management: AFC is making strides in resolving nonaccrual positions and enhancing loan repayments across its portfolio.
Limited Capital in Cannabis Market: There is a scarcity of new capital entering the cannabis market, prompting AFC to expand its investment focus beyond just real estate owners in the sector.
Emerging Lending Opportunities: The company identifies significant lending opportunities in various attractive markets, particularly in the lower-middle market.
Focus on Shareholder Returns: AFC is actively evaluating these opportunities with the aim of generating appealing risk-adjusted returns for its shareholders.
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Advanced Flower Capital Inc. Reports Q3 2025 Financial Results
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.
Advanced Flower Capital Moves Forward with BDC Conversion to Foster Long-Term Growth and Value Creation
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.
