WEST PALM BEACH, Fla., June 13, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC” or the “Company”) today announced its dividend for the quarter ending June 30, 2025. The Board of Directors of AFC declared a quarterly dividend of $0.15 per outstanding share of common stock for the quarter ending June 30, 2025. The dividend is payable on July 15, 2025 to the common stockholders of record on June 30, 2025. The Board of Directors evaluates the Company’s Distributable Earnings (as defi ...

WEST PALM BEACH, Fla., June 09, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC”) today announced that it has expanded its senior secured revolving credit facility (“Credit Facility”) to $50 million with an additional $20 million commitment from the facility’s Lead Arranger, an FDIC-insured bank with over $75 billion of assets. AFC intends to use availability under the Credit Facility to fund commitments to existing borrowers, originate and participate in commercial loans to canna ...

Core Viewpoint - The article emphasizes the importance of quantitative methods in identifying undervalued stocks across various industries, suggesting that numerical data often provides a clearer picture of a company's potential than narrative descriptions [1]. Group 1: Investment Strategy - The company employs quantitative methods that have been backtested for success to search for undervalued stocks of any size [1]. - The belief is that numbers are more significant than stories in most cases, as they tend to reflect a more realistic outlook on a company's prospects [1]. Group 2: Experience and Knowledge - The company has been investing since 2013 and has gained knowledge through extensive reading of stock market literature [1]. - Notable books that have influenced the company's investment approach include "100 Baggers," "Financial Shenanigans," and "The Quants" [1].

Advanced Flower Capital (AFCG) Q1 2025 Earnings Call May 14, 2025 10:00 AM ET Company Participants Gabe Katz - Chief Legal OfficerRobyn Tannenbaum - Chief Investment Officer & PresidentDaniel Neville - CEO & PartnerBrandon Hetzel - CFO & TreasurerPablo Zuanic - Managing PartnerChris Muller - Director - Equity Research Conference Call Participants None - Analyst Operator Good day, and welcome to the Advance Flower Capital Q1 twenty twenty five Earnings Call. At this time, all participants are in a listen onl ...

Financial Data and Key Metrics Changes - For Q1 2025, the company generated distributable earnings of $0.21 per basic weighted average share, with net interest income of $4,500,000 and GAAP net income of $4,100,000 or $0.18 per basic weighted average share [10][15] - The weighted average portfolio yield to maturity was approximately 18% as of both March 31, 2025, and May 1, 2025 [16] - The CECL reserve was $29,900,000, approximately 9.75% of loans at carrying value, with total unrealized losses of $20,400,000 for loans held at fair value [16] Business Line Data and Key Metrics Changes - The active pipeline as of May 1, 2025, had $287,000,000 in deals, with a focus on sourcing deals from operators with a successful track record [7] - The company is currently managing 18 loans with a total principal outstanding of $372,500,000 [15] Market Data and Key Metrics Changes - The cannabis industry is experiencing a supply and demand imbalance for capital, with demand outpacing limited supply due to refinancing activity and increased M&A [6] - Many capital market participants remain on the sidelines due to a lack of clarity around federal reform, impacting the availability of capital in the industry [6] Company Strategy and Development Direction - The company aims to protect principal in its investments and is focused on selectively providing construction financing to operators with existing operations in other states [7] - The management is committed to supporting strong operators in attractive limited license states and diversifying the portfolio [11] Management's Comments on Operating Environment and Future Outlook - Management noted that earnings will be impacted by the underperformance of some legacy loans, but significant progress has been made in reducing exposure to underperforming credits [10] - The company is being opportunistic in its originations, focusing on high-quality borrowers amid market volatility [22] Other Important Information - The company renewed its senior secured credit facility with a lead commitment from an FDIC insured bank, with a maturity date of April 29, 2028 [16] - The board is expected to declare a dividend on or about June 15, with a policy of distributing 85% to 100% of earnings over the year [23] Q&A Session Summary Question: What caused the decline in interest income from Q4 to Q1? - The decline was attributed to lower income from a subsidiary of a private company and the absence of dividends from the TRS in Q1 [20][21] Question: How should investors think about progression for distributable earnings? - Management indicated that they will be opportunistic in originations and will not set targets due to market volatility [22][23] Question: What can be assumed regarding inflows from the proceeds of the Georgia asset? - Management stated that they cannot provide guidance on timing or amounts as it is uncertain and out of their control [24][26] Question: Can you provide updates on the situation with Justice Grown? - Management refrained from commenting further due to pending litigation and advised to refer to the 10-Q for details [32][34] Question: Is there an opportunity for private lenders in Pennsylvania's potential state-run framework? - Management noted that the Senate rejected the state-run model proposal, making it unlikely to be an opportunity for the company [36] Question: What is the expected yield on new originations? - Yields have generally remained consistent, with a focus on moving up the quality curve in lending [49]

Core Viewpoint - AFC Gamma Inc. reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.49 per share a year ago, indicating a significant earnings surprise of -16% [1][2] Financial Performance - The company posted revenues of $6.64 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 14.17%, and a decline from $16.36 million year-over-year [2] - Over the last four quarters, AFC Gamma has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - AFC Gamma shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $8.6 million, and for the current fiscal year, it is $1.06 on revenues of $38.76 million [7] Industry Outlook - The REIT and Equity Trust industry, to which AFC Gamma belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AFC Gamma's stock performance [5][6]

ADVANCED FLOWER CAPITAL | INVESTOR PRESENTATION N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N D I S C L A I M E R S Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and we intend such statements to be covered by the safe harbor provisions contained therein. Such forward-looking statements are based on the current intent, belief, expectations and views of future events of ...

Financial Performance - For Q1 2025, Advanced Flower Capital reported GAAP net income of $4.1 million, or $0.18 per basic weighted average common share, and Distributable Earnings of $4.5 million, or $0.21 per basic weighted average common share[1][2]. - The reconciliation of GAAP net income to Distributable Earnings showed a net income of $4,067,685 and Distributable Earnings of $4,543,906 for the three months ended March 31, 2025[14]. - The basic weighted average shares of common stock outstanding increased to 22,097,979 in Q1 2025 from 20,393,875 in Q1 2024[14]. Dividends - The company paid a regular cash dividend of $0.23 per common share for Q1 2025 on April 15, 2025[3]. - The company emphasizes the importance of Distributable Earnings as a measure to assess overall performance and intends to distribute at least 90% of its annual REIT taxable income[12]. Business Strategy - Advanced Flower Capital aims to reduce exposure to underperforming credits while providing debt capital to accomplished operators, focusing on quality credits with strong risk-adjusted returns[3]. - The management's forward-looking statements indicate a focus on future growth and strategies, subject to inherent uncertainties[15]. - Advanced Flower Capital operates as a commercial mortgage REIT, providing loans ranging from $10 million to over $100 million to state law compliant cannabis operators in the U.S.[8]. Investor Relations - The company encourages stakeholders to monitor its Investor Relations webpage for important updates and disclosures[5]. - The Q1 2025 earnings presentation is available on the company's website for further details on financial results[4].

Core Insights - Advanced Flower Capital Inc. reported a GAAP net income of $4.1 million, translating to $0.18 per basic weighted average common share for Q1 2025 [1][2] - The company also reported Distributable Earnings of $4.5 million, or $0.21 per basic weighted average common share for the same period [1][2] Financial Performance - The net income for the first quarter of 2025 was $4,067,685, a significant improvement compared to a net loss of $54,116 in Q1 2024 [15] - Distributable Earnings for Q1 2025 were $4,543,906, down from $9,965,706 in Q1 2024, with Distributable Earnings per basic weighted average share decreasing from $0.49 to $0.21 [15][16] Dividend Information - The company paid a regular cash dividend of $0.23 per common share on April 15, 2025, for shareholders of record as of March 31, 2025 [3] Strategic Focus - The CEO emphasized the company's priority in reducing exposure to underperforming credits while maintaining discipline in providing debt capital to successful operators [3] - The company aims to leverage market dislocations to invest in quality credits with strong risk-adjusted returns [3] Company Overview - Advanced Flower Capital Inc. is a commercial mortgage REIT that provides loans to state law compliant cannabis operators in the U.S., with loans typically ranging from $10 million to over $100 million [8]

Financial Performance - The company declared a cash dividend of $0.23 per share for the three months ended March 31, 2025, totaling $5,197,082 [163]. - Distributable Earnings for the three months ended March 31, 2025, was approximately $4.54 million, compared to $9.97 million for the same period in 2024, reflecting a decrease of 54.4% [177]. - Net income from continuing operations for the three months ended March 31, 2025, was approximately $4.07 million, or $0.18 per basic weighted average common share, compared to a net loss of approximately $(1.6) million, or $(0.08) per share for the same period in 2024 [180]. - The company reported a decrease in net income from discontinued operations of approximately $(1.5) million for the three months ended March 31, 2025 [231]. Loan Portfolio - As of March 31, 2025, the loan portfolio comprised 17 loans with an aggregate originated commitment of approximately $375.0 million and outstanding principal of approximately $366.3 million [188]. - The aggregate outstanding principal for loans held at carrying value was approximately $312.5 million as of March 31, 2025, compared to $301.8 million as of December 31, 2024 [197]. - The portfolio included fifteen loans held at carrying value with an aggregate originated commitment of approximately $327.8 million as of March 31, 2025, compared to $312.8 million as of December 31, 2024 [197]. - The total loan held at fair value as of March 31, 2025, was approximately $28.6 million, reflecting a decrease in unrealized losses of approximately $685,478 [195]. - The loan portfolio as of March 31, 2025, was concentrated with the top three borrowers representing approximately 46.2% of the aggregate outstanding principal balances and approximately 42.0% of total loan commitments [258]. Interest Income and Expense - Interest income decreased by approximately $(5.9) million, or (41.0)%, for the three months ended March 31, 2025, primarily due to lower income from loans on nonaccrual status and reduced loan exits and prepayments [181]. - Interest expense increased by approximately $0.2 million, or 13.2%, for the three months ended March 31, 2025, driven by increased borrowings on the Revolving Credit Facility [182]. Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended March 31, 2025, was approximately $3.9 million, which was less than the declared dividends of $5.2 million during the same period [207]. - Total cash as of March 31, 2025, was approximately $3.3 million, a significant decrease from $103.6 million as of December 31, 2024 [208]. - The net cash used in investing activities during the three months ended March 31, 2025 was approximately $(19.1) million, compared to $(7.5) million for the same period in 2024, reflecting an increase in cash fundings to title agents [228]. - The net cash used in financing activities was approximately $(85.1) million for the three months ended March 31, 2025, a significant decrease of approximately $(93.3) million compared to $8.2 million for the same period in 2024 [229]. Debt and Financing - Advanced Flower Capital Inc. originated a $15.0 million senior secured credit facility with Private Company U, maturing on March 1, 2028, with an interest rate of 14.0% [156]. - A $14.0 million senior secured credit facility was entered into with Subsidiaries of Private Company V, bearing cash interest at 12.5% and 1.5% paid-in-kind [165]. - The company entered into Amendment Number Four to the Revolving Credit Agreement, extending the maturity date to April 29, 2028, and increasing the interest rate floor from 4.00% to 7.00% [215]. - The company has total unfunded commitments of $9.5 million as of March 31, 2025, which are related to total loan commitments available for funding in less than two years [234]. Risk Management - The company actively manages risk exposure related to interest rates, credit, and prepayment risks associated with its portfolio [242]. - Credit risk is managed through a comprehensive review and selection process, with ongoing monitoring of loans for variance from expected performance [254][256]. - The company is exposed to significant risks in the cannabis industry, including federal illegality and potential loss of loans due to borrower issues [260]. - Management plans to monitor the legal landscape to mitigate risks associated with the cannabis industry [262]. Regulatory and Compliance - The company has qualified as a REIT and intends to maintain this status, which depends on satisfying various asset, income, and distribution tests [151]. - The company intends to distribute at least 90% of its REIT taxable income annually to shareholders, with potential tax implications for undistributed portions [239]. - The company does not intend to have leverage exceeding one times equity, maintaining compliance with the 2027 Senior Notes Indenture [238]. Market Conditions - As of March 31, 2025, a 50 basis points decrease or increase in market yield would have resulted in an unrealized gain (loss) of approximately $0.3 million and $(0.3) million, respectively [250]. - A hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $1.1 million [250].