AFC Gamma(US:AFCG)2025-11-12 12:35Financial Performance - Advanced Flower Capital reported a GAAP net loss of $(12.5) million or $(0.57) per basic weighted average common share for Q3 2025[1][2]. - Distributable Earnings for the third quarter were $3.5 million or $0.16 per basic weighted average common share[1][2]. - Distributable Earnings for the nine months ended September 30, 2025, totaled $11.5 million, compared to $28.6 million for the same period in 2024[18]. - The provision for current expected credit losses for Q3 2025 was $7.4 million, compared to $0.2 million in Q3 2024[18][20]. - The company emphasizes that Distributable Earnings is a non-GAAP financial measure, providing insights into its operational performance[12][16]. Business Transition - The company is transitioning from a mortgage REIT to a business development company (BDC), which is expected to broaden its investment opportunities beyond real estate[4][5]. - Shareholders approved the conversion to BDC, with completion expected in Q1 2026[4][5]. - AFC's management believes the conversion to BDC will enhance its ability to generate consistent, risk-adjusted returns for shareholders[5]. Dividend Information - The company paid a regular cash dividend of $0.15 per common share for Q3 2025[6]. Portfolio Management - AFC is actively resolving nonaccrual positions and driving loan repayments across its portfolio, with a focus on the lower-middle market[3].