Financial Data and Key Metrics Changes - For Q1 2025, the company generated distributable earnings of $0.21 per basic weighted average share of common stock, with net interest income of $4,500,000 and GAAP net income of $4,100,000, or $0.18 per share [9][13] - The weighted average portfolio yield to maturity was approximately 18% as of both March 31, 2025, and May 1, 2025 [14] - 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 [14] Business Line Data and Key Metrics Changes - The company ended Q1 2025 with $366,300,000 of principal outstanding across 17 loans, which increased to $372,500,000 across 18 loans by May 1, 2025 [13] - The active pipeline as of May 1, 2025, included $287,000,000 of deals, with a focus on sourcing deals from operators with a successful track record [7][14] Market Data and Key Metrics Changes - The cannabis industry continues to experience a supply and demand imbalance for capital, with demand outpacing limited supply due to refinancing activity and increased M&A expected in the second half of the year [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 is focused on protecting principal in its investments and is selective in its originations, prioritizing high-quality borrowers and proven operators [7][19] - The company aims to unlock value from underperforming loans while evaluating new lending opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the volatility in the cannabis market and uncertainty surrounding federal progress will influence their opportunistic approach to originations [19] - The board is expected to declare dividends on or about June 15, with a policy of distributing 85% to 100% of earnings over the year [20] Other Important Information - The company is engaged in legal proceedings related to a subsidiary, Justice Grown, and is focused on protecting shareholder capital amid ongoing litigation [12][30] - 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 [14] Q&A Session Summary Question: Can you unpack the decline in interest income from Q4 to Q1? - The decline was primarily due to lower income from a subsidiary and the absence of dividends from the TRS in Q1 [16][17] Question: How should we think about distributable earnings progression for the rest of the year? - Management indicated that they will be opportunistic in originations and will not set targets due to market volatility [19][20] Question: What can be assumed regarding inflows from the proceeds of the Georgia asset sale? - Management stated that they cannot provide guidance on timing or amounts due to the receiver's control over the process [21][23] Question: Is there an opportunity for private lenders in Pennsylvania's potential state-run framework? - Management noted that the Senate has rejected the state-run model, making it unlikely to be an opportunity for the company [34][35] Question: Are borrowers feeling the impact of tariffs on their costs? - Management indicated that the cannabis industry is likely to see minimal impact from tariffs, as many materials are sourced domestically [40][42]

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]

Company Overview - Advanced Flower Capital (AFCG) aims to provide attractive risk-adjusted returns with a target average portfolio gross yield of 12%-20%[13,15] - The company's management and investment team have collectively structured over $15 billion in loan transactions[13,54] - AFC's deal selectivity since inception is 39% based on $917MM total commitments since inception and $213B deals sourced[59] Market Opportunity - The U S legal cannabis market is expected to reach $63 billion by 2030, with a total economic impact surpassing $200 billion[28] - Cannabis market is projected to grow at approximately 12% CAGR from 2025 to 2030[31,34] - Approximately 19 million Americans could gain access to adult-use cannabis by 2026 with Pennsylvania and Minnesota legalizing[37] Portfolio and Performance - AFC's loan portfolio includes 18 loans to borrowers across 16 states, with $372 million in principal outstanding[22,25,27] - The portfolio is primarily focused on vertical operators, representing 95% of the principal outstanding[25] - AFC's weighted average yield to maturity (YTM) is approximately 18%[49,65] Financial Highlights - Total assets were $32165 million as of March 31, 2025[75] - Net income for the three months ended March 31, 2025 was $406 million, or $018 per share[76] - Distributable earnings for the three months ended March 31, 2025 were $454 million, or $021 per share[77]

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 reported a GAAP net loss attributable to common stockholders of $0.03 per share for Q1 2025[9] - Distributable Earnings for Q1 2025 were $0.08 per share of common stock[9] - A cash dividend of $0.08 per share of common stock was declared for the quarter[9] - Book Value Per Share of Common Stock was $3.29 as of March 31, 2025[9] Portfolio Composition and Activity - As of March 31, 2025, 91.7% of the $1 billion loan portfolio was collateralized by multifamily assets[9] - The loan portfolio had a weighted average remaining initial term of 5 months and a weighted average note rate of SOFR + 3.55%[9] - The Company experienced $54.7 million of loan payoffs during the quarter, with 100% of those payoffs in multifamily properties[9, 22, 25] Capital Structure and Financing - As of March 31, 2025, the Company held $63.5 million in cash and cash equivalents, and the leverage ratio declined to 3.6x[9] - Secured financings include $489.6 million of investment grade notes issued through 2021-FL1 CLO and $284.8 million of investment grade notes issued through LMF 2023-1[9, 12] - The capital structure is composed of 73.5% secured financing, 16.3% common equity, 5.7% preferred equity, and 4.5% term loan[31] Portfolio Credit Quality - As of March 31, 2025, 89.3% of the Company's portfolio was performing, with 59.9% of the portfolio rated "3" (Moderate Risk) or better[29] - The portfolio weighted average risk rating was 3.5[9, 29]

Core Points - Lument Finance Trust, Inc. reported a GAAP net loss of $1.7 million, or $0.03 per share, for the first quarter of 2025 [1] - The company reported distributable earnings of $4.0 million, or $0.08 per share, for the same period [1] - A conference call is scheduled for May 13, 2025, to discuss the financial results and provide a business update [2] Financial Performance - The reconciliation of GAAP to non-GAAP information shows a net income attributable to common shareholders of $(1,707,526) for the three months ended March 31, 2025 [10] - Adjustments included unrealized losses on mortgage servicing rights of $22,518 and unrealized provisions for credit losses of $5,697,661, leading to distributable earnings of $4,021,203 [10] - The weighted average shares outstanding were 52,309,887, resulting in distributable earnings per share of $0.08 [10] Company Overview - Lument Finance Trust is focused on investing in, financing, and managing a portfolio of commercial real estate debt investments, primarily in transitional floating rate commercial mortgage loans [11] - The company emphasizes middle-market multi-family assets and is externally managed by Lument Investment Management LLC [11]

Financial Data and Key Metrics Changes - First quarter GAAP earnings per common share were $0.47 while distributable earnings were a loss of $0.09 per common share [13] - Net interest income declined to $14.6 million in the quarter, primarily due to non-core assets moving to nonaccrual status [13] - Book value per share remained flat at $10.61, with total leverage declining to 3.5 times [17] Business Line Data and Key Metrics Changes - The total CRE loan portfolio was bifurcated into $5.9 billion core loans and $1.2 billion non-core loans, with a 5% decline in the core portfolio [6] - The core portfolio generated a levered yield of 10.2%, resulting in $43.4 million of net interest income [8] - Non-core portfolio liquidations surpassed targets by close to 2x, generating $28 million of liquidity [8] Market Data and Key Metrics Changes - The multifamily sector showed resilience with a 1% increase in rents in Q1 2025, despite macroeconomic pressures [4] - The twelve-month default rate for the company was 3.2%, slightly better than the industry average of 3.4% [10] - The SBA business experienced high volumes at $343 million, although moderation is anticipated [10] Company Strategy and Development Direction - The company initiated a balance sheet repositioning plan in Q4 2024, focusing on liquidating non-core assets to reinvest in the core portfolio [12] - The strategy aims to restore net interest margin (NIM) to peer group levels by the end of 2025, with accretion expected in 2026 [12] - The company remains committed to supporting the Portland mixed-use asset project, aiming for stabilization and eventual exit [9][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, but the multifamily sector is benefiting from excess demand [4][25] - The company expects to maintain its current dividend level until the earnings profile warrants an increase [12] - Future earnings trajectory is expected to improve post-liquidation of non-core assets and reinvestment into the core portfolio [31] Other Important Information - The company completed the UDF merger, resulting in a bargain purchase gain of $102.5 million, adding $167.1 million of equity to the balance sheet [16] - Liquidity remains healthy with unrestricted cash over $200 million and $1 billion of total unencumbered assets [19] Q&A Session Summary Question: Impact of April's volatility on non-core book expectations - Management indicated that ongoing conversations with various parties are progressing well and do not expect significant impact from April's volatility [22][24] Question: Near-term expectations for distributable earnings trajectory - Management expects the second quarter earnings profile to be similar to Q1, with improvements anticipated post-reinvestment of equity [28][31] Question: Current views on share repurchases - Management is evaluating share repurchases against liquidity needs and upcoming debt maturities, indicating confidence in accessing capital markets [32][35] Question: Catalyst for CLO interest coverage issues - Management noted that elevated rates are impacting NOIs, leading to increased modifications in the portfolio [40] Question: Status of the Portland asset and future plans - The asset will remain levered, with plans to stabilize and sequentially exit components as they improve [43][44] Question: Expected moderation in SBA volumes - Management anticipates SBA volumes to be below $1.5 billion for the next few quarters due to policy changes and staffing issues at the SBA [52][54]

Financial Performance - Net income from continuing operations was $0.47 per common share[5] - Distributable losses were $(0.09) per common share[5] - Distributable earnings before realized losses were $0.00 per common share[5] - A dividend of $0.125 per common share was declared[5] Loan Portfolio - The total loan portfolio was $8.4 billion[5] - The weighted average yield in the $5.9 billion CRE core portfolio was 8.3%[5] - Total loan originations amounted to $466.1 million[5] - Loan repayments and sales totaled $758.2 million[5] - Core delinquencies (60+ days) stood at 4.1%[5] Capitalization & Acquisitions - 3.4 million shares were repurchased at an average price of $5.02, impacting book value per share by $0.11[5] - Total leverage was 3.5x, with a recourse leverage ratio of 1.3x[5] - The acquisition of United Development Funding IV was closed for $167 million, which was $0.14 per share accretive to book value per share[5] Portfolio Composition - The carrying value of the Core portfolio is $5.88 billion with 4.1% being 60+ days delinquent[7] - The carrying value of the Non-Core portfolio is $0.74 billion with 40.9% being 60+ days delinquent[7]

– Quarterly GAAP Earnings of $0.33 and Distributable Earnings (DE) of $0.45 per Diluted Share –– Invested $2.3 Billion, Including $1.4 Billion in Commercial Lending and Record $0.7 Billion in Infrastructure Lending –– Closed $1.3 Billion After Quarter End, Including $0.9 Billion in Commercial Lending –– Issued $500 Million of Corporate Debt, Extending Average Maturity to 3.7 Years –– Current Liquidity of $1.5 Billion –– Paid Quarterly Dividend of $0.48 per Share for Over a Decade –MIAMI BEACH, Fla., May 9, ...

- GAAP EARNINGS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $0.47 -- DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.09) -- DISTRIBUTABLE EARNINGS PER COMMON SHARE BEFORE REALIZED LOSSES OF $0.00 - NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported f ...