Core Points - Advanced Flower Capital Inc. (AFC) declared a quarterly dividend of $0.15 per share for the quarter ending September 30, 2025, payable on October 15, 2025, to stockholders of record on September 30, 2025 [1] - The third quarter dividend remains consistent with the second quarter dividend, with the Board evaluating Distributable Earnings each quarter due to uncertainties regarding loan repayments [2] Company Overview - Advanced Flower Capital Inc. is a commercial mortgage real estate investment trust (REIT) that specializes in originating, structuring, underwriting, and managing senior secured mortgage loans, particularly for the cannabis industry in legalized states [3] - The company manages loans ranging from $10 million to over $100 million, secured by quality real estate assets and cash flows [3] Distributable Earnings - Distributable Earnings is a non-GAAP financial measure used by the company to evaluate performance, excluding certain transactions and GAAP adjustments [4][6] - The calculation of Distributable Earnings is similar to Core Earnings but includes Incentive Compensation earned during the period [5] - Distributable Earnings is defined as net income excluding stock-based compensation, depreciation, unrealized gains/losses, expected credit losses, and one-time events [6][7] - The company aims to distribute at least 90% of its annual REIT taxable income, with Distributable Earnings serving as a factor in determining dividend levels [7][8]

Core Viewpoint - Chicago Atlantic Real Estate Finance, Inc. reported its first-quarter financial results for 2025, highlighting a disciplined approach to lending in a volatile financial and cannabis market, with a focus on maximizing long-term returns for shareholders [2][5]. Portfolio Performance - As of March 31, 2025, the total loan principal outstanding was $407.0 million across 30 portfolio companies, with $19.8 million in unfunded commitments [6]. - The portfolio's weighted average yield to maturity was approximately 16.9%, a slight decrease from 17.2% as of December 31, 2024 [6]. - The aggregate loan portfolio included 58.5% variable interest rate loans and 41.5% fixed interest rate loans [6]. Capital Activity and Dividends - The company had total leverage of $88.0 million, resulting in a consolidated leverage ratio of approximately 28% [6]. - Chicago Atlantic issued 64,557 shares through its ATM program, raising net proceeds of approximately $1.0 million [6]. - A regular quarterly cash dividend of $0.47 per share was paid on April 15, 2025, to common stockholders of record on March 31, 2025 [6]. First Quarter 2025 Financial Results - Net interest income was approximately $13.0 million, down from $14.1 million in the previous quarter [6]. - Total expenses were approximately $4.1 million, representing a sequential decrease of about 28.3% [6]. - Net income was approximately $10.0 million, or $0.47 per weighted average diluted common share, reflecting a sequential increase of 20.5% on a per-share basis [6]. - The total reserve for current expected credit losses decreased to $3.3 million, approximately 0.8% of the aggregate portfolio principal balance of loans held for investment [6]. Book Value and Earnings - Book value per common share increased from $14.83 as of December 31, 2024, to $14.87 as of March 31, 2025 [7]. - Distributable earnings were approximately $9.7 million, or $0.47 and $0.46 per basic and diluted weighted average common share, respectively [6][19].