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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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.

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.
Quarterly Dividend Announcement: Advanced Flower Capital Inc. 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.
Distributable Earnings Definition: The company uses "Distributable Earnings," a non-GAAP financial measure, to evaluate performance excluding certain transactions and adjustments, which helps assess its ability to pay dividends.
Earnings Performance: Armour Residential REIT (ARR) reported quarterly earnings of $0.77 per share, missing expectations and down from $1.08 a year ago, with revenues also falling short at $33.11 million compared to estimates.
Market Outlook: The stock has underperformed this year, losing 11.6% while the S&P 500 gained 7.3%, and its future performance will depend on upcoming earnings estimate revisions and industry trends, currently holding a Zacks Rank #3 (Hold).

Financial Results Announcement: Advanced Flower Capital Inc. (AFC) will release its second-quarter financial results on August 14, 2025, with a management review scheduled for 10:00 am ET via webcast.
Company Overview: AFC is a commercial mortgage REIT that provides loans to compliant cannabis operators in the U.S., focusing on loans secured by real estate assets and cash flows.








