Advanced Flower Capital Inc. Announces Financial Results for the First Quarter 2025
Advanced Flower Capital (Nasdaq: AFCG) reported its Q1 2025 financial results with GAAP net income of $4.1 million ($0.18 per basic share) and Distributable Earnings of $4.5 million ($0.21 per basic share). The company paid a quarterly cash dividend of $0.23 per common share on April 15, 2025.
CEO Dan Neville emphasized AFC's focus on reducing exposure to underperforming credits while maintaining disciplined debt capital provision to accomplished operators. As a leading commercial mortgage REIT, AFC provides institutional loans ranging from $10 million to over $100 million to state-compliant cannabis operators, secured by real estate assets, license value, and cash flows.
Advanced Flower Capital (Nasdaq: AFCG) ha riportato i risultati finanziari del primo trimestre 2025 con un utile netto GAAP di 4,1 milioni di dollari (0,18 dollari per azione base) e utili distribuibili di 4,5 milioni di dollari (0,21 dollari per azione base). L'azienda ha pagato un dividendo in contanti trimestrale di 0,23 dollari per azione ordinaria il 15 aprile 2025.
Il CEO Dan Neville ha sottolineato l'impegno di AFC nel ridurre l'esposizione verso crediti con scarse performance, mantenendo al contempo una gestione disciplinata del capitale di debito destinato a operatori di successo. Come principale REIT di mutui commerciali, AFC concede prestiti istituzionali che variano da 10 a oltre 100 milioni di dollari a operatori di cannabis conformi alle normative statali, garantiti da immobili, valore delle licenze e flussi di cassa.
Advanced Flower Capital (Nasdaq: AFCG) informó sus resultados financieros del primer trimestre de 2025 con un ingreso neto GAAP de 4,1 millones de dólares (0,18 dólares por acción básica) y ganancias distribuibles de 4,5 millones de dólares (0,21 dólares por acción básica). La compañía pagó un dividendo trimestral en efectivo de 0,23 dólares por acción común el 15 de abril de 2025.
El CEO Dan Neville enfatizó el enfoque de AFC en reducir la exposición a créditos con bajo rendimiento, manteniendo una provisión disciplinada de capital de deuda para operadores exitosos. Como un REIT líder en hipotecas comerciales, AFC ofrece préstamos institucionales que van desde 10 millones hasta más de 100 millones de dólares a operadores de cannabis que cumplen con las normativas estatales, garantizados por activos inmobiliarios, valor de licencias y flujos de efectivo.
Advanced Flower Capital (나스닥: AFCG)는 2025년 1분기 재무 결과를 발표하며 GAAP 순이익 410만 달러(주당 기본 0.18달러)와 분배 가능 수익 450만 달러(주당 기본 0.21달러)를 기록했습니다. 회사는 2025년 4월 15일 보통주 주당 분기별 현금 배당금 0.23달러를 지급했습니다.
CEO Dan Neville은 AFC가 실적 부진한 채권에 대한 노출을 줄이는 데 집중하면서도 성공적인 운영자에게 엄격한 부채 자본 제공을 유지하는 데 중점을 두고 있다고 강조했습니다. 선도적인 상업용 모기지 REIT인 AFC는 주 정부 규정을 준수하는 대마초 운영자에게 부동산 자산, 라이선스 가치 및 현금 흐름을 담보로 1,000만 달러에서 1억 달러 이상의 기관 대출을 제공합니다.
Advanced Flower Capital (Nasdaq : AFCG) a annoncé ses résultats financiers du premier trimestre 2025 avec un revenu net GAAP de 4,1 millions de dollars (0,18 dollar par action de base) et des bénéfices distribuables de 4,5 millions de dollars (0,21 dollar par action de base). La société a versé un dividende trimestriel en espèces de 0,23 dollar par action ordinaire le 15 avril 2025.
Le PDG Dan Neville a souligné l’attention d’AFC à réduire son exposition aux crédits peu performants tout en maintenant une gestion rigoureuse de l’octroi de dette aux opérateurs performants. En tant que REIT hypothécaire commercial de premier plan, AFC accorde des prêts institutionnels allant de 10 millions à plus de 100 millions de dollars à des opérateurs de cannabis conformes aux réglementations étatiques, garantis par des actifs immobiliers, la valeur des licences et les flux de trésorerie.
Advanced Flower Capital (Nasdaq: AFCG) meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem GAAP-Nettogewinn von 4,1 Millionen US-Dollar (0,18 US-Dollar je Stammaktie) und verteilbaren Gewinnen von 4,5 Millionen US-Dollar (0,21 US-Dollar je Stammaktie). Das Unternehmen zahlte am 15. April 2025 eine vierteljährliche Bardividende von 0,23 US-Dollar je Stammaktie.
CEO Dan Neville betonte AFCs Fokus darauf, die Exponierung gegenüber leistungsschwachen Krediten zu reduzieren und gleichzeitig eine disziplinierte Bereitstellung von Fremdkapital an erfolgreiche Betreiber aufrechtzuerhalten. Als führender kommerzieller Hypotheken-REIT vergibt AFC institutionelle Darlehen von 10 Millionen bis über 100 Millionen US-Dollar an staatlich konforme Cannabisbetreiber, gesichert durch Immobilien, Lizenzwerte und Cashflows.
- Net income of $4.1 million in Q1 2025, compared to a loss in Q1 2024
- Distributable Earnings of $4.5 million ($0.21 per share)
- Maintained quarterly dividend of $0.23 per share
- Reduction in provision for expected credit losses by $699,424
- Significant decrease in Distributable Earnings per share from $0.49 in Q1 2024 to $0.21 in Q1 2025
- Presence of underperforming credits in portfolio requiring attention
- Continued dependency on regulatory momentum affecting market sentiment
Insights
AFCG delivered modest Q1 earnings with improving credit quality but significantly lower distributable earnings year-over-year amid cannabis market challenges.
Advanced Flower Capital's Q1 2025 results paint a picture of a company navigating challenging cannabis market conditions while maintaining dividend coverage. The company posted $4.1 million in GAAP net income ($0.18 per share) and $4.5 million in Distributable Earnings ($0.21 per share). Despite these positive figures, there's a concerning trend when comparing to Q1 2024 - Distributable Earnings have decreased by over
The dividend of
A positive signal is the
The unrealized losses of
As a cannabis-focused REIT providing debt capital to operators in a highly regulated industry, AFCG faces unique risks but also enjoys premium interest rates compared to traditional REITs. CEO Dan Neville's comments about focusing on "quality credits with strong risk-adjusted returns" and taking advantage of "market dislocations" suggest a disciplined approach to lending in a volatile space where regulatory developments remain a key driver of market sentiment.
First quarter 2025 GAAP net income of
Distributable Earnings(1) of
WEST PALM BEACH, Fla., May 14, 2025 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“Advanced Flower Capital”, “AFC” or the “Company”) today announced its results for the quarter ended March 31, 2025.
AFC reported generally accepted accounting principles (“GAAP”) net income of
“Our top priority at AFC is reducing our exposure to underperforming credits, while also remaining disciplined on providing debt capital to accomplished operators,” said Dan Neville, AFC’s Chief Executive Officer. “While cannabis market sentiment continues to hinge on regulatory momentum, we are focused on taking advantage of market dislocations to invest in quality credits with strong risk adjusted returns, which our recent investments demonstrate.”
Common Stock Dividend
On April 15, 2025, the Company paid a regular cash dividend of
Additional Information
Advanced Flower Capital issued a presentation of its first quarter 2025 results, titled “First Quarter 2025 Earnings Presentation,” which can be viewed at advancedflowercapital.com under the Investor Relations section. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, with the Securities and Exchange Commission on May 14, 2025.
AFC routinely posts important information for investors on its website, advancedflowercapital.com. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the Investors section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section.
Conference Call & Discussion of Financial Results
Advanced Flower Capital will host a conference call at 10:00 am (Eastern Time) on Wednesday, May 14, 2025, to discuss its quarterly financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC’s website found here: AFC -- Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of AFC’s website.
1 Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.
About Advanced Flower Capital
Advanced Flower Capital Inc. (Nasdaq: AFCG) is a leading commercial mortgage real estate investment trust (“REIT”) that provides institutional loans to state law compliant cannabis operators in the U.S. Through the management team’s deep network and significant credit and cannabis expertise, AFC originates, structures, underwrites and manages loans ranging from
Non-GAAP Metrics
In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most-recently filed Quarterly Report on Form 10-Q. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information it provides is useful to investors since this measure permits investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance.
The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings accounts for any Incentive Compensation earned for such time period.
We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses, (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.
We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a REIT, we are required to distribute at least
Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
The following table provides a reconciliation of GAAP Net income to Distributable Earnings:
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net income (loss) | $ | 4,067,685 | $ | (54,116 | ) | ||
| Adjustments to net income (loss): | |||||||
| Stock-based compensation expense | 553,749 | 543,222 | |||||
| Depreciation and amortization | — | — | |||||
| Unrealized losses (gains) or other non-cash items | 685,478 | 3,613,693 | |||||
| (Reversal of) provision for current expected credit losses | (699,424 | ) | 4,931,674 | ||||
| TRS (income) loss, net of dividends | (63,582 | ) | 931,233 | ||||
| One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | |||||
| Distributable earnings | $ | 4,543,906 | $ | 9,965,706 | |||
| Basic weighted average shares of common stock outstanding | 22,097,979 | 20,393,875 | |||||
| Distributable earnings per basic weighted average share | $ | 0.21 | $ | 0.49 | |||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for cannabis cultivation and processing facilities and dispensaries; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of AFC’s most recently filed periodic reports on Form 10-K, Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Robyn Tannenbaum
(561) 510-2293
ir@advancedflowercapital.com
Media Contact
Collected Strategies
Jim Golden / Jack Kelleher
AFCG-CS@collectedstrategies.com
FAQ
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