Afc Gamma, Inc. ( (AFCG) ) has released its Q2 earnings. Here is a breakdown of the information Afc Gamma, Inc. presented to its investors.
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Advanced Flower Capital Inc. (Nasdaq: AFCG) is a commercial mortgage real estate investment trust specializing in senior secured mortgage loans and other types of loans to cannabis industry operators in states where medical and/or adult-use cannabis is legalized. Based in West Palm Beach, Florida, the company leverages its management team’s expertise in credit and cannabis to manage loans secured by real estate assets and cash flows.
In its second quarter 2025 earnings report, Advanced Flower Capital Inc. announced a GAAP net loss of $13.2 million, equating to a loss of $0.60 per basic weighted average common share. However, the company reported Distributable Earnings of $3.4 million or $0.15 per share, indicating a positive cash flow from operations. The company also declared a regular cash dividend of $0.15 per common share for the quarter.
Key highlights from the report include the company’s strategic decision to convert from a mortgage REIT to a business development company (BDC), pending shareholder approval. This conversion aims to broaden AFC’s investment opportunities beyond real estate-related assets, allowing it to lend to ancillary cannabis businesses and non-real estate covered, vertically integrated operators. The company also expanded its investment mandate to include secured loans to companies outside the cannabis industry, targeting middle-market companies.
The proposed conversion to a BDC is seen as a significant milestone for AFC, as it seeks to diversify its investment portfolio and capitalize on high-growth opportunities in the cannabis sector and beyond. The management believes that this strategic shift will enable the company to achieve attractive risk-adjusted returns by expanding its investable universe.
Looking ahead, Advanced Flower Capital Inc. remains committed to exploring new lending opportunities while maintaining its focus on established operators in the cannabis market. The company’s management is optimistic about the potential benefits of the proposed conversion and expanded investment mandate, positioning AFC for future growth and diversification.