Advanced Flower Capital (AFCG) Company Report

Advanced Flower Capital Inc. (AFCG) filed an 8-K on January 16, 2026, to report an Amendment Number Six to its Loan and Security Agreement.
The Sixth Amendment was dated January 13, 2026, and became effective on December 31, 2025.
This amendment includes financial covenants requiring a Debt Service Coverage Ratio of at least 1.50 to 1.00, Liquidity of not less than $5,000,000, and Secured Debt not exceeding 25% of consolidated total assets, all measured on a quarter-end basis.
Sunrise Realty is excluded from these financial covenants until it is joined as a Guarantor.

Jan 16, 2026, 2:40 AM

Advanced Flower Capital Completes Conversion to Business Development Company

AFCG

New Projects/Investments

Advanced Flower Capital Inc. (AFCG) completed its conversion from a real estate investment trust (REIT) to a business development company (BDC), effective January 1, 2026.
This conversion expands AFC's investment flexibility, allowing it to pursue opportunities beyond real estate-backed loans to include a broader universe of operating businesses.
The company believes this strategic shift will enhance long-term shareholder value and generate attractive risk-adjusted returns.
AFCG will continue to trade on Nasdaq under its existing ticker symbol.

Jan 5, 2026, 12:30 PM

Advanced Flower Capital Shareholders Approve BDC Conversion, Reports Q3 2025 Earnings

AFCG

Earnings

Proxy Vote Outcomes

Dividends

Advanced Flower Capital's shareholders approved the conversion from a mortgage REIT to a Business Development Company (BDC) on November 6, 2025, with over 94% of votes cast in favor. The conversion is anticipated in Q1 2026, which will expand the company's investment mandate beyond cannabis and real estate collateral.
For Q3 2025, AFC reported distributable earnings of $0.16 per basic weighted average share and a GAAP net loss of $0.57 per basic weighted average share.
The board declared a $0.15 per common share dividend for Q3 2025, paid on October 15, 2025. However, the company does not anticipate making a distribution to shareholders in Q4 2025 due to an expected $4 million taxable loss associated with a loan to private company P.
AFC received $43 million in principal repayments since the end of Q2 2025. The company has a pipeline of approximately $415 million, which includes $60 million in cannabis opportunities and $350 million in non-cannabis opportunities.

Nov 12, 2025, 3:00 PM

Advanced Flower Capital (AFCG) Reports Q3 2025 Results and Shareholder Approval for BDC Conversion

AFCG

Earnings

Proxy Vote Outcomes

Shareholders of Advanced Flower Capital (AFCG) approved the plan to convert from a REIT to a BDC on November 6, 2025, with approximately 94% of votes cast in favor.
For Q3 2025, AFCG reported a net loss of $(12.5) million and distributable earnings of $3.5 million, or $0.16 per basic weighted average share. This compares to net income of $1.4 million and distributable earnings of $7.2 million, or $0.35 per share, in Q3 2024.
The Q3 2025 results were significantly impacted by a $(7.4) million provision for current expected credit losses and $(9.7) million in change in unrealized losses on loans at fair value.
AFCG's BBB+ investment grade rating was affirmed by Egan-Jones in September 2025, and the company maintains current commitments of $340 million with an active pipeline of $416 million as of Q3 2025.
The U.S. legal cannabis market, where AFCG operates, is projected to grow from $35 billion to $63 billion by 2030, with continued state-level legalization creating opportunities in a capital-intensive industry with limited institutional lenders.

Nov 12, 2025, 3:00 PM

Advanced Flower Capital Inc. Announces Q3 2025 Results and Shareholder Approval for BDC Conversion

AFCG

Earnings

Dividends

New Projects/Investments

Advanced Flower Capital Inc. reported a GAAP net loss of $(12.5) million or $(0.57) per basic weighted average common share for the third quarter of 2025.
For the same period, Distributable Earnings were $3.5 million or $0.16 per basic weighted average common share.
Shareholders approved the conversion from a mortgage REIT to a business development company (BDC), with completion expected in the first quarter of 2026.
The company paid a regular cash dividend of $0.15 per common share for the third quarter of 2025 on October 15, 2025.

Nov 12, 2025, 12:35 PM

Advanced Flower Capital Announces Third Quarter 2025 Results and Shareholder Approval for BDC Conversion

AFCG

Earnings

Dividends

Proxy Vote Outcomes

Advanced Flower Capital Inc. reported a GAAP net loss of $(12.5) million or $(0.57) per basic weighted average common share and Distributable Earnings of $3.5 million or $0.16 per basic weighted average common share for the third quarter of 2025.
Shareholders approved the company's plan to convert from a real estate investment trust (REIT) to a business development company (BDC), with the conversion expected to be completed in the first quarter of 2026.
The company paid a regular cash dividend of $0.15 per common share for the third quarter of 2025 on October 15, 2025.

Nov 12, 2025, 12:32 PM

Advanced Flower Capital Shareholders Approve Conversion to Business Development Company

AFCG

Proxy Vote Outcomes

New Projects/Investments

Shareholders of Advanced Flower Capital Inc. (AFCG) have approved all proposals related to the company's conversion from a real estate investment trust (REIT) to a business development company (BDC).
The approved proposals include a new 1940 Act-compliant investment advisory agreement with AFC Management, LLC, and the application of reduced asset coverage requirements for BDCs.
The conversion is expected to be completed in the first quarter of 2026 and aims to expand the company's investable scope beyond real estate-backed loans.
For the Investment Advisory Agreement, 13,174,530 votes were cast For; for the Reduced Asset Coverage Requirement, 12,903,849 votes were cast For.