Overview

* Advanced Flower Capital ( AFCG ) Q3 GAAP net loss of $12.5 mln

* Distributable Earnings for Q3 miss analyst expectations

* Shareholders approve conversion from REIT to BDC, completing in Q1 2026

Outlook

* AFC expects BDC conversion completion in Q1 2026

* Company sees lending opportunities in lower-middle market

* AFC's BDC conversion expands investment scope beyond real estate

Result Drivers

* BDC CONVERSION - AFC shareholders approve conversion from REIT to BDC, expanding investment opportunities beyond real estate

* LIMITED CAPITAL - Co notes limited new capital entering cannabis market, focusing on resolving nonaccrual positions and loan repayments

* LENDING OPPORTUNITIES - CEO highlights evaluation of lower-middle market lending opportunities for attractive risk-adjusted returns

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $3.50 $4.69

Distribu mln mln (5

table Analysts

Earnings )

Q3 Net -$12.50

Income mln

Q3 $0.15

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy."

* Wall Street's median 12-month price target for Advanced Flower Capital Inc ( AFCG ) is $6.50, about 50.2% above its November 11 closing price of $3.24

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)