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Jun 30, 2025
AFC Gamma Q2 2025 Earnings Report
AFC Gamma reported a net loss of $13.2 million for Q2 2025 and $3.4 million in Distributable Earnings, while announcing plans to convert to a BDC.
Key Takeaways
Advanced Flower Capital (AFC Gamma) posted a GAAP net loss of $13.2 million, or $(0.60) per share, for Q2 2025. Distributable Earnings totaled $3.4 million, or $0.15 per share. The company plans to convert from a mortgage REIT to a BDC to expand its investable universe beyond cannabis real estate lending.
Reported GAAP net loss of $13.2 million, or $(0.60) per share.
Distributable Earnings totaled $3.4 million, or $0.15 per share.
Board approved expansion of investment mandate to include non-cannabis lending.
Announced plans to convert from a mortgage REIT to a BDC, pending shareholder approval.
Forward Guidance
AFC expects that converting to a BDC will allow it to expand its lending opportunities beyond cannabis real estate, targeting ancillary businesses and middle market companies.
Positive Outlook
- Proposed BDC conversion will expand investable universe.
- New mandate includes lending to ancillary cannabis and non-cannabis sectors.
- TRS operations support broader asset strategies.
- Board and management aligned on strategic transition.
- Experienced team with $10B in direct lending transactions.
Challenges Ahead
- GAAP net loss driven by credit loss provision and non-cash charges.
- Capital constraints persist across the cannabis lending space.
- Limited real estate ownership among borrowers restricts REIT lending.
- Distributable Earnings declined significantly YoY.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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