Advanced Flower Capital Inc. Announces Financial Results for Third Quarter 2024
Advanced Flower Capital reported Q3 2024 financial results with GAAP net income of $1.4 million ($0.06 per share) and Distributable Earnings of $7.2 million ($0.35 per share). The company paid a quarterly dividend of $0.33 per share. CEO Daniel Neville highlighted their success in surpassing the 2024 target of $100 million in new originations, demonstrating strong portfolio management and ability to support high-quality operators in key markets.
Advanced Flower Capital ha riportato i risultati finanziari del terzo trimestre del 2024, con un utile netto GAAP di 1,4 milioni di dollari (0,06 dollari per azione) e Utili Distribuibili di 7,2 milioni di dollari (0,35 dollari per azione). L'azienda ha distribuito un dividendo trimestrale di 0,33 dollari per azione. Il CEO Daniel Neville ha sottolineato il successo nell'aver superato l'obiettivo del 2024 di 100 milioni di dollari in nuove originazioni, dimostrando una forte gestione del portafoglio e la capacità di supportare operatori di alta qualità nei mercati chiave.
Advanced Flower Capital reportó los resultados financieros del tercer trimestre de 2024, con un ingreso neto GAAP de 1,4 millones de dólares (0,06 dólares por acción) y Ganancias Distribuibles de 7,2 millones de dólares (0,35 dólares por acción). La empresa pagó un dividendo trimestral de 0,33 dólares por acción. El CEO Daniel Neville destacó su éxito al superar la meta de 2024 de 100 millones de dólares en nuevas originaciones, demostrando una fuerte gestión de cartera y habilidad para apoyar a operadores de alta calidad en mercados clave.
Advanced Flower Capital는 2024년 3분기 재무 결과를 발표했으며, GAAP 순익은 140만 달러(주당 0.06달러)이고, 지급가능 수익은 720만 달러(주당 0.35달러)입니다. 회사는 주당 0.33달러의 분기 배당금을 지급했습니다. CEO 다니엘 네빌은 2024년 1억 달러의 신규 출처 목표를 초과 달성한 성공을 강조하며, 강력한 포트폴리오 관리와 주요 시장에서 고품질 운영자를 지원하는 능력을 보여주었습니다.
Advanced Flower Capital a publié ses résultats financiers pour le troisième trimestre 2024, avec un bénéfice net selon les normes GAAP de 1,4 million de dollars (0,06 dollar par action) et des Gains Distribuables de 7,2 millions de dollars (0,35 dollar par action). La société a versé un dividende trimestriel de 0,33 dollar par action. Le PDG Daniel Neville a souligné leur succès à dépasser l'objectif de 2024 de 100 millions de dollars en nouvelles origines, démontrant une gestion de portefeuille solide et la capacité de soutenir des opérateurs de haute qualité sur des marchés clés.
Advanced Flower Capital berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, mit einem GAAP-Nettoeinkommen von 1,4 Millionen Dollar (0,06 Dollar pro Aktie) und distributierbaren Erträgen von 7,2 Millionen Dollar (0,35 Dollar pro Aktie). Das Unternehmen zahlte eine vierteljährliche Dividende von 0,33 Dollar pro Aktie. CEO Daniel Neville hob ihren Erfolg hervor, das Ziel für 2024 von 100 Millionen Dollar an neuen Originationen zu übertreffen, was eine starke Portfoliomanagement- und Unterstützungsfähigkeit für hochwertige Betreiber in wichtigen Märkten demonstriert.
- Achieved $100 million new originations target for 2024
- Distributable Earnings of $7.2 million ($0.35 per share)
- Maintained strong dividend payment of $0.33 per share
- GAAP net income decreased to $1.4 million from $8.0 million in Q3 2023
- Distributable Earnings per share declined to $0.35 from $0.49 year-over-year
- Increase in provision for current expected credit losses of $181,370
Insights
The Q3 2024 results show mixed performance. While AFC achieved
Notable positives include surpassing the
The credit quality metrics warrant attention. The increase in provision for expected credit losses to
While the company maintains strong origination momentum, the growing credit provisions and unrealized losses could signal increasing risk in the cannabis lending market, potentially impacting future earnings stability.
Third quarter 2024 GAAP net income of
Paid first post-spin dividend of
WEST PALM BEACH, Fla., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (f/k/a AFC Gamma, Inc.) (NASDAQ:AFCG) (“Advanced Flower Capital”, “AFC” or the “Company”) today announced its results for the quarter ended September 30, 2024.
AFC reported generally accepted accounting principles (“GAAP”) net income of
“We are pleased with the strong quarter, driven by our continued focus on active portfolio management and origination. One of my top priorities when I joined AFC was to reinvigorate our origination engine, and I am proud to announce that we have surpassed our 2024 target of
Common Stock Dividend
On October 15, 2024, the Company paid a regular cash dividend of
Additional Information
Advanced Flower Capital issued a presentation of its third quarter 2024 results, titled “Third Quarter 2024 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 September 30, 2024, with the Securities and Exchange Commission on November 13, 2024.
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, November 13, 2024, 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.
About Advanced Flower Capital
Advanced Flower Capital Inc. (Nasdaq: AFCG) is a leading commercial mortgage 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) (decrease) increase in provision for 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 real estate investment trust (“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 September 30, | Nine months ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income | $ | 1,383,734 | $ | 7,979,875 | $ | 17,775,739 | $ | 30,140,482 | ||||||
| Adjustments to net income: | ||||||||||||||
| Stock-based compensation expense | 218,643 | 294,014 | 1,131,208 | 705,361 | ||||||||||
| Depreciation and amortization | — | — | — | — | ||||||||||
| Unrealized (gains) losses or other non-cash items | 4,621,702 | (787,799 | ) | 9,655,396 | 1,152,810 | |||||||||
| Increase (decrease) in provision for current expected credit losses2 | 181,370 | 1,053,398 | (1,077,196 | ) | 149,637 | |||||||||
| TRS (income) loss, net of dividends | 840,556 | 1,399,920 | 1,147,554 | (716,684 | ) | |||||||||
| One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | — | — | ||||||||||
| Distributable earnings | $ | 7,246,005 | $ | 9,939,408 | $ | 28,632,701 | $ | 31,431,606 | ||||||
| Basic weighted average shares of common stock outstanding | 20,684,149 | 20,324,125 | 20,493,375 | 20,315,162 | ||||||||||
| Distributable earnings per basic weighted average share | $ | 0.35 | $ | 0.49 | $ | 1.40 | $ | 1.55 | ||||||
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
INVESTOR CONTACT:
Robyn Tannenbaum
(561) 510-2293
ir@advancedflowercapital.com
MEDIA CONTACT:
Profile Advisors
Rich Myers
(347) 774-1125
rmyers@profileadvisors.com
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.
2 The provision for current expected credit losses above includes approximately zero and
FAQ
What was Advanced Flower Capital's (AFCG) net income for Q3 2024?
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