Advanced Flower Capital Q3 distributable earnings miss estimates

Overview

• Advanced Flower Capital 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

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 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: ID:nGNX9b7Y51

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(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.)