Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q4 2024 Earnings Presentation
26 slides from Advanced Flower Capital's earnings presentation, Mar 13, 2025
Slide 1: Advanced Flower Capital Investor Presentation
ADVANCED FLOWER CAPITAL | INVESTOR PRESENTATION
Slide 2: Disclaimer
NASDAQ:AFCG | INVESTOR PRESENTATION DISCLAIMER Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and we intend such statements to be covered by the safe harbor provisions contained
Slide 3: Disclaimer: Important Notices
NASDAQ:AFCG | INVESTOR PRESENTATION DISCLAIMER Important Notices This presentation is by Advanced Flower Capital Inc. (“Advanced Flower Capital”, “AFC” or the “Company”), a publicly traded company that has elected to be taxed as a REIT for federal income tax purposes. This presentation is provided f
Slide 4: Company Overview
NASDAQ:AFCG | INVESTOR PRESENTATION COMPANY OVERVIEW Company Highlights(1) Advanced Flower Capital (NASDAQ:AFCG) is the first NASDAQ-listed commercial mortgage REIT that provides institutional loans to state law compliant cannabis operators in the United States We aim to provide attractive risk-
Slide 5: Investment Highlights
NASDAQ:AFCG | INVESTOR PRESENTATION INVESTMENT HIGHLIGHTS Cycle-Tested Significant lending, investment management and operational experience, which helps Leadership Team to navigate rapidly evolving markets and underwrite complex credits Strong Risk- Constrained capital in the marketplace allows us
Slide 6: Management Team
NASDAQ:AFCG | INVESTOR PRESENTATION MANAGEMENT TEAM Leonard Daniel Robyn Brandon Gabriel James Tannenbaum Neville Tannenbaum Hetzel Katz Velgot Chief Executive Chief Financial Chief Legal Chief Marketing Chairman President Officer, Director Officer Officer Officer 30+ years experience 15+ years expe
Slide 7: Diverse Platform
NASDAQ:AFCG | INVESTOR PRESENTATION DIVERSE PLATFORM AFC’s loan portfolio includes 17 loans to borrowers with significant operations and/or collateral across 16 states. Our portfolio is diversified across operators, geographies and asset types(1) AFC Nationwide Presence Portfolio by Operator Integra
Slide 8: 2024 Strategic Goals
NASDAQ:AFCG | INVESTOR PRESENTATION 2024 STRATEGIC GOALS In 2024 our team aimed to optimize the portfolio, advance our underwriting process and source $100+ million in new investments Active Portfolio Advanced New Deal Management Underwriting Origination Maintain portfolio health and Underwrite deal
Slide 9: Growth Opportunity: Current Legalization by State
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY 41 states and DC have legalized medical cannabis; of those, 24 states and DC have legalized adult-use cannabis, and two states have legalized high-CBD, low-THC with official medical programs(1) Current Legalization by State Cannabis is a $32 b
Slide 10: Growth Opportunity: U.S. Cannabis Market Growth
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY The U.S. legal cannabis market is expected to grow at 10% CAGR, to over $43 billion by 2027(1) Projected Market Growth by U.S. Cannabis Market Size(1) Comparable Product Type(2) ~10% $42.7 ~7% $39.6 $36.3 $29.5 $32.4 ~5% ~4% ~4% $31.2 $35.0 Cann
Slide 11: Growth Opportunity: Adult-Use Transitions
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY (1) Pennsylvania Minnesota Ohio Transitions Adult-Use $2.8B 13MM $100MM $1.6B 6MM $475MM $1.7B 12MM $450MM Exp. AU Sales Population Capital Need Exp. AU Sales Population Capital Need Exp. AU Sales Population Capital Need Georgia Alabama Kentucky
Slide 12: Growth Opportunity: Capital and Competitive Environment
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY Cannabis is a capital-intensive industry with a lack of specialized lenders and high barriers to entry Capital Environment Competitive Environment Cannabis sector has seen a difficult capital raising Few specialized lenders focused on the ca
Slide 13: Growth Opportunity: Growth, Consolidation, Emergence
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY Growth Consolidation Emergence Return to Sustainable Growth MSO 3.0 Players Additional medical and adult-use transitions, the elimination of 280E and We are increasingly seeing continued transition from the illicit to high-quality operators emer
Slide 14: AFC Average YTM vs. Benchmarks
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY (1) Cannabis lending offers a significant premium to traditional leveraged finance AFC Average YTM vs. Benchmarks ~18% 9% 7% U.S. Leveraged U.S. High AFC Loan Loan Yield Index (1) Yield Index(2) Average YTM(3) 1. Data from Bloomberg: Morningstar
Slide 15: AFC Price-to-Book vs. Peers
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY AFC Price-to-Book vs. Peers(1) 1.4 x 1.1 x 0.9 x 0.8 x 12% 11% 11% 7% Sale Leaseback REFI AFC(2) Commercial Providers Mortgage REITs(3) Dividend Yield High return income-generating company at an attractive valuation vs. peer group 1. Price to bo
Slide 16: Investment Process
NASDAQ:AFCG | INVESTOR PRESENTATION INVESTMENT PROCESS AFC is involved in each phase of the lending process, with an aim to source loans with high return potential and downside protection Sourcing & Loan Selection Investment Portfolio Origination & Underwriting Committee Management AFC maintains a
Slide 17: Actionable Pipeline
NASDAQ:AFCG | INVESTOR PRESENTATION ACTIONABLE PIPELINE Through its direct origination platform, AFC sources deals via various leads in select jurisdictions, maintaining a robust pipeline of active opportunities Multiple Origination Channels Advanced Flower Capital Pipeline(1) Co- Brokers Lenders $2
Slide 18: Portfolio: Current Commitments
NASDAQ:AFCG | INVESTOR PRESENTATION PORTFOLIO Current Commitments(1) In $MM $433 $431 $444 $10 $10 $7 $361 $376 $335 $350 $10 $10 $11 $20 $423 $421 $437 $351 $366 $324 $330 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Mar. 1, 2025 Funded Unfunded Weighted average yield-to-maturity of ~18% as of M
Slide 19: Portfolio: Loan Detail
NASDAQ:AFCG | INVESTOR PRESENTATION PORTFOLIO AFC’s manager has reviewed 871 deals, representing approximately $20 billion in aggregate value* Deals Current Deals Current Deals Rejected* in Review Funded Original AFCG Loan, Principal Cash Paid Loan % of Total Fixed/ Amortization (2)(3) Loan Names Fu
Slide 20: Key Financials: Book Value
NASDAQ:AFCG | INVESTOR PRESENTATION KEY FINANCIALS Book Value(1) In $/share $1.68 $0.03 $15.64 ($1.62) ($1.01) $9.02 ($5.70) Book Value 2024 2024 2024 2024 2024 2024 CECL, 20242024 Spin-Off Book Value December 31, Distributable Distributable Equity Raises Regular Regular FV Adjustments Spin-Off Dist
Slide 21: AFC Q4 & Full Year 2024
AFC | Q4 & FULL YEAR 2024 INVESTOR PRESENTATION 21
Slide 22: Quarterly Results: Balance Sheet
NASDAQ:AFCG | INVESTOR PRESENTATION QUARTERLY RESULTS As of December 31, 2024 2023 Assets Loans held for investment at fair value (cost of $50,241,018 and $71,644,003 at December 31, 2024 and 2023, respectively, net) $ 30,510,804 $ 61,720,705 Loans held for investment at carrying value, net 293,262,
Slide 23: Quarterly Results: Income Statement
NASDAQ:AFCG | INVESTOR PRESENTATION QUARTERLY RESULTS Years ended December 31, 2024 2023 Revenue Interest income $ 51,991,789 $ 70,290,345 Interest expense (6,336,308) (6,357,457) Net interest income 45,655,481 63,932,888 Expenses Management and incentive fees, net (less rebate of $947,969 and $1,69
Slide 24: Distributable Earnings Reconciliation
NASDAQ:AFCG | INVESTOR PRESENTATION QUARTERLY RESULTS Three months ended Year ended December 31, 2024 December 31, 2024 Net income (loss) $ (991,534) $ 16,784,205 Adjustments to net income (loss): Stock-based compensation expense 259,770 1,390,978 Depreciation and amortization — — Unrealized losses
Slide 25: Select Investments
NASDAQ:AFCG | INVESTOR PRESENTATION SELECT INVESTMENTS $15,000,000 Undisclosed $34,000,000 $30,000,000 Lead Lender and Agent Amount Lead Lender and Agent Lender and Agent February 2025 May 2024 March 2024 July 2023 $63,000,000 $140,000,000 $23,000,000 Lender and Agent Lead Lender and Co-Agent Lender
Slide 26: Contact
ir@advancedflowercapital.com www.advancedflowercapital.com
Advanced Flower Capital — Q4 2024 Earnings Presentation on 6ix