Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q2 2026 Earnings Presentation
28 slides from Advanced Flower Capital's earnings presentation, August 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026
Slide 2: Legal Disclaimers
IMPORTANT INFORMATION Legal Disclaimers Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Ex
Slide 3: Legal Disclaimers: Important Notices
IMPORTANT INFORMATION Legal Disclaimers Important Notices This presentation is by Advanced Flower Capital, a publicly traded company that is a non-diversified, externally managed, closed-end management investment company that has elected to be regulated as a BDC and intends to elect to be taxed as a
Slide 4: An Institutional Lender to the U.S. Lower Middle-Markets
OVERVIEW An Institutional Lender to the U.S. Lower Middle-Markets Company Overview By the Numbers › AFC is an institutional capital provider specializing in debt investments to lower middle-market businesses of $5 to $50 million EBITDA across various industries › We aim to provide attractive risk-ad
Slide 5: Experienced, Cycle-Tested Leadership Team
LEADERSHIP Experienced, Cycle-Tested Leadership Team LEONARD DANIEL ROBYN BRANDON GABRIEL JAMES TANNENBAUM NEVILLE TANNENBAUM HETZEL KATZ VELGOT Chief Executive Chief Investment Chief Financial Chief Legal Chief Marketing Chairman Officer Officer, President Officer, Treasurer Officer Officer 30+ YEA
Slide 6: It's Good to be a Lender
INVESTMENT HIGHLIGHTS It’s Good to be a Lender Cycle-Tested Seeking Compelling Disciplined Active Portfolio Strong Balance Management Investment Returns Process Management Sheet & Liquidity › AFC’s ability to › Working to capture › Rigorous, repeatable › Detailed performance › Prudent cash navigate
Slide 7: Benefits of a BDC
BENEFICIAL STRUCTURE Benefits of a BDC What is a Business Development Company? › Atoclosed-end management investment company that has elected to be regulated under the 1940 Act required invest at least 70% of assets in private or small public companies via long-term debt or equity capital Invest at
Slide 8: Providing Flexible Financing to Lower Middle-Market Companies
FOCUSED STRATEGY Providing Flexible Financing to Lower Middle-Market Companies Target Characteristics Investment Focus Origination Focus › Private companies headquartered or › Focus on originated loans as opposed to CHECK SIZE › At least $10 million mostly operating in the United States broadly synd
Slide 9: Pursuing Attractive Deals Regardless of Ownership Structure
SPONSOR-AGNOSTIC ORIGINATIONS Pursuing Attractive Deals Regardless of Ownership Structure Sponsor-Backed Lending Non-Sponsor-Backed Lending Financing the businesses of issuers owned by PE Financing the businesses of issuers under any ownership Institutional Governance & Reporting Owner-Operator Alig
Slide 10: Disciplined and Selective Investment Process
OUR APPROACH Disciplined and Selective Investment Process AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection Sourcing & Selection & Investment Portfolio Originations Underwriting Committee Management › Multi-channel direct
Slide 11: Broad Sourcing Approach Designed for Robust Proprietary Deal Flow
DIRECT ORIGINATIONS PLATFORM Broad Sourcing Approach Designed for Robust Proprietary Deal Flow Multiple Channels Driving Originations High-Quality, Actionable Pipeline › Co-lenders › BDCs or REITs NETWORK-BASED › Owners/operators › Banks DEAL FLOW › Brokers › Advisory firms $33.9bn › PE firms › Serv
Slide 12: Investment Activity
PORTFOLIO Investment Activity Current Commitments1 ($ in millions) $375 $370 $376 $379 $386 $361 $345 $3 $7 $10 $9 $10 $333 $14 $12 $10 $351 $366 $360 $362 $376 $379 $333 $323 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 8/3/2026 Funded Unfunded Note: Past performance does not predict fut
Slide 13: AFC Portfolio Summary
PORTFOLIO AFC Portfolio Summary AFC’s adviser has reviewed 1,245 deals, representing approximately $34 billion in aggregate value* 1,130 Rejected Deals * 72 Current Deals in Review 18 Current Deals Funded As of 8/3/2026; $ in millions unless otherwise noted Funding Loan AFC Loan As % of Total Princi
Slide 14: AFC Financial Results
NASDAQ: AFCG | SECOND QUARTER 2026 AFC Financial Results
Slide 15: Second Quarter 2026 Highlights
SINCE LAST QUARTER Second Quarter 2026 Highlights During the second quarter, Net asset value (NAV) as of total loan commitments NET ASSET June 30, 2026 was $8.25 per ORIGINATIONS originated and new gross VALUE share as compared to $7.90 as AND FUNDINGS fundings including PIK were of March 31, 2026 $
Slide 16: Financial Highlights as a BDC
Financial Highlights as a BDC ($ in thousands except per share data) Q2 2026 Balance Sheet Highlights: Total Debt Outstanding (Principal) $207,000 Total Net Assets (Equity) $187,270 Cash and Cash Equivalents $106,509 Net Debt-to-Equity Ratio 0.53x Income Statement Highlights: Total Investment Income
Slide 17: Net Asset Value Per Share
Net Asset Value Per Share $0.17 $8.25 $0.36 ($0.10) $0.36 $7.46 12/31/2025 Net Investment Net Unrealized Distributions Appreciation from 6/30/2026 NAV Per Share Income Gains on Investments Declared Share Repurchases NAV Per Share Note: Past performance does not predict future returns. Investing invo
Slide 18: Portfolio Highlights
Portfolio Highlights (At quarter end; $ in thousands) Q1 2026 Q2 2026 8/3/2026 Key Metrics: Portfolio Loan Commitments $375,661 $378,661 $385,661 Number of Portfolio Companies 15 17 18 Average Investment Size $25,044 $22,274 $21,426 Asset Class: First-Lien Debt Investments 100% 100% 100% Interest Ra
Slide 19: Internal Portfolio Ratings
Internal Portfolio Ratings As of June 30, 2026, non-accrual investments as a percentage of the total fair value of the portfolio was 22.7%1 Internal June 30, 2026 Rating Fair Value As % of Portfolio Number of Companies 1 $– – – 2 91.4 31.5% 4 3 132.5 45.8% 10 4 – – – 5 65.9 22.7% 3 Total $289.8 100.
Slide 20: Debt Summary
FUNDING SOURCES Debt Summary ($ in millions) Issue Date Commitment Principal1 Interest Rate Maturity Date Interest Due Dates 2027 Senior Notes 2 Nov-21 $77.0 $77.0 5.75% Coupon May-27 May 1 and November 1 Revolving Credit Facility3 Apr-22 $80.0 $25.6 7.25% Apr-28 Payable monthly TCGSL Credit Facilit
Slide 21: Consolidated Statement of Assets and Liabilities
QUARTERLY FINANCIAL RESULTS Consolidated Statement of Assets and Liabilities As of June 30, 2026 March 31, 2026 (unaudited) (unaudited) Assets Non-controlled, non-affiliated investments at fair value (cost of $354,320,536 and $345,918,978, respectively) $ 289,763,599 $ 279,237,624 Cash and cash equi
Slide 22: Consolidated Statement of Operations
QUARTERLY FINANCIAL RESULTS Consolidated Statement of Operations Three months ended Three months ended (unaudited) June 30, 2026 March 31, 2026 Investment income: From non-controlled/non-affiliated investments: Interest income $ 7,908,745 $ 7,670,790 Payment-in-kind interest income 783,060 332,640 O
Slide 23: Consolidated Statement of Changes in Net Assets
QUARTERLY FINANCIAL RESULTS Consolidated Statement of Changes in Net Assets Three months ended Six months ended (unaudited) June 30, 2026 June 30, 2026 Increase in net assets resulting from operations: Net investment income $ 3,481,288 $ 8,307,419 Net unrealized gain on investments, net of taxes 1,8
Slide 24: Appendix
NASDAQ: AFCG | SECOND QUARTER 2026 Appendix
Slide 25: Overview of BDC Structure and Regulations
Overview of BDC Structure and Regulations BDC Overview BDC Qualifications BDCs are closed-end investment companies regulated To qualify as a BDC, companies must be registered in compliance by the Securities and Exchange Commission with Section 54 of the Investment Company Act of 1940 Created by Co
Slide 26: AFC Corporate Data
AFC Corporate Data BOARD OF DIRECTORS MANAGEMENT TEAM RESEARCH COVERAGE GENERAL Leonard M. Tannenbaum, CFA Daniel Neville Alliance Global Partners Corporate Headquarters Chairman of the Board Chief Executive Officer Aaron Grey 477 S. Rosemary Avenue (Class I) Suite 301 Robyn Tannenbaum Seaport Globa
Slide 27: Definitions
Definitions Original Issue Discount (“OID”) Original Issue Discount (“OID”) is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. Loans originated before July 31, 2020 were acquired by us, net of unaccreted OID, which we accrete to income over
Slide 28: Contact Us
Contact Us ir@afcbdc.com www.afcbdc.com
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