Advanced Flower Capital Inc. · NASDAQ:AFCG
Advanced Flower Capital — Q1 2025 Earnings Presentation
24 slides from Advanced Flower Capital's earnings presentation, May 14, 2025
Slide 1: Advanced Flower Capital Investor Presentation
ADVANCED FLOWER CAPITAL | INVESTOR PRESENTATION
Slide 2: Disclaimers
NASDAQ:AFCG | INVESTOR PRESENTATION 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, and we intend such statements to be covered by the safe harbor provisions contained
Slide 3: Disclaimers: Important Notices
NASDAQ:AFCG | INVESTOR PRESENTATION DISCLAIMERS 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
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 18 loans to borrowers with significant operations and/or collateral across 16 states. Our portfolio is diversified across operators, geographies and asset types(1) Principal Outstanding by AFC Nationwide Presence Oper
Slide 8: Growth Opportunity
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY The U.S. legal cannabis market is expected to reach $63 billion by 2030, with the total economic impact surpassing $200 billion(1) Projected Market Growth by U.S. Cannabis Market Size(1) Comparable Product Type(2) ~12% $219.7 $194.4 $172.1 $153.
Slide 9: Growth Opportunity: Current Legalization by State
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY 42 states and DC have legalized medical cannabis; of those, 24 states and DC have legalized adult-use (“AU”) cannabis, and two states have legalized the use of low-THC, high-CBD cannabis products for medical purposes(1) Current Legalization by S
Slide 10: Growth Opportunity: Adult-Use Transitions and Medical Startups
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY (1) Adult-Use Transitions Medical Startups New states coming online for recreational States legalizing for the first time open use unlock fresh market opportunities doors to new patients and market growth Pennsylvania Georgia $2.8B 13MM $100MM N
Slide 11: 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 12: Growth Opportunity: Return to Sustainable Growth
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 We are increasingly seeing and continued transition from the illicit high-quality operators to lega
Slide 13: Growth Opportunity: Yield vs. Benchmarks
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY Cannabis lending offers a significant premium to traditional leveraged finance AFC Weighted Average YTM vs. Benchmarks ~18% 9% 8% U.S. Leveraged U.S. High AFC Weighted Loan Yield Index(1) Yield Index(2) Average YTM(3) Note: All market, financial
Slide 14: AFC Price-to-Book vs. Peers
NASDAQ:AFCG | INVESTOR PRESENTATION GROWTH OPPORTUNITY AFC Price-to-Book vs. Peers(1) 1.3x 1.0x 17% 0.7x 0.6x 14% 12% 8% Sale Leaseback REFI AFC(3) Commercial Providers(2) Mortgage REITs(2) Dividend Yield High return income-generating company at an attractive valuation vs. peer group 1. Price to boo
Slide 15: Investment Process
NASDAQ:AFCG | INVESTOR PRESENTATION INVESTMENT PROCESS AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection Sourcing & Loan Selection Investment Portfolio Origination & Underwriting Committee Management AFC maintains a dire
Slide 16: 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) 3rd Party Co- Database
Slide 17: Portfolio: Current Commitments
NASDAQ:AFCG | INVESTOR PRESENTATION PORTFOLIO Current Commitments(1) In $MM $431 $444 $10 $7 $375 $387 $350 $361 $13 $335 $10 $9 $11 $20 $421 $437 $351 $366 $374 $324 $330 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 5/1/2025 Funded Unfunded Weighted average yield-to-maturity of ~18% as of May 1,
Slide 18: Portfolio: Deals Reviewed and Funded
NASDAQ:AFCG | INVESTOR PRESENTATION PORTFOLIO AFC’s manager has reviewed 891 deals, representing approximately $21 billion in aggregate value* Deals Current Deals Current Deals Rejected* in Review Funded As of 5/1/2025; In $ millions unless otherwise noted Original AFC Loan, Cash Paid Amort. Loan As
Slide 19: AFC | Q1 2025
AFC | Q1 2025 INVESTOR PRESENTATION 19
Slide 20: First Quarter 2025 Results: Balance Sheet
NASDAQ:AFCG | INVESTOR PRESENTATION FIRST QUARTER 2025 RESULTS As of March 31, 2025 December 31, 2024 (unaudited) Assets Loans held for investment at fair value (cost of $48,988,077 and $50,241,018 at March 31, 2025 and December 31, 2024, respectively, net) $ 28,572,385 $ 30,510,804 Loans held for i
Slide 21: First Quarter 2025 Results: Income Statement
NASDAQ:AFCG | INVESTOR PRESENTATION FIRST QUARTER 2025 RESULTS (unaudited) Three months ended March 31, 2025 2024 Revenue Interest income $ 8,458,248 $ 14,334,754 Interest expense (1,815,271) (1,603,163) Net interest income 6,642,977 12,731,591 Expenses Management and incentive fees, net (less rebat
Slide 22: First Quarter 2025 Results: Distributable Earnings
NASDAQ:AFCG | INVESTOR PRESENTATION FIRST QUARTER 2025 RESULTS Three months ended March 31, 2025 2024 Net income (loss) $ 4,067,685 $ (54,116) Adjustments to net income (loss): Stock-based compensation expense 553,749 543,222 Depreciation and amortization — — Unrealized losses (gains) or other non-c
Slide 23: Select Investments
NASDAQ:AFCG | INVESTOR PRESENTATION SELECT INVESTMENTS $14,000,000 $15,000,000 Undisclosed $34,000,000 Lender and Agent Lender and Agent Amount Lender and Agent April 2025 February 2025 May 2024 March 2024 $41,000,000 $63,000,000 $140,000,000 $23,000,000 Lender and Agent Lender and Agent Lead Lender
Slide 24: Investor Relations Contact
ir@advancedflowercapital.com www.advancedflowercapital.com
Advanced Flower Capital — Q1 2025 Earnings Presentation on 6ix