Debra BorchardtAdvanced Flower Capital, formerly AFC Gamma, (NASDAQ: AFCG) announced its financial results for the fourth quarter and year ended Dec. 31, 2024.
AFC reported a net loss of $1 million, or 5 cents per basic weighted average common share, and distributable earnings of $6.3 million, or 29 cents per basic weighted average common share, for the fourth quarter of 2024. This fell from 2023’s fourth-quarter distributable earnings of $10 million or 49 cents. The company declared a dividend of 33 cents for the fourth quarter, which also fell from last year’s fourth-quarter dividend of 48 cents.
For the full year, the company reported GAAP net income of $16.8 million, or 78 cents per basic weighted average common share, and distributable earnings of $34.9 million, or $1.68 per basic weighted average common share. This was a drop from 2023’s distributable earnings of $41.4 million or $2.04.
The company’s interest income for 2024 was $51.9 million versus 2023’s interest income of $70.2 million. Total expenses fell from $22.3 million in 2023 to $17.2 million in 2024.
The company said in its filing that the interest income decreased by approximately $18.3 million, or 26%, for 2024 versus 2023.
“This decrease was driven by lower interest income of approximately ($17.9) million driven by Subsidiary of Private Company G, Private Company K and Private Company A on nonaccrual status during fiscal year 2024, lower interest income of approximately ($7.7) million driven by less capital deployed relating to loan exits and prepayments, partially offset by higher fee income of approximately $3.8 million driven by loan exits and prepayments during the year ended December 31, 2024, and higher OID income of approximately $3.5 million due to the acceleration of unaccreted OID of current year loan exits and prepayments during the year ended December 31, 2024, as compared to the year ended December 31, 2023, respectively.”
“We believe that the capital supply and demand imbalance in the cannabis sector will remain in the medium-term, given the Republican sweep in November and the lack of progress on Federal reform. This provides the opportunity for AFC to deploy capital into deals with strong risk adjusted returns,” stated Daniel Neville, AFC’s chief executive officer.
He added, “We continue to put capital preservation at the forefront of our investments and remain disciplined on providing debt capital in a challenging environment for operators. As we have done over the last year and plan to do in the coming year, we continue to focus on diversifying our portfolio and providing debt capital to operators who have previous success executing in the cannabis industry.”
AFC told investors that during 2024 it funded approximately $128.8 million of new loans and additional principal, had approximately $53.4 million of principal repayments of loans held at carrying value and sold $90 million in the aggregate of our investments in the Subsidiary of Public Company H and Subsidiary of Public Company M.
On March 11, the company declared a regular cash dividend of 23 cents per common share for the first quarter of 2025. This is a huge drop from last year’s first-quarter dividend of 48 cents per share.
