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2 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N D I S C L A I M E R S 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 therein. Such forward-looking statements are based on the current intent, belief, expectations and views of future events of Advanced Flower Capital Inc. (“Advanced Flower Capital,” “AFC,” the “Company,” “we,” “us,” and “our”). The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results or performance, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “project,” “could,” “would,” “will,” “can,” “continuing,” “may,” “aim,” “intend,” “ongoing,” “plan,” “predict,” “potential,” “should,” “seeks,” “likely to” or words or phrases of similar meaning. Specifically, this presentation includes forward-looking statements regarding (i) our expectations in the adult-use and medicinal cannabis markets and their impact on our business; (ii) our portfolio and strategies for the growth thereof; (iii) our strategic goals; (iv) potential state and federal legislative and regulatory matters; (v) our expectations and estimates regarding certain tax, legal and accounting matters, including the impact on our financial statements and/or those of our borrowers; (vi) our expectation regarding capital in the cannabis industry; (vii) our expectations regarding our portfolio companies and their businesses, including demand, sales volume, profitability, and future growth; (viii) our expectation of returns from cannabis lending; (ix) the amount, collectability and timing of cash flows, if any, from our loans; (x) our expected ranges of originations and repayments; and (xi) estimates relating to our ability to make distributions to our shareholders in the future. Actual results could differ significantly from the results and events discussed in the forward-looking statements due to the factors set forth under the heading “Cautionary Note Regarding Forward- Looking Statements” in the Quarterly Report on Form 10-Q that we filed with the Securities and Exchange Commission (the “SEC”) on November 12, 2025 and under the heading “Risk Factors” in the Annual Report on Form 10-K that we filed with the SEC on March 13, 2025, and the other documents we file from time to time with the SEC. The forward-looking statements contained in this presentation involve a number of risks and uncertainties, including factors relating to: our business and investment strategy; our projected operating results including our projections for distributable earnings, originations and repayments; the estimated growth in and evolving market dynamics of the cannabis market; the impact of economic conditions on our business and the United States; the ability of our manager to locate suitable loan opportunities for us, monitor, service and administer our loans and execute our investment strategy; actions and initiatives of the U.S. or state governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that cannabis remains illegal under federal law; the demand for cannabis cultivation and processing facilities; shifts in public opinion regarding cannabis; our ability to obtain and maintain financing arrangements; our expected leverage; changes in the value of our loans; our expected portfolio of loans; our expected investment and underwriting process; rates of default or decreased recovery rates on our loans; the degree to which our hedging strategies may or may not protect us from interest rate volatility; changes in interest rates of our loans and impacts of such changes on our results of operations, cash flows and the market value of our loans; our ability to qualify and maintain our qualification as a real estate investment trust (“REIT”) for United States federal income tax purposes; and estimates relating to our ability to make distributions to our stockholders in the future and our understanding of our competition. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make through reports that we have filed, or in the future may file, with the SEC, including the Information Statement, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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 for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy, any security or instrument. AFC is not a registered investment adviser. AFC is managed by AFC Management, LLC (“AFCM” or our “manager”), a registered investment adviser. This presentation is not a communication by AFCM and is not designed to maintain any existing AFCM client or investor or solicit new AFCM clients or investors. We routinely post important information for investors on our website, www.advancedflowercapital.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the “Investor Relations” section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit the “Email Alerts” section of our website under the “Investor Relations” section and enter the required information to enable notifications. Past performance is no guarantee of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. The information contained herein is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations for AFC or any of its affiliates. Certain information contained in the presentation discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per share, to evaluate our performance excluding the effects of certain transactions and certain GAAP adjustments that we believe are not necessarily indicative of our current loan activity and operations. We believe the non-GAAP financial measures are useful for management, investors, analysts, and other interested parties in evaluating our performance but should not be viewed in isolation and are not a substitute for financial measures computed in accordance with GAAP. For management description and calculation of Distributable Earnings, see appendix section entitled “Key Definitions and Methodologies”, and for the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures, please refer to the appendix section entitled, “Reconciliation of GAAP Net Income to Distributable Earnings”. We have not provided reconciliations of expected distributable earnings for the future period(s), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include changes in unrealized gains, non-cash equity compensation expenses and the impact of non-cash adjustments for current expected credit losses that are difficult to predict in order to include in a GAAP estimate.
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3 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N Note: Financial and company data as of November 3, 2025 unless otherwise specified. 1. Total 2025 dividend of $0.53 per share divided by closing stock price of $3.26 as of November 3, 2025. 2. Includes potential syndications; AFC is in various stages of negotiation and has not completed its due diligence process with respect to these projects. As a result, there can be no assurance that we will move forward with any of these potential investments. 3. Represents all deals from January 1, 2020 through November 3, 2025 sourced by AFC’s manager. 4. Represents the total number of closed deals since inception divided by the aggregate count of all deals sourced / reviewed by AFC’s manager from January 1, 2020 through November 3, 2025. 5. Includes amounts committed by affiliated predecessor entities to Advanced Flower Capital. 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-adjusted returns through investments with significant collateral, modest loan to value and favorable pricing, driving target average portfolio gross yield of 12%–20% Robust investment review process includes market research, management underwriting and in-depth diligence(2) Management and the investment team have collectively structured over $15 billion in loan transactions and taken four companies public AFC’s BBB+ investment grade rating was affirmed by Egan- Jones in September 2025 At a special meeting held on November 6, shareholders approved two proposals related to AFC’s plan to convert from a REIT to a BDC, with over 61% of the outstanding shares voted, and approximately 94% of those votes cast in favor of each proposal Dividend Yield(1) Deal Selectivity Since Inception(4) Active Pipeline(2) Total Commitments Since Inception(5) Deals Sourced Since Inceptions(3) Current Commitments C O M P A N Y O V E R V I E W
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4 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N Constrained capital in the marketplace allows us to move up the quality curve and target an average portfolio gross yield of 12%–20% Strong Risk- Adjusted Returns Rigorous, repeatable and dependable investment review process utilizing both an experienced lender’s process and an operator’s lens to underwrite Disciplined & Proven Investment Process Significant lending, investment management and operational experience, which helps to navigate rapidly evolving markets and underwrite complex credits Cycle-Tested Leadership Team Utilize deep-rooted industry relationships and M&A structuring competency to create good outcomes for both AFC and our borrowers Active Portfolio Management Strong balance sheet with quality real estate, cash flow and license collateral coverage across the portfolio Strong Balance Sheet I N V E S T M E N T H I G H L I G H T S
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5 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N M A N A G E M E N T T E A M Former Corporate & Securities Counsel at AmLaw 100 law firms and Lead Corporate Counsel at a unicorn technology startup Advised public and private companies in securities offerings and M&A Chief Legal Officer 12+ years experience Gabriel Katz Founded TCG, an alternative asset management platform focused on real estate and strategic private credit investing Founder and CEO of $5 billion AUM Fifth Street prior to its 2017 sale to Oaktree Chairman 30+ years experience Leonard Tannenbaum 5+ years as Head of Investor Relations for three Fifth Street public entities 7+ years focused on mergers and acquisitions and leveraged loans at CIT Group President 15+ years experience Robyn Tannenbaum Former Chief Marketing Officer at Fifth Street Asset Management Former Global Head of Brand & Strategic Communications at Alliance Bernstein Chief Marketing Officer 30+ years experience James Velgot Former VP of Finance for El-AD National Properties, LLC Former Manager in REIT audit practice at PwC Chief Financial Officer 15+ years experience Brandon Hetzel Former CFO of Ascend Wellness Holdings, responsible for accounting, finance, M&A activity and deal structuring Chief Executive Officer, Director 15+ years experience Daniel Neville
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6 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N D I V E R S E P L A T F O R M AFC’s loan portfolio includes 14 loans to borrowers with significant operations and/or collateral across 16 states. Our portfolio is diversified across operators, geographies and asset types(1) 1. As of November 3, 2025. 2. Calculated based off principal balance outstanding as of November 3, 2025. Vertical Non-Vertical $328MM Completed Construction Ongoing Construction No Construction (2) (2) $328MM 95% 5% 51% 8% 41%
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7 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N ~4% ~4% ~5% ~7% ~12% G R O W T H O P P O R T U N I T Y The U.S. legal cannabis market is expected to reach $63 billion by 2030, with the total economic impact surpassing $200 billion(1) 1. Source: MJBizFactbook 2025; Data as of April 1, 2025. 2. Data reflects 2025 – 2030 CAGR; Sources: New Frontier Data; Grand View; Statista; Cowen. 3. Pew Research Center, “9 facts about Americans and marijuana”, April 2024. 4. NY Times, “Marijuana and Psychedelics Use Soars Among Young Adults, Study Finds”, August 2022. 5. TD Cowen, “Cannabis Beats Booze”, January 2024. U.S. Cannabis Market Size (1) Recent Trends Support Accelerating Growth Additional Economic ImpactEstimated Retail Sales Projected Market Growth by Comparable Product Type (2) Cannabis Wine Spirits Tobacco Beer$35.3 $39.2 $43.9 $49.2 $55.6 $62.8 $88.3 $98.0 $109.7 $122.9 $138.8 $156.9 $123.6 $137.2 $153.6 $172.1 $194.4 $219.7 2025 2026 2027 2028 2029 2030 Gen Z and Millennial cannabis usage is significantly higher than that of past generations(4) 9 out of 10 Americans support adult-use and/or medicinal cannabis(3) Cannabis growth trend expected to continue with increasing adoption cutting into alcohol purchases(5) Alcohol sales in legal cannabis states have underperformed by 1-1.5% over past 5 years(5)
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8 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N G R O W T H O P P O R T U N I T Y 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) 1. Cannabis Business Times, The Landscape of Legal Cannabis in the U.S. November 2024. MJBiz, MJBIZ Factbook Q1 2025, data as of April 1, 2025. 2. MJBiz, MJBIZ Factbook 2025, data as of April 1, 2025. 3. Cannabis Business Times, Minnesota Dispensaries Launch Adult-Use Sales Under State Program, 9/16/2025. 4. Spotlight PA, Legal weed continues to divide Pa. Republicans, 7/21/2025. MedicalNone High CBD/Low THC Adult-Use AFC Focus States Cannabis is a $35 billion legal market projected to grow to $63 billion by 2030(2) The industry is rapidly expanding in the United States with continued legalization at the state level creating an influx of opportunities Minnesota launched adult-use cannabis sales in September 2025, extending legal access to ~6 million Americans(3) Pennsylvania’s legislature is expected to revisit adult-use cannabis legislation in early 2026, potentially opening access to ~13 million Americans(4) Despite these market tailwinds, Cannabis remains a capital-intensive industry with limited supply of institutional capital
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9 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N G R O W T H O P P O R T U N I T Y Cannabis is a capital-intensive industry with a lack of specialized lenders and high barriers to entry 1. Viridian Capital Advisors Cannabis Capital Raise Tracker, as of September 3, 2025. SBIC / Specialty Lenders Mega Private Credit Funds Commercial / Regional Banks Product Breadth Unitranche, first/second lien, prefs, co-invests Cannabis sector has seen a difficult capital raising environment over the last two years – capital raised down 1.6% on a LTM basis(1) Elevated rates have increased the cost of debt capital Little equity capital raised over the last two years Few specialized lenders focused on the cannabis industry Many portfolios burdened by exposure to underperforming West Coast credits Several players are in the process of winding down and exiting the industry Capital Certainty & Hold Size Specialization Ability to underwrite complex credits & structuring flexibility
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10 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N I N V E S T M E N T P R O C E S S AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection Sourcing & Origination Loan Selection & Underwriting Portfolio Management Investment Committee AFC maintains a direct origination platform, which works to create enhanced yields Leading deals allows us to put in greater controls for loans that we source and structure The platform drives increased deal flow, which allows for improved selectivity AFC employs a disciplined screening and underwriting process of potential opportunities Criteria includes: o Collateral o Credit metrics o Property-value metrics o Management team o Business plan o Company financial strength o Regulatory/license value considerations Our investment team collaborates with external counsel to negotiate loan documents, focusing on collateral preservation, risk mitigation, and covenants Post-funding, we internally monitor the loan throughout its life cycle, retaining decision-making authority over key items Our Investment Committee oversees the entire investment process, emphasizing thorough risk analysis and delivering tailored solutions to borrowers Each loan must be approved by the Investment Committee Management and the investment team have collectively structured over $15 billion in transactions MONITORAPPROVEEVALUATESOURCE
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11 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N AFC’s multi-channel sourcing engine targets an opportunity set that includes real estate and non-real estate covered cannabis, as well as direct lending investments outside the cannabis industry Note: All data as of November 3, 2025; Direct Lending-labeled and Cannabis-labeled datapoints only reflect deals sourced and active total pipeline within direct lending and cannabis, respectively. 1. Represents deals sourced by AFC’s manager from January 1, 2020 through November 3, 2025. 2. Includes amounts committed by affiliated predecessor entities to Advanced Flower Capital. 3. Includes potential syndications; AFC is in various stages of negotiation and has not completed its due diligence process with respect to these projects. As a result, there can be no assurance that we will move forward with any of these potential investments. 4. Represents the total number of closed deals since inception divided by the aggregate count of all deals sourced / reviewed by AFC’s manager from January 1, 2020 through November 3, 2025. E X P A N D E D I N V E S T A B L E U N I V E R S E Multi Sector Sourcing Across a Wide Opportunity Set 3.4% Deal Selectivity by Count(6) $930MM Total Closed Since Inception(2) $26.1B Total Deals Sourced(1) $340MM Current Commitments $328MM Principal Balance $356MM Active Direct Lending Pipeline(5) Direct Lending Deals Sourced(1) Cannabis Deals Sourced(1) $60MM Active Cannabis Pipeline(5)
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12 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N P O R T F O L I O 1. Represents total committed principal at closing for outstanding loans as of specified dates (March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and November 3, 2025). Excludes early prepayments. Funded Unfunded Current Commitments (1) In $MM $324 $330 $351 $366 $360 $333 $329 $11 $20 $10 $9 $10 $12 $11 $335 $350 $361 $375 $370 $345 $340 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 11/3/2025
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13 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N P O R T F O L I O AFC’s manager has reviewed 1,053 deals, representing approximately $26 billion in aggregate value* * Represents deals from January 1, 2020 through November 3, 2025 sourced by AFC’s manager; Totals may not sum due to rounding. 1. Loans originated prior to July 31, 2020 were purchased from affiliated entities at fair value, approximating accreted and/or amortized cost plus accrued interest on July 31, 2020 and excluding pre-payments. 2. See appendix section entitled “Key Definitions and Methodologies” for management description and calculation of yield to maturity (“YTM”), paid in-kind (“PIK”) and Origination Issue Discount (“OID”). 3. Future Cash Interest Rate on loans with floating rates are based on its November 3, 2025 benchmark rate. 4. Portfolio Totals for Cash Interest Rate, Original Issue Discount and Paid In-Kind are calculated as a weighted average rate by principal balance outstanding. Current Deals in Review Current Deals Funded Deals Rejected* As of 11/3/2025; In $ millions unless otherwise noted (4) Loan Name Original Funding Date (1) Loan Maturity AFC Loan, net of Syndication As % of Total Total OID (2) Principal Balance Cash Interest Rate (3) Paid In-Kind ("PIK") (2) Fixed/ Floating Amort. During Term YTM (2) Private Co. A May-20 May-24 $ 38.1 11.2% 7.7% $ 46.8 13.0% 2.6% Fixed No - Sub of Private Co. G Apr-21 May-26 73.2 21.5% 4.0% 78.9 12.5% N/A Fixed No - Private Co. K Apr-22 May-27 13.2 3.9% 4.0% 12.2 16.0% 2.0% Floating Yes - Private Co. L Apr-22 May-26 32.8 9.6% 4.2% 29.3 13.0% N/A Floating Yes 19% Private Co. M Jul-23 Jul-26 30.0 8.8% 16.0% 24.6 9.0% N/A Fixed Yes 18% Private Co. N - RE Mar-24 Apr-28 19.3 5.7% 4.0% 19.3 12.5% N/A Floating Yes 16% Private Co. N Mar-24 Apr-28 17.2 5.1% 4.0% 17.2 12.5% N/A Floating Yes 16% Private Co. O May-24 Jun-28 10.5 3.1% 3.6% 5.4 13.5% N/A Floating Yes 19% Private Co. P Jun-24 Jul-27 15.1 4.4% 3.0% 15.6 13.0% N/A Fixed Yes - Private Co. Q Aug-24 Sep-28 11.0 3.2% 3.0% 6.8 13.8% N/A Floating Yes 18% Private Co. R Oct-24 Nov-27 41.0 12.1% 2.0% 34.3 12.0% N/A Floating Yes 15% Private Co. U Feb-25 Mar-28 15.0 4.4% 2.5% 15.0 14.0% N/A Fixed Yes 16% Sub of Private Co. V Apr-25 Apr-29 14.0 4.1% 3.0% 12.3 12.5% 1.5% Fixed Yes 17% Sub of Public Co. S Aug-25 Aug-30 10.0 2.9% 4.0% 10.0 12.5% N/A Fixed No 15% Total Portfolio (4) $ 340.4 100.0% 5.0% $ 327.7 12.6% 0.5%
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NASDAQ: AFCG | Q3 2025 PRESENTATION 14
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15 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N As of September 30, 2025 December 31, 2024 (unaudited) Assets Loans held for investment at fair value (cost of $48,107,898 and $50,241,018 at September 30, 2025 and December 31, 2024, respectively, net) 16,923,809$ 30,510,804$ Loans held for investment at carrying value, net 274,725,669 293,262,374 Loan receivable held at carrying value, net – 1,895,638 Current expected credit loss reserve (51,170,153) (30,419,677) Loans held for investment at carrying value and loan receivable held at carrying value, net of current expected credit loss reserve 223,555,516 264,738,335 Cash and cash equivalents 45,120,389 103,610,460 Interest receivable 781,234 1,982,897 Prepaid expenses and other assets 2,336,271 1,214,817 Total assets 288,717,219$ 402,057,313$ Liabilities Accrued interest 2,199,808$ 894,611$ Due to affiliate – 6,754 Dividends payable 3,389,181 7,369,866 Current expected credit loss reserve 163,900 166,702 Accrued management and incentive fees 715,138 1,932,246 Accrued direct administrative expenses 733,860 1,197,518 Accounts payable and other liabilities 1,118,614 501,328 Senior notes payable, net 89,057,895 88,612,150 Line of credit payable 22,000,000 60,000,000 Line of credit payable to affiliate – 40,000,000 Total liabilities 119,378,396 200,681,175 Commitments and contingencies Shareholders' equity Preferred stock, par value $0.01 per share, 10,000 shares authorized at September 30, 2025 and December 31, 2024 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively – – Common stock, par value $0.01 per share, 50,000,000 shares authorized at September 30, 2025 and December 31, 2024 and 22,594,541 and 22,332,927 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 225,945 223,329 Additional paid-in capital 253,388,834 251,865,763 Accumulated (deficit) earnings (84,275,956) (50,712,954) Total shareholders' equity 169,338,823 201,376,138 Total liabilities and shareholders' equity 288,717,219$ 402,057,313$ T H I R D Q U A R T E R 2 0 2 5 R E S U L T S
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16 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Revenue Interest income 8,162,075$ 10,455,021$ 24,681,832$ 42,767,720$ Interest expense (1,631,127) (1,572,705) (5,304,572) (4,749,143) Net interest income 6,530,948 8,882,316 19,377,260 — 38,018,577 Expenses Management and incentive fees, net (less rebate of $235,670, $180,552, $624,992 and $769,545, respectively) 715,138 981,785 2,211,686 8,429,575 General and administrative expenses 674,342 857,304 2,255,049 2,941,942 Stock-based compensation 487,436 218,643 1,525,687 1,131,208 Professional fees 354,803 417,466 1,087,843 1,231,906 BDC conversion expenses 579,192 – 805,972 – Total expenses 2,810,911 2,475,198 7,886,237 — 13,734,631 (Provision for) reversal of current expected credit losses (7,372,778) (181,370) (22,524,920) 1,149,050 Realized (losses) gains on investments, net – – – (93,338) Change in unrealized gains (losses) on loans at fair value, net (9,712,427) (4,621,702) (11,453,875) (9,655,396) Net (loss) income from continuing operations before income taxes (13,365,168) 1,604,046 (22,487,772)— 15,684,262 Income tax (benefit) expense (874,662) 386,256 (900,300) 830,591 Net (loss) income from continuing operations (12,490,506) 1,217,790 (21,587,472) 14,853,671 Net income from discontinued operations, net of tax – 165,944 – 2,922,068 Net (loss) income (12,490,506)$ 1,383,734$ (21,587,472)$ 17,775,739$ Basic earnings per common share: Continuing operations (0.57)$ 0.05$ (0.99)$ 0.71$ Discontinued operations –$ 0.01$ –$ 0.14$ Total basic earnings per common share (0.57)$ 0.06$ (0.99)$ 0.85$ Diluted earnings per common share: Continuing operations (0.57)$ 0.05$ (0.99)$ 0.71$ Discontinued operations –$ 0.01$ –$ 0.14$ Total diluted earnings per common share (0.57)$ 0.06$ (0.99)$ 0.85$ Weighted average number of common shares outstanding: Basic weighted average shares of common stock outstanding 22,114,761 20,684,149 22,109,088 20,493,375 Diluted weighted average shares of common stock outstanding 22,160,176 20,785,848 22,129,116 20,543,644 T H I R D Q U A R T E R 2 0 2 5 R E S U L T S (unaudited)
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17 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N T H I R D Q U A R T E R 2 0 2 5 R E S U L T S Note: For further management description and calculation of Distributable Earnings, see appendix section entitled “Key Definitions and Methodologies”. 1. In the prior period, the provision for current expected credit losses above included zero and approximately $71.9 thousand for the three and nine months ended September 30, 2024, respectively, in connection with the Spin-Off, which was included in the net income from discontinued operations, net of tax financial statement line on the consolidated statements of operations. 2. The provision for (reversal of) current expected credit losses is presented net of any write-offs. Three months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Net (loss) income (12,490,506)$ 1,383,734$ (21,587,472)$ 17,775,739$ Adjustments to net income (loss): Stock-based compensation expense 487,436 218,643 1,525,687 1,131,208 Depreciation and amortization – – – – Unrealized losses (gains) or other non-cash items 9,712,427 4,621,702 11,453,875 9,655,396 Provision for (reversal of) current expected credit losses (1)(2) 7,372,778 181,370 20,747,674 (1,077,196) TRS loss (income), net of dividends (1,542,335) 840,556 (671,730) 1,147,554 One-time events pursuant to changes in GAAP and certain non-cash charges – – – – Distributable earnings 3,539,800$ 7,246,005$ 11,468,034$ 28,632,701$ Basic weighted average shares of common stock outstanding 22,114,761 20,684,149 22,109,088 20,493,375 Distributable earnings per basic weighted average share 0.16$ 0.35$ 0.52$ 1.40$
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18 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N S E L E C T I N V E S T M E N T S $41,000,000 Lender and Agent October 2024 $23,000,000 Lender and Agent July 2021 $63,000,000 Lender and Agent April 2022 $24,000,000 Lender and Agent November 2020 $86,600,000 Lender May 2021 $15,500,000 Lender and Agent July 2021 $140,000,000 Lead Lender and Co-Agent December 2021 Undisclosed Amount May 2024 $34,000,000 Lender and Agent March 2024 $15,000,000 Lender and Agent February 2025 $14,000,000 Lender and Agent April 2025
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19 N A S D A Q : A F C G | I N V E S T O R P R E S E N T A T I O N D I S C L A I M E R S Distributable Earnings The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Fees earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated prior to Incentive Fee expense, while the calculation of Distributable Earnings accounts for any Incentive Fees earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses, (v) taxable REIT subsidiary (“TRS”) (income) loss, net of any dividends received from TRS, and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our manager and our independent directors and after approval by a majority of such independent directors. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs. We have not provided reconciliations of expected distributable earnings for the future period(s), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include changes in unrealized gains, non-cash equity compensation expenses and the impact of non-cash adjustments for current expected credit losses that are difficult to predict in order to include in a GAAP estimate. Please see page 18 for a reconciliation of GAAP net income to Distributable Earnings. Origination Issue Discount (“OID”) Origination 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 the remaining term of the loan. In some cases, additional OID is recognized from additional purchase discounts attributed to the fair value of equity positions that were separated from the loans prior to our acquisition of such loans. The estimated YTM Future Cash Interest Rate on loans with floating rates are based on its November 3, 2025 benchmark rate. Yield to Maturity (“YTM”) and Paid In-Kind (“PIK”) YTM excludes loans on nonaccrual status. Estimated YTM includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. 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 the remaining term of the loan. In some cases, additional OID is recognized from additional purchase discounts attributed to the fair value of equity positions that were separated from the loans prior to our acquisition of such loans. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements may contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions. 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 the remaining term of the loan. In some cases, additional OID is recognized from additional purchase discounts attributed to the fair value of equity positions that were separated from the loans prior to our acquisition of such loans. The estimated YTM Future Cash Interest Rate on loans with floating rates are based on its November 3, 2025 benchmark rate.
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