Advanced Flower Capital Inc. Q3 FY2025 earnings call

• Shareholder vote: In November 2025, shareholders approved proposals for converting to a BDC, including a new investment advisory agreement and reduced asset coverage requirements. Conversion to BDC expected in 2026 while continuing as REIT until then. • Portfolio updates: Private Company J and a subsidiary of Public Company S paid off term loans; capital redeployed. Underperforming loans: Private Company A's receivership distributed $4,200,000 to Advanced Flower Capital Inc.; Private Company K's dispensaries in process of sale; settlement reached with Private Company P with $13,300,000 settlement (loan had carrying value $15,300,000). • Pipeline: Approximately $350,000,000 pipeline of non-cannabis lending opportunities, expanding investment mandate beyond cannabis. • Financial results: Net interest income $6.5M, distributable earnings $3.5M, GAAP net loss $12.5M, book value per share $7.49 as of 09/30/2025.

For the quarter ended 09/30/2025, Advanced Flower Capital Inc. generated net interest income of $6,500,000 and distributable earnings of $3,500,000 or $0.16 per basic weighted share of common stock. It had a GAAP net loss of $12,500,000 or a loss of $0.57 per basic weighted average share. As of 09/30/2025, the CECL reserve was $51,300,000 (approximately 18.7% of loans at carrying value) and there was a total unrealized loss of $31,200,000 on loans held at fair value. Principal outstanding was $327,700,000 across 14 loans as of 11/03/2025, and book value per share was $7.49.

• Conversion to BDC is expected in 2026. • No Q4 2025 dividend anticipated due to the approximately $4,000,000 taxable loss from the Private Company P settlement. • Actively evaluating a $350,000,000 pipeline of non-cannabis lending opportunities for redeployment as BDC.

• Uncertainty regarding timing of repayments and recovery of nonaccrual loans. • Dependence on progress in the cannabis industry for future investment opportunities in that space. • Market uncertainties and macro factors that could impact investment performance in new industries being evaluated.

Q: Aaron Thomas Grey asked about the $350,000,000 non-cannabis pipeline being inclusive of the total pipeline and color on opportunities/yields.

A: Daniel Neville responded that the $350M includes the cannabis pipeline, yields on non-cannabis are in low double-digit range, more selective on deals now.

Q: Pablo Zuanic asked about timing of redeploying cash, diversification, skill set in new industries.

A: Daniel Neville stated no specific guidance on redeployment timing, casting wide net in new industries, team has experience in direct lending across industries.