AFC Gamma Posts $12.5M Q3 Loss, Adopts New Strategy To Invest In More Cannabis Businesses

Cannabis-focused commercial mortgage real estate investment trust Advanced Flower Capital Inc. (NADAQ: AFCG) announced on Wednesday its third-quarter financial results.

The company reported a net loss of $12.5 million for the period, compared to $1.4 million in net income in the third quarter of fiscal 2024.

Distributable earnings amounted to $3.5 million or $0.16 per basic weighted average common share for the third quarter of 2025, down from $7.2 million in the prior year’s period.

“We continue to make progress resolving our nonaccrual positions and driving loan repayments across our portfolio,” Dan Neville, AFC’s CEO, said. “There remains limited new capital entering the cannabis market, and our conversion opens the investment universe for AFC beyond real estate owners in cannabis.”

AFC said that proposals related to the company’s previously announced plan to convert from a real estate investment trust to a business development company were approved during a recently held special meeting of shareholders.

“As a BDC, we expand AFC’s investable scope beyond real estate-backed loans and can pursue a broader set of opportunities across the market, which we believe will strengthen our ability to generate consistent, risk-adjusted returns,” Leonard M. Tannenbaum, CFA, chairman of the board of directors, said.