AFCG · Advanced Flower Capital Inc.

Advanced Flower Capital Inc. delivered strong Q1 2026 results as a newly minted BDC, with GAAP net investment income of $4.8 million ($0.21 per share) surpassing the $0.05 per share dividend, providing shareholder coverage and signaling portfolio yield strength. Total investment income reached $9.8 million, driven by $7.7 million in interest income from non-controlled/non-affiliated investments, $0.3 million in payment-in-kind interest, and $1.8 million in other income. Expenses totaled $5.1 million, including interest expense ($1.7 million), management fee ($1.0 million), and incentive fee ($1.0 million), offset by a $0.2 million management fee rebate, yielding NII before taxes of $4.9 million after a minor $0.1 million tax hit. A $6.6 million net unrealized gain on investments (net of taxes) boosted the bottom line to a $11.4 million ($0.49 per share) net increase in net assets from operations. CEO Dan Neville highlighted robust investment activity with $80.9 million gross and $39.1 million net fundings, fueled by a lower-middle market pipeline across industries. Balance sheet strength showed portfolio investments at $279.2 million fair value, total assets $394.9 million, and net assets $185.8 million, with NAV up 5.9% quarter-over-quarter to $7.90 per share and conservative net debt-to-equity of 0.48x. Capital return enhanced by April 15 dividend payment and May 4 board approval of a $5 million open-market repurchase program under Rule 10b-18, active until $5 million repurchased or May 2027. No forward guidance provided; investors should review the 10-Q filed May 7 and Q1 earnings presentation on the IR website.