By Connor Hart
Shares of Advanced Flower Capital fell after the company swung to a loss and logged lower-than-expected distributable earnings and net interest income in the fourth quarter.
The stock declined 20%, to $6.78, in midday trading Thursday, marking a slight rebound from an earlier low of $6.51. Shares have lost one-fifth of their value in the past year.
The West Palm Beach, Fla., commercial-mortgage real-estate investment trust--which provides loans to state-compliant cannabis companies in the U.S.--before the bell posted a loss of nearly $1 million, or 5 cents a share, compared with a profit of $16.8 million, or 78 cents a share, a year earlier.
Distributable earnings, a measure of cash that can be returned to shareholders, came in at 29 cents a share. Analysts surveyed by FactSet expected 37 cents a share.
Net interest income tumbled 83%, to $7.6 million, missing the $11.7 million that analysts modeled.
Chief Executive Daniel Neville said he sees the cannabis industry's capital supply-and-demand imbalance sticking around in the medium term, citing a lack of progress on federal reform and the Republican sweep in November. "This provides the opportunity for AFC to deploy capital into deals with strong risk-adjusted returns," he said.
Looking forward, Neville said the company will be disciplined on providing debit capital amid a challenging environment for operators, while also continuing to focus on diversifying its portfolio.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 13, 2025 12:37 ET (16:37 GMT)
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