Advanced Flower Capital reported third-quarter net investment income of $3.5 million, or $0.16 per weighted average share, and ended September with net asset value of $8.55 per share. The cannabis-focused lender’s portfolio was little changed in size from the prior quarter, while share repurchases continued to add to per-share NAV.
The company also paid its third-quarter cash distribution and reported further progress under its $5 million share repurchase program.
Quarterly results and portfolio
- Total investment income was $8.6 million. GAAP net investment income was $3.5 million, or $0.16 per weighted average share.
- Net assets increased by $6.4 million from operations, equal to $0.28 per weighted average share.
- NAV was $8.55 per share at September 30, up $0.30 from $8.25 at June 30.
- The investment portfolio had a fair value of $289.6 million across 18 investments, compared with $289.8 million at the end of the second quarter.
- The weighted average yield on income-producing debt investments was 13.3% at quarter-end.
- Debt-to-equity was 1.03 times, while net debt-to-equity was 0.49 times.
- Gross investment fundings were $4.6 million; net fundings were negative $3.5 million.
Share repurchases and distribution
- During the quarter, AFC repurchased and retired 285,656 shares at an average price of $3.46, spending about $1.0 million. The company said the purchases added $0.06 per share to NAV and were made at roughly a 58% discount to NAV.
- For the first nine months of 2026, AFC repurchased and retired 1,125,062 shares at an average price of $3.34, for about $3.8 million in total. The company said those purchases added $0.24 per share to NAV.
- The board authorized up to $5 million of repurchases in May. The program may continue until the authorization is used or May 4, 2027, whichever comes first, unless the board changes the terms.
- AFC paid a regular third-quarter cash distribution of $0.05 per common share on October 15 to shareholders of record on September 30.
The quarter’s $0.16 of NII per share exceeded the $0.05-per-share distribution. Repurchases at a discount to NAV reduce the number of shares outstanding and, as the company reported, increased NAV per share.