Advanced Flower Capital Inc.

quarter and fiscal year 2024 earnings call at this time all participants are in a listen-only mode after the speaker's presentation there will be a question and answer session to ask a question during the session you will need to press star 1 1 on your telephone you will then hear an automated message advising your hand is raised to withdraw your question please press star 1 1 again please be advised that today's conference is being recorded I would now like to hand the conference over to Gabriel Katz chief legal officer Please go ahead.

Good morning and thank you all for joining AFC's earnings call for the quarter and fiscal year ended December 31st, 2024. I'm joined this morning by Robin Tannenbaum, our President and Chief Investment Officer, Daniel Neville, our Chief Executive Officer, and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information is included in our February 12, 2025 press release and is posted on the investor relations portion of AFC's website at advancedflowercapital.com, along with our fourth quarter and fiscal year earnings release and investor presentation. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, anticipated market developments, portfolio yield, and financial performance in 2025 and beyond. These statements are subject to inherent uncertainties in predicting future results. Please refer to AFC's most recent periodic filings, including our annual report on Form 10-K, filed earlier this morning with the SEC for certain conditions and significant factors that could cause actual results to differ materially from these forward-looking statements and projections. During this call, we will refer to distributable earnings, which is a non-GAAP financial measure. Reconciliations to net income, the most comparable gap measure to distributable earnings, can be found in AFC's earnings release and investor presentation available on AFC's website. Today's call will begin with Robin providing a high-level recap of our 2024 fiscal year. Dan will then provide an update, an overview of our portfolio, and an update on the cannabis industry. Finally, Brandon will conclude with a summary of our financial results before we open the lines for Q&A. With that, I will now turn the call over to Robin, our President and Chief Investment Officer.

Thanks, Gabe, and good morning to all our investors and analysts that have joined us today. Looking back on 2024, AFC was extremely active in our first full year with Dan Neville as our CEO. We laid out three main goals for AFC in the beginning of 2024. One, restart the origination engine and close at least $100 million of originations. Two, increase portfolio diversification while enhancing underwriting. And three, reduce our exposure to underperforming credits through active portfolio management. I am pleased to announce that over the course of the year, we made progress on all three initiatives and refocused our efforts solely on cannabis with this spinoff of our commercial real estate portfolio on July 9th. Starting with Originations, we set a goal of $100 million of Originations for the fiscal year 2024 and ended the year originating $135 million of new commitments. Since the end of 2024, we have closed $15 million of new commitments and have two signed term sheets, which we expect to close over the coming months. We continue to see interesting opportunities in the cannabis space as the demand for capital far exceeds the supply. As of March 1st, 2025, we had an active deal pipeline of over $380 million. Turning to our underwriting process and increasing portfolio diversification, the addition of Dan with his operational background has enabled us to use both a top-down and bottoms-up underwriting approach on new investments. We are focused on lending to operators with a track record of executing in the cannabis industry and we have decreased the amount of construction lending in the portfolio. Looking ahead to 2025, we look forward to continuing to diversify the portfolio in loans similar to our recent deals with accomplished operators. Based on the deals we're seeing today, we currently see a sweet spot in loan sizes between $10 million and $40 million. Lastly, we have focused our portfolio management efforts on underperforming credits in order to preserve capital. We believe that as we begin to get repaid on some of these underperforming assets and reinvest that capital into performing credits, we may unlock future earnings potential. Dan will dive deeper into the portfolio shortly, but I am pleased that through our portfolio management efforts in 2024, we received $119 million of paydowns from five underperforming credits and redeployed that capital across nine new loans to date. With that, I'll turn it over to Dan, who will discuss our fourth quarter performance, the cannabis industry, and provide an update on our portfolio.