Advanced Flower Capital Inc.

Good morning, and welcome to Advanced Flower Capital's fourth quarter and fiscal year 2025 earnings call. At this time, all participants are in listen-only mode. Later, we will conduct the question and answer session, and instructions will be given at that time. As a reminder, this call is being recorded. I would now like to turn the call 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, 2025. 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 10, 2026 press release and is posted on the investor relations portion of AFC's website. at advancedflowercapital.com, along with our fourth quarter and full 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 2026 and beyond. These statements are subject to inherent uncertainties in predicting future results. Please refer to AFC's most recent periodic filings with the FCC, including our annual report on Form 10-K, filed earlier this morning, 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 GAAP 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 2025 fiscal year, including the conversion to a BDC. Dan will then provide an overview of our portfolio. 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 our President and CIO, Robin Tannenbaum.

Thanks, Gabe, and good morning to all our investors and analysts that have joined us today. Looking back on 2025, AFC was focused on, one, reducing our exposure to underperforming credits through active portfolio management, and two, converting from a real estate investment trust to a business development company, or BDC, to expand the universe of transactions AFC could invest in. We continue to focus 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. I am pleased to announce that we received $117 million of pay downs from performing and underperforming credits from the start of 2025 through today. During fiscal year 2025, AFC originated $53 million of new commitments And subsequent to year end, we have closed on $89.7 million of new commitments in the lower middle market, which Dan will describe in further detail. Turning to our conversion to a BDC, as of January 1st, 2026, we completed our previously announced conversion from a REIT to a BDC. Our conversion expands AFC's investment flexibility to pursue opportunities beyond real estate backed loans. including a broader universe of operating businesses aimed at enhancing long-term shareholder value. Before turning the call over to Dan, I want to touch upon our earnings for the quarter and fiscal year. For the quarter and full year ended December 31st, 2025, AFC generated distributable earnings per basic weighted average share of negative 12 cents and positive 39 cents respectively. Primarily due to realized losses from two underperforming credits recognized during the year, our 2025 dividends were characterized as a return of capital, making the 2025 distributions to our shareholders tax-free. Future dividends may receive similar treatment if AFC recognizes additional losses in 2026. Looking ahead, the Board of Directors has declared a first quarter dividend of $0.05 per share. which will be paid on April 15th, 2026 to shareholders of record on March 31st, 2026. With that, I'll turn it over to Dan, who will discuss our portfolio management efforts, strategy expansion, and new deals we have recently invested in.