Advanced Flower Capital Inc.

good morning and welcome to afc's first quarter 2026 earnings call at this time all participants are on a listen-only mode later we will conduct a question and answer session and instructions will be given at that time 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 end in march 31st 2026. i'm joined this morning by robin tannenbaum our president and chief investment officer leonard tannenbaum our chairman

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 April 15, 2026 press release and is posted on the investor relations portion of AFC's website at advancedflowercapital.com, along with our first quarter 2026 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, market developments, anticipated portfolio yield, and financial performance and projections 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 SEC, including our quarterly report on Form 10-Q 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. Today's call will begin with Robin providing an overview of our results. Len will then provide commentary on the lower middle market, and then Dan will provide an overview of our portfolio and pipeline. 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, Robin Tannenbaum.

Thanks, Gabe, and good morning, everyone. We appreciate you joining us to discuss AFC's first quarter earnings. Before turning to earnings, we are pleased to have completed our first quarter operating as a BDC. The conversion to a business development company has expanded AFC's investment flexibility, which has allowed us to pursue opportunities beyond real estate-backed loans. We believe that this expanded opportunity better positions AFC to diversify its exposure across industries and credit risk profiles. During the quarter, we closed two non-cannabis deals in the lower middle market, totaling approximately $90 million in new commitments. Additionally, we received $41.2 million in cannabis loan repayments during the quarter. For Q1 2026, AFC had net fundings of $39.1 million. The two lower middle market deals are similar to other potential transactions in our pipeline and have many of the characteristics we look for, cash flow operating businesses backed by experienced sponsors. Turning to earnings, for the first quarter of 2026, AFC generated net investment income of $0.21 per basic weighted average share of common stock. Additionally, the Board of Directors declared a first quarter distribution of $0.05 per share, which was paid on April 15, 2026 to shareholders of record on March 31, 2026. Before turning the call over to Len, I would like to note that the Board of Directors has put a $5 million share buyback program in place. We view the share buyback authorization as a flexible component of our capital allocation strategy designed to enhance long-term shareholder value. Now, I'll turn it over to Len to discuss the state of the middle market.