# EDGAR Filing Document

**Accession Number:** 0001822523
**File Stem:** 0001628280-26-014395
**Filing Date:** 2026-3
**Character Count:** 59666
**Document Hash:** 8deb6fa70de1a06a539a65a6d2881604
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-014395.hdr.sgml**: 20260304

**ACCESSION NUMBER**: 0001628280-26-014395

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 36

**CONFORMED PERIOD OF REPORT**: 20260304

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260304

**DATE AS OF CHANGE**: 20260304

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Advanced Flower Capital Inc.
- **CENTRAL INDEX KEY:** 0001822523

**ORGANIZATION NAME:**
- **EIN:** 851807125
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-01950
- **FILM NUMBER:** 26718859

**BUSINESS ADDRESS:**
- **STREET 1:** 477 S. ROSEMARY AVE., SUITE 301
- **CITY:** WEST PALM BEACH
- **STATE:** FL
- **ZIP:** 33401
- **BUSINESS PHONE:** 561.510.2390

**MAIL ADDRESS:**
- **STREET 1:** 477 S. ROSEMARY AVE., SUITE 301
- **CITY:** WEST PALM BEACH
- **STATE:** FL
- **ZIP:** 33401

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AFC Gamma, Inc.
- **DATE OF NAME CHANGE:** 20200825

?xml version='1.0' encoding='ASCII'? afcg-20260304

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 4, 2026**

![New AFC Preferred Logo Font_ trimmed.jpg](afcg-20260304_g1.jpg)

**ADVANCED FLOWER CAPITAL INC.**

(Exact name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Maryland** | **001-39995** | **85-1807125** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

**477 S. Rosemary Ave., Suite 301**

**West Palm Beach, FL, 33401**

(Address of principal executive offices, including zip code)

**561-510-2390**

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, par value $0.01 per share** | **AFCG** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On March 4, 2026, Advanced Flower Capital Inc. (the "Company") issued a press release announcing its financial and operational results for the fourth quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto.

On March 4, 2026, the Company furnished a copy of an earnings presentation intended to be used by representatives of the Company announcing its financial and operational results for the fourth quarter and year ended December 31, 2025. A copy of the earnings presentation is furnished as Exhibit 99.2 hereto.

The information contained in Item 2.02 of this Current Report, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d)Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](afcg-20260304xex991afcgear.htm)</u> | Press Release issued by Advanced Flower Capital Inc. on March 4, 2026. |
| <u>[99.2](afcpresentation-q4andfy2.htm)</u> | Earnings Presentation of Advanced Flower Capital Inc. on March 4, 2026. |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **ADVANCED FLOWER CAPITAL INC.** | **ADVANCED FLOWER CAPITAL INC.** |
| | By: | /s/ Brandon Hetzel |
| | | Brandon Hetzel |
| | | Chief Financial Officer and Treasurer |
| Date: March 4, 2026 |  |  |

---

## Exhibit 99.1

![newafcpreferredlogofont_tr.jpg](newafcpreferredlogofont_tr.jpg)

**Advanced Flower Capital Inc. Announces Financial Results for the Fourth Quarter and Full Year 2025**

*Fourth quarter 2025 GAAP net income of $0.9 million or $0.04 per basic weighted average common share and* 

*Distributable Earnings*<sup>(1)</sup> *of $(2.8) million or $(0.12) per basic weighted average common share*

*Full year 2025 GAAP net loss of $(20.7) million or $(0.95) per basic weighted average common share and* 

*Distributable Earnings* *of $8.7 million or $0.39 per basic weighted average common share*

WEST PALM BEACH, FL, March 4, 2026 – Advanced Flower Capital Inc. (Nasdaq: AFCG) ("AFC," or the "Company") today announced its results for the fourth quarter and year ended December 31, 2025.

AFC reported generally accepted accounting principles ("GAAP") net income of $0.9 million, or $0.04 per basic weighted average common share, and Distributable Earnings of $(2.8) million, or $(0.12) per basic weighted average common share, for the fourth quarter of 2025. The Company reported GAAP net loss of $(20.7) million, or $(0.95) per basic weighted average common share, and Distributable Earnings of $8.7 million, or $0.39 per basic weighted average common share, for the full year 2025.

"In 2025, we focused on disciplined portfolio management and the successful completion of our BDC conversion. As a BDC with a broader investment universe, we remain focused on unlocking value from underperforming loans and redeploying that capital into high-quality, cash-flowing businesses in the lower middle market," said Dan Neville, AFC's Chief Executive Officer. "In short, we remain committed to resolving legacy positions and leveraging our robust pipeline to drive long-term value for our shareholders."

***Common Stock Dividend***

On March 2, 2026, the Company's Board of Directors declared a regular cash dividend of $0.05 per common share for the first quarter of 2026. The first quarter 2026 dividend will be payable on April 15, 2026, to shareholders of record as of March 31, 2026.

***Additional Information***

AFC issued a presentation of its fourth quarter and full year 2025 results, titled "Fourth Quarter and Full Year 2025 Earnings Presentation," which can be viewed at <u>advancedflowercapital.com</u> on the Investor Relations section of AFC's website found here: <u>AFC -- Investor Relations</u>. The Company also filed its Annual Report on Form 10-K for the year ended December 31, 2025, with the Securities and Exchange Commission on March 4, 2026.

AFC routinely posts important information for investors on its website, <u>advancedflowercapital.com</u>. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the Investor Relations section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the "Email Alerts" section of the website under the "IR Resources" section.

<sup>1</sup> Distributable Earnings is a non-GAAP financial measure. See the "Non-GAAP Metrics" section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.

------

***Conference Call & Discussion of Financial Results***

AFC will host a conference call at 10:00 am (Eastern Time) on Wednesday, March 4, 2026, to discuss its quarterly and annual financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC's website found here: <u>AFC -- Investor Relations</u>. To participate via telephone, please register in advance at this <u>link</u>. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of AFC's website.

AFC distributes its earnings releases via its website and email lists. Those interested in receiving firm updates by email can sign up for them <u>here</u>.

***About AFC***

AFC is a publicly-traded business development company that provides flexible credit solutions to lower middle-market companies. The company primarily originates, structures, invests and manages direct senior debt investments, targeting companies generating annual EBITDA of $5 to $50 million. The company seeks to maximize risk-adjusted returns for its shareholders with an opportunistic approach across all industries. AFC is headquartered in West Palm Beach, Florida. For additional information regarding AFC, please visit advancedflowercapital.com.

***Non-GAAP Metrics***

In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most-recently filed Annual Report on Form 10-K. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information it provides is useful to investors since this measure permits investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance.

The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings accounts for any Incentive Compensation earned for such time period.

We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses, (v) taxable REIT (as defined below) subsidiary ("TRS") (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.

------

We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a real estate investment trust ("REIT"), we are required to distribute at least 90% of our annual REIT taxable income, subject to certain adjustments, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that shareholders invest in our common stock, we generally intend to attempt to pay dividends to our shareholders in an amount at least equal to such REIT taxable income, if and to the extent authorized by our Board of Directors. Distributable Earnings is one of many factors considered by our Board of Directors in authorizing dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends.

Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.

------

**ADVANCED FLOWER CAPITAL INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
| | **Three months ended<br>December 31, 2025** | **Year ended<br>December 31, 2025** |
| **Revenue** | | |
| Interest income | $6640305 | $31322137 |
| Interest expense | (1453964) | (6758536) |
| **Net interest income** | **5186341** | **24563601** |
| **Expenses** |  |  |
| Management and incentive fees, net (less rebate of $229,440 and $854,432, respectively) | 716181 | 2927867 |
| General and administrative expenses | 976593 | 3231642 |
| Stock-based compensation | 5315118 | 6840805 |
| Professional fees | 363518 | 1451361 |
| BDC conversion expenses | 428082 | 1234054 |
| **Total expenses** | **7799492** | **15685729** |
| Provision for current expected credit losses | (65786) | (22590706) |
| Gain on extinguishment of debt | 359305 | 359305 |
| Change in unrealized gains (losses) on loans at fair value, net | 3520599 | (7933276) |
| **Net income (loss) before income taxes** | **1200967** | **(21286805)** |
| Income tax expense (benefit) | 286921 | (613379) |
| **Net income (loss)** | $**914046** | $**(20673426)** |
| **Earnings per common share:** |  |  |
| &nbsp;&nbsp;Basic | $0.04 | $(0.95) |
| &nbsp;&nbsp;Diluted | $0.04 | $(0.95) |
| **Weighted average number of common shares outstanding:** |  |  |
| Basic weighted average shares of common stock outstanding | 22652344 | 22246019 |
| Diluted weighted average shares of common stock outstanding | 22739319 | 22282784 |

---

------

**The following table provides a reconciliation of GAAP Net income (loss) to Distributable Earnings:**

---

| | | |
|:---|:---|:---|
| | **Three months ended<br>December 31, 2025** | **Year ended<br>December 31, 2025** |
| **Net income (loss)** | $**914046** | $**(20673426)** |
| Adjustments to net income (loss): |  |  |
| &nbsp;&nbsp;Stock-based compensation expense | 5315118 | 6840805 |
| &nbsp;&nbsp;Depreciation and amortization |  |  |
| &nbsp;&nbsp;Unrealized (gains) losses or other non-cash items | (3520599) | 7933276 |
| &nbsp;&nbsp;(Reversal of) provision for current expected credit losses<sup>2</sup> | (5197746) | 15549928 |
| &nbsp;&nbsp;TRS income, net of dividends | (324560) | (996290) |
| &nbsp;&nbsp;One-time events pursuant to changes in GAAP and certain non-cash charges |  |  |
| **Distributable earnings** | $**(2813741)** | $**8654293** |
| Basic weighted average shares of common stock outstanding | 22652344 | 22246019 |
| **Distributable earnings per basic weighted average share** | $**(0.12)** | $**0.39** |

---

***Forward-Looking Statements***

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as "believes," "expects," "will," "intends," "plans," "guidance," "estimates," "projects," "anticipates," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our adviser to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; management's current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of AFC's most recently filed periodic reports on Form 10-K, Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

<sup>2</sup> The provision for current expected credit losses is presented net of any write-offs.

------

***Investor Relations Contact***

Robyn Tannenbaum

(561) 510-2293

<u>ir@advancedflowercapital.com</u>

## Exhibit 99.2

![](afcpresentation-q4andfy2001.jpg)

------

![](afcpresentation-q4andfy2002.jpg)

2 IMPORTANT INFORMAT ION Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we intend such statements to be covered by the safe harbor provisions contained therein. Such forward-looking statements are based on the current intent, belief, expectations and views of future events of Advanced Flower Capital Inc. ("Advanced Flower Capital," "AFC," the "Company," "we," "us," and "our"). The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results or performance, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "can," "continuing," "may," "aim," "intend," "ongoing," "plan," "predict," "potential," "should," "seeks," "likely to" or words or phrases of similar meaning. Specifically, this presentation includes forward-looking statements regarding (i) the conversion to a business development company ("BDC") (the "Conversion") and the other related transactions, as well as the future financial and operating results, plans, objectives, expectations and intentions of the Company; (ii) our portfolio and strategies for the growth thereof; (iii) our working capital, liquidity and capital requirements; (iv) potential state and federal legislative and regulatory matters; (v) our expectations and estimates regarding certain tax, legal and accounting matters, including the impact on our financial statements and/or those of our borrowers; (vi) the amount, collectability and timing of cash flows, if any, from our loans; (vii) our expected ranges of originations and repayments; (viii) estimates relating to our ability to make distributions to our shareholders in the future; and (ix) our investment strategy. Actual results could differ significantly from the results and events discussed in the forward-looking statements due to the factors set forth under the heading "Cautionary Note Regarding Forward-Looking Statements" under the heading "Risk Factors" in the Annual Report on Form 10-K that we filed with the Securities and Exchange Commission (the "SEC") on March 4, 2026, and the other documents we file from time to time with the SEC. The forward-looking statements contained in this presentation involve a number of risks and uncertainties, including factors relating to: our new business and investment strategy, our ability to maintain our status as a BDC, our ability to maintain our status under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code") as a RIC and our qualification for tax treatment as a RIC; the ability of our Adviser (as defined below) to locate suitable loan opportunities for us and to monitor and actively manage our portfolio and implement our new investment strategy, our expectations for origination targets and repayments, our ability to obtain our target mix of loan and collateral types with our expected ranges of yields, the allocation of loan opportunities to us by our Adviser, our projected operating results, the state of the U.S. economy generally or in the specific geographic regions in which we operate, including as a result of the impact of natural disasters, the impact of a protracted decline in the liquidity of credit markets on our business, the amount, collectability and timing of our cash flows, if any, from our loans, our ability to obtain and maintain competitive financing arrangements, our ability to achieve expected leverage, changes in the value of our loans, our being subject to regulations and SEC oversight as a BDC, including limits on issuance of debt, losses that may arise due to the concentration of our portfolio in a limited number of loans and borrowers, our investment and underwriting process, the rates of default or recovery rates on our loans, the degree to which our hedging strategies may or may not protect us from interest rate volatility, the availability of investment opportunities for us within our investment guidelines, changes in interest rates and impacts of such changes on our results of operations, cash flows and the market value of our loans, interest rate mismatches between our loans and our borrowings used to fund such loans, impact of and changes in governmental regulations, tax law and rates, accounting guidance, tariffs and similar matters, estimates relating to our ability to make distributions to our shareholders in the future, and our understanding of our competition. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make through reports that we have filed, or in the future may file, with the SEC, including the Information Statement, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Case Studies. The selected investment examples, case studies and/or transaction summaries presented or referred to herein may not be representative of all transactions of a given type or of investments generally and are intended to be illustrative of the types of investments that have been made or may be made by the Company in employing the Company's investment strategies. It should not be assumed that the Company will make equally successful or comparable investments in the future. Moreover, the actual investments to be made by the Company will be made under different market conditions from those investments presented or referenced and may differ substantially from the investments presented herein as a result of various factors. Prospective investors should also note that the selected investment examples, case studies and/or transaction summaries presented or referred to herein have involved AFC Management, LLC professionals who will be involved with the management and operations of the Company as well as other AFC Management, LLC personnel who will not be involved in the management and operations of the Company. Further investment details are available upon request. Logos. The logos presented herein were not selected based on performance of the applicable company or sponsor to which they pertain. In AFC Management, LLC's and/or the Company's opinion, the logos selected were generally the most applicable examples of the given thesis, theme or trend discussed on the relevant slide(s). All rights to the trademarks and/or logos presented herein belong to their respective owners and the Company's use hereof does not imply an affiliation with, or endorsement by the owners of these logos. Third Party Information. Certain information contained in the materials has been obtained from sources outside AFC, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of AFC Management, LLC, the Company or any of their affiliates, takes any responsibility for, and has not independently verified, any such information.

------

![](afcpresentation-q4andfy2003.jpg)

3 IMPORTANT INFORMAT ION Important Notices This presentation is by Advanced Flower Capital, a publicly traded company that is a non-diversified, externally managed, closed-end management investment company that has elected to be regulated as a BDC and intends to elect to be taxed as a regulated investment company ("RIC") for federal income tax purposes for the year ending December 31, 2026. During the year ended December 31, 2025, the Company elected to be taxed as a REIT for federal income tax purposes. This presentation is provided for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy, any security or instrument. AFC is not a registered investment adviser. AFC is managed by AFC Management, LLC ("AFCM" or our "Adviser"), a registered investment adviser. This presentation is not a communication by AFCM and is not designed to maintain any existing AFCM client or investor or solicit new AFCM clients or investors. We routinely post important information for investors on our website, www.advancedflowercapital.com. We intend to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the "Investor Relations" section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations, webcasts and other information we post from time to time on our website. To sign-up for email-notifications, please visit the "Email Alerts" section of our website under the "Investor Relations" section and enter the required information to enable notifications. Past performance is no guarantee of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. The information contained herein is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations for AFC or any of its affiliates. Certain information contained in the presentation discusses general market activity, industry trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per share, to evaluate our performance excluding the effects of certain transactions and certain GAAP adjustments that we believe are not necessarily indicative of our current loan activity and operations. We believe the non-GAAP financial measures are useful for management, investors, analysts, and other interested parties in evaluating our performance but should not be viewed in isolation and are not a substitute for financial measures computed in accordance with GAAP. For management description and calculation of Distributable Earnings, see appendix section entitled "Key Definitions and Methodologies", and for the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures, please refer to the appendix section entitled, "Reconciliation of GAAP Net Income to Distributable Earnings". We have not provided reconciliations of expected distributable earnings for the future period(s), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include changes in unrealized gains, non-cash equity compensation expenses and the impact of non-cash adjustments for current expected credit losses that are difficult to predict in order to include in a GAAP estimate.

------

![](afcpresentation-q4andfy2004.jpg)

4 Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses; Financial and company data as of 2/25/2026 unless otherwise specified. 1. Collective deal experience includes transactions executed prior to AFC's conversion to a BDC structure on 1/1/2026, at AFC and prior firms. 2. Includes potential syndications; AFC is in various stages of negotiation and has not completed its due diligence process with respect to these projects. As a result, there can be no assurance that we will move forward with any of these potential investments. 3. Represents all deals from 1/1/2020 through 2/25/2026 sourced by AFC's adviser. 4. Includes amounts committed by affiliated predecessor entities to AFC. 5. Represents the total deal count closed since inception divided by the total count of all deals sourced by AFC's adviser from 1/1/2020 through 2/25/2026. OVERV IEW AFC is an institutional capital provider specializing in debt investments to (i) lower middle-market businesses across various industries and (ii) companies operating in or adjacent to the cannabis industry We aim to provide attractive risk-adjusted returns through debt investments structured with significant collateral, high interest coverage and favorable pricing We primarily originate, structure, invest and manage debt investments of at least $10 million Senior members of the team have collectively structured over $10 billion in loans and taken four companies public1 On January 1, 2026, AFC completed its conversion from a real estate investment trust ("REIT") to a business development company ("BDC") regulated under the Investment Company Act of 1940, as amended (the "1940 Act") (the "Conversion") Deal Selectivity Since Inception5 Total Commitments Since Inception4 Deals Sourced Since Inception3 Active Pipeline2 Principal Balance Outstanding Current Commitments

------

![](afcpresentation-q4andfy2005.jpg)

5 Apply strengths in lower middle-markets – capabilities & contacts from decades of lending experience Utilize our broad capabilities and expertise to capitalize on AFC's expanded investable universe Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. INVESTMENT H IGHL IGHTS Multi-channel originations driven by long-standing relationships and internal sourcing efforts 4 5 Underwriting & structuring that leverages our direct lending and structured credit experience Strong alignment of interests with over 25% equity ownership by executive management 2 3 6 Prudent leverage, strong liquidity, meaningful asset coverage and flexible, attractive financing mix Cycle-tested and experienced in structuring complex loans across the full spectrum of private credit1 Proactive monitoring, rigorous valuations and workout protocols – all rooted in a credit-first culture8 7

------

![](afcpresentation-q4andfy2006.jpg)

6 LEADERSH IP  Founded TCG, an alternative asset management platform focused on real estate and strategic private credit investing  Founder and CEO of $5 billion AUM Fifth Street prior to its 2017 sale to Oaktree 30+ YEARS EXPERIENCE  Former CFO of Ascend Wellness Holdings, responsible for accounting, finance, M&A activity and deal structuring  5+ years as Head of Investor Relations for three Fifth Street public entities  7+ years focused on mergers and acquisitions and leveraged loans at CIT Group LEONARD TANNENBAUM Chief Executive Officer DANIEL NEVILLE Chief Financial Officer, Treasurer ROBYN TANNENBAUM President BRANDON HETZEL GABRIEL KATZ JAMES VELGOT Chief Legal Officer Chief Marketing Officer Chairman 30+ YEARS EXPERIENCE12+ YEARS EXPERIENCE15+ YEARS EXPERIENCE15+ YEARS EXPERIENCE 15+ YEARS EXPERIENCE  Former VP of Finance for El-AD National Properties, LLC  Former Manager in REIT audit practice at PwC  Former Corporate & Securities Counsel at AmLaw 100 law firms and Lead Corporate Counsel at a unicorn technology startup  Advised public and private companies in securities offerings and M&A  Former Chief Marketing Officer at Fifth Street Asset Management  Former Global Head of Brand & Strategic Communications at Alliance Bernstein Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses.

------

![](afcpresentation-q4andfy2007.jpg)

7 INVESTMENT H IGHL IGHTS Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. Cycle-Tested Management › AFC's ability to navigate fast- moving markets and underwrite complex credits draws from a deep well of lending, asset management and operational experience Seeking Compelling Investment Returns › Working to capture the benefits from direct originations, with the potential to earn premium yields through selective sourcing, disciplined underwriting and innovative structuring Disciplined Process › Rigorous, repeatable and auditable investment review process applying both an experienced lender's process and an operator's lens to underwrite and structure loans Active Portfolio Management › Detailed performance monitoring, stringent reporting cadence, robust valuation procedures, and multiple early- warning systems in place, all supported by a culture of credit Strong Balance Sheet & Liquidity › Prudent cash management for ample liquidity, meaningful asset coverage across investment, and prudent leverage optimized to BDC- appropriate levels

------

![](afcpresentation-q4andfy2008.jpg)

8 BENEF IC IAL STRUCTURE What is a Business Development Company? What are requirements? A closed-end management investment company that has elected to be regulated under the 1940 Act required to invest at least 70% of assets in private or small public companies via long-term debt or equity capital Ordinarily invest via long-term debt or equity capital Maintain total asset coverage of at least 150% Report on Forms 10-K, 10-Q and 8-K Invest at least 70% of assets in eligible U.S. companies Restrict affiliated transactions What are potential benefits of a BDC structure for AFC? As a BDC, AFC can originate direct loans to public and private middle market companies outside of cannabis, a sector facing unique challenges Enables Investments Outside Cannabis As a BDC, AFC will seek to issue loans to both operators lacking RE as well as high-growth plant-touching and ancillary businesses (e.g. brands, software) Expands Opportunity Set Within Cannabis BDCs can offer deal structures better tailored to borrower needs, such as convertible debt, unsecured loans, revenue-linked loans, or equipment financing Increases Flexibility in Loan Structuring The BDC structure provides AFC capacity to increase leverage as it constructs a diversified portfolio of direct loans to the U.S. lower middle markets Optimizes Access to Efficient Capital With a broader mandate, AFC can deploy across industries, loan types and borrower profiles, improving loan selectivity while potentially reducing risks in the portfolio Diversifies Exposures Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses.

------

![](afcpresentation-q4andfy2009.jpg)

9 Note: Past performance does not predict future returns. These examples may not be representative of all investments of a given type or of investments generally, both with respect to operating metrics and performance, and it should not be assumed that the Company will make comparable or equally successful investments in the future. Figures are presented for illustrative purposes. Reflects AFC Management, LLC's and/or the Company's views and beliefs as of the date appearing on this material only, subject to change. FOCUSED STRATEGY Credit Characteristics We Seek to Target Credit Characteristics We Seek to Avoid  Cyclical end markets exposed to macro or geopolitical factors  Sectors with poor credit standards from an oversupply of debt  Highly concentrated customer base  Volatile or lumpy cash flows  Undifferentiated product or services with low profit margins ✔ Market leader with pronounced competitive advantages ✔ Proven management team with highly aligned incentives ✔ Variable cost structures designed to meet evolving markets ✔ Appropriate capital structure with low debt multiples and ✔ Conservative leverage and interest coverage ratios Target Characteristics Investment Focus Origination Focus LOAN TYPE TERMS At least $10 million First lien and unitranche debt Co-investments with affiliate investment vehicles CHECK SIZE Cash interest Floating with SOFR floors OID and prepayment fees › Private companies headquartered or mostly operating in the United States › Generating EBITDA of $5 to $50 million › Diverse industry sectors › Financing is often used for expansion capital, acquisitions, refinancings and recapitalizations › Targeting investments in both sponsored (i.e., PE-backed) and direct lending opportunities › Focus on originated loans as opposed to broadly syndicated financings › Typically the sole lender in the tranches in which we invest:  Open to partnering with a small number of lenders in "club" deals

------

![](afcpresentation-q4andfy2010.jpg)

10 Note: Past performance does not predict future returns. These examples may not be representative of all investments of a given type or of investments generally, both with respect to operating metrics and performance, and it should not be assumed that the Company will make comparable or equally successful investments in the future. Reflects AFC Management, LLC's and/or the Company's views and beliefs as of the date appearing on this material only, subject to change. 1. PennantPark, Sponsor Vs. Non-Sponsor Backed Lending, What You Need to Know, March 2024. The Alts Institute, Understanding Private Credit: Sponsored vs. Non- Sponsored Financing, April 2025. Invesco, Direct Lending's Evolution: A look into sponsored versus non-sponsored, 8/12/2025. PGIM, Enhancing Diversification Through Non-Sponsored Direct Lending, February 2025. Sponsor-Backed Lending Financing the businesses of issuers owned by PE Non-Sponsor-Backed Lending Financing the businesses of issuers under any ownership Owner-Operator Alignment Sponsors typically require regular reporting, clear KPIs and straightforward lender access to performance data Leadership is often closely tied to the long-term health of the business and customer relationships Standardized Operating Processes Sponsors typically have organized diligence files, established operating systems and defined documentation processes Strategic Support & Resources Sponsors often bring playbooks, talent networks, and resources to support growth initiatives Operational Continuity Often long-tenured teams with stable operations, strong industry networks and an institutionalized knowledge base Structural Simplicity & Transparency Often clean organizational structures and limited deal- driven complexities support clarity in underwriting Proactive Portfolio Management Sponsors typically conduct active monitoring and make timely decisions when performance or conditions shift Conservative Balance-Sheet Mindset Frequently a preference for prudent leverage, disciplined cost control and steady cash-flow management Institutional Governance & Reporting Multiple Levers in Downside Scenario Sponsors typically have options to support the business – equity infusions, operational changes, strategic alternatives Long-Term Partnership Focus Financing decisions are often collaborative and tailored, strengthening long-term lender-borrower alignment Typical Attributes SPONSOR-AGNOST IC OR IG INAT IONS

------

![](afcpresentation-q4andfy2011.jpg)

11 AFC is involved in each phase of the lending process, aiming to source loans with high return potential and downside protection Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. 1. Collective deal experience includes transactions executed prior to AFC's conversion to a BDC structure on 1/1/2026. OUR APPROACH Sourcing & Originations Selection & Underwriting Advance detailed term sheet Primary due diligence on company and transaction: o Collateral o Credit metrics o Management team o Business plan o Company financial strength o Regulatory considerations Third party diligence via advisors and experts Final Investment Committee memo documents the analysis Investment Committee Investment Committee ("IC") oversees the entire investment process, driving continuous testing of theses and risks Scrutinize lender protections, cash flow timing, covenants, inter-creditor agreements Each loan must be approved by the Investment Committee Management and the investment team have collectively structured over $10 billion in transactions1 Portfolio Management Monthly meeting to review all portfolio positions: o Covenant compliance o Board observation rights o Current performance v. budget o Onsite inspections o Internal ratings Proactive dialogue with management, agent, sponsor, and industry relationships Quarterly portfolio valuations and covenant reviews Multi-channel direct originations sourcing from: o Strong relationships with sponsors, intermediaries, co- lenders & industry executives o Internal direct sourcing led by senior team members, with systematic CRM tracking Leading deals allows for stronger controls and greater influence over outcomes Deal volume enables high selectivity for quality loans SOURCE EVALUATE CLOSE MONITOR

------

![](afcpresentation-q4andfy2012.jpg)

12 Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses; All company data as of 2/25/2026. 1. Represents deals sourced by AFC's adviser from 1/1/2020 through 2/25/2026. 2. Includes amounts committed by affiliated predecessor entities to AFC. 3. Includes potential syndications; AFC is in various stages of negotiation and has not completed its due diligence process with respect to these projects. As a result, there can be no assurance that we will move forward with any of these potential investments. 4. Represents the total deal count closed since inception divided by the total count of all deals sourced by AFC's adviser from 1/1/2020 through 2/25/2026. DIRECT OR IG INAT IONS PLATFORM AFFILIATED STRATEGIES › Co-lenders › Owners/operators › Brokers › PE firms › BDCs or REITs › Banks › Advisory firms › Service providers NETWORK-BASED DEAL FLOW › Opportunities to be allocated from investments originated by affiliate entities › Internal direct origination efforts provide a unique and proprietary flow of deals › Pair in-house & 3rd party data for wide visibility on opportunity set in real-time INTERNAL SOURCING Powerful Deal Flow Engine QUALITY INBOUNDS Reflecting the team's product & market knowledge and diverse specializations FLEXIBLE PARTNERSHIP Driving repeat business with solutions-oriented flexibility and good-faith negotiations MARKET PRESENCE Maintain reputation as a reliable, skillful lender to the lower middle-market EXTENSIVE NETWORK Vast ecosystem of long- standing industry contacts in each target vertical Multiple Channels Driving Originations High-Quality, Actionable Pipeline $ bn Closed Deals Since Inception2 $ mm Current Commitments $ mm Principal Balance Outstanding $ bn Total Deals Sourced1 Deal Selectivity4 $ Active Pipeline3

------

![](afcpresentation-q4andfy2013.jpg)

13 Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving the Company's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. 1. Represents total committed principal at closing for outstanding loans as of specified dates (9/30/2024, 12/31/2024, 3/31/2025, 6/30/2025, 9/30/2025, 12/31/2025, and 2/25/2026). Excludes early prepayments. PORTFOL IO Funded Unfunded 1 In $ millions $330 $351 $366 $360 $333 $323 $369 $20 $10 $9 $10 $12 $10 $14 $350 $361 $375 $370 $345 $333 $383 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2/25/2026

------

![](afcpresentation-q4andfy2014.jpg)

14 AFC's adviser has reviewed 1,104 deals, representing approximately $29 billion in aggregate value\* PORTFOL IO Current Deals in Review Current Deals Funded Deals Rejected\* As of 2/25/2026; In $ millions unless otherwise noted Note: Past performance does not predict future returns. Investing involves the risk of loss, and there is no guarantee that the Adviser's strategy will be successful at achieving AFC's objectives or preventing substantial investment losses. Numbers may not sum due to rounding. \* Represents deals from 1/1/2020 through 2/25/2026 sourced by AFC's adviser; Totals may not sum due to rounding. 1. Loans originated prior to 7/31/2020 were purchased from affiliated entities at fair value, approximating accreted or amortized cost plus accrued interest on 7/31/2020 and excluding prepayments. 2. See appendix section entitled "Definitions" for management description and calculation of yield to maturity ("YTM"), paid in-kind ("PIK") and Origination Issue Discount ("OID"). 3. Future Cash Interest Rate on loans with floating rates are based on its 2/25/2026 benchmark rate. 4. Portfolio Totals for Cash Interest Rate, Original Issue Discount and Paid In-Kind are calculated as a weighted average rate by principal balance outstanding. Loan Name Original Funding Date1 Loan Maturity AFC Loan, net of Syndication As % of Total Total OID2 Principal Balance Cash Interest Rate3 Paid In-Kind ("PIK") 2 Fixed/ Floating Amort. During Term YTM2 Private Co. A May-20 May-24 $38.1 10.0% 7.7% $46.8 13.0% 2.6% Fixed No - Sub of Private Co. G Apr-21 May-26 73.1 19.1% 4.0% 78.8 12.5% N/A Fixed No - Private Co. K Apr-22 May-27 13.2 3.5% 4.0% 12.2 15.7% 2.0% Floating Yes - Private Co. M Jul-23 Jul-26 30.0 7.8% 16.0% 23.1 15.0% N/A Fixed Yes 18% Private Co. N - RE Mar-24 Apr-28 19.3 5.1% 4.0% 19.3 12.5% N/A Floating Yes 16% Private Co. N Mar-24 Apr-28 17.2 4.5% 4.0% 17.2 12.5% N/A Floating Yes 16% Private Co. Q Aug-24 Sep-28 11.0 2.9% 3.0% 8.0 13.8% N/A Floating Yes 18% Private Co. R Oct-24 Nov-27 41.0 10.7% 2.0% 32.6 12.0% N/A Floating Yes 15% Private Co. U Feb-25 Mar-28 15.0 3.9% 2.5% 15.0 14.0% N/A Fixed Yes 17% Sub of Private Co. V Apr-25 Apr-29 14.0 3.7% 3.0% 12.4 12.5% 1.5% Fixed Yes 17% Sub of Public Co. S Aug-25 Aug-30 10.0 2.6% 4.0% 10.0 12.5% N/A Fixed No 15% Private Co. W Dec-25 Dec-28 6.0 1.6% – 5.9 10.0% N/A Fixed Yes 23% Sub of Public Co. T Dec-25 Dec-30 5.0 1.3% – 5.0 10.5% N/A Fixed No 11% Private Co. X Jan-26 Feb-31 60.0 15.7% 2.0% 60.0 12.2% N/A Floating Yes 14% Private Co. Y Feb-26 Feb-30 29.8 7.8% 2.5% 20.1 7.5% 9.0% Fixed Yes 19% Total Portfolio4 $382.7 100.0% 4.4% $366.4 12.5% 0.9%

------

![](afcpresentation-q4andfy2015.jpg)

NASDAQ :AFCG \| FOURTH QUARTER & FULL YEAR 2025

------

![](afcpresentation-q4andfy2016.jpg)

16 FOURTH QUARTER & FULL YEAR 2025 RESULTS As of December 31, 2025 2024 Assets Loans held for investment at fair value (cost of $53,744,253 and $50,241,018 at December 31, 2025 and 2024, respectively, net) 26,080,763$30,510,804$ Loans held for investment at carrying value, net 253,625,119 293,262,374 Loan receivable held at carrying value, net – 1,895,638 Current expected credit loss reserve (46,059,838) (30,419,677) Loans held for investment at carrying value and loan receivable held at carrying value, net of current expected credit loss reserve 207,565,281 264,738,335 Cash and cash equivalents 38,605,507 103,610,460 Interest receivable 899,382 1,982,897 Prepaid expenses and other assets 2,443,814 1,214,817 Total assets 275,594,747$402,057,313$ Liabilities Accrued interest 763,180$894,611$ Due to affiliate – 6,754 Dividends payable – 7,369,866 Current expected credit loss reserve 76,469 166,702 Accrued management and incentive fees 716,181 1,932,246 Accrued direct administrative expenses 374,852 1,197,518 Accounts payable and other liabilities 773,585 501,328 Senior notes payable, net 76,322,493 88,612,150 Line of credit payable 21,000,000 60,000,000 Line of credit payable to affiliate – 40,000,000 Total liabilities 100,026,760 200,681,175 Commitments and contingencies (Note 9) Shareholders' equity Preferred stock, par value $0.01 per share, 10,000 shares authorized at December 31, 2025 and 2024 and 0 shares issued and outstanding at December 31, 2025 and 2024, respectively – – Common stock, par value $0.01 per share, 50,000,000 shares authorized at December 31, 2025 and 2024 and 23,528,844 and 22,332,927 shares issued and outstanding at December 31, 2025 and 2024, respectively 235,288 223,329 Additional paid-in capital 258,694,609 251,865,763 Accumulated (deficit) earnings (83,361,910) (50,712,954) Total shareholders' equity 175,567,987 201,376,138 Total liabilities and shareholders' equity 275,594,747$402,057,313$

------

![](afcpresentation-q4andfy2017.jpg)

17 FOURTH QUARTER & FULL YEAR 2025 RESULTS Three Months Ended Year Ended December 31, 2025 December 31, 2025 Revenue Interest income 6,640,305$31,322,137$ Interest expense (1,453,964) (6,758,536) Net interest income 5,186,341 24,563,601 Expenses Management and incentive fees, net (less rebate of $229,440 and $854,432, respectively) 716,181 2,927,867 General and administrative expenses 976,593 3,231,642 Stock-based compensation 5,315,118 6,840,805 Professional fees 363,518 1,451,361 BDC conversion expenses 428,082 1,234,054 Total expenses 7,799,492 15,685,729 Provision for current expected credit losses (65,786) (22,590,706) Gain on extinguishment of debt 359,305 359,305 Change in unrealized gains (losses) on loans at fair value, net 3,520,599 (7,933,276) Net income (loss) before income taxes 1,200,967 (21,286,805) Income tax expense (benefit) 286,921 (613,379) Net income (loss) 914,046$(20,673,426)$ Earnings per common share: Basic 0.04$(0.95)$ Diluted 0.04$(0.95)$ Weighted average number of common shares outstanding: Basic weighted average shares of common stock outstanding 22,652,344 22,246,019 Diluted weighted average shares of common stock outstanding 22,739,319 22,282,784

------

![](afcpresentation-q4andfy2018.jpg)

18 Note: For further management description and calculation of Distributable Earnings, see appendix section titled "Definitions". 1. The provision for current expected credit losses is presented net of any write-offs. FOURTH QUARTER & FULL YEAR 2025 RESULTS Three Months Ended Year Ended December 31, 2025 December 31, 2025 Net income (loss) 914,046$(20,673,426)$ Adjustments to net income (loss): Stock-based compensation expense 5,315,118 6,840,805 Depreciation and amortization – – Unrealized (gains) losses or other non-cash items (3,520,599) 7,933,276 (Reversal of) provision for current expected credit losses(1) (5,197,746) 15,549,928 TRS income, net of dividends (324,560) (996,290) One-time events pursuant to changes in GAAP and certain non-cash charges – – Distributable earnings (2,813,741)$8,654,293$ Basic weighted average shares of common stock outstanding 22,652,344 22,246,019 Distributable earnings per basic weighted average share (0.12)$0.39$

------

![](afcpresentation-q4andfy2019.jpg)

19 Distributable Earnings The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Fees earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated prior to Incentive Fee expense, while the calculation of Distributable Earnings accounts for any Incentive Fees earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses, (v) taxable REIT subsidiary ("TRS") (income) loss, net of any dividends received from TRS, and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our adviser and our independent directors and after approval by a majority of such independent directors. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs. We have not provided reconciliations of expected distributable earnings for the future period(s), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include changes in unrealized gains, non-cash equity compensation expenses and the impact of non-cash adjustments for current expected credit losses that are difficult to predict in order to include in a GAAP estimate. Please see page 18 for a reconciliation of GAAP net income to Distributable Earnings. Origination Issue Discount ("OID") Origination Issue Discount ("OID") is recognized as a discount to the funded loan principal and is accreted to income over the term of the loan. Loans originated before July 31, 2020 were acquired by us, net of unaccreted OID, which we accrete to income over the remaining term of the loan. In some cases, additional OID is recognized from additional purchase discounts attributed to the fair value of equity positions that were separated from the loans prior to our acquisition of such loans. The estimated YTM Future Cash Interest Rate on loans with floating rates are based on its February 25, 2026, benchmark rate. Yield to Maturity ("YTM") YTM excludes loans on nonaccrual status. Estimated YTM includes a variety of fees and features that affect the total yield, which may include, but is not limited to, OID, exit fees, prepayment fees, unused fees and contingent features. The estimated YTM calculations require management to make estimates and assumptions, including, but not limited to, the timing and amounts of loan draws on delayed draw loans, the timing collectability of exit fees, the probability and timing of prepayments and the probability of contingent features occurring. For example, certain credit agreements may contain provisions pursuant to which certain PIK interest rates and fees earned by us under such credit agreements will decrease upon the satisfaction of certain specified criteria which we believe may improve the risk profile of the applicable borrower. To be conservative, we have not assumed any prepayment penalties or early payoffs in our estimated YTM calculation. Estimated YTM is based on current management estimates and assumptions, which may change. Actual results could differ from those estimates and assumptions.

------

![](afcpresentation-q4andfy2020.jpg)

------