Zuanic and Associates Downgrades Advanced Flower Capital (AFCG) to Neutral 'on the back of dividend cut'

Zuanic and Associates analyst Pablo Zuanic downgraded Advanced Flower Capital (NASDAQ: AFCG) from Overweight to Neutral.

The analyst comments "We are downgrading to Neutral on the back of dividend cut. The company issued a press release earlier this morning cutting its dividend to 15c from 23c (this comes on the heels of another cut in Mar’25 from 33c to 23c). The cut was attributed to a realized loss in loan to company A (booked at fair value a $29Mn, or $1.28), but we also note distributable earnings had come below DPS in 1Q25. AFCG pays dividends equivalent to 85-100% of distributable earnings (over the course of a calendar year). We attach our updated estimates. We see value in AFCG and continue to believe the discount to par is overdone, but today’s news does not help that argument. We will reevaluate our rating after 2Q commentary. All this said, we observe AFCG has made significant progress in expanding, diversifying, and improving the quality of its loan book (with top operators in mostly licensed restricted markets; smaller loans than in the past), and management is laser focused on solving three loans in non-accruals (two in receivership; one in litigation)."

For an analyst ratings summary and ratings history on Advanced Flower Capital click here. For more ratings news on Advanced Flower Capital click here.

Shares of Advanced Flower Capital closed at $5.71 yesterday.

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