First Quarter 2026 Highlights
- GAAP net investment income (“NII”) for the quarter ended
March 31, 2026 , was$4.8 million , or$0.21 per basic weighted average share - Net asset value per share as of
March 31, 2026 , was$7.90 , as compared to$7.46 as ofDecember 31, 2025 - GAAP net increase in net assets resulting from operations for the quarter ended
March 31, 2026 , was$11.4 million , or$0.49 per basic weighted average share - Gross and net investment fundings were
$80.9 million and$39.1 million , respectively - Net debt-to-equity as of
March 31, 2026 was 0.48x
“AFC delivered a strong first quarter with net investment income exceeding our quarterly dividend. Additionally, in our first quarter as a BDC, we saw an increase in investment fundings driven by our pipeline focused on the lower-middle market across various industries,” said
Common Stock Distribution
On
Share Repurchase Authorization
On
Operating Results
| Three months ended | |||||
| (dollar amounts in millions, except per share data) | Total Amount | Per Share | |||
| Net investment income | $ | 4.8 | $ | 0.21 | |
| Net unrealized gain on investments, net of taxes | $ | 6.6 | $ | 0.28 | |
| Net increase in net assets resulting from operations | $ | 11.4 | $ | 0.49 | |
| Distributions declared and payable | $ | 1.2 | $ | 0.05 | |
| As of | ||
| (dollar amounts in millions, except per share data) | ||
| Portfolio investments at fair value | $ | 279.2 |
| Total assets | $ | 394.9 |
| Net assets | $ | 185.8 |
| Net asset value per share | $ | 7.90 |
| Debt/equity ratio | 1.09x | |
| Debt/equity ratio, net of cash | 0.48x | |
Additional Information
AFC issued a presentation of its first quarter 2026 results, titled “First Quarter 2026 Earnings Presentation,” which can be viewed on the Investor Relations section of AFC’s website found here AFC -- Investor Relations. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended
AFC routinely posts important information for investors on its website here. 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,
Conference Call & Discussion of Financial Results
AFC will host a conference call at
AFC distributes its earnings releases via its website and email lists. Those interested in receiving firm updates by email can sign up for them here.
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
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||
| Three Months Ended | |||
| Investment income: | |||
| From non-controlled/non-affiliated investments: | |||
| Interest income | $ | 7,670,790 | |
| Payment-in-kind interest income | 332,640 | ||
| Other income | 1,809,788 | ||
| Total investment income | 9,813,218 | ||
| Expenses: | |||
| Interest expense | 1,726,540 | ||
| Management fee | 973,235 | ||
| Incentive fee on net investment income | 1,023,725 | ||
| General and administrative expenses | 860,496 | ||
| Director fees | 63,800 | ||
| Professional fees | 463,911 | ||
| Total expenses | 5,111,707 | ||
| Management fee rebate | (233,988 | ) | |
| Net expenses | 4,877,719 | ||
| Net investment income before taxes | 4,935,499 | ||
| Income tax expense | 109,368 | ||
| Net investment income | 4,826,131 | ||
| Net change in unrealized appreciation on investments | 7,118,443 | ||
| Provision for taxes on unrealized appreciation on investments | 517,227 | ||
| Net unrealized gain on investments, net of taxes | 6,601,216 | ||
| Net increase in net assets resulting from operations | $ | 11,427,347 | |
| Per share data: | |||
| Basic and diluted net investment income per share | $ | 0.21 | |
| Basic and diluted net increase in net assets resulting from operations per share | $ | 0.49 | |
| Basic and diluted weighted average shares of common stock outstanding | 23,528,844 | ||
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
Investor Relations Contact
(561) 510-2293
ir@advancedflowercapital.com
