Advanced Flower Capital (NASDAQ: AFCG) is the cannabis credit fund in REIT form: first-lien loans to cannabis operators who cannot borrow from banks, earning mid-teens yields that exist precisely because the borrowers are stressed, a dividend cut as defaults proved the point.
| Advanced Flower Capital (AFCG) Snapshot | |
|---|---|
| Share Price (delayed) | $2.88 +1.23% |
| Market Cap | $67M |
| Annualized Dividend | $0.25 (Quarterly) |
| Dividend Yield | 8.77% |
| Sector | Mortgage |
Market data updates automatically several times daily. Last price refresh: Jul 14, 2026.
Business Model
Federal illegality locks cannabis operators out of banking, so AFCG (formerly AFC Gamma) lends senior-secured at rates conventional credit never sees, collateralized by licenses, real estate, and equipment. The model works when operators service debt; the 2024-2025 stretch of borrower distress, workouts, and non-accruals forced dividend reductions and turned the story from yield to recovery.
The Honest Risk Section
Borrower credit is sector policy in disguise: wholesale price compression and stalled federal reform squeeze every licensee simultaneously, collateral (licenses, grow facilities) is illiquid in exactly the scenarios where it’s seized, and the cut payout record plus shrinking book value carry the grade to the D band. Compare REFI, the cannabis lender whose underwriting has so far held, for what execution difference looks like.
Frequently Asked Questions
Why do cannabis loans yield so much?
Federal illegality excludes banks, so operators pay mid-teens rates; the yield is compensation for credit and collateral risk that 2024-2025 made tangible.
Did AFCG cut its dividend?
Yes, reduced as borrower defaults and non-accruals cut distributable earnings; the payout now tracks a smaller performing book.
Analysis reflects disclosures through Q1 2026. Live market data updates automatically. Independent research, not investment advice.
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