Advanced Flower Capital Q3 NAV per share rises 4% sequentially

Overview

• US business development company reported Q3 net investment income of $3.5 mln, or $0.16 per share

• Net asset value per share rose to $8.55 from $8.25 in Q2

• Company repurchased 285,656 shares for about $1.0 mln, generating NAV accretion

Outlook

• Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• SHARE REPURCHASES - Co repurchased 285,656 shares at a discount to NAV, generating $0.06 per share of NAV accretion

• INVESTMENT FUNDINGS AND REPAYMENTS - Co gross funded $4.6 mln in new and existing portfolio companies but net fundings were $(3.5) mln after $8.1 mln of repayments and amortization

• UNREALIZED GAINS - Co recorded net unrealized gain on investments, net of taxes, of $2.9 mln in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Advanced Flower Capital Inc is $8.00, about 150.8% above its November 4 closing price of $3.19

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

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• Nov 3 - Sixth Street Specialty Lending Q3 adjusted EPS misses estimates

• Nov 2 - New Mountain Finance Q3 adjusted net investment income falls YoY

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)