Advanced Flower Capital Inc (AFCG) 2024 Q3 法說會逐字稿

Good morning, and welcome to Advanced Flower Capital's third-quarter 2024 earnings call. (Operator Instructions) As a reminder, this call is being recorded. I would now like to turn the call over to Gabriel Katz, Chief Legal Officer. Please go ahead.

早安，歡迎參加 Advanced Flower Capital 2024 年第三季財報電話會議。（操作員指示）提醒一下，此通話正在被錄音。現在我想將電話轉給首席法律官加布里埃爾·卡茨 (Gabriel Katz)。請繼續。

Good morning, and thank you all for joining AFC's earnings call for the quarter ended September 30, 2024. I'm joined this morning by Robyn Tannenbaum, our President and Chief Investment Officer; Daniel Neville, our Chief Executive Officer; and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information is included in our October 14, 2024 press release and is posted on the Investor Relations portion of AFC's website at advancedflowercapital.com along with our third quarter earnings release and investor presentation.

早安，感謝大家參加 AFC 截至 2024 年 9 月 30 日的季度財報電話會議。今天早上與我一起參加的是我們的總裁兼首席投資長 Robyn Tannenbaum；我們的執行長丹尼爾·內維爾 (Daniel Neville)；以及我們的財務長 Brandon Hetzel。在我們開始之前，我想指出的是，本次通話正在錄音。重播資訊包含在我們 2024 年 10 月 14 日的新聞稿中，並與我們的第三季收益報告和投資者介紹一起發佈在 AFC 網站 advancedflowercapital.com 的投資者關係部分。

Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to among other things, anticipated market developments, portfolio yield and financial performance in 2024 and beyond. These statements are subject to inherent uncertainties in predicting future results. Please refer to AFC's most recent periodic filings with the SEC for certain conditions and significant factors that could cause actual results to differ materially from these forward-looking statements and projections.

今天的電話會議包括前瞻性陳述和預測，反映了公司目前對預期的市場發展、投資組合收益率和 2024 年及以後的財務表現等方面的看法。這些陳述在預測未來結果時存在固有的不確定性。請參閱 AFC 向美國證券交易委員會提交的最新定期文件，以了解可能導致實際結果與這些前瞻性陳述和預測有重大差異的某些情況和重要因素。

During this call, we will refer to distributable earnings, which is a non-GAAP financial measure. Reconciliations to net income, the most comparable GAAP measure to distributable earnings can be found in AFC's earnings release and investor presentation available on AFC's website.

在本次電話會議中，我們將參考可分配收益，這是一個非公認會計準則財務指標。與淨收入相關的調節表，是與可分配收益最具可比性的 GAAP 指標，可在 AFC 網站上的 AFC 收益報告和投資者介紹中找到。

Today's call will begin with Robyn providing some introductory remarks. Dan will then provide an overview of our third quarter 2024 performance and an update on the cannabis industry. Finally, Brandon will conclude with a summary of our financial results before we open the lines for Q&A.

今天的電話會議將由 Robyn 作一些介紹性發言開始。隨後，丹將概述我們 2024 年第三季的業績並介紹大麻產業的最新情況。最後，在我們開始問答環節之前，布蘭登將對我們的財務表現進行總結。

With that, I will now turn the call over to President and CEO -- CIO, excuse me, Robyn Tannenbaum.

說完這些，我現在將電話轉給總裁兼執行長——首席資訊官，對不起，我是 Robyn Tannenbaum。

Thanks, Gabriel, and good morning to all our investors and analysts that have joined us today. I'm thrilled to share that we've had a very active quarter. Following the spin-off of our commercial real estate portfolio on July 9, we have operated as a pure-play cannabis mortgage REIT. Since the start of the third quarter, we have originated approximately $59 million in new loans and we've now exceeded our $100 million origination target for the year, reaching $116 million in total new originations so far. This milestone is not just a number.

謝謝，加布里埃爾，向今天與我們一起的所有投資者和分析師們致以早安。我很高興地告訴大家，我們度過了一個非常活躍的季度。繼 7 月 9 日我們的商業房地產投資組合分拆之後，我們一直作為純粹的大麻抵押貸款房地產投資信託基金 (REIT) 運作。自第三季開始以來，我們已發放約 5,900 萬美元的新貸款，目前已超過今年 1 億美元的發放目標，新發放貸款總額已達 1.16 億美元。這個里程碑不僅僅是一個數字。

It represents our renewed commitment to provide the cannabis sector with timely, flexible capital at a moment when the industry needs it.

它代表了我們新的承諾，在大麻產業需要的時候為其提供及時、靈活的資本。

Dan will dive deeper into the new deals we closed during the third quarter. We've deployed capital into promising Cannabis 3.0 operators and continue to see attractive opportunities for additional investments. As of November 1, we had an active pipeline of over $400 million of potential deals. We are pleased to have the capital to support our existing borrowers and fund future opportunities.

丹將深入探討我們在第三季完成的新交易。我們已經向有前景的大麻 3.0 運營商部署了資金，並繼續看到額外投資的誘人機會。截至 11 月 1 日，我們擁有超過 4 億美元的潛在交易活躍管道。我們很高興能夠擁有資本來支持我們現有的借款人並為未來的機會提供資金。

During the quarter, we raised capital accretively and through our ATM stock offering program, which will allow us to continue supporting this rapidly evolving industry. With the Republican sweep, we expect access to capital in the cannabis sector to remain scarce. While President-elect Trump has demonstrated some support for cannabis, broader cannabis legislation may not be the Republican administrations top priority. We believe that any progress will move at a measured rate.

在本季度，我們透過 ATM 股票發行計畫增加了資本，這將使我們能夠繼續支持這個快速發展的產業。隨著共和黨大獲全勝，我們預期大麻產業的資本管道仍將十分稀缺。雖然當選總統川普表現出對大麻的某種支持，但更廣泛的大麻立法可能不是共和黨政府的首要任務。我們相信，任何進展都會以適當的速度推進。

Rescheduling to Schedule III is still expected to advance, although at a slower pace than it would under a Democratic administration. The path for the Safe Banking Act appears more challenging as the momentum needed to push it forward may not be strong enough. With the prospect of progress at the federal level slowing down, we believe that there will be favorable conditions for AFC to deploy capital into deals with strong risk-adjusted returns over the medium term.

重新列入第三附表的進程仍有望推進，儘管速度將比民主黨政府執政期間慢。《安全銀行法案》的實施之路似乎更加艱難，因為推動其前進所需的動力可能不夠強勁。隨著聯邦層級進展前景放緩，我們認為，中期內 AFC 將擁有有利條件將資本部署到具有強勁風險調整回報的交易中。

With that, I'll turn it over to Dan, who will discuss our third quarter performance and what lies ahead.

說完這些，我將把話題交給丹，他將討論我們第三季的表現以及未來的前景。

Thanks, Robyn and good morning, everyone. This quarter saw strong performance and key achievements in our origination efforts. I'll begin with an overview of our results. followed by an update on our recent deals and some commentary on the cannabis industry before concluding. For the third quarter, AFC generated distributable earnings of $0.35 per basic weighted average share of common stock.

謝謝，羅賓，大家早安。本季度，我們的發起工作表現強勁並取得了關鍵成就。我將首先概述我們的結果。最後，我們會更新我們最近的交易情況，並對大麻產業進行一些評論。第三季度，AFC 每股基本加權平均普通股可分配收益為 0.35 美元。

As a reminder, distributable earnings is the primary metric our Board of Directors considers when declaring AFC's quarterly dividend. The Board declared our first post-spin dividend of $0.33 per share which was paid on October 15, 2024, to shareholders of record as of September 30, 2024.

提醒一下，可分配收益是我們董事會在宣布 AFC 季度股息時考慮的主要指標。董事會宣布我們的首次分拆後股利為每股 0.33 美元，將於 2024 年 10 月 15 日支付給截至 2024 年 9 月 30 日登記在冊的股東。

Since going public, we have generated distributable earnings that met or exceeded our dividend each quarter and paid out $6.98 in dividends per share. When I joined AFC last November, one of my key priorities was to reinvigorate the origination engine. I'm proud to say we've made significant strides in this area. During the third quarter, we closed several key deals, including an $11 million senior secured credit facility for Private Company Q, a vertically integrated operator in Georgia.

自上市以來，我們產生的可分配收益每季都達到或超過了我們的股息，每股派息 6.98 美元。去年 11 月我加入 AFC 時，我的首要任務之一就是重振發動引擎。我很自豪地說我們在這一領域取得了重大進展。第三季度，我們完成了幾筆重要交易，包括為喬治亞州的垂直整合營運商私人公司 Q 提供的 1,100 萬美元的優先擔保信貸額度。

We also expanded senior secured facilities to 2 existing borrowers by a total of $7.3 million to support their continued growth. Additionally, subsequent to quarter end, we closed a $41 million senior secured credit facility for Story Maryland, a leading vertically integrated operator in Maryland's adult-use cannabis market. These deals reflect our continued focus on partnering with strong operators in limited license states and further diversifying our portfolio. Cannabis industry remains capital intensive, acquiring significant investments in cultivation and distribution infrastructure.

我們也向 2 家現有借款人擴大了優先擔保貸款規模，總額達 730 萬美元，以支持他們的持續成長。此外，在季度末之後，我們為馬裡蘭州成人用大麻市場領先的垂直整合營運商 Story Maryland 提供了 4,100 萬美元的優先擔保信貸額度。這些交易反映了我們持續致力於與有限許可州的強大運營商合作並進一步實現投資組合多樣化。大麻產業仍然是資本密集的，需要在種植和分銷基礎設施方面進行大量投資。

The demand for debt capital is growing, driven by refinancing activity, adult use in medical expansions and increased M&A across the cannabis segment. However, traditional lenders remain cautious and will likely remain so given the election results. With the number of cannabis debt portfolios winding down, and only a handful of active lenders remaining, AFC is well positioned to capitalize on the opportunities in cannabis lending. As the first NASDAQ-listed cannabis lender, and a leading debt provider in the space, we have built a diversified portfolio across limited license states with favorable supply-demand dynamics. Our ability to provide flexible funding enables us to remain at the forefront of the industry's growth.

受再融資活動、成人醫療用途擴張以及大麻領域併購活動增加的推動，債務資本的需求正在增長。然而，傳統貸款機構仍保持謹慎，考慮到選舉結果，這種態度可能還會持續下去。隨著大麻債務組合數量的減少，以及僅剩少數活躍貸款機構，AFC 已準備好利用大麻貸款領域的機會。作為首家在納斯達克上市的大麻貸款機構和該領域領先的債務提供商，我們在許可有限的州建立了多元化的投資組合，並擁有良好的供需動態。我們提供靈活融資的能力使我們能夠始終處於行業成長的前沿。

Our current portfolio has a weighted average yield to maturity of 18%. We remain focused on continuing to deploy capital into solid credits with attractive risk-adjusted returns. Strategy is clear: move up the quality curve while continuing to target a portfolio yielding in the mid- to high-teens IRRs.

我們目前的投資組合的加權平均到期收益率為18%。我們將繼續致力於將資本投入具有吸引力的風險調整回報的穩健信貸。策略很明確：提高品質曲線，同時繼續以中高水準的 IRR 為投資組合收益目標。

As of November 1, 2024, 67% of outstanding principal was comprised of fixed rate loans and floating rate loans with floors greater than or equal to the prevailing SOFR rate of 4.61%. An additional 23% of outstanding principal is 11 bps above their floor with 4.5% SOFR floors. Simplifying that down, 90% of our portfolio is currently fixed or has a SOFR floor at 4.5% or above. Given our high fixed exposure and high SOFR floors, we are very well positioned for a falling interest rate environment.

截至 2024 年 11 月 1 日，67% 的未償還本金由固定利率貸款和浮動利率貸款組成，其下限大於或等於現行 SOFR 利率 4.61%。另外 23% 的未償還本金比其下限高出 11 個基點，而 SOFR 下限為 4.5%。簡單來說，我們 90% 的投資組合目前是固定的，或者 SOFR 下限為 4.5% 或以上。鑑於我們的高固定風險敞口和高 SOFR 下限，我們在利率下降的環境中處於非常有利的地位。

Reflecting on my last year at AFC, I'm incredibly proud of our accomplishments. Since last year, we made substantial progress, exiting, restructuring or securing significant paydowns on seven key loans. Our disciplined approach has led to approximately $150 million in capital repaid, allowing us to redeploy that capital into new vintage deals with attractive risk-adjusted returns.

回顧我在亞足聯的最後一年，我為我們所取得的成就感到無比自豪。自去年以來，我們取得了實質進展，退出、重組或確保了七筆主要貸款的大量償還。我們嚴謹的作風已使我們償還了約 1.5 億美元的資本，使我們能夠將這些資本重新部署到具有誘人風險調整回報的新交易中。

On the origination front, we set the ambitious goal of $100 million in originations and exceeded it achieving $116 million in new originations across seven deals to date. The spin-off of our commercial real estate portfolio marked another milestone, enabling us to operate as a pure-play cannabis lender.

在發起方面，我們設定了 1 億美元發起額的雄心勃勃的目標，並且超越了這一目標，迄今為止在 7 筆交易中實現了 1.16 億美元的新發起額。我們的商業房地產投資組合的分拆標誌著另一個里程碑，使我們能夠作為純粹的大麻貸款機構運作。

Finally, we raised capital accretively through our ATM program, which has bolstered our ability to provide timely, flexible capital to the industry. These accomplishments wouldn't have been possible without our team's hard work and dedication, and I'm truly grateful for their efforts. As we look ahead, I'm confident we're on track to drive further growth and create long-term value for our shareholders.

最後，我們透過 ATM 計畫增加了資本，這增強了我們為產業提供及時、靈活資本的能力。如果沒有我們團隊的辛勤工作和奉獻精神，這些成就就不可能實現，我由衷感謝他們的努力。展望未來，我相信我們能夠進一步實現成長並為股東創造長期價值。

Now I'll turn it over to Brandon to discuss our financial results in more detail.

現在我將讓布蘭登更詳細地討論我們的財務表現。

Thank you, Dan. For the quarter ended September 30, 2024, we generated net interest income of $8.9 million and distributable earnings of $7.2 million or $0.35 per basic weighted average common share and had a GAAP net income of $1.4 million or $0.06 per basic weighted average common share.

謝謝你，丹。截至 2024 年 9 月 30 日的季度，我們產生的淨利息收入為 890 萬美元，可分配收益為 720 萬美元或每股基本加權平均普通股 0.35 美元，GAAP 淨收入為 140 萬美元或每股基本加權平均普通股 0.06 美元。

As previously mentioned, we believe providing distributable earnings is helpful to shareholders in assessing the overall performance of AFC's business. Distributable earnings represents the net income computed in accordance with GAAP. Excluding noncash items such as stock compensation expense, any unrealized gains or losses, provision for current expected credit losses, also known as CECL, taxable REIT subsidiary income or loss net of dividends and other noncash items recorded in net income or loss for the period.

如前所述，我們認為提供可分配收益有助於股東評估亞足聯業務的整體表現。可分配收益代表根據 GAAP 計算的淨收入。不包括股票薪酬費用、任何未實現收益或損失、當前預期信用損失準備金（也稱為 CECL）、應稅 REIT 子公司收益或損失（扣除股息）以及當期淨收益或損失中記錄的其他非現金項目。

We ended the third quarter of 2024 with $298.7 million of principal outstanding spread across 13 loans. As of September -- November 1, 2024, our portfolio consisted of $338 million of principal outstanding across 14 loans following the completion of the spin-off of our commercial real estate portfolio. The weighted average portfolio yield to maturity, which is measured for each loan over the life of such loan was approximately 18% as of September 30, 2024, and November 1, 2024.

截至 2024 年第三季度，我們有 13 筆貸款的未償還本金為 2.987 億美元。截至 2024 年 9 月至 11 月 1 日，在我們的商業房地產投資組合分拆完成後，我們的投資組合包括 14 筆貸款的 3.38 億美元本金未償還。截至 2024 年 9 月 30 日及 2024 年 11 月 1 日，以貸款期限衡量的加權平均投資組合到期收益率約為 18%。

As of September 30, 2024, we had total assets of $366.6 million, including cash and cash equivalents of $122.2 million which included $60 million drawn on our line of credit that was subsequently repaid in full on October 1, 2024. Our line of credit provides us with up to $60 million in available funds that can be drawn as needed.

截至 2024 年 9 月 30 日，我們的總資產為 3.666 億美元，包括現金和現金等價物 1.222 億美元，其中包括從我們的信用額度中提取的 6000 萬美元，隨後於 2024 年 10 月 1 日全額償還。我們的信用額度為我們提供了高達 6000 萬美元的可用資金，可在需要時提取。

During the 3 months ended September 30, 2024, we sold approximately 1.2 million shares under our at-the-market offering program at an average price of $10.39 per share. generating net proceeds of approximately $12.2 million. This was accretive to our book value and helped bolster our capital base during the quarter.

在截至 2024 年 9 月 30 日的 3 個月內，我們根據以市價發行計劃以平均每股 10.39 美元的價格出售了約 120 萬股。產生淨收益約 1,220 萬美元。這增加了我們的帳面價值，並幫助我們在本季增強了資本基礎。

As of September 30, 2024, the CECL reserve was $25.3 million or approximately 10.7% of our loans at carrying value, which increased $0.2 million from the June 30, 2024 reserve of $25.1 million. During the third quarter, we also had an increase in our unrealized losses on loans at fair value of $4.6 million, increasing the current total unrealized loss included on the balance sheet to $19.6 million.

截至 2024 年 9 月 30 日，CECL 準備金為 2,530 萬美元，約占我們帳面價值貸款的 10.7%，比 2024 年 6 月 30 日的 2,510 萬美元準備金增加了 20 萬美元。第三季度，我們以公允價值計算的貸款未實現損失也增加了 460 萬美元，導致資產負債表上的當前總未實現損失增加至 1,960 萬美元。

As of September 30, 2024, total shareholder equity was $206.1 million, and our book value per share was $9.42. On October 15, 2024, we paid our first post-spin dividend of $0.33 per common share for the third quarter to shareholders of record as of September 30, 2024. As a reminder, on an annual basis, our current dividend policy is to pay between 85% and 100% of distributable earnings over the year.

截至 2024 年 9 月 30 日，股東權益總額為 2.061 億美元，每股帳面價值為 9.42 美元。 2024 年 10 月 15 日，我們向截至 2024 年 9 月 30 日登記在冊的股東支付了第三季第一筆分拆後股息，每股普通股 0.33 美元。提醒一下，以年度計算，我們目前的股利政策是每年支付 85% 至 100% 的可分配收益。

With that, I will now turn it back over to the operator to start the Q&A.

說完這些，我現在將麥克風交還給接線員，開始問答環節。

(Operator Instructions)

（操作員指令）

Pablo Zuanic, Zuanic & Associates.

Pablo Zuanic，Zuanic & Associates。

I guess, first of all, congratulations on exceeding your target of $100 million in loan origination for the year. Can you talk about just in terms of modeling, I don't know if you've given guidance for 2025, but is it reasonable to assume that you would have a similar target for 2025. You talked about a pipeline of $400 million, that would be like 25% of that being realized? Just some color in terms of how to think about this going forward. And again, congratulations on exceeding the target.

我想，首先，恭喜您今年的貸款發放超過了 1 億美元的目標。您能否僅從建模的角度談談，我不知道您是否給出了 2025 年的指導，但是否可以合理地假設您對 2025 年會有類似的目標。您談到了 4 億美元的管道，那麼其中的 25% 能夠實現嗎？只是就如何看待這個問題的未來提供一些參考。再次恭喜您超額完成了目標。

Thanks, Pablo. So we talked about having greater than $75 million of liquidity from here. We want to get fully invested, but we also want to make sure that we're cautiously deploying capital into good credits and new vintage loans with solid operators. And so we've judiciously deployed over the course of the year into a number of those credits, and you should expect the same in 2025.

謝謝，帕布羅。因此，我們討論了從這裡開始擁有超過 7500 萬美元的流動資金。我們希望獲得充分的投資，但我們也希望確保謹慎地將資本部署到擁有可靠營運商的良好信貸和新型貸款。因此，我們在今年內明智地部署了部分信貸，您應該可以預見 2025 年也會有同樣的情況。

I think in terms of a target, we'll probably come back with something on the fourth quarter call. But we've got a lot of good things in the pipeline. I'm very pleased with the quality of the things in the pipeline. And given a little bit of the turmoil in the cannabis markets and the election results, the election results last Tuesday, we're happy to have dry powder to deploy to new borrowers out there in the space at attractive risk-adjusted returns.

我認為就目標而言，我們可能會在第四季度電話會議上做出一些回應。但我們已經有很多好事情正在籌備中。我對正在籌備中的項目的品質非常滿意。考慮到大麻市場的動盪和選舉結果，也就是上週二的選舉結果，我們很高興有足夠的資金以具有吸引力的風險調整後回報向該領域的新借款人提供資金。

Okay. And then just following up on that. If we think about the current earnings season, right, a lot of companies missing estimates, it's challenging out there. Like you said in your prepared remarks, I think, Robyn, yes, we may get rescheduling, but that may be delayed. So from your perspective, are we compared to 6 months ago, are we into choppier, riskier waters and that maybe also impacts the way you think about your pipeline and originating loans? Or am I exaggerating the context compared to 6 months ago in terms of the risk of the industry?

好的。然後繼續跟進。如果我們考慮當前的獲利季節，許多公司的獲利都低於預期，這是一個挑戰。就像您在準備好的發言中所說的那樣，羅賓，我想，是的，我們可能會重新安排時間，但可能會被推遲。那麼從您的角度來看，與 6 個月前相比，我們是否陷入了更加動盪和風險更大的境地？或者說，與 6 個月前相比，我是否誇大了產業風險的情況？

So I think if you look at the results thus far, generally speaking, revenue growth has been hard to come by. And the reason is that you have some AU flips like Ohio, that was a partial quarter. You have some potentials in the future in terms of PA in Minnesota. But you also have markets that are kind of mature on that AU curve. Illinois, New Jersey on the retail side of things is another one.

因此我認為如果看一下迄今為止的結果，整體而言，收入成長很難實現。原因是有些 AU 發生翻轉，例如俄亥俄州，那隻是部分季度。就明尼蘇達州的 PA 而言，您未來有一定的潛力。但 AU 曲線上也有一些比較成熟的市場。伊利諾伊州和新澤西州在零售方面也是一個例子。

Massachusetts and Michigan, we're probably a year ahead of them in terms of the maturity.

就成熟度而言，我們馬薩諸塞州和密西根州可能比它們領先一年。

And so places where a lot of MSOs have a lot of exposure, Illinois and New Jersey, are getting more competitive, particularly on the retail side of things. Now a lot of these companies, I think, are looking for strategies to further densify those markets through partnership structures or other strategies to take the existing distribution infrastructure that they have in those states and get more out of it. I think that's a good trend. But you're kind of fighting -- you have these growth curves on the AU markets and the flips and they're largely being offset by declines in more mature markets.

因此，伊利諾伊州和新澤西州等 MSO 知名度較高的地方的競爭愈發激烈，尤其是在零售方面。現在，我認為許多這樣的公司都在尋找透過合作結構或其他策略進一步密集這些市場的策略，以利用他們在這些州現有的分銷基礎設施並從中獲得更多收益。我認為這是一個好趨勢。但你正在努力——澳洲市場和翻轉市場都有這些成長曲線，而這些成長曲線在很大程度上被更成熟市場的下滑所抵消。

The results, I think, you have a little bit of pressure on profitability, but generally speaking, profitability has been pretty decent. Revenue growth hasn't been there. I think for us as a debt lender, that's generally a fine place to be in. I think as an equity investor, it's a little more problematic because if you're going to get growth multiples like the industry has historically argued for, you got to have growth. And at least this past quarter, you're not seeing that much growth.

結果，我認為，你的獲利能力面臨一點壓力，但總體而言，獲利能力還是相當不錯的。收入並沒有成長。我認為對於我們作為債務放款人而言，這通常是一個很好的狀態。我認為身為股權投資者，這會更成問題，因為如果你想獲得產業歷史上所主張的成長倍數，你必須實現成長。至少在過去的一個季度中，你沒有看到那麼大的成長。

And so I think that's why you've seen a reaction in the stocks, a combination of, obviously, the results themselves, but also AU in Florida failing, which would have been big for a few companies, combined with a shift to the right and potentially slowing pace of federal reform.

所以我認為這就是為什麼你會看到股票出現反應，這顯然是業績本身的綜合作用，但佛羅裡達州 AU 的失敗對一些公司來說可能是重大打擊，再加上聯邦改革的右轉和潛在放緩。

Let me just use that as a segue for Florida. I don't know if you can comment or in terms of your clients are based in Florida, what type of color are you getting from them? I mean are we going to see more price competition? A lot of companies added capacity in stores. I hear A3 didn't happen. How are you thinking about your Florida exposure? And what type of comments are you getting from your operators there?

讓我以此作為佛羅裡達州的過渡。我不知道您是否可以評論，或者就您的客戶位於佛羅裡達州而言，您從他們那裡得到了什麼顏色？我的意思是我們會看到更多的價格競爭嗎？許多公司增加了門市容量。我聽說 A3 沒有發生。您如何看待自己在佛羅裡達州的經歷？您從那裡的運營商那裡得到了什麼樣的評論？

Yes. So our Florida exposure is pretty modest, 10% of the portfolio overall. And I would say, generally, we don't underwrite for the future here, right. Projections in the cannabis industry have been -- we have a long history of borrowers providing us projections and a lot of them falling well short. So we really underwrite to the current state without AU flips and that's how we underwrote our exposure in Florida, just a medical market and being able to continue to take market share.

是的。因此，我們在佛羅裡達州的投資佔比相當適中，約佔投資組合整體的 10%。我想說，一般來說，我們不會為未來承保，對吧。大麻產業的預測一直是——我們長期以來都有借款人向我們提供預測，但其中許多預測都遠低於預期。因此，我們確實承保了當前狀態，沒有 AU 翻轉，這就是我們如何承保我們在佛羅裡達州的風險敞口，只是一個醫療市場，並能夠繼續佔據市場份額。

I think in terms of the landscape in Florida, I would much rather be a challenger and somebody who's moving up the growth curve who has additional white space to fill in and additional market share to gain than an incumbent with a large profit pool. Because the challengers in these type of markets where you're probably looking at two more years of stagnation are just on a much better footing than the incumbents with an existing profit pool. And so that's how we view our exposure.

我認為，就佛羅裡達州的情況而言，我寧願成為一名挑戰者和一個在成長曲線上不斷上升的人，擁有更多的空白可以填補，可以獲得更多的市場份額，而不是一個擁有大量利潤池的現任者。因為在這類市場中，你可能還要面臨兩年的停滯，但挑戰者的地位卻比現有利潤池中的既有者要高得多。這就是我們看待曝光的方式。

I think, generally speaking, we're hearing operators are going to button down the hatches. It looks like it's at least another two years, run lean, be aggressive about fulfilling out of their own stores and maximizing profitability. And I think that's absolutely the right approach.

我認為，一般來說，我們聽到的是操作員將會關閉艙口。看起來至少還需要兩年的時間，精益運營，積極履行自己的商店的職責並實現盈利能力最大化。我認為這絕對正確的方法。

And I think that just to add to Dan's point, the operator that we back here has been very prudent with their capital and did not build out in anticipation of rec. So decided to take the wait-and-see approach, which, as a lender, you really appreciate, right? Because now they're, as Dan described, rightsized to attack the market, and also leading from a position of strength versus just having spent a lot of money on building out excess capacity that's not going to be used.

我認為，補充一下丹的觀點，我們這裡的業者一直非常謹慎地使用他們的資本，並沒有為了娛樂而擴張。因此決定採取觀望態度，作為貸款人，您真的很感激這種做法，對嗎？因為正如丹所描述的那樣，現在他們已經調整了規模來進入市場，並且佔據了優勢地位，而不是僅僅花了很多錢去建設那些不會被使用的過剩產能。

That's right, yes. One last one. So obviously, you talked about the continued demand and supply imbalance on debt capital -- on capital in general and probably even more so on the equity side now. So you're in a great place, totally agree with that.

是的，沒錯。最後一個。顯然，您談到了債務資本的持續供需不平衡——總體而言，資本方面的情況如此，而現在股權方面的供需不平衡可能更加嚴重。所以，您的處境很好，我完全同意這一點。

So when we hear about this like [Valley] recently, a regional bank, I think they refinanced or got a new loan for 7.99% interest rate. Are those more like exceptions to the rule? Or are we seeing more regional -- and I've asked this before, but are we seeing more regional banks come in? Or like you said before, some are just running down their portfolio. We're getting mixed signals on that front? That's the last question.

因此，當我們最近聽說像 [Valley] 這樣的地區性銀行的消息時，我認為他們以 7.99% 的利率進行了再融資或獲得了新貸款。這些是否更像是規則的例外？或者我們看到更多的區域性——我之前問過這個問題，但我們是否看到更多區域性銀行進入？或者就像您之前說的，有些人只是在減少他們的投資組合。我們在這方面得到了混合信號？這是最後一個問題。

I think more coming out or getting more cautious than are coming in. I think you may see people come in and you may get a headline rate to the strongest operators in the space, the GTI facility that they did. I saying that is the exception rather than the rule. And generally speaking, people are deemphasizing activity or slowing down activity in the space.

我認為退出或變得更加謹慎的人比進入的人要多。我想您可能會看到人們進來，您可能會獲得該領域最強大的運營商的頭條費率，即他們所做的 GTI 設施。我說這是例外，不是規則。一般來說，人們正在淡化或減緩空間中的活動。

And that doesn't mean you won't see headlines here and there, that's going to happen. But I would honestly say the competitive intensity, Robyn and I have talked about it running across these regionals, we ran across them a lot more two, three years ago than we are today. And I think that comes from the fact that this is a very tricky industry to lend into. And you have to be specialized and very focused on it.

但這並不意味著你不會看到這樣的頭條新聞，這種情況將會發生。但我坦白說，關於競爭的激烈程度，羅賓和我曾經討論過這些地區賽的競爭，兩、三年前我們參加的地區賽比現在多得多。我認為這是因為這個行業很難提供貸款。而且你必須對它非常專業並且非常專注。

And I think the tourists in the industry have come and gone, and some of them have had a rough experience. And so having the dedicated focus on cannabis having both the top-down and the bottoms-up operating experience and having five, six, seven years of history in the industry is a really valuable asset for us. And those without that type of specialization are generally taking a more cautious approach.

我認為該行業的遊客來了又去，其中一些人的經歷很艱難。因此，專注於大麻，擁有自上而下和自下而上的營運經驗，以及在該行業擁有五、六、七年的歷史，對我們來說是一筆非常寶貴的財富。而那些不具備這種專業化程度的人通常會採取更謹慎的態度。

And I'm showing no further questions. So with that, we would like to thank you for participating. This does conclude today's program, and you may now disconnect.

我沒有其他問題。因此，我們要感謝您的參與。今天的節目到此結束，大家可以斷開連結了。