Advanced Flower Capital Group(NASDAQ:AFCG), a NASDAQ-listed commercial mortgage REIT, has positioned itself as one of the leading lenders in the cannabis sector.

As one of two major externally managed REITs focusing on the U.S. cannabis industry, AFCG benefits from a capital supply-demand imbalance.

This imbalance allows the company to generate high yield-to-maturity (YTM) rates, with a reported YTM of 19% as of August 1, 2024, on a loan portfolio valued at $287 million.

Capitalizing On Supply-Demand Imbalance

In a Wednesday note, senior analystPablo ZuanicofZuanic & Associates explains how AFCG secures favorable lending terms due...