Core Insights - The U.S. cannabis sector is expanding with more states legalizing medical or adult-use cannabis, leading to increased importance of ancillary cannabis stocks that provide support services without directly selling cannabis [1][2] Industry Overview - The cannabis industry is experiencing shifting trends, including tightening licensing rules in some states and the opening of new retail markets in others. Federal reform discussions are ongoing, particularly regarding banking access and tax structure [2] - Ancillary companies that provide essential infrastructure and capital may benefit more quickly than direct cannabis businesses as reforms progress, making them appealing to investors [2] Risk Management - Risk management is crucial in the cannabis industry due to uncertain regulations, shifting demand patterns, and credit challenges among operators. Investors should assess tenant strength, debt levels, and dividend sustainability when considering ancillary holdings [3] Noteworthy Companies - **Innovative Industrial Properties (IIPR)**: A real estate investment trust specializing in cannabis-licensed industrial facilities, focusing on long-term net-lease agreements with tenants. The company has a strong portfolio and maintains high occupancy rates, providing stable rental income [5][7] - **NewLake Capital Partners (NLCP)**: Another real estate investment trust that owns cultivation, processing, and retail properties. It emphasizes long-term leases and targets reliable operators, maintaining stable cash flow and high occupancy rates [8][10] - **Chicago Atlantic Real Estate Finance (REFI)**: A commercial mortgage REIT providing credit to cannabis-licensed businesses through senior secured loans. The company focuses on high yields while managing credit risk and aims to benefit from improved banking access as federal reforms progress [11][13] Financial Performance - **Innovative Industrial Properties**: Generates revenue primarily from long-term leases, maintaining strong profit margins and a notable dividend. The company has faced isolated tenant defaults but continues to manage its portfolio strategically [7] - **NewLake Capital Partners**: Generates revenue through rental income and maintains a conservative balance sheet, supporting dividend sustainability. The company is focused on stability and disciplined expansion [10] - **Chicago Atlantic Real Estate Finance**: Generates revenue through interest payments and loan structuring fees, maintaining a diversified loan book. The company pays a meaningful dividend but requires careful monitoring of borrower credit trends [13]

Chicago Atlantic Real Estate Finance (NasdaqGM:REFI) Q3 2025 Earnings Call November 04, 2025 09:00 AM ET Speaker0Day and welcome to the Chicago Atlantic Real Estate Finance Inc. Third Quarter twenty twenty five Earnings Call. Today, all participants will be in a listen only mode. Please note that today's event is being recorded. I would now like to turn the conference over to Trip Sullivan of Investor Relations.Please go ahead.Speaker1Thank you. Good morning. Welcome to the Chicago Atlantic Real Estate Fina ...

Chicago Atlantic Real Estate Finance (NasdaqGM:REFI) Q3 2025 Earnings Call November 04, 2025 09:00 AM ET Speaker5Good day, and welcome to the Chicago Atlantic Real Estate Finance, Inc. Third Quarter 2025 earnings call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may pre ...

Chicago Atlantic Real Estate Finance, Inc. (REFI) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.52%. A quarter ago, it was expected that this company would post earnings of $0.45 per share when it actually produced earnings of $0.51, delivering a surprise of +13.33%.Over the last ...

Company Overview - Chicago Atlantic Real Estate Finance is a commercial mortgage REIT and institutional lender focused on state-licensed cannabis operators[10] - The company has closed over $3.2 billion in loans since its platform inception[8, 10] - The company's outstanding loan principal is $399.9 million with a gross portfolio yield of 16.5%[8] - The real estate collateral coverage in the current portfolio is 1.2x[8] Portfolio Diversification - The top 10 loans account for 65.7% of the outstanding loan principal[23] - The portfolio is diversified by rate type, with 36.7% in fixed-rate loans and 63.3% in floating-rate loans[23, 67] - The portfolio is diversified across various states, with Illinois at 19%, Ohio at 16%, Florida at 8%, Michigan at 14%, and California at 7%[26] - Loans with Retail/Industrial collateral are 31.6% and 47.1% of the portfolio respectively[28, 32] Financial Performance - For the three months ended September 30, 2025, net income was $8.93 million, or $0.42 per basic share[68] - Distributable Earnings for the three months ended September 30, 2025, were $10.52 million, or $0.50 per basic share[69]

Chicago Atlantic Real Estate Finance Announces Third Quarter 2025 Financial Results CHICAGO— (November 4, 2025) Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) ("Chicago Atlantic" or the "Company"), a commercial mortgage real estate investment trust, today announced its results for the quarter ended September 30, 2025. Peter Sack, Co-Chief Executive Officer, noted, "Our loan portfolio and earnings performance this quarter continue to benefit from a focus on proven operators in limited-license stat ...

Loan Portfolio Composition - As of September 30, 2025, approximately 63.3% of the loan portfolio was comprised of floating rate loans, while 36.7% were fixed rate loans[162]. - The company aims to maintain a diversified portfolio across jurisdictions and verticals, including cultivators, processors, and dispensaries[157]. - As of September 30, 2025, 34.8% of the principal of loans held in the portfolio were backed by personal or corporate guarantees[157]. - The company's loan portfolio included loans to 26 borrowers with a carrying value of approximately $398.1 million as of September 30, 2025[186]. - The total principal of loans held for investment as of September 30, 2025, was approximately $399.9 million, with fixed-rate loans at $146.3 million (36.7%) and floating-rate loans at $251.7 million (63.3%)[189]. - The loan portfolio is diversified across multiple states, including Michigan, Arizona, and Florida[190]. - The company has a significant portion of loans (11.6%) maturing in 2025, indicating potential liquidity events[190]. - The top three borrowers represented approximately 27.5% of principal outstanding as of September 30, 2025, indicating a concentration risk in the loan portfolio[253]. - The company has a diverse loan portfolio across multiple states, with the top five states (Illinois, Ohio, Florida, Pennsylvania, and Michigan) accounting for 66% of the total loans[255]. Financial Performance - Interest income for the three months ended September 30, 2025, decreased by approximately $1.0 million, or 6%, compared to the same period in 2024, primarily due to a decline in the weighted average portfolio yield from 18.2% to 16.5%[185]. - Net interest income for the three months ended September 30, 2025, was $13.7 million, a decrease of 5% from $14.5 million in the same period in 2024[183]. - Distributable Earnings for the three months ended September 30, 2025, were $10,522,142, compared to $11,159,241 for the same period in 2024, representing a decline of about 5.7%[199]. - The book value per share as of September 30, 2025, was approximately $14.71, slightly down from $14.83 as of December 31, 2024[200]. - For the nine months ended September 30, 2025, the Company reported net cash provided by operating activities of approximately $22.3 million, an increase of approximately $0.9 million compared to $21.3 million for the same period in 2024[212]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was approximately $16.0 million, significantly higher than $2.0 million for the same period in 2024[213]. - For the nine months ended September 30, 2025, net cash used in financing activities was approximately $(35.8) million, compared to $(24.4) million for the same period in 2024[216]. Risk Management - The company faces risks related to interest rate volatility, credit losses, and changes in market conditions that could impact its operating results[169]. - The company’s loans are primarily secured by real estate, equipment, receivables, and licenses, with strict loan covenants in place to mitigate credit risk[250]. - The company is exposed to market risks, particularly fluctuations in interest rates, which could affect net interest income and the fair value of loans[241]. - The company expects to utilize historical market loan loss data to estimate future expected loan losses, reflecting the maturing cannabis industry and increasing consumer demand[232]. - The company’s CECL Reserve is impacted by subjective estimates of future loan performance and macroeconomic conditions, which are revised quarterly[233]. - The company faces risks from decreases in property values, which could reduce collateral value and potential loan repayment[257]. Dividend and Tax Strategy - The company is externally managed and elected to be taxed as a REIT, which requires distributing at least 90% of its taxable income to stockholders[166]. - The company intends to pay dividends to stockholders in an amount equal to net taxable income, subject to Board authorization[197]. - The Company anticipates distributing at least 90% of its REIT taxable income to stockholders annually, with total cash dividends declared for the nine months ended September 30, 2025, amounting to $1.41 per share[220]. Loan Management and Strategy - The company intends to grow its portfolio by making loans to leading operators in the cannabis industry, with loans ranging from $5 million to $200 million[156]. - The company intends to capitalize on favorable market conditions in the cannabis sector to expand its portfolio and addressable market[177]. - The company is actively managing its loan portfolio, with options for contractual extensions and amendments as needed[190]. - The company may seek to raise further equity capital and issue debt securities, with a Shelf Registration Statement effective for up to $500 million of securities[209]. Interest Rates and Economic Conditions - The effective Prime Rate as of September 18, 2025, was 7.25%, reflecting changes in interest rates that impact the company's operations[163]. - The company has 16 floating-rate loans, representing approximately 63.3% of the total loan portfolio, and estimates a hypothetical 100 basis points increase in the Prime Rate would increase annual cash interest income by approximately $2.5 million[238]. - The commercial real estate loans are subject to volatility due to various economic factors, which may adversely affect the company's financial performance[257].

CHICAGO, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic” or the “Company”), a commercial mortgage real estate investment trust, today announced its results for the quarter ended September 30, 2025. Peter Sack, Co-Chief Executive Officer, noted, “Our loan portfolio and earnings performance this quarter continue to benefit from a focus on proven operators in limited-license states, strong underwriting, and disciplined deployment of available liqu ...

Core Insights - The U.S. cannabis industry is projected to exceed $40 billion in sales by 2025 and could surpass $70 billion by 2030 as more states legalize cannabis for medical and recreational use [1][19] - Cannabis REITs such as Innovative Industrial Properties, Chicago Atlantic Real Estate Finance, and NewLake Capital Partners are positioned to benefit from this growth, offering attractive dividend yields between 8% and 12% [1][20] Group 1: Innovative Industrial Properties (IIPR) - IIPR is the first publicly traded cannabis REIT in the U.S., focusing on acquiring and leasing specialized facilities to licensed operators [3][5] - The company reported quarterly revenues of approximately $62.9 million, a decline from the previous year due to tenant defaults, but maintained a net income exceeding $25 million [8][9] - IIPR has a strong balance sheet with a debt-to-asset ratio below 12% and over $190 million in available liquidity, emphasizing disciplined acquisitions [9] Group 2: Chicago Atlantic Real Estate Finance (REFI) - REFI specializes in originating senior secured loans to state-licensed cannabis operators, providing a unique entry point into the cannabis space [10][12] - The company maintains a loan portfolio generating attractive interest spreads between 12% and 15%, with strong credit performance and high income stability [13][14] - REFI's conservative loan-to-value ratios and focus on experienced operators contribute to low default rates, making it well-positioned to capitalize on the industry's capital needs [14] Group 3: NewLake Capital Partners (NLCP) - NLCP focuses on property ownership through sale-leaseback transactions and build-to-suit projects, leasing to major cannabis operators [16][18] - For the first half of 2025, NLCP reported revenues of $26.1 million and a stable net income of $13.6 million, with a low debt-to-asset ratio of approximately 1.6% [17][18] - The company's dividend payout is currently $0.43 per share quarterly, translating to an annualized payout of $1.72 per share, ensuring sustainability [18]

Core Insights - Chicago Atlantic Real Estate Finance, Inc. announced that its Officers and Directors purchased approximately 54,000 shares valued at around $673,000, increasing their beneficial ownership to about 1,770,000 shares, which represents approximately 8.2% of fully diluted common shares outstanding [1][2] Company Overview - Chicago Atlantic Real Estate Finance, Inc. is a commercial mortgage REIT that focuses on originating senior secured loans primarily to state-licensed cannabis operators in limited-license states across the United States [3] - The company has closed over $2.8 billion in credit and equity investments to date and operates offices in Chicago, Miami, New York, and London [3] Management Confidence - The Co-Chief Executive Officer expressed confidence in the company's opportunities and commitment to generating strong risk-adjusted returns for shareholders, emphasizing that purchasing shares in the open market is a demonstration of this confidence [2]