Chicago Atlantic Real Estate Finance (REFI) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good day, and welcome to the Chicago Atlantic Real Estate Finance Inc. Second Quarter twenty twenty five Earnings Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.I would now like to hand the call to Tripp Sullivan of Investor Relations. Please go ahead.Speaker1Thank you. Good morning. Welc ...

Chicago Atlantic Real Estate Finance, Inc. (REFI) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.33%. A quarter ago, it was expected that this company would post earnings of $0.45 per share when it actually produced earnings of $0.46, delivering a surprise of +2.22%.Over the last ...

REAL ESTATE FINANCE EARNINGS SUPPLEMENTAL For the quarter ended June 30, 2025 CONFIDENTIAL | Chicago Atlantic Advisers, LLC Important Disclosure Information Forward Looking Statements This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), regarding future events and the future results of Chicago Atlantic Real Estate Finance, Inc. ("Chicago At ...

Exhibit 99.1 Chicago Atlantic Real Estate Finance Announces Second Quarter 2025 Financial Results Extends Revolving Credit Facility Maturity to 2028 Subsequent Portfolio Activity ● During the subsequent period from July 1, 2025, to August 7, 2025, the Company received unscheduled principal repayments totaling approximately $56.8 million, relating to the full prepayment of six credit facilities. In connection with these prepayments, the Company received and recognized approximately $1.0 million in prepayment ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-41123 CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. (Exact name of Registrant as specified in its charter) | Maryland | 86-3125132 | | --- | --- | | (State or other jurisdictio ...

Best Ancillary Pot Stocks to Invest in July 2025 Amid Federal Legalization DelaysThe U.S. cannabis industry continues its rapid expansion. In 2025, the legal market is projected to reach nearly $45 billion. Its total economic impact may exceed $120 billion by year-end. Recreational cannabis is now legal in 24 states, while medical use is permitted in 40 states. Public support for legalization remains strong, with approval ratings near all-time highs. Additionally, major beverage companies are entering the c ...

CHICAGO, July 17, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) ("Chicago Atlantic" or the “Company”), a commercial mortgage real estate investment trust, announced details for the release of its results for the second quarter ended June 30, 2025. The Company plans to issue its earnings release and supplemental financial information before the market opens on Thursday, August 7, 2025. Chicago Atlantic will host a conference call and live audio webcast, both open for the ...

Core Insights - Cannabis REITs are gaining momentum as investors seek dividend-paying stocks with long-term growth potential, with the U.S. cannabis market projected to exceed $45 billion by the end of 2025 [1][4] - The sector is benefiting from federal reclassification efforts and pro-cannabis amendments, improving investor sentiment and technical strength among several cannabis REITs [2][3] - Cannabis REITs provide a stable income stream and exposure to a rapidly growing industry, making them attractive for dividend investors [1][3] Company Summaries - **Innovative Industrial Properties, Inc. (IIPR)**: The largest cannabis REIT in the U.S., owning over 110 properties across 19 states, with a focus on long-term, triple-net lease agreements. In the most recent quarter, IIPR reported $74 million in rental revenue, a 12% year-over-year increase, and net income of $35 million, or $1.22 per share [5][8] - **NewLake Capital Partners, Inc. (NLCP)**: Owns 32 properties across 15 states, focusing on long-term leases with financially healthy cannabis businesses. In its latest quarterly report, NLCP posted $19 million in rental revenue, a 10% increase, and net income of $11 million, or $0.45 per share [9][10] - **Chicago Atlantic Real Estate Finance, Inc. (REFI)**: Specializes in lending capital to licensed cannabis operators, having deployed over $500 million across more than a dozen states. REFI reported $22 million in revenue, a 15% year-over-year increase, and net income of $13 million, or $0.68 per share [10][12] Market Trends - The cannabis sector is experiencing significant growth, with increasing legalization efforts and rising tenant demand, positioning cannabis REITs as one of the best asset classes to watch [3][4] - Each of the highlighted REITs offers a unique approach to accessing the cannabis industry, with IIPR focusing on scale, NLCP on tenant quality, and REFI on high yields through lending [13][14] - The importance of real estate financing in the cannabis supply chain is becoming critical as legalization evolves, making these REITs top candidates for investors seeking yield and diversification [14]

Financial Data and Key Metrics Changes - The loan portfolio principal totaled $407 million across 30 portfolio companies with a weighted average yield to maturity of 16.9%, down from 17.2% in the previous quarter [11] - Net interest income for Q1 was $13 million, a 7.3% decrease from $14.1 million in Q4 2024, primarily due to a decrease in non-recurring fees [15] - Total leverage was 28% of book equity as of March 31, down from 34% at the end of 2024 [12] - Distributable earnings per share were approximately $0.47 and $0.46 for basic and fully diluted shares, consistent with the previous quarter [19] Business Line Data and Key Metrics Changes - Gross originations during the quarter were $4.4 million, with $500,000 to new borrowers and $3.9 million to existing borrowers on delayed draw, offset by $9.2 million in sales and repayments [11] - The percentage of fixed-rate loans and floating-rate loans with floors greater than or equal to the prevailing prime rate was 71.2% [11] Market Data and Key Metrics Changes - The cannabis pipeline across the Chicago Atlantic platform stands at $462 million, with expectations for deployments to accelerate in Q2 and Q3 [9][23] - The company remains the third top-performing exchange-listed mortgage REIT, outperforming the median and average total return for all exchange-listed mortgage REITs by approximately 51% and 55% respectively since inception [10] Company Strategy and Development Direction - The company aims to create a differentiated and low-levered risk-return profile insulated from cannabis equity volatility [9] - The focus is on deploying capital with consumer and product-focused operators in limited license jurisdictions at low leverage profiles [7] - The company is cautious in its approach, reflecting selectivity in deployment due to market uncertainties and low valuations in the cannabis sector [40] Management's Comments on Operating Environment and Future Outlook - Management believes that the current operating environment is characterized by volatility and uncertainty, particularly in the cannabis equity markets [6][12] - The company expects to compete for refinancing opportunities in 2025, with a significant number of maturities anticipated [30] - Rescheduling of cannabis regulations could lead to increased cash flow for borrowers and greater market activity, although significant new entrants to the market are not yet evident [32][34] Other Important Information - The company raised approximately $1 million in net proceeds from the issuance of common stock through its ATM program [19] - The CECL reserve on loans held for investment decreased to approximately $3.3 million from $4.4 million, primarily due to the reversal of reserves related to loan number nine [17] Q&A Session Summary Question: Can you provide details on the near-term pipeline of $462 million? - The pipeline is generally related to CapEx, with expectations for deployments to accelerate in Q2 and Q3 [22][23] Question: What pricing assumptions are being made in underwriting? - Pricing in the industry is evolving, with adjustments made based on market conditions and state-specific developments [25][26] Question: How much visibility is there into repayments and net portfolio growth in 2025? - The aim is to achieve net portfolio growth in 2025, with significant maturities expected [30] Question: How would rescheduling impact the business? - Rescheduling could significantly increase after-tax free cash flow for borrowers and enhance the overall market environment [32] Question: What are the unfunded commitments at the end of the quarter? - There are approximately $19.8 million of unfunded commitments related to construction milestones and other projects [43]

Financial Data and Key Metrics Changes - The company's net interest income for Q1 2025 was $13 million, a 7.3% decrease from $14.1 million in Q4 2024, primarily due to a decrease in non-recurring fees and the impact of a 50 basis point decrease in the prime rate [14][18] - The loan portfolio principal totaled $407 million across 30 portfolio companies, with a weighted average yield to maturity of 16.9%, down from 17.2% in the previous quarter [10][11] - Total leverage was 28% of book equity as of March 31, compared to 34% at the end of 2024 [11] Business Line Data and Key Metrics Changes - Gross originations during the quarter were $4.4 million, with $500,000 funded to new borrowers and $3.9 million to existing borrowers on delayed draw, offset by sales and repayments of $9.2 million [10] - The percentage of fixed-rate loans and floating-rate loans with floors at or above the prevailing prime rate was 71.2% [10] Market Data and Key Metrics Changes - The cannabis pipeline across the Chicago Intake platform stands at $462 million, with expectations for deployments to accelerate in Q2 and Q3 [8][21] - The company remains the third top-performing exchange-listed mortgage REIT, outperforming the median and average total return for all exchange-listed mortgage REITs by approximately 51% and 55% respectively since inception [9] Company Strategy and Development Direction - The company aims to create a differentiated and low-levered risk-return profile insulated from cannabis equity volatility, focusing on credit and collateral first [6][8] - The management emphasizes a disciplined and patient approach to capital deployment, prioritizing credit protection and risk-adjusted returns [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is characterized by volatility in the cannabis equity markets, which affects capital providers [6] - The company is optimistic about net portfolio growth in 2025, with significant maturities expected and a focus on refinancing strong-performing assets [30][42] Other Important Information - The company raised approximately $1 million in net proceeds from the issuance of common stock through its ATM program, with a weighted average selling price representing a premium to book value [18] - The CECL reserve on loans held for investment decreased to approximately $3.3 million from $4.4 million, primarily due to the reversal of reserves related to loan number nine [15][16] Q&A Session Summary Question: Can you provide details on the near-term pipeline of $462 million? - Management indicated that the pipeline is generally related to CapEx and expects deployments to accelerate in Q2 and Q3 [21][22] Question: How are pricing assumptions being adjusted in underwriting? - Management noted that pricing in the industry is evolving, with downward price compression observed in various states, including Massachusetts [24][26] Question: What visibility do you have into repayments and net portfolio growth? - Management aims for net portfolio growth in 2025, with a focus on refinancing strong-performing assets [30][42] Question: How would rescheduling impact the business? - Management believes rescheduling would significantly increase after-tax free cash flow for borrowers, enhancing downside protection and supporting growth [33] Question: What are the unfunded commitments at the end of the quarter? - The company has approximately $19.8 million in unfunded commitments, which are contingent on meeting certain conditions [44] Question: How does the allocation process for funding opportunities work? - Management explained that all opportunities are given equal consideration across funds, but specific allocations depend on eligibility and diversification requirements [50]