Industry Overview - The U.S. cannabis industry is projected to exceed $33 billion in sales for 2024, with potential annual revenues surpassing $50 billion by 2030, driven by new state markets and expanding consumer demand [1] - Recent discussions among U.S. lawmakers regarding cannabis reform and the recommendation from the Department of Health and Human Services to reclassify cannabis under the Controlled Substances Act have generated optimism for investors [1] Ancillary Cannabis Stocks - Ancillary stocks, which provide real estate, equipment, and financing, are essential in the cannabis market as they avoid plant-touching risks, offering safer exposure to industry growth [1] - Three key ancillary cannabis stocks to watch are Innovative Industrial Properties, Inc. (IIPR), NewLake Capital Partners, Inc. (NLCP), and Chicago Atlantic Real Estate Finance, Inc. (REFI) [3][5] Innovative Industrial Properties, Inc. (IIPR) - IIPR is the largest publicly traded cannabis REIT, owning over 100 properties across 19 states, primarily focused on leasing to state-licensed cannabis operators [7] - The company reported total revenue of $77.8 million, a 9% year-over-year increase, with net income of $40.5 million, highlighting its profitability [8] - IIPR maintains a high occupancy rate above 97% and pays a quarterly dividend of $1.80 per share, appealing to income-focused investors [9] NewLake Capital Partners, Inc. (NLCP) - NLCP owns approximately 33 properties, including 15 cultivation facilities and 18 dispensaries, operating under long-term triple-net leases across various states [12] - The company generated revenue of $51.2 million and net income of $26.1 million over the trailing twelve months, with a net margin of about 51% [14] - NLCP offers a quarterly dividend of $0.43 per share, translating to an annual yield of around 12%, making it attractive for income-oriented investors [15] Chicago Atlantic Real Estate Finance, Inc. (REFI) - REFI specializes in providing credit to licensed cannabis operators, having deployed over $2.8 billion in credit and equity investments across the sector [19] - The company reported $62 million in interest and dividend income, with total revenue of $56.6 million and net income of $38.1 million, resulting in a net margin near 67% [20][21] - REFI offers an annual dividend of $2.06 per share, yielding nearly 15%, and analysts project a price target near $20, indicating significant upside potential [21][22] Investment Outlook - As the cannabis industry matures, ancillary companies like IIPR, NLCP, and REFI provide reduced regulatory risks while capturing sector growth [23] - These companies present compelling opportunities for investors seeking exposure to cannabis without the volatility associated with plant-touching operators [23]

Industry Overview - The US cannabis industry generated nearly $36 billion in legal sales in 2024, with projections to exceed $70 billion by 2030, indicating significant growth and demand for cultivation and retail facilities [1] - Recent federal rescheduling news, specifically the recommendation to move cannabis to Schedule III, is expected to reduce taxes for operators and improve profitability, potentially increasing tenant strength and enhancing REIT stability [1] Company Analysis: Innovative Industrial Properties (IIPR) - IIPR is the largest cannabis-focused REIT in the US, with a portfolio of over 100 properties across 19 states, totaling more than 9 million rentable square feet [3] - The company reported revenue of over $62 million in the latest quarter, with net income exceeding $25 million and earnings per share near $0.86, maintaining a quarterly dividend of $1.90 [5] - IIPR's strategic diversification includes a $270 million investment into a life sciences platform, with a blended yield exceeding 14% [5] Company Analysis: NewLake Capital Partners (NLCP) - NLCP owns 34 properties across 12 states, including 19 dispensary properties and 15 cultivation facilities, structured as long-term triple-net leases [6][8] - The company reported revenue of approximately $12.9 million and net income of $7.3 million in the second quarter, with a quarterly dividend of $0.43 per share [8] - NLCP's conservative approach and focus on leasing to licensed operators in limited-license states help reduce volatility and spread risk [6] Company Analysis: Chicago Atlantic Real Estate Finance (REFI) - REFI operates as a commercial mortgage REIT, originating senior secured loans totaling over $420 million across about 30 portfolio companies [9][12] - The company maintained a quarterly dividend of $0.47 per share, with distributable earnings per share at $0.51, indicating strong credit performance [12] - REFI emphasizes conservative lending standards and broad diversification, with a loan pipeline exceeding $650 million, reflecting strong demand for capital [12]

Financial Data and Key Metrics Changes - The loan portfolio principal totaled $421.9 million as of June 30, with a weighted average yield to maturity of 16.8%, slightly down from 16.9% in the first quarter [8] - Net interest income for Q2 was $14.4 million, an increase from $13 million in Q1, primarily due to non-recurring fees and new deployments [12] - Distributable earnings per share increased to $0.52 from $0.47 in Q1, with a book value per common share of $14.71 as of June 30 [14][15] Business Line Data and Key Metrics Changes - The cannabis pipeline increased from $462 million to nearly $650 million, driven by M&A activity and operational restructurings [6] - Gross originations during the quarter were $16.5 million, with $10 million from refinancing and $6.5 million from existing borrowers [9] Market Data and Key Metrics Changes - The company noted a strong relationship with the New York Social Equity Fund, with 23 dispensaries operating successfully [24] - The New York market is developing well, with improvements in product quality and competition against the illegal market [26][27] Company Strategy and Development Direction - The company aims to create a differentiated, low-leveraged risk-return profile insulated from cannabis equity volatility [7] - The strategy focuses on deploying capital in limited license jurisdictions with low leverage profiles to support sound growth initiatives [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming long-term despite near-term uncertainties in the financial services industry [7] - The company is optimistic about the growth of the cannabis industry and its ability to support that growth through its robust platform [6] Other Important Information - The company has extended its credit facility with no change in economic terms, enhancing its ability to support growth [6] - The CECL reserve for expected credit losses increased to approximately $4.4 million, representing 1.1% of outstanding principal [13] Q&A Session Summary Question: What drove the sequential increase in the pipeline? - The increase was driven by M&A activity, operational reorganizations, and refinancings of existing debt [19] Question: How does the company view prepayments in the portfolio? - Prepayments are both a marker of success and capital to be redeployed into new opportunities, with early Q3 prepayments being larger than expected [21][22] Question: Can you provide an update on the New York market? - The relationship with the New York Social Equity Fund is strong, with 23 dispensaries operating successfully, and the market is developing well [24][26] Question: How is the demand and supply side of the market currently? - The wait-and-see approach makes sense given the cost of capital options, with larger public operators participating selectively [30][31] Question: How does having multiple funding sources benefit the company? - Multiple funding sources allow for greater flexibility and competitiveness, leading to a higher quality and more diversified portfolio [33]

Core Insights - Chicago Atlantic Real Estate Finance, Inc. reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and showing a year-over-year increase from $0.50 per share [1] - The company achieved revenues of $14.43 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.78%, although this represents a decline from $15.02 million in the same quarter last year [2] - The stock has underperformed, losing approximately 14.2% since the beginning of the year, while the S&P 500 has gained 7.9% [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - The earnings surprise for the latest quarter was +13.33%, following a previous surprise of +2.22% [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48, with expected revenues of $14.19 million, and for the current fiscal year, the EPS estimate is $1.81 on revenues of $56.17 million [7] - The estimate revisions trend for the company was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which Chicago Atlantic Real Estate Finance belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Atlanticus Holdings Corporation, is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year increase of +31.3% [9]

Company Overview - Chicago Atlantic is a commercial mortgage REIT and lender focused on state-licensed cannabis operators[11] - The company has closed over 100 cannabis loans across its platform[9] - Since its inception in 2019, the origination team has closed over $28 billion in credit facilities, with $22 billion to cannabis operators[11] - The company is evaluating a near-term pipeline of approximately $650 million in potential loans[9] Portfolio Highlights - The outstanding loan principal is $4219 million with a gross portfolio yield of 168%[9] - The real estate collateral coverage in the current portfolio is 12x[9] - The top 10 loans account for 616% of the total principal outstanding[28] - Floating-rate loans constitute 407% of the portfolio, while fixed-rate loans make up 593%[29] Financial Performance - For the three months ended June 30, 2025, net income was $887 million, or $042 per basic share[75] - Distributable Earnings for the quarter were $1085 million, or $052 per basic share[76] - The company's total assets as of June 30, 2025, were $4552 million[71] Market Opportunity - The U S cannabis industry is estimated to reach $35 billion in retail revenue in 2025 and is projected to grow to $69 billion by 2031[55] - Chicago Atlantic estimates the current value of the U S cannabis debt market to be $12 billion, with the company holding approximately 18% market share[57] - Assuming the company maintains its 18% debt market share, the private credit opportunity could grow to over $4 billion by 2031[58]

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) This section summarizes Chicago Atlantic Real Estate Finance's Q2 2025 performance, strategic focus, subsequent portfolio activities, and affirmed 2025 outlook [Company Announcement & Strategic Focus](index=1&type=section&id=Company%20Announcement%20%26%20Strategic%20Focus) Chicago Atlantic Real Estate Finance announced its Q2 2025 financial results, highlighting a disciplined focus on solid cannabis operators and the extension of its secured revolving credit facility to June 30, 2028. The company maintains a significant pipeline of cannabis opportunities - Chicago Atlantic Real Estate Finance, Inc. announced its results for the quarter ended June 30, 2025[2](index=2&type=chunk) - The Company is managing its loan portfolio with a disciplined focus on solid consumer and product-focused cannabis operators in limited-license states[3](index=3&type=chunk) - The secured revolving credit facility was amended to extend the contractual maturity for an additional two-year period, from June 30, 2026, to **June 30, 2028**[3](index=3&type=chunk) - The company has a pipeline of approximately **$650 million** of cannabis opportunities, remaining the largest capital provider to the industry[3](index=3&type=chunk) [Subsequent Portfolio Activity](index=2&type=section&id=Subsequent%20Portfolio%20Activity) From July 1, 2025, to August 7, 2025, the Company received approximately $56.8 million in unscheduled principal repayments from six credit facilities, generating $1.0 million in prepayment fees - Unscheduled principal repayments received from July 1, 2025, to August 7, 2025: approximately **$56.8 million** (full prepayment of six credit facilities)[5](index=5&type=chunk) - Prepayment fees recognized in connection with these prepayments: approximately **$1.0 million**[5](index=5&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Chicago Atlantic affirmed its previously issued 2025 outlook - Chicago Atlantic affirmed its outlook previously issued on March 12, 2025[6](index=6&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section details Chicago Atlantic's Q2 2025 operating results, portfolio performance, and liquidity position, showing changes quarter-over-quarter and year-over-year [Operating Results (QoQ & YoY)](index=1&type=section&id=Operating%20Results%20%28QoQ%20%26%20YoY%29) For Q2 2025, net interest income increased QoQ but net income and diluted EPS decreased. Distributable earnings per share saw a slight increase QoQ Operating Results Summary | Metric | Q2 2025 (Amount) | Q2 2025 (Per Share) | Q1 2025 (Amount) | Q1 2025 (Per Share) | Q2 2024 (Amount) | Q2 2024 (Per Share) | | :-------------------------------- | :----------------- | :------------------ | :----------------- | :------------------ | :----------------- | :------------------ | | Net interest income ($) | $14,424,987 | $0.67 | $13,041,933 | $0.61 | $13,183,499 | $0.66 | | Net income – diluted ($) | $8,877,375 | $0.41 | $10,041,312 | $0.47 | $9,184,073 | $0.46 | | Distributable earnings – diluted ($) | $10,850,941 | $0.51 | $9,727,657 | $0.46 | $9,927,528 | $0.50 | [Portfolio Performance](index=1&type=section&id=Portfolio%20Performance) The total loan principal outstanding increased QoQ to $421.9 million, while the weighted average yield to maturity slightly decreased. The proportion of variable interest rate loans remained stable QoQ but significantly lower YoY Portfolio Performance Summary | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :-------------- | :------------- | :------------ | | Total loan principal outstanding ($) | $421,918,148 | $407,011,816 | $383,281,127 | | Portfolio companies | 30 | 30 | 31 | | Unfunded commitments ($) | $16,595,000 | $19,795,000 | $6,000,000 | | Weighted average yield to maturity (%) | 16.8% | 16.9% | 18.7% | | Aggregate variable interest rate loan portfolio (%) | 59.3% | 58.5% | 76.4% | [Liquidity and Capital Structure](index=1&type=section&id=Liquidity%20and%20Capital%20Structure) The company's book value per share slightly decreased QoQ, while the debt/equity ratio increased significantly. As of August 7, 2025, the company reported $97.6 million available on its credit facility and $94.0 million in total liquidity Capital Structure Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------- | :------------ | :------------- | :------------ | | Book value per share ($) | $14.71 | $14.87 | $14.92 | | Debt/equity ratio (%) | 38.8% | 28.0% | 26.2% | - As of June 30, 2025, total leverage was approximately **$121.2 million**, comprising **$71.2 million** drawn on the Revolving Loan and **$50.0 million** of Notes Payable due 2028[11](index=11&type=chunk) - As of August 7, 2025, the Company has **$97.6 million** available on its secured revolving credit facility and total liquidity, net of estimated liabilities, of approximately **$94.0 million**[11](index=11&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents Chicago Atlantic's consolidated balance sheets and statements of income, detailing asset, liability, equity, revenue, and expense trends [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $455.2 million from $435.1 million at year-end 2024, driven by an increase in loans held for investment and cash. Total liabilities also increased, primarily due to higher revolving loan balances Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------------- | :-------------- | :---------------- | :------------------------ | | Total Assets ($) | $455,214,325 | $435,148,974 | +$20,065,351 | | Loans held for investment, at carrying value ($) | $413,975,484 | $402,477,046 | +$11,498,438 | | Cash and cash equivalents ($) | $35,562,084 | $26,400,448 | +$9,161,636 | | Total Liabilities ($) | $145,185,935 | $126,190,877 | +$18,995,058 | | Revolving loan ($) | $71,200,000 | $55,000,000 | +$16,200,000 | | Total Stockholders' Equity ($) | $310,028,390 | $308,958,097 | +$1,070,293 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, interest income increased YoY, leading to higher net interest income. However, total expenses also rose significantly, resulting in a slight decrease in net income compared to the prior year quarter Consolidated Statements of Income Highlights | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income ($) | $16,502,035 | $15,022,431 | $31,609,350 | $30,366,098 | | Net interest income ($) | $14,424,987 | $13,183,499 | $27,466,920 | $26,423,116 | | Total expenses ($) | $5,712,612 | $3,999,426 | $8,713,234 | $8,505,864 | | Net Income ($) | $8,877,375 | $9,184,073 | $18,918,686 | $17,914,076 | | Diluted earnings per common share ($) | $0.41 | $0.46 | $0.89 | $0.93 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Distributable Earnings, a non-GAAP measure, and provides its reconciliation, highlighting its use for performance evaluation and dividend capacity assessment [Distributable Earnings Definition and Reconciliation](index=5&type=section&id=Distributable%20Earnings%20Definition%20and%20Reconciliation) Distributable Earnings, a non-GAAP measure, is used to evaluate performance and assess dividend capacity. The definition was revised to be net of Incentive Compensation. For Q2 2025, diluted distributable earnings per share was $0.51, an increase from $0.50 in Q2 2024 - Distributable Earnings is a non-GAAP measure used to evaluate performance and is considered a useful indicator of the company's ability to pay dividends[16](index=16&type=chunk) - The definition of Distributable Earnings was revised to be presented net of Incentive Compensation, which has no impact on period-to-period comparisons[17](index=17&type=chunk) Distributable Earnings Summary | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income ($) | $8,877,375 | $9,184,073 | $18,918,686 | $17,914,076 | | Distributable Earnings ($) | $10,850,941 | $9,927,528 | $20,578,598 | $19,644,707 | | Diluted Distributable Earnings per Weighted Average Share ($) | $0.51 | $0.50 | $0.96 | $1.02 | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on Chicago Atlantic's Q2 2025 conference call, investor resources, company overview, and a disclaimer regarding forward-looking statements [Conference Call & Investor Information](index=2&type=section&id=Conference%20Call%20%26%20Investor%20Information) Chicago Atlantic hosted a conference call and webcast on August 7, 2025, to discuss Q2 2025 results. Investors can find supplemental earnings details and other material information on the company's investor relations website - A conference call and live audio webcast were hosted on August 7, 2025, at 9:00 a.m. Eastern Time[7](index=7&type=chunk) - The Second Quarter 2025 Earnings Supplemental is available on the Investor Relations page of the company's website (www.refi.reit)[8](index=8&type=chunk) - The company uses its website as a means of disclosing material information and complying with Regulation FD[8](index=8&type=chunk) [About the Company](index=2&type=section&id=About%20the%20Company) Chicago Atlantic Real Estate Finance, Inc. is a commercial mortgage REIT that provides senior secured loans primarily to state-licensed cannabis operators in limited-license states, leveraging its expertise in real estate, credit, and cannabis - Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a commercial mortgage REIT[9](index=9&type=chunk) - The company originates senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States[9](index=9&type=chunk) - REFI is part of the Chicago Atlantic platform, which has closed over **$2.8 billion** in credit and equity investments to date[9](index=9&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to inherent uncertainties and risks. The company does not commit to publicly update or revise these statements unless legally required - This release contains forward-looking statements that reflect current views and projections with respect to future events and financial performance[10](index=10&type=chunk) - These statements are subject to inherent uncertainties and are not guarantees of future performance, conditions, or results[10](index=10&type=chunk) - The Company does not undertake any obligation to publicly update or revise any forward-looking statements, except as required by law[10](index=10&type=chunk)

Loan Portfolio Composition - As of June 30, 2025, approximately 60.1% of the loan portfolio was comprised of floating rate loans, while 39.9% were fixed rate loans[164]. - As of June 30, 2025, 34.9% of the principal of loans held in the portfolio were backed by personal or corporate guarantees[159]. - The loan portfolio included loans to 29 borrowers with a carrying value of approximately $414.0 million as of June 30, 2025, compared to $402.5 million for 30 borrowers as of December 31, 2024[189]. - As of June 30, 2025, the total principal of loans held for investment was approximately $416.4 million, with fixed-rate loans comprising 39.9% and floating-rate loans 60.1%[191]. - The weighted-average YTM IRR of the loan portfolio held for investment was 16.8% as of June 30, 2025, down from 17.2% as of December 31, 2024[190]. - The company’s loan portfolio is concentrated in Illinois (17%), Ohio (15%), and Florida (11%) as of June 30, 2025[262]. Revenue and Income - The company generates revenue primarily from interest income on loans, with a portion of interest potentially including a paid-in-kind (PIK) component[166]. - Interest income for the quarter ended June 30, 2025, increased by approximately $1.5 million, or 10%, compared to the same period in 2024, primarily driven by fee income of $1.5 million[186]. - Net interest income for the quarter ended June 30, 2025, was $14.4 million, an increase of $1.2 million, or 9%, compared to the same period in 2024[186]. - Net income before income taxes grew by $1.0 million, or 6%, reaching $18.9 million for the six months ended June 30, 2025, compared to $17.9 million in 2024[187]. - Distributable Earnings for the three months ended June 30, 2025, were approximately $10.85 million, compared to $9.93 million for the same period in 2024, representing an increase of about 9.5%[204]. Expenses and Financial Performance - Total expenses for the quarter ended June 30, 2025, increased by approximately $1.7 million, or 43%, compared to the same period in 2024[186]. - Interest expense rose by approximately $0.2 million, or 13%, due to interest on Notes Payable, contributing approximately $1.2 million to the interest expense for the quarter ended June 30, 2025[186]. - Total expenses increased by $0.2 million, or 2%, totaling $8.7 million for the six months ended June 30, 2025, compared to $8.5 million in 2024[187]. Credit Losses and Reserves - Provision for current expected credit losses was approximately $1.1 million for the quarter ended June 30, 2025, compared to a reversal of $275 thousand in the same period in 2024[186]. - The provision for current expected credit losses decreased to approximately $74 thousand in the six months ended June 30, 2025, from $105 thousand in the same period of 2024, a reduction of 29%[187]. - The CECL Reserve increased by approximately $0.1 million during the six months ended June 30, 2025, with a reserve liability of approximately $45 thousand applicable to $16.6 million of unfunded commitments[193]. - The current expected credit loss reserve is $4,421,348, reflecting a conservative approach to potential loan defaults[197]. - The company has had zero realized loan losses since its inception, with a focus on evaluating loans based on historical performance and macroeconomic forecasts[235][238]. Market and Economic Conditions - The company is subject to interest rate risk, with interest rates being sensitive to various economic and political factors[173]. - The company is exposed to market risks primarily related to fluctuations in interest rates, which could impact net interest income and overall financial performance[250]. - Commercial real estate loans are subject to volatility due to various factors including economic conditions and local real estate conditions[264]. - Decreases in property values can reduce collateral value, impacting borrowers' ability to repay loans[264]. - Industry slowdowns and demographic factors may adversely affect commercial real estate performance[264]. Capital and Financing - The company has a distribution requirement to maintain its REIT status, needing to distribute at least 90% of its taxable income[169]. - The Company expects to raise additional equity and/or debt financing to increase liquidity as the demand for capital in the cannabis industry continues to grow[208]. - The Unsecured Notes, totaling $50.0 million, bear a fixed interest rate of 9.00% per annum and have a maturity date of October 18, 2028[212]. - The Company incurred debt issuance costs of approximately $0.9 million related to the Unsecured Notes, which were capitalized and offset against the outstanding face value[213]. Dividend and Shareholder Returns - During the three months ended June 30, 2025, the company declared a cash dividend of $0.47 per share, totaling approximately $9.9 million[184]. - The Company anticipates distributing at least 90% of its REIT taxable income annually to stockholders, with a total cash dividend of $0.94 per share declared for the six months ended June 30, 2025[226][229]. - The book value per share as of June 30, 2025, was approximately $14.71, a slight decrease from $14.83 as of December 31, 2024[205]. Risk Management - The company actively manages risk exposure by monitoring the portfolio and employing various risk management strategies, including due diligence prior to loan origination[252]. - The company maintains a proactive approach to loan modifications, allowing for adjustments in terms to better align with borrower needs[195]. - The average real estate collateral coverage for the portfolio was 1.2x as of June 30, 2025, compared to 1.3x as of June 30, 2024[258]. - Approximately 47% of the loan portfolio had underlying real estate collateral fair value exceeding the amounts outstanding under the loans as of June 30, 2025[242].

Extends Revolving Credit Facility Maturity to 2028 CHICAGO, Aug. 07, 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 June 30, 2025. Peter Sack, Co-Chief Executive Officer, noted, "As our second quarter results demonstrate, we are managing our loan portfolio with a disciplined focus on solid consumer and product-focused cannabis operat ...

Industry Overview - The U.S. cannabis industry is projected to reach nearly $45 billion by 2025, with a total economic impact exceeding $120 billion by year-end [1] - Recreational cannabis is legal in 24 states, and medical use is permitted in 40 states, indicating strong public support for legalization [1] - Major beverage companies entering the cannabis space signal wider mainstream acceptance [1] Ancillary Companies - Ancillary cannabis stocks are gaining momentum as they provide exposure to the cannabis industry without the risks associated with handling the plant directly [1][4] - These companies support the cannabis industry through real estate, financing, and infrastructure, offering reduced regulatory risk and consistent dividends [4][13] Key Players - **Innovative Industrial Properties Inc. (IIPR)**: A real estate investment trust focusing on cannabis-related industrial properties, owning over 100 properties across 19 states, generating steady income from long-term leases [5][8] - **NewLake Capital Partners Inc. (NLCP)**: A growing REIT with 34 properties, including cultivation facilities and dispensaries, maintaining high occupancy rates and consistent cash generation [9] - **Chicago Atlantic Real Estate Finance Inc. (REFI)**: A commercial mortgage REIT specializing in lending to legal cannabis businesses, generating nearly $62 million in interest and dividend income in Q1 2025 [10][12] Financial Performance - IIPR has maintained stable performance with predictable revenue from triple-net leases and has paid dividends each quarter since 2017, with a current share price around $55 [8] - NLCP declared a dividend of $0.43 per share in Q2 2025, representing an annualized dividend of $1.72, with management optimistic about growth [9] - REFI reported strong results with a healthy profit margin and low delinquency rates, focusing on conservative lending practices [12]

Company Overview - Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a leading commercial mortgage REIT that specializes in originating senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States [4] - The company has offices in Chicago, Miami, New York, and London and has closed over $2.8 billion in credit and equity investments to date [4] Upcoming Earnings Release - The company plans to issue its earnings release and supplemental financial information before the market opens on Thursday, August 7, 2025 [2] - A conference call and live audio webcast will be hosted on the same day at 9:00 a.m. Eastern Time, which will be open to the general public [2] - The interactive teleconference can be accessed by calling (833) 630-1956 for domestic callers and (412) 317-1837 for international callers [2] Investor Relations - The live audio webcast of the quarterly conference call will be available in the Investor Relations section of the company's website [3] - An online replay of the call will be available approximately one hour after the end of the call and archived for one year [3]