[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]

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]

SCR Partners IR@REFI.reit Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a market-leading commercial mortgage REIT utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state- licensed cannabis operators in limited-license states in the United States. REFI is part of the Chicago Atlantic platform, which has offices in Chicago, Miami, New York, and London and has closed over $2.7 billion in credit and equity investments to date. Contact: ...

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]

Company Performance - Chicago Atlantic Real Estate Finance, Inc. reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, but down from $0.52 per share a year ago, representing an earnings surprise of 2.22% [1] - The company posted revenues of $13.04 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.38%, and down from $15.34 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Outlook - The stock has underperformed the market, losing about 5.3% since the beginning of the year compared to the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $14.13 million, and for the current fiscal year, it is $1.83 on revenues of $56.98 million [7] - The estimate revisions trend for the company is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Chicago Atlantic belongs, is currently in the bottom 43% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]