Chicago Atlantic Real Estate Finance(REFI) - 2025 Q3 - Quarterly Results

Financial Performance - Net interest income for Q3 2025 was $13,685,274, a decrease of 5.1% from $14,424,987 in Q2 2025 and a decrease of 5.3% from $14,459,393 in Q3 2024[3] - Distributable earnings for Q3 2025 were $10,522,142, or $0.50 per share, compared to $10,850,941, or $0.52 per share in Q2 2025[3] - For the nine months ended September 30, 2025, net income was $29,125,711, compared to $27,853,228 for the same period in 2024, representing a year-over-year increase of approximately 4.6%[15] - 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, reflecting a decrease of about 5.7%[18] - Basic earnings per common share for the three months ended September 30, 2025, were $0.42, down from $1.33 in the same period of 2024[15] - Net interest income for the nine months ended September 30, 2025, was $40,882,509, compared to $41,152,195 for the same period in 2024, showing a slight decline of about 0.7%[15] - The company reported a basic Distributable Earnings per Weighted Average Share of $1.48 for the nine months ended September 30, 2025, compared to $1.61 for the same period in 2024[18] Loan and Growth Opportunities - Total loan principal outstanding as of September 30, 2025, was $399,948,492, an increase of 12.2% from $356,285,780 in Q3 2024[3] - The company has a pipeline of over $415 million in new loan opportunities, indicating strong future growth potential[2] - The company advanced approximately $3.3 million to existing borrowers on delayed draw term loan facilities from October 1, 2025, to November 4, 2025[4] Financial Stability and Ratios - As of September 30, 2025, total leverage was approximately $101.7 million, with $52.4 million drawn on the Revolving Loan[5] - The debt/equity ratio improved to 32.8% from 38.8% in Q2 2025, indicating better financial stability[3] Dividends and Shareholder Returns - The company declared regular dividends of $0.47 per share, consistent with the previous quarter[3] - The company intends to pay dividends to stockholders in an amount equal to its net taxable income, subject to Board authorization[16] Expenses and Management Fees - Total expenses for the nine months ended September 30, 2025, were $11,753,622, compared to $13,463,967 for the same period in 2024, indicating a decrease of approximately 13%[15] - Management and incentive fees for the three months ended September 30, 2025, were $1,435,071, compared to $1,669,116 for the same period in 2024, a decrease of approximately 14%[15] Outlook and Confidence - Chicago Atlantic affirmed its 2025 outlook previously issued on March 12, 2025, indicating confidence in future performance[6] Shareholder Metrics - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 21,074,771, compared to 19,625,190 for the same period in 2024, an increase of about 7.4%[18] Credit Losses - The provision for current expected credit losses for the three months ended September 30, 2025, was $557,220, compared to a benefit of $(989,597) for the same period in 2024[18]