Core Insights - The company reported gross originations of approximately $19 million for the quarter, with $5 million to a new borrower and $14 million to existing borrowers [1] - The loan portfolio principal totaled approximately $411 million across 26 portfolio companies, with a weighted average yield to maturity of 16.3% [1] - The company’s pipeline remains strong at $616 million, indicating ongoing business opportunities [3] Loan Portfolio and Financial Performance - The company’s net interest income for the fourth quarter was $14.2 million, up 4% from the previous quarter, primarily due to the collection of past due interest [10] - Total interest expense increased to approximately $1.8 million, up from $1.6 million in the third quarter [11] - The CECL reserve on loans held for investment was approximately $5.1 million, representing 1.23% of outstanding principal [12] Market Position and Strategy - The company focuses on senior secured lending to U.S. cannabis operators with conservative underwriting and collateral-driven structuring [5] - Management emphasized limited overlap with broader private credit markets and limited competition in cannabis lending [5] - The company targets the intersection of real estate, credit, and the emerging U.S. cannabis industry, aiming for outsized returns [4] Regulatory Environment - An executive order signed by President Trump in December 2025 directed the reclassification of cannabis from Schedule I to Schedule III, which could impact industry economics [2] - The company does not assume regulatory-driven credit improvements in its underwriting [2] Recent Developments and Future Outlook - The company advanced new gross loan principal of approximately $51.1 million from January 1, 2026, through the call date, while receiving $40.4 million in loan repayments [15] - The company expects to maintain a dividend payout ratio of 90% to 100% for the 2026 tax year, with potential special dividends if taxable income requires additional distributions [16] - Management expressed confidence in executing on the pipeline and targeting net portfolio growth in 2026 [16]