Financial Data and Key Metrics Changes - The loan portfolio principal totaled approximately $400 million as of September 30, 2025, with a weighted average yield to maturity of 16.5%, down from 16.8% in the previous quarter [10] - Net interest income for Q3 2025 was $13.7 million, a decrease of 5.1% from $14.4 million in Q2 2025, primarily due to non-recurring fees and the impact of a 25 basis point rate cut [13][14] - Distributable earnings per weighted average share were approximately $0.50 and $0.49 for basic and fully diluted shares, respectively, a modest decrease from $0.52 and $0.51 in the previous quarter [15] Business Line Data and Key Metrics Changes - Gross originations during the quarter were $39.5 million, with $11 million advanced to a new borrower and $20 million related to a new credit facility [10] - The portfolio consisted of 36.7% fixed-rate loans and 63.3% floating-rate loans, with only 14% exposed to further rate declines due to interest rate floors [11] Market Data and Key Metrics Changes - The company noted challenges in private credit markets, including declining interest rates and concerns over underwriting standards, which have led to trading at a discount to book value [6] - The cannabis pipeline currently stands at approximately $441 million, diversified across various growth investments and market activities [7] Company Strategy and Development Direction - The company focuses on principal protection and disciplined capital deployment in limited license jurisdictions, supporting fundamentally sound growth initiatives [7] - Management expressed confidence in the cannabis sector and the company's strategy, highlighting a robust platform to meet industry growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile private credit environment but emphasized consistent execution and performance [5] - The company is optimistic about the cannabis market, particularly in states like Virginia, which is seen as an attractive market for future growth [24] Other Important Information - Total leverage was 33% of book equity as of September 30, down from 39% in the previous quarter [12] - The company expects to maintain a dividend payout ratio of 90% to 100% for the 2025 tax year, with potential special dividends if taxable income requires it [15] Q&A Session Summary Question: Discussion on the pipeline and ESOP opportunities - Management confirmed that ESOPs continue to be a significant part of the pipeline, with no significant exits other than normal turnover [19] Question: Update on maturing loans - Management is negotiating terms to extend maturing loans and expects to retain the majority of them [21] Question: Opportunities in Virginia's cannabis market - Management views Virginia as an attractive market due to its controlled licensure structure and potential for recreational market growth [24] Question: Underwriting approach and success factors - Management highlighted a focus on limited license jurisdictions and operators with diverse earnings streams as key to their underwriting success [28] Question: Lending program update for New York - The New York Social Equity Fund has opted not to draw additional capital, but the company is ready to support future deployments [56]

Company Overview - Chicago Atlantic Real Estate Finance is a commercial mortgage REIT and institutional lender focused on state-licensed cannabis operators[10] - The company has closed over $3.2 billion in loans since its platform inception[8, 10] - The company's outstanding loan principal is $399.9 million with a gross portfolio yield of 16.5%[8] - The real estate collateral coverage in the current portfolio is 1.2x[8] Portfolio Diversification - The top 10 loans account for 65.7% of the outstanding loan principal[23] - The portfolio is diversified by rate type, with 36.7% in fixed-rate loans and 63.3% in floating-rate loans[23, 67] - The portfolio is diversified across various states, with Illinois at 19%, Ohio at 16%, Florida at 8%, Michigan at 14%, and California at 7%[26] - Loans with Retail/Industrial collateral are 31.6% and 47.1% of the portfolio respectively[28, 32] Financial Performance - For the three months ended September 30, 2025, net income was $8.93 million, or $0.42 per basic share[68] - Distributable Earnings for the three months ended September 30, 2025, were $10.52 million, or $0.50 per basic share[69]

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]

Company Overview - Chicago Atlantic has closed over $2.7 billion in loans since its platform inception[9, 10] - The company has closed over 95 cannabis loans across its platform[9] - The outstanding loan principal is approximately $407 million[9] - The gross portfolio yield is 16.9%[9] Portfolio Diversification - The top 10 loans account for 61.5% of the principal outstanding[35] - Fixed-rate loans constitute 41.5% of the portfolio, while floating-rate loans make up 58.5%[35] - Loans with Retail/Industrial collateral represent 35.3% of the portfolio[39] Market and Financial Performance - REFI has outperformed the median and average total return of mortgage REITs by approximately 51% and 55%, respectively[33] - The U S cannabis industry is estimated to be $35 billion in top-line retail revenue in 2025 and is projected to grow to $69 billion by 2031[60] - As of March 31, 2025, loans held for investment at carrying value, net is $396,181,421[81] - For the three months ended March 31, 2025, net income was $10,041,312, or $0.48 per basic common share[85]