Financial Data and Key Metrics - Adjusted distributable earnings for Q3 2023 was 0.57perweightedaveragedilutedshare,upfrom0.55 in Q2 [54] - Q3 earnings per weighted average diluted common share was 0.54,comparedto0.47 in Q2 [60] - Net interest income for Q3 remained consistent with the prior quarter at approximately 13.7million[63]−ThebookvalueasofSeptember30thincreasedto15.17 per common share, compared with 15.06asofJune30th[68]−ThedividendpayoutratioforQ3wasapproximately8335 million in Q3, with 33millionfundedtonewborrowers,partiallyoffsetby11 million in principal repayments [30] - The loan portfolio had total commitments of 356millionacross27portfoliocompanies,withaweightedaverageyieldtomaturityof19.3600 million from 400millionlastquarter,drivenbyactivityinMaryland,Missouri,andOhio[14]−Thecompanyremainsfocusedoncoremarketswithstrongmoatsandoperatorsexcellinginfundamentals[15]−PositivemomentumwasobservedinWesternstates,withwholesalepricesshowingsignsofstabilization[38]CompanyStrategyandIndustryCompetition−Thecompanyreaffirmedits2023outlookbasedonresultsthroughthefirstninemonthsoftheyear[4]−Thecompanyisexploringsocialequityinitiativesinotherstates,leveragingitsscaleandexpertiseinrealestate,operational,financial,legal,andcreditunderwriting[47]−ThecompanybelievesthatlargerbanksenteringthecannabisindustrywillstillpreferprovenlenderslikeChicagoAtlanticduetothelearningcurveandregulatoryhurdles[44]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Managementremainscautiouslyoptimistic,citingpositivedevelopmentsinseveralstatesandthepotentialreschedulingofcannabisfromScheduleItoScheduleIII[43]−Thecompanyexpectstheeliminationof280Etoimproveoperatorprofitabilityandfreecashflow,attractingmoreequitycapital[29]−Thecompanyaimstoapproachleverageequalto10019 million of the REIT's $50 million commitment to the Social Equity Investment Fund in Q3 [28] - Loan number 9, which was moved to nonaccrual, is expected to be resolved through a sale, with bids anticipated to exceed the carrying value [58][65] Q&A Session Summary Question: Thoughts on Ohio and other new states - Maryland, Ohio, and Missouri are seeing significant movement, with Ohio's recent ballot passing being particularly encouraging [66] Question: Shift to fixed-rate loans - The company does not expect to move to a fixed-rate structure but acknowledges the benefits of having floors in a declining rate environment [5] Question: Creditworthiness and yield compression - The company has not observed yield compression and expects actual yields to remain stable [11] Question: Loan number 9 resolution - The company expects to resolve Loan number 9 through a sale, with bids anticipated to exceed the carrying value [58][65] Question: Dividend and special dividend - The company is on track to pay a special dividend in Q4, targeting a distribution of 90% to 100% of net income [75] Question: Industry outlook and capital needs - The company believes the industry has bottomed out, with positive momentum in Western states and potential for increased capital needs in new states [38][78]