Chicago Atlantic Real Estate Finance Announces Second Quarter 2025 Financial Results
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 operators in limited-license states. We have backed strong management teams who are pursuing growth opportunities that meet our stringent criteria. With a pipeline of approximately $650 million of cannabis opportunities, we remain the largest capital provider to the industry. Our outlook for the second half of the year includes capitalizing on a number of opportunities in this pipeline that will enable us to redeploy recent repayments and utilize our extended revolving credit facility."
The Company also announced that on August 5, 2025, Chicago Atlantic Lincoln, LLC ("CAL"), a wholly-owned financing subsidiary of the Company, amended its secured revolving credit facility (the "Revolving Loan") to extend the contractual maturity for an additional two-year period, from June 30, 2026, to June 30, 2028. The Company retained its option to extend the term of the Revolving Loan for an additional one-year period, provided no events of default exist and the Company provides 365 days' notice of the extension. No other material terms of the Revolving Loan were modified as a result of the execution of the August 2025 Amendment.
Results of Operations
| For the three months ended | |||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||||||
| OPERATING RESULTS | |||||||||||||||||||||||||||
| Net interest income | $ | 14,424,987 | $ | 0.67 | $ | 13,041,933 | $ | 0.61 | $ | 13,183,499 | $ | 0.66 | |||||||||||||||
| Total expenses before provision for expected | $ | 4,565,322 | $ | 0.21 | $ | 4,073,897 | $ | 0.19 | $ | 4,274,897 | $ | 0.21 | |||||||||||||||
| Net income – diluted | $ | 8,877,375 | $ | 0.41 | $ | 10,041,312 | $ | 0.47 | $ | 9,184,073 | $ | 0.46 | |||||||||||||||
| (Benefit) provision for current expected credit | $ | 1,147,290 | $ | 0.05 | $ | (1,073,276 | ) | $ | (0.05 | ) | $ | (275,471 | ) | $ | (0.01 | ) | |||||||||||
| Distributable earnings – diluted | $ | 10,850,941 | $ | 0.51 | $ | 9,727,657 | $ | 0.46 | $ | 9,927,528 | $ | 0.50 | |||||||||||||||
| Diluted weighted average shares of common stock | 21,487,106 | - | 21,264,891 | - | 19,890,376 | - | |||||||||||||||||||||
| Regular dividends declared | - | $ | 0.47 | $ | 0.47 | $ | 0.47 | ||||||||||||||||||||
| PORTFOLIO PERFORMANCE | |||||||||||||||||||||||||||
| 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 | % | |||||||||||||||||||||
| Book value per share | $ | 14.71 | $ | 14.87 | $ | 14.92 | |||||||||||||||||||||
| Debt/equity ratio | 38.8 | % | 28.0 | % | 26.2 | % | |||||||||||||||||||||
Subsequent Portfolio Activity
- During the subsequent period from July 1, 2025, to August 7, 2025, the Company received unscheduled principal repayments totaling approximately $56.8 million, relating to the full prepayment of six credit facilities. In connection with these prepayments, the Company received and recognized approximately $1.0 million in prepayment fees.
Capital Activity
- As of June 30, 2025, the Company had approximately $121.2 million of total leverage, comprised of $71.2 million drawn on the Revolving Loan and $50.0 million of Notes Payable due 2028.
- 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.
2025 Outlook
Chicago Atlantic affirmed its outlook previously issued on March 12, 2025.
Conference Call and Quarterly Earnings Supplemental Details
Chicago Atlantic will host a conference call and live audio webcast, both open for the general public to hear, later today at 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (833) 630-1956 (international callers: 412-317-1837). The live audio webcast of the Company's quarterly conference call will be available online in the Investor Relations section of the Company's website at www.refi.reit. The online replay will be available approximately one hour after the end of the call and archived for one year.
Chicago Atlantic posted its Second Quarter 2025 Earnings Supplemental on the Investor Relations page of its website. Chicago Atlantic routinely posts important information for investors on its website, www.refi.reit. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in Chicago Atlantic to monitor the Investor Relations page of its website, in addition to following its press releases, SEC filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications.
About Chicago Atlantic Real Estate Finance, Inc.
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 $2.8 billion in credit and equity investments to date.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as "believes," "expects," "will," "intends," "plans," "guidance," "estimates," "projects," "anticipates," and "future" or similar expressions are intended to identify forward- looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. More information on these risks and other potential factors that could affect our business and financial results is included in our filings with the SEC. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Tripp Sullivan
SCR Partners
[email protected]
| CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Loans held for investment | $ | 373,990,760 | $ | 364,238,847 | ||||
| Loans held for investment - related party (Note 8) | 39,984,724 | 38,238,199 | ||||||
| Loans held for investment, at carrying value | 413,975,484 | 402,477,046 | ||||||
| Current expected credit loss reserve | (4,421,348 | ) | (4,346,869 | ) | ||||
| Loans held for investment at carrying value, net | 409,554,136 | 398,130,177 | ||||||
| Loans, at fair value - related party (amortized cost of $5,500,000 and $5,500,000, respectively) | 5,500,000 | 5,335,000 | ||||||
| Cash and cash equivalents | 35,562,084 | 26,400,448 | ||||||
| Other receivables and assets, net | 422,999 | 459,187 | ||||||
| Interest receivable | 3,295,906 | 1,453,823 | ||||||
| Related party receivables | 879,200 | 3,370,339 | ||||||
| Total Assets | $ | 455,214,325 | $ | 435,148,974 | ||||
| Liabilities | ||||||||
| Revolving loan | $ | 71,200,000 | 55,000,000 | |||||
| Notes payable, net | 49,215,015 | 49,096,250 | ||||||
| Dividend payable | 9,905,074 | 13,605,153 | ||||||
| Related party payables | 1,872,082 | 2,043,403 | ||||||
| Management and incentive fees payable | 1,932,957 | 2,863,158 | ||||||
| Accounts payable and other liabilities | 1,355,598 | 2,285,035 | ||||||
| Interest reserve | 243,435 | 1,297,878 | ||||||
| Payable for investment purchased | 9,461,774 | - | ||||||
| Total Liabilities | 145,185,935 | 126,190,877 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders' equity | ||||||||
| Common stock, par value $0.01 per share, 100,000,000 shares authorized and 21,074,625 and 20,829,228 shares issued and outstanding, respectively | 210,746 | 208,292 | ||||||
| Additional paid-in-capital | 321,366,160 | 318,886,768 | ||||||
| Accumulated deficit | (11,548,516 | ) | (10,136,963 | ) | ||||
| Total stockholders' equity | 310,028,390 | 308,958,097 | ||||||
| Total liabilities and stockholders' equity | $ | 455,214,325 | $ | 435,148,974 | ||||
| CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
| Three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | ||||||||||||||||
| Interest income | $ | 16,502,035 | $ | 15,022,431 | $ | 31,609,350 | $ | 30,366,098 | ||||||||
| Interest expense | (2,077,048 | ) | (1,838,932 | ) | (4,142,430 | ) | (3,942,982 | ) | ||||||||
| Net interest income | 14,424,987 | 13,183,499 | 27,466,920 | 26,423,116 | ||||||||||||
| Expenses | ||||||||||||||||
| Management and incentive fees, net | 1,932,957 | 1,774,880 | 3,668,490 | 3,529,621 | ||||||||||||
| General and administrative expense | 1,271,124 | 1,254,535 | 2,467,231 | 2,644,802 | ||||||||||||
| Professional fees | 480,113 | 409,149 | 973,059 | 859,007 | ||||||||||||
| Stock based compensation | 881,128 | 836,333 | 1,530,440 | 1,367,626 | ||||||||||||
| Provision (benefit) for current expected credit losses | 1,147,290 | (275,471 | ) | 74,014 | 104,808 | |||||||||||
| Total expenses | 5,712,612 | 3,999,426 | 8,713,234 | 8,505,864 | ||||||||||||
| Change in unrealized gain (loss) on investments | 165,000 | - | 165,000 | (75,604 | ) | |||||||||||
| Realized gain on debt securities, at fair value | - | - | - | 72,428 | ||||||||||||
| Net Income before income taxes | 8,877,375 | 9,184,073 | 18,918,686 | 17,914,076 | ||||||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net Income | $ | 8,877,375 | $ | 9,184,073 | $ | 18,918,686 | $ | 17,914,076 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic earnings per common share | $ | 0.42 | $ | 0.47 | $ | 0.90 | $ | 0.95 | ||||||||
| Diluted earnings per common share | $ | 0.41 | $ | 0.46 | $ | 0.89 | $ | 0.93 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic weighted average shares of common stock outstanding | 21,002,787 | 19,378,445 | 20,931,025 | 18,826,182 | ||||||||||||
| Diluted weighted average shares of common stock outstanding | 21,487,106 | 19,890,376 | 21,376,645 | 19,265,434 | ||||||||||||
Distributable Earnings
In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance. Distributable Earnings is a measure that is not prepared in accordance with GAAP. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for current expected credit losses and (v) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors. We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to stockholders in assessing the overall performance of our business. As a REIT, we are required to distribute at least 90% of our annual REIT taxable income and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, we generally intend to attempt to pay dividends to our stockholders in an amount equal to our net taxable income, if and to the extent authorized by our Board. Distributable Earnings is one of many factors considered by our Board in authorizing dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends.
In our Annual Report on Form 10-K, we defined Distributable Earnings so that, in addition to the exclusions noted above, the term also excluded from net income Incentive Compensation paid to our Manager. We believe that revising the term Distributable Earnings so that it is presented net of Incentive Compensation, while not a direct measure of net taxable income, over time, can be considered a more useful indicator of our ability to pay dividends. This adjustment to the calculation of Distributable Earnings has no impact on period-to-period comparisons. Distributable Earnings should not be considered as substitutes for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
| Three months ended | Three months ended | Six months ended | Six months ended | |||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Net Income | $ | 8,877,375 | $ | 9,184,073 | $ | 18,918,686 | $ | 17,914,076 | ||||||||
| Adjustments to net income | ||||||||||||||||
| Stock based compensation | 881,128 | 836,333 | 1,530,440 | 1,367,626 | ||||||||||||
| Amortization of debt issuance costs | 110,148 | 182,593 | 220,458 | 182,593 | ||||||||||||
| Provision (benefit) for current expected credit losses | 1,147,290 | (275,471 | ) | 74,014 | 104,808 | |||||||||||
| Change in unrealized gain (loss) on investments | (165,000 | ) | - | (165,000 | ) | 75,604 | ||||||||||
| Distributable Earnings | $ | 10,850,941 | $ | 9,927,528 | $ | 20,578,598 | $ | 19,644,707 | ||||||||
| Basic weighted average shares of common stock outstanding (in shares) | 21,002,787 | 19,378,445 | 20,931,025 | 18,826,182 | ||||||||||||
| Basic Distributable Earnings per Weighted Average Share | $ | 0.52 | $ | 0.51 | $ | 0.98 | $ | 1.04 | ||||||||
| Diluted weighted average shares of common stock outstanding (in shares) | 21,487,106 | 19,890,376 | 21,376,645 | 19,265,434 | ||||||||||||
| Diluted Distributable Earnings per Weighted Average Share | $ | 0.51 | $ | 0.50 | $ | 0.96 | $ | 1.02 | ||||||||
