CHICAGO, Nov. 04, 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 September 30, 2025.
Peter Sack, Co-Chief Executive Officer, noted, "Our loan portfolio and earnings performance this quarter continue to benefit from a focus on proven operators in limited-license states, strong underwriting, and disciplined deployment of available liquidity. We also remain well-insulated from potential adjustments in the Prime rate with 86% of our current loans structured with interest rate floors greater than or equal to the prevailing Prime rate. With a strong pace of originations during the quarter, a pipeline of over $415 million in new opportunities, and management of our upcoming maturities, we are on track to generate net growth in the loan portfolio for 2025. Our focus is on delivering strong, risk-adjusted returns to our stockholders, and we reinforced that commitment once again through recent purchases of the Company's stock in the open market."
Results of Operations
For the three months ended
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September 30, 2025 June 30, 2025 September 30, 2024
-------------------------- ----------------------- -------------------------
Per Per Per
Total Amount Share Total Amount Share Total Amount Share
------------ -------- ------------ ----- ------------ -------
OPERATING
RESULTS
Net interest
income $ 13,685,274 $ 0.64 $ 14,424,987 $0.67 $ 14,459,393 $ 0.72
Total expenses
before
provision for
expected
credit losses $ 4,193,515 $ 0.20 $ 4,565,322 $0.21 $ 4,237,354 $ 0.21
Net income --
diluted $ 8,934,539 $ 0.42 $ 8,877,375 $0.41 $ 11,211,636 $ 0.56
(Benefit)
provision for
current
expected
credit losses $ 557,220 $ 0.03 $ 1,147,290 $0.05 $ (989,597) $ (0.05)
Distributable
earnings --
basic $ 10,522,142 $ 0.50 $ 10,850,941 $0.52 $ 11,159,241 $ 0.57
Diluted
weighted
average shares
of common
stock
outstanding 21,485,776 -- 21,487,106 -- 20,058,417 --
Regular
dividends
declared (per
share) -- $ 0.47 -- $0.47 -- $ 0.47
PORTFOLIO
PERFORMANCE
Total loan
principal
outstanding $399,948,492 $421,918,148 $356,285,780
Portfolio
companies 26 30 29
Unfunded
commitments $ 29,761,667 $ 16,595,000 $ 6,000,000
Gross unlevered
weighted
average yield
to maturity 16.5% 16.8% 18.2%
Aggregate loan
portfolio
bearing a
variable
interest rate 63.3% 59.3% 62.2%
Book value per
share $ 14.71 $ 14.71 $ 15.05
Debt/equity
ratio 32.8% 38.8% 18.3%
Subsequent Portfolio Activity
-- During the subsequent period from October 1, 2025, to November 4, 2025,
the Company advanced approximately $3.3 million to existing borrowers on
delayed draw term loan facilities.
Capital Activity
-- As of September 30, 2025, the Company had approximately $101.7 million of
total leverage, comprised of $52.4 million drawn on the Revolving Loan
and $49.3 million, at carrying value, of notes payable due 2028.
-- 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
this Amendment.
-- As of November 4, 2025, the Company has $69.1 million available on its
secured revolving credit facility, and total liquidity, net of estimated
liabilities, of approximately $63 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 Third 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.
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
IR@REFI.reit
CHICAGO ATLANTIC REAL ESTATE FINANCE, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2025 December 31, 2024
------------------- -------------------
(unaudited)
Assets
Loans held for
investment $ 379,132,272 $ 364,238,847
Loans held for
investment -- related
party (Note 8) 18,918,950 38,238,199
--------------- ---------------
Loans held for
investment, at
carrying value 398,051,222 402,477,046
Current expected credit
loss reserve (4,990,988) (4,346,869)
--------------- ---------------
Loans held for
investment at
carrying value,
net 393,060,234 398,130,177
Loans, at fair value --
related party
(amortized cost of $0
and $5,500,000,
respectively) -- 5,335,000
Cash and cash
equivalents 28,920,537 26,400,448
Other receivables and
assets, net 581,815 459,187
Interest receivable 4,488,146 1,453,823
Related party
receivables 26,432 3,370,339
--------------- ---------------
Total Assets $ 427,077,164 $ 435,148,974
=============== ===============
Liabilities
Revolving loan $ 52,400,000 $ 55,000,000
Notes payable, net 49,274,644 49,096,250
Dividend payable 9,905,390 13,605,153
Related party payables 3,073,015 2,043,403
Management and
incentive fees
payable 1,435,071 2,863,158
Accounts payable and
other liabilities 1,059,768 2,285,035
Interest reserve 14,597 1,297,878
Total Liabilities 117,162,485 126,190,877
--------------- ---------------
Commitments and
contingencies (Note 9)
Stockholders' equity
Common stock, par value
$0.01 per share,
100,000,000 shares
authorized and
21,075,298 and
20,829,228 shares
issued and
outstanding,
respectively 210,753 208,292
Additional
paid-in-capital 322,226,137 318,886,768
Accumulated deficit (12,522,211) (10,136,963)
--------------- ---------------
Total stockholders' equity 309,914,679 308,958,097
--------------- ---------------
Total liabilities and
stockholders' equity $ 427,077,164 $ 435,148,974
=============== ===============
CHICAGO ATLANTIC REAL ESTATE FINANCE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the three months For the nine months ended
ended September 30, September 30,
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenues
Interest income $15,250,866 $16,258,744 $46,860,217 $46,624,842
Interest expense (1,565,592) (1,799,351) (5,708,022) (5,742,333)
---------- ---------- ---------- ----------
Net interest income 13,685,274 14,459,393 41,152,195 40,882,509
---------- ---------- ---------- ----------
Expenses
Management and
incentive fees,
net 1,435,071 1,669,116 5,103,561 5,198,738
General and
administrative
expense 1,298,910 1,254,062 3,766,140 3,898,864
Professional
fees 530,880 468,652 1,503,939 1,327,659
Stock based
compensation 928,654 845,524 2,459,094 2,213,150
Provision
(benefit) for
current
expected credit
losses 557,220 (989,597) 631,233 (884,789)
---------- ---------- ---------- ----------
Total expenses 4,750,735 3,247,757 13,463,967 11,753,622
---------- ---------- ---------- ----------
Change in
unrealized gain
(loss) on
investments -- -- 165,000 (75,604)
Realized gain on
debt
securities, at
fair value -- -- -- 72,428
---------- ---------- ---------- ----------
Net Income before
income taxes 8,934,539 11,211,636 27,853,228 29,125,711
Income tax
expense -- -- -- --
---------- ---------- ---------- ----------
Net Income $ 8,934,539 $11,211,636 $27,853,228 $29,125,711
========== ========== ========== ==========
Earnings per
common share:
Basic earnings
per common
share $ 0.42 $ 0.57 $ 1.33 $ 1.53
Diluted earnings
per common
share $ 0.42 $ 0.56 $ 1.30 $ 1.49
Weighted average
number of common
shares
outstanding:
Basic weighted
average shares of
common stock
outstanding 21,074,771 19,625,190 20,979,467 19,094,462
Diluted weighted
average shares of
common stock
outstanding 21,485,776 20,058,417 21,413,422 19,531,691
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 Three
months months Nine months Nine months
ended ended ended ended
September September September September
30, 2025 30, 2024 30, 2025 30, 2024
----------- ----------- ----------- -----------
Net Income $ 8,934,539 $11,211,636 $27,853,228 $29,125,711
Adjustments to
net income
Stock based
compensation 928,654 845,524 2,459,094 2,213,150
Amortization
of debt
issuance
costs 101,729 91,678 322,186 182,593
Provision
(benefit) for
current
expected
credit
losses 557,220 (989,597) 631,233 (884,789)
Change in
unrealized
gain (loss)
on
investments -- -- (165,000) 75,604
---------- ---------- ---------- ----------
Distributable
Earnings $10,522,142 $11,159,241 $31,100,741 $30,712,269
========== ========== ========== ==========
Basic weighted
average
shares of
common stock
outstanding
(in shares) 21,074,771 19,625,190 20,979,467 19,094,462
Basic
Distributable
Earnings per
Weighted Average
Share $ 0.50 $ 0.57 $ 1.48 $ 1.61
Diluted
weighted
average
shares of
common stock
outstanding
(in shares) 21,485,776 20,058,417 21,413,422 19,531,691
Diluted
Distributable
Earnings per
Weighted Average
Share $ 0.49 $ 0.56 $ 1.45 $ 1.57
(END) Dow Jones Newswires
November 04, 2025 07:00 ET (12:00 GMT)
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