Chicago Atlantic Real Estate Finance (NASDAQ:REFI) Posts Quarterly Earnings Results

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) posted its earnings results on Tuesday. The company reported $0.43 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.05), FiscalAI reports. The firm had revenue of $12.61 million for the quarter, compared to analyst estimates of $14.17 million. Chicago Atlantic Real Estate Finance had a return on equity of 11.48% and a net margin of 54.57%.

Here are the key takeaways from Chicago Atlantic Real Estate Finance’s conference call:

• Distributable earnings of $0.44 per share fell below the $0.47 dividend, primarily because $16.3 million of loan prepayments were redeployed later in the quarter; management characterized the issue as timing-related rather than a deterioration in portfolio quality.
• The loan portfolio grew to approximately $453 million, with a 15.8% weighted average yield to maturity, while non-accruals declined to 3.7% from 4.8% and portfolio risk ratings remained broadly stable.
• REFI closed a $62.5 million Koach Capital financing secured by 32 cannabis-leased retail properties, generating a 12% contractual yield plus potential upside from exit fees tied to property sales and cap-rate compression.
• The proposed all-stock merger with Chicago Atlantic BDC is currently expected to close in the fourth quarter of 2026, subject to shareholder, regulatory, lender and other customary approvals; management expects benefits from greater scale, diversification and liquidity.
• Management reported a $649 million cannabis opportunity pipeline and increasing borrower demand for debt capital, driven by potential regulatory reform, industry expansion and merger-and-acquisition activity, while noting that competition in cannabis lending remains limited.

Chicago Atlantic Real Estate Finance Stock Up 2.2%

Shares of REFI opened at $10.45 on Thursday. Chicago Atlantic Real Estate Finance has a 52-week low of $9.69 and a 52-week high of $14.57. The company has a 50-day simple moving average of $10.68 and a 200-day simple moving average of $11.44. The company has a market capitalization of $221.64 million, a PE ratio of 7.63 and a beta of 0.24.

Chicago Atlantic Real Estate Finance Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.47 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 18.0%. Chicago Atlantic Real Estate Finance’s dividend payout ratio is 137.23%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Atlantic Securities set a $16.00 price objective on shares of Chicago Atlantic Real Estate Finance in a research report on Wednesday. Weiss Ratings raised Chicago Atlantic Real Estate Finance from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday. Citigroup reissued a “market outperform” rating on shares of Chicago Atlantic Real Estate Finance in a report on Wednesday. Citizens Jmp decreased their price target on Chicago Atlantic Real Estate Finance from $18.00 to $16.00 and set a “market outperform” rating for the company in a report on Wednesday. Finally, Zacks Research downgraded shares of Chicago Atlantic Real Estate Finance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $15.33.

Institutional Investors Weigh In On Chicago Atlantic Real Estate Finance

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. increased its holdings in Chicago Atlantic Real Estate Finance by 29.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 3,552 shares of the company’s stock valued at $50,000 after acquiring an additional 803 shares in the last quarter. Osaic Holdings Inc. raised its position in shares of Chicago Atlantic Real Estate Finance by 1.0% during the 4th quarter. Osaic Holdings Inc. now owns 84,478 shares of the company’s stock worth $1,036,000 after purchasing an additional 862 shares during the last quarter. Commonwealth Equity Services LLC lifted its stake in Chicago Atlantic Real Estate Finance by 1.8% in the 4th quarter. Commonwealth Equity Services LLC now owns 49,895 shares of the company’s stock valued at $612,000 after buying an additional 897 shares in the last quarter. The Manufacturers Life Insurance Company increased its position in Chicago Atlantic Real Estate Finance by 4.6% during the second quarter. The Manufacturers Life Insurance Company now owns 23,275 shares of the company’s stock worth $325,000 after buying an additional 1,031 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Chicago Atlantic Real Estate Finance by 8.5% in the second quarter. Geode Capital Management LLC now owns 18,367 shares of the company’s stock worth $257,000 after acquiring an additional 1,446 shares during the last quarter. 25.48% of the stock is currently owned by institutional investors and hedge funds.

About Chicago Atlantic Real Estate Finance

Chicago Atlantic Real Estate Finance, Inc (NASDAQ:REFI) is a publicly listed real estate finance company that specializes in originating and acquiring commercial real estate debt. Pursuant to its election to be treated as a real estate investment trust (REIT), REFI’s investment strategy focuses on floating-rate senior mortgage loans secured by income-producing properties across the United States. The company targets stabilized, performing assets in sectors such as multifamily, office, retail and industrial, aiming to generate attractive risk-adjusted returns through current income.

Established in 2015 and headquartered in Chicago, Illinois, REFI completed its initial public offering in 2019.