EX-99.1 2 ea025199201ex99-1_chicago.htm PRESS RELEASE DATED AUGUST 7, 2025

Exhibit 99.1

 

 

Chicago Atlantic Real Estate Finance Announces Second Quarter 2025 Financial Results

 

Extends Revolving Credit Facility Maturity to 2028

 

CHICAGO— (August 7, 2025) 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

IR@REFI.reit

 

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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 

 

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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 

 

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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 

 

 

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