Chicago Atlantic Real Estate Finance (REFI) investor relations material

Executive summary

• Delivered stable Q1 2026 results amid macroeconomic volatility, focusing on short-duration, geographically diversified loans to profitable, state-licensed cannabis operators, with all loans protected by fixed or floored floating rates.

• Net income for Q1 2026 was $4.8 million, down 52% year-over-year, primarily due to higher credit loss provisions and lower portfolio yield.

• Outstanding loan principal reached $413.6 million across 25–29 loans, with a weighted average yield to maturity of 15.8%.

• Federal rescheduling of medical cannabis to Schedule III is expected to improve borrower credit profiles and cash flows, with further regulatory changes possible.

• Conservative underwriting and risk management remain central, with no reliance on regulatory-driven credit improvements.

Financial highlights

• Net interest income was $13.1 million, flat year-over-year and down from $14.2 million in Q4 2025.

• Distributable earnings per share were $0.47 (basic) and $0.46 (diluted), totaling $9.8 million for Q1 2026.

• Book value per share stood at $14.39 as of March 31, 2026.

• Dividend of $0.47 per share distributed in April 2026, totaling $9.9 million, with a historical yield on cost of 11.8% since IPO.

• Total assets reached $435.9 million, with $132.5 million in liabilities and $303.4 million in equity.

Outlook and guidance

• Expects to maintain a dividend payout ratio of 90–100% of distributable earnings for 2026, with potential for a special dividend in Q4 if taxable income exceeds regular distributions.

• Management anticipates continued loan origination growth and may raise additional equity or debt to support expansion.

• Regulatory reforms, including federal rescheduling and bans on unregulated THC, are expected to improve revenue visibility, margin durability, and lending opportunities.

• Conservative approach to regulatory changes, forecasting a range of outcomes from ongoing federal rulemaking.