Chicago Atlantic BDC (LIEN) Q4 2024 earnings summary

Executive summary

• Completed first full quarter as Chicago Atlantic BDC, Inc., following the acquisition of a $219.6 million loan portfolio and a name/ticker change.

• Built a diversified portfolio focused on senior secured loans in cannabis and underserved markets.

• Declared two consecutive quarterly dividends of $0.34 per share, a 36% increase from the prior quarter.

• Closed a $100 million senior secured credit facility at 300 basis points over SOFR.

• Deployed $45.6 million in gross fundings from October 1, 2024, to March 31, 2025.

Financial highlights

• Q4 2024 total investment income was $12.7 million; net investment income was $8.0 million ($0.35/share).

• Full year 2024 total investment income reached $21.7 million; net investment income was $9.5 million ($0.91/share).

• Excluding acquisition-related expenses, full year net investment income was $14.8 million ($1.43/share).

• Net assets at year-end were $301.2 million; NAV per share was $13.20.

• 22.8 million common shares outstanding at year-end.

Outlook and guidance

• Pipeline of nearly $644 million in potential debt transactions across 39 companies.

• Management expects to continue scaling the portfolio, focusing on high-yield, senior secured loans in niche markets.

• Focused on deploying the new $100 million credit facility; leverage expected to remain below BDC averages as portfolio grows.

• Anticipates robust portfolio growth opportunities in both cannabis and non-cannabis sectors.

• Forward-looking statements highlight potential for further investment activity and risk-adjusted returns.