Chicago Atlantic Real Estate Finance (REFI) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $8.88M, down from $9.18M in Q2 2024, with six-month net income rising to $18.92M; net interest income for Q2 2025 was $14.4M, up from $13.2M in Q2 2024.

• Distributable earnings for Q2 2025 were $10.85M ($0.52 per basic share, $0.51 diluted), up from $9.93M in Q2 2024.

• Loan portfolio principal outstanding was $421.9M as of June 30, 2025, with a weighted average yield to maturity of 16.8%.

• Focused on lending to state-licensed cannabis operators, maintaining a disciplined, low-leverage approach and strong real estate collateral coverage.

• Regular quarterly dividend of $0.47 per share declared and paid in July 2025.

Financial highlights

• Total assets as of June 30, 2025, were $455.2M, up from $435.1M at year-end 2024.

• Book value per share was $14.71 at June 30, 2025, with 21.5M shares outstanding on a fully diluted basis.

• Net interest income for Q2 2025 was $14.4M, up 10.6% from Q1, driven by non-recurring fees and new deployments.

• Distributable earnings for Q2 2025 were $10.85M, with annualized dividend yield of approximately 12-14%.

• Weighted average yield-to-maturity IRR on the loan portfolio was 16.8% as of June 30, 2025.

Outlook and guidance

• Affirmed 2025 outlook, with a $650M pipeline of cannabis lending opportunities and plans to redeploy repayments for growth.

• Dividend payout ratio guidance remains at 90%-100% of basic distributable earnings per share for 2025.

• Management expects continued strong demand for cannabis financing as more states legalize and traditional lending remains limited.

• Sufficient liquidity is anticipated for the next twelve months, supported by cash, credit facility, and operations.

• Special dividend may be issued in Q4 if taxable income exceeds regular distributions.