Chicago Atlantic Real Estate Finance (REFI) Q3 2025 earnings summary

Executive summary

• Delivered consistent performance amid a volatile private credit environment, focusing on principal protection, net portfolio growth, and lending to state-licensed cannabis operators with a diversified, low-leverage portfolio.

• Closed over $3.2B in loans since inception, with $399.9M in outstanding loan principal as of September 30, 2025, and a robust origination team emphasizing capital preservation and risk-adjusted returns.

• Management and board increased share ownership to 1.8 million shares and executed open market repurchases, reflecting confidence in the business.

• 86% of loans have interest rate floors at or above the Prime rate, insulating from rate changes.

• Funded the largest real estate-backed revolving credit facility in U.S. cannabis history with Verano.

Financial highlights

• Loan portfolio principal was $399.9M across 26 companies as of September 30, 2025, with a weighted average yield to maturity of 16.5%.

• Net income for Q3 2025 was $8.9M, down from $11.2M in Q2 2025 and $11.2M in Q3 2024.

• Net interest income for Q3 2025 was $13.7M, a decrease from $14.4M in Q2 2025 and $14.5M in Q3 2024.

• Distributable earnings for Q3 2025 were $10.5M ($0.50 per share), down from $11.2M ($0.56) in Q3 2024.

• Book value per share was $14.71 with 21.5 million shares outstanding on a fully diluted basis.

Outlook and guidance

• Management expects net growth in the loan portfolio for 2025, supported by a robust origination pipeline of over $415M and extended credit facility maturity.

• Dividend payout ratio is expected to remain at 90%-100% of basic distributable earnings for 2025, with a special dividend possible if required by taxable income.

• The U.S. cannabis industry is projected to grow from $35B in 2025 to $69B by 2031, with an estimated 11%+ annual growth rate.