Chicago Atlantic Real Estate Finance (REFI) Q4 2025 earnings summary

Executive summary

• Operates at the intersection of real estate, credit, and the U.S. cannabis sector, focusing on senior secured debt investments with limited lending competition.

• Closed over $3.2B in loans since inception, with $411.1M in outstanding principal as of December 31, 2025.

• Maintains a specialized team of over 100 professionals managing $2.3B in capital and over 100 years of combined expertise.

• Portfolio is diversified by loan size, rate type, operator, geography, and collateral, with minimal overlap with broader private credit markets.

• Investment pipeline increased to $616 million, indicating robust future activity and continued first-look access to major cannabis lending opportunities.

Financial highlights

• Loan portfolio principal totaled $411.1 million across 26 companies as of December 31, 2025, with a weighted average yield to maturity of 16.3%.

• Net income for 2025 was $36.0 million, with distributable earnings of $40.4 million and net interest income of $55.4 million.

• Distributable earnings per share were $1.92 (basic) and $1.88 (diluted) for 2025.

• Book value per share was $14.60 as of December 31, 2025.

• Annualized dividend yield to cost has averaged 12.5% since inception, with $41.4 million in regular dividends declared for 2025.

Outlook and guidance

• Targeting net portfolio growth for 2026, with $50 million in available liquidity as of March 12, 2026.

• Dividend payout ratio for 2026 expected to be 90%-100% of distributable earnings, with potential for a special dividend if required.

• Regulatory reforms, including federal rescheduling and a ban on unregulated hemp-derived THC, are expected to improve revenue visibility and margin durability for licensed operators.

• Management anticipates 2026 to be a pivotal year due to potential regulatory changes and strong investment demand.

• No changes in underwriting standards or pricing despite regulatory rescheduling; increased demand for debt capital but no new lenders entering the market.