Chicago Atlantic Real Estate Finance (NASDAQ:REFI) Issues Earnings Results

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) issued its quarterly earnings data on Thursday. The company reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02), FiscalAI reports. Chicago Atlantic Real Estate Finance had a net margin of 55.54% and a return on equity of 11.92%. The firm had revenue of $13.12 million during the quarter, compared to analyst estimates of $13.69 million.

Here are the key takeaways from Chicago Atlantic Real Estate Finance’s conference call:

• Management highlighted a major regulatory development — the DOJ’s April rescheduling of certain medical cannabis to Schedule III and an administrative hearing June 29–July 15 — and says this could improve operator cash flows (via 280E relief) and boost valuations; the company also reports a $482 million pipeline (about $133 million real-estate backed).
• Chicago Atlantic reported steady portfolio income (Q1 weighted average yield to maturity of 15.8%), distributable earnings per share of ~$0.47 and a maintained quarterly dividend of $0.47, with book value per share of $14.39 and roughly <$strong>$54 million of net liquidity available.
• Credit reserves rose materially — CECL reserves increased by roughly $3.8 million to $8.7 million (about 2.1% of loans) driven by specific downgrades (notably loan #36) despite non-accruals falling to 4.8% after loan #9 returned to accrual.
• The portfolio mix (35% fixed / 65% floating) and structural protections — nearly all prime?based loans are at their floors and floating loans lack interest rate caps — means limited downside to further rate declines and a competitive funding profile versus peers.

Chicago Atlantic Real Estate Finance Trading Up 2.9%

Chicago Atlantic Real Estate Finance stock traded up $0.34 during trading hours on Friday, reaching $11.96. 304,561 shares of the stock were exchanged, compared to its average volume of 150,003. The company has a market cap of $253.67 million, a P/E ratio of 8.31 and a beta of 0.25. Chicago Atlantic Real Estate Finance has a twelve month low of $10.74 and a twelve month high of $15.20. The stock has a 50 day moving average of $11.94 and a two-hundred day moving average of $12.35.

Chicago Atlantic Real Estate Finance Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were given a dividend of $0.47 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.88 annualized dividend and a yield of 15.7%. Chicago Atlantic Real Estate Finance’s dividend payout ratio is currently 111.90%.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Oppenheimer downgraded shares of Chicago Atlantic Real Estate Finance from an “outperform” rating to a “market perform” rating in a research note on Monday, March 16th. Zacks Research raised shares of Chicago Atlantic Real Estate Finance from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 19th. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.00.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Russell Investments Group Ltd. boosted its stake in shares of Chicago Atlantic Real Estate Finance by 29.2% in the 2nd quarter. Russell Investments Group Ltd. now owns 3,552 shares of the company’s stock valued at $50,000 after purchasing an additional 803 shares in the last quarter. Osaic Holdings Inc. lifted its stake in Chicago Atlantic Real Estate Finance by 1.0% in the 4th quarter. Osaic Holdings Inc. now owns 84,478 shares of the company’s stock valued at $1,036,000 after purchasing an additional 862 shares during the last quarter. Commonwealth Equity Services LLC boosted its position in Chicago Atlantic Real Estate Finance by 1.8% in the fourth quarter. Commonwealth Equity Services LLC now owns 49,895 shares of the company’s stock valued at $612,000 after buying an additional 897 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in Chicago Atlantic Real Estate Finance by 4.6% in the second quarter. The Manufacturers Life Insurance Company now owns 23,275 shares of the company’s stock valued at $325,000 after buying an additional 1,031 shares in the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of Chicago Atlantic Real Estate Finance by 8.5% during the second quarter. Geode Capital Management LLC now owns 18,367 shares of the company’s stock worth $257,000 after buying an additional 1,446 shares during the last quarter. Institutional investors and hedge funds own 25.48% of the company’s stock.

About Chicago Atlantic Real Estate Finance

Chicago Atlantic Real Estate Finance, Inc (NASDAQ:REFI) is a publicly listed real estate finance company that specializes in originating and acquiring commercial real estate debt. Pursuant to its election to be treated as a real estate investment trust (REIT), REFI’s investment strategy focuses on floating-rate senior mortgage loans secured by income-producing properties across the United States. The company targets stabilized, performing assets in sectors such as multifamily, office, retail and industrial, aiming to generate attractive risk-adjusted returns through current income.

Established in 2015 and headquartered in Chicago, Illinois, REFI completed its initial public offering in 2019.