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

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

Shares of REFI traded up $0.34 during trading hours on Friday, hitting $11.96. The company had a trading volume of 304,561 shares, compared to its average volume of 150,003. The company has a market capitalization of $253.67 million, a PE ratio of 8.31 and a beta of 0.25. Chicago Atlantic Real Estate Finance has a one year low of $10.74 and a one year high of $15.20. The company’s fifty day moving average price is $11.94 and its two-hundred day moving average price is $12.35.

Chicago Atlantic Real Estate Finance Announces Dividend

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

Analyst Upgrades and Downgrades

REFI has been the subject of several research reports. Oppenheimer cut Chicago Atlantic Real Estate Finance from an “outperform” rating to a “market perform” rating in a report on Monday, March 16th. Zacks Research raised Chicago Atlantic Real Estate Finance from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 19th. One research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, Chicago Atlantic Real Estate Finance presently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. grew its stake in Chicago Atlantic Real Estate Finance by 29.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 3,552 shares of the company’s stock worth $50,000 after buying an additional 803 shares during the last quarter. Osaic Holdings Inc. grew its stake in Chicago Atlantic Real Estate Finance by 1.0% during the 4th quarter. Osaic Holdings Inc. now owns 84,478 shares of the company’s stock worth $1,036,000 after buying an additional 862 shares during the last quarter. Commonwealth Equity Services LLC grew its stake in shares of Chicago Atlantic Real Estate Finance by 1.8% during the fourth quarter. Commonwealth Equity Services LLC now owns 49,895 shares of the company’s stock worth $612,000 after acquiring an additional 897 shares during the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Chicago Atlantic Real Estate Finance by 4.6% during the second quarter. The Manufacturers Life Insurance Company now owns 23,275 shares of the company’s stock worth $325,000 after acquiring an additional 1,031 shares during 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 acquiring an additional 1,446 shares during the last quarter. 25.48% of the stock is currently owned by hedge funds and other institutional investors.

Chicago Atlantic Real Estate Finance Company Profile

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.