Chicago Atlantic Real Estate Finance | 8-K: FY2025 Q2 Revenue: USD 16.5 M

LB filings
2025.08.07 11:22
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Revenue: As of FY2025 Q2, the actual value is USD 16.5 M.

EPS: As of FY2025 Q2, the actual value is USD 0.41, beating the estimate of USD 0.4033.

EBIT: As of FY2025 Q2, the actual value is USD 8.877 M.

Financial Metrics Summary

Net Interest Income

  • Net interest income for the three months ended June 30, 2025, was $14,424,987, compared to $13,041,933 for the three months ended March 31, 2025, and $13,183,499 for the three months ended June 30, 2024.

Total Expenses

  • Total expenses before provision for expected credit losses for the three months ended June 30, 2025, were $4,565,322, compared to $4,073,897 for the three months ended March 31, 2025, and $4,274,897 for the three months ended June 30, 2024.

Net Income

  • Net income for the three months ended June 30, 2025, was $8,877,375, compared to $10,041,312 for the three months ended March 31, 2025, and $9,184,073 for the three months ended June 30, 2024.

Distributable Earnings

  • Distributable earnings for the three months ended June 30, 2025, were $10,850,941, compared to $9,727,657 for the three months ended March 31, 2025, and $9,927,528 for the three months ended June 30, 2024.

Total Loan Principal Outstanding

  • Total loan principal outstanding as of June 30, 2025, was $421,918,148, compared to $407,011,816 as of March 31, 2025, and $383,281,127 as of June 30, 2024.

Unfunded Commitments

  • Unfunded commitments as of June 30, 2025, were $16,595,000, compared to $19,795,000 as of March 31, 2025, and $6,000,000 as of June 30, 2024.

Weighted Average Yield to Maturity

  • The weighted average yield to maturity as of June 30, 2025, was 16.8%, compared to 16.9% as of March 31, 2025, and 18.7% as of June 30, 2024.

Debt/Equity Ratio

  • The debt/equity ratio as of June 30, 2025, was 38.8%, compared to 28.0% as of March 31, 2025, and 26.2% as of June 30, 2024.

Cash and Cash Equivalents

  • Cash and cash equivalents as of June 30, 2025, were $35,562,084, compared to $26,400,448 as of December 31, 2024.

Segment Revenue

  • The company manages a diversified portfolio of borrowers, geographies, and asset types with a focus on the cannabis industry, with a total outstanding loan principal of $421.9 million as of June 30, 2025.

Operational Metrics

  • The gross portfolio yield is 16.8%.
  • The loan to enterprise value ratio is 43.2%, and the real estate collateral coverage is 1.2x.

Unique Metrics

  • The company has closed over $2.8 billion in loans since its inception, with $2.2 billion made to cannabis operators.
  • The company has a near-term pipeline under evaluation of approximately $650 million.

Outlook / Guidance

  • Chicago Atlantic Real Estate Finance, Inc. affirmed its outlook previously issued on March 12, 2025, and plans to capitalize on opportunities in its pipeline, utilizing its extended revolving credit facility.
  • The company anticipates maintaining its current debt market share of 18% in the U.S. cannabis debt market, which is projected to grow to over $4 billion by 2031.
  • The U.S. cannabis industry is estimated to grow from $35 billion in 2025 to $69 billion by 2031.
  • The company aims to provide risk-adjusted total returns for stockholders through consistent dividends and capital appreciation.
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