Chicago Atlantic Real Estate Finance Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Chicago Atlantic Real Estate Finance (NASDAQ: REFI) reported first-quarter 2026 results for the period ended March 31, 2026. Key metrics: net income $4.84M, distributable earnings $9.83M, portfolio principal $413.59M, gross unlevered yield 15.8%, and book value per share $14.39. The company declared regular dividends of $0.47 per share and reported liquidity of approximately $54M with $59M available on its secured revolving credit facility. Management highlighted loan protection via fixed rates or floors and noted federal rescheduling of medical cannabis as a potential credit tailwind.
Positive
- Regular dividend maintained at $0.47 per share
- Distributable earnings of $9.83M for Q1 2026
- Available liquidity approximately $54M and $59M available on revolver
- Weighted average gross yield of 15.8% across the portfolio
Negative
- Net income declined to $4.84M from $10.04M YoY (~52% decline)
- Provision for credit losses of $3.84M in Q1 2026 versus a benefit of $1.07M in Q1 2025
- Debt/equity ratio rose to 38.4% from 28.0%
News Market Reaction – REFI
In the May 7 session, REFI declined 5.14%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4 2025 earnings | Positive | -0.5% | Reported Q4 2025 and full-year results with solid net interest income and dividends. |
| Nov 04 | Q3 2025 earnings | Positive | -1.3% | Q3 2025 results showed strong distributable earnings and robust loan pipeline and leverage. |
| Aug 07 | Q2 2025 earnings | Positive | +2.7% | Q2 2025 results with strong income, portfolio growth, and healthy yield metrics. |
| May 07 | Q1 2025 earnings | Positive | +0.4% | Q1 2025 results showed higher net income, stable dividend, and rising book value. |
| Mar 12 | Q4 2024 earnings | Negative | -3.5% | Q4 2024 results with sequential net income decline but portfolio and dividend details. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent earnings releases often carried generally positive fundamentals but produced mixed reactions, with three aligned moves and two divergences and an average one-day move slightly negative.
Over the past year, Chicago Atlantic’s earnings releases (Q4 2024 through Q4 2025) have highlighted a cannabis-focused loan book near $400–420M, consistently high yields, and regular dividends of $0.47 per share. Price reactions have been mixed, with both gains and pullbacks following results. Today’s Q1 2026 report extends that narrative of high-yield lending and steady dividends, against a backdrop of shifting cannabis policy and evolving leverage and liquidity metrics.
Key Terms
paid-in-kind ("pik") interest financial
prime rate financial
schedule iii regulatory
revolving credit facility financial
senior unsecured notes financial
weighted average yield to maturity financial
regulation fd regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
CHICAGO, May 07, 2026 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic” or the “Company”), a commercial mortgage real estate investment trust, today announced its financial results for the first quarter ended March 31, 2026.
Peter Sack, Co-Chief Executive Officer, noted, “Chicago Atlantic delivered stable results for the first quarter of 2026 in an unstable macro environment by continuing to differentiate ourselves from other capital providers. Sourcing loans with shorter durations that are not broadly marketed and backed by operators and facilities that are profitable and diversified across geographies and distribution channels has kept our portfolio relatively insulated from the current pressures impacting the broader private credit markets. With
Quarterly Results of Operations
| For the three months ended | ||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||||||
| Total Amount | Per Share | Total Amount | Per Share | Total Amount | Per Share | |||||||||||||||||||
| OPERATING RESULTS | ||||||||||||||||||||||||
| Net interest income | $ | 13,124,086 | $ | 0.61 | $ | 14,238,203 | $ | 0.66 | $ | 13,041,933 | $ | 0.61 | ||||||||||||
| Total expenses before provision for expected credit losses | $ | 4,239,871 | $ | 0.20 | $ | 5,981,137 | $ | 0.28 | $ | 4,073,897 | $ | 0.19 | ||||||||||||
| Net income | $ | 4,840,364 | $ | 0.23 | $ | 8,157,249 | $ | 0.38 | $ | 10,041,312 | $ | 0.47 | ||||||||||||
| (Benefit) provision for current expected credit losses | $ | 3,837,851 | $ | 0.18 | $ | 99,817 | $ | 0.00 | $ | (1,073,276 | ) | $ | (0.05 | ) | ||||||||||
| Distributable earnings - basic | $ | 9,833,020 | $ | 0.47 | $ | 9,251,310 | $ | 0.44 | $ | 9,727,657 | $ | 0.47 | ||||||||||||
| Distributable earnings - diluted | $ | 9,833,020 | $ | 0.46 | $ | 9,251,310 | $ | 0.43 | $ | 9,727,657 | $ | 0.46 | ||||||||||||
| Diluted weighted average shares of common stock outstanding | 21,484,118 | - | 21,485,739 | - | 21,264,891 | - | ||||||||||||||||||
| Regular dividends declared | $ | 9,907,728 | $ | 0.47 | $ | 9,907,728 | $ | 0.47 | 9,820,079 | $ | 0.47 | |||||||||||||
| PORTFOLIO PERFORMANCE | ||||||||||||||||||||||||
| Total loan principal outstanding | $ | 413,589,833 | $ | 411,075,088 | $ | 407,011,816 | ||||||||||||||||||
| Portfolio companies | 25 | 26 | 30 | |||||||||||||||||||||
| Unfunded commitments | $ | 4,450,293 | $ | 31,116,960 | $ | 19,795,000 | ||||||||||||||||||
| Gross unlevered weighted average yield to maturity | 15.8 | % | 16.3 | % | 16.9 | % | ||||||||||||||||||
| Aggregate loan portfolio bearing a variable interest rate | 64.8 | % | 62.4 | % | 58.5 | % | ||||||||||||||||||
| Book value per share | $ | 14.39 | $ | 14.60 | $ | 14.87 | ||||||||||||||||||
| Debt/equity ratio | 38.4 | % | 32.0 | % | 28.0 | % | ||||||||||||||||||
Portfolio Activity
The following table summarizes the Company's primary investment activities:
| Three months ended March 31, 2026 | |||||||
| Principal | Portfolio Companies | ||||||
| Loans Outstanding December 31, 2025 | $ | 411,075,088 | 26 | ||||
| Principal Advances1 | |||||||
| New portfolio companies | 16,211,500 | 1 | |||||
| Existing portfolio companies | 37,868,649 | 4 | |||||
| 54,080,149 | |||||||
| Scheduled Principal Repayments | |||||||
| New portfolio companies | - | ||||||
| Existing portfolio companies | (3,349,541 | ) | 11 | ||||
| (3,349,541 | ) | ||||||
| Unscheduled Principal Repayments | |||||||
| New portfolio companies | - | ||||||
| Existing portfolio companies | (48,215,862 | ) | 5 | ||||
| (48,215,862 | ) | ||||||
| Net change in principal outstanding | 2,514,745 | ||||||
| Loans Outstanding March 31, 2026 | $ | 413,589,833 | 25 | ||||
1 Principal advances include capitalized paid-in-kind ("PIK") interest and/or other fees, if any, that were capitalized to the outstanding loan balance of the subject loan(s).
Capital Activity
- As of March 31, 2026, the Company had approximately
$117.1 million of total drawn leverage, comprised of$67.1 million drawn on the secured revolving credit facility and$50.0 million of outstanding senior unsecured notes due 2028. - As of May 7, 2026, the Company has
$59.0 million available on its secured revolving credit facility, and total liquidity, net of estimated liabilities, of approximately$54 million .
2026 Outlook
Chicago Atlantic offered the following outlook for full year 2026:
- The Company expects to maintain a dividend payout ratio based on Distributable Earnings per weighted average diluted share of approximately
90% to100% on a full year basis. - If the Company’s taxable income requires additional distribution in excess of the regular quarterly dividend, in order to meet its 2026 taxable income distribution requirements, the Company expects to meet that requirement with a special dividend in the fourth quarter of 2026.
Conference Call and Quarterly Earnings Supplemental Details
Chicago Atlantic will host a conference call and live audio webcast, both open for the general public to hear, later today at 9:00 a.m. Eastern Time. The number to call for this interactive teleconference is (833) 630-1956 (international callers: 412-317-1837). The live audio webcast of the Company’s quarterly conference call will be available online in the Investor Relations section of the Company’s website at www.refi.reit. The online replay will be available approximately one hour after the end of the call and archived for one year.
Chicago Atlantic posted its First Quarter 2026 Earnings Supplemental on the Investor Relations page of its website. Chicago Atlantic routinely posts important information for investors on its website, www.refi.reit. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in Chicago Atlantic to monitor the Investor Relations page of its website, in addition to following its press releases, SEC filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications.
About Chicago Atlantic Real Estate Finance, Inc.
Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a market-leading commercial mortgage REIT utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States. REFI is part of the Chicago Atlantic platform, which has offices in Chicago, Miami, New York, and London.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward- looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. More information on these risks and other potential factors that could affect our business and financial results is included in our filings with the SEC. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Tripp Sullivan
Lisa Kampf
SCR Partners
IR@REFI.reit
| CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Loans held for investment | $ | 332,462,151 | $ | 332,772,244 | ||||
| Loans held for investment - related party | 76,775,335 | 76,183,323 | ||||||
| Loans held for investment, at carrying value | 409,237,486 | 408,955,567 | ||||||
| Current expected credit loss reserve | (8,680,583 | ) | (5,062,785 | ) | ||||
| Loans held for investment at carrying value, net | 400,556,903 | 403,892,782 | ||||||
| Cash and cash equivalents | 27,855,945 | 14,948,884 | ||||||
| Interest receivable | 4,907,288 | 4,009,800 | ||||||
| Other receivables and assets, net | 2,562,700 | 874,245 | ||||||
| Related party receivables | 65,776 | 1,189,937 | ||||||
| Total Assets | $ | 435,948,612 | $ | 424,915,648 | ||||
| Liabilities | ||||||||
| Revolving loan | $ | 67,050,000 | $ | 49,100,000 | ||||
| Notes payable, net | 49,393,248 | 49,334,459 | ||||||
| Dividend payable | 11,347,028 | 11,157,220 | ||||||
| Related party payables | 1,453,942 | 2,214,920 | ||||||
| Management and incentive fees payable | 1,719,495 | 3,098,576 | ||||||
| Interest payable | 310,106 | 1,348,334 | ||||||
| Accounts payable and other liabilities | 1,242,135 | 834,977 | ||||||
| Interest reserve | 10,000 | 12,686 | ||||||
| Total Liabilities | 132,525,954 | 117,101,172 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Common stock, par value | 210,803 | 210,803 | ||||||
| Additional paid-in-capital | 323,991,208 | 323,125,854 | ||||||
| Accumulated deficit | (20,779,353 | ) | (15,522,181 | ) | ||||
| Total stockholders' equity | 303,422,658 | 307,814,476 | ||||||
| Total liabilities and stockholders' equity | $ | 435,948,612 | $ | 424,915,648 | ||||
| CHICAGO ATLANTIC REAL ESTATE FINANCE, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||
| For the three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | ||||||||
| Interest income | $ | 15,164,688 | $ | 15,107,315 | ||||
| Interest expense | (2,040,602 | ) | (2,065,382 | ) | ||||
| Net interest income | 13,124,086 | 13,041,933 | ||||||
| Expenses | ||||||||
| Management and incentive fees, net | 1,719,495 | 1,735,533 | ||||||
| General and administrative expense | 1,151,474 | 1,196,106 | ||||||
| Professional fees | 503,548 | 492,946 | ||||||
| Stock based compensation | 865,354 | 649,312 | ||||||
| Provision (benefit) for current expected credit losses | 3,837,851 | (1,073,276 | ) | |||||
| Total expenses | 8,077,722 | 3,000,621 | ||||||
| Change in unrealized loss on investment | (206,000 | ) | - | |||||
| Realized gain on debt securities, at fair value | - | - | ||||||
| Net income before income taxes | 4,840,364 | 10,041,312 | ||||||
| Income tax expense | - | - | ||||||
| Net income | $ | 4,840,364 | $ | 10,041,312 | ||||
| Earnings per common share: | ||||||||
| Basic earnings per common share | $ | 0.23 | $ | 0.48 | ||||
| Diluted earnings per common share | $ | 0.23 | $ | 0.47 | ||||
| Weighted average number of common shares outstanding: | ||||||||
| Basic weighted average shares of common stock outstanding | 21,080,272 | 20,858,466 | ||||||
| Diluted weighted average shares of common stock outstanding | 21,484,118 | 21,264,891 | ||||||
Distributable Earnings
In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance. Distributable Earnings is a measure that is not prepared in accordance with GAAP. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as OID, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for current expected credit losses and (v) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors. We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to stockholders in assessing the overall performance of our business. As a REIT, we are required to distribute at least
In our Annual Report on Form 10-K for the year ended December 31, 2025, we defined Distributable Earnings so that, in addition to the exclusions noted above, the term also excluded from net income Incentive Compensation paid to our Manager. We believe that revising the term Distributable Earnings so that it is presented net of Incentive Compensation, while not a direct measure of net taxable income, over time, can be considered a more useful indicator of our ability to pay dividends. This adjustment to the calculation of Distributable Earnings has no impact on period-to-period comparisons. Distributable Earnings should not be considered as substitutes for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
| Three months ended | ||||||||
| March 31, 2026 (unaudited) | March 31, 2025 (unaudited) | |||||||
| Net Income | $ | 4,840,364 | $ | 10,041,312 | ||||
| Adjustments to net income | ||||||||
| Stock based compensation | 865,354 | 649,312 | ||||||
| Amortization of debt issuance costs | 83,451 | 110,309 | ||||||
| Provision (benefit) for current expected credit losses | 3,837,851 | (1,073,276 | ) | |||||
| Change in unrealized loss on investment | 206,000 | - | ||||||
| Distributable Earnings | $ | 9,833,020 | $ | 9,727,657 | ||||
| Basic weighted average shares of common stock outstanding (in shares) | 21,080,272 | 20,858,466 | ||||||
| Basic Distributable Earnings per Weighted Average Share | $ | 0.47 | $ | 0.47 | ||||
| Diluted weighted average shares of common stock outstanding (in shares) | 21,484,118 | 21,264,891 | ||||||
| Diluted Distributable Earnings per Weighted Average Share | $ | 0.46 | $ | 0.46 | ||||
