Chicago Atlantic Real Estate Finance (NASDAQ:REFI) Issues Earnings Results, Misses Expectations By $0.02 EPS

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) issued its quarterly earnings data on Thursday. The company reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $13.12 million for 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 Price Performance

Shares of NASDAQ:REFI traded up $0.34 on Friday, hitting $11.96. The company’s stock had a trading volume of 304,561 shares, compared to its average volume of 150,003. The company has a 50-day simple moving average of $11.94 and a 200 day simple moving average of $12.35. Chicago Atlantic Real Estate Finance has a 1 year low of $10.74 and a 1 year high of $15.20. 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 Announces Dividend

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

Institutional Trading of Chicago Atlantic Real Estate Finance

Institutional investors and hedge funds have recently modified their holdings of the business. Strs Ohio purchased a new stake in shares of Chicago Atlantic Real Estate Finance in the 1st quarter valued at about $47,000. Russell Investments Group Ltd. raised its position in shares of 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 valued at $50,000 after buying an additional 803 shares in the last quarter. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Chicago Atlantic Real Estate Finance during the 4th quarter valued at $53,000. EverSource Wealth Advisors LLC raised its position in shares of Chicago Atlantic Real Estate Finance by 3,041.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 6,722 shares of the company’s stock valued at $94,000 after buying an additional 6,508 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its position in shares of Chicago Atlantic Real Estate Finance by 63.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 8,111 shares of the company’s stock valued at $113,000 after buying an additional 3,163 shares in the last quarter. Hedge funds and other institutional investors own 25.48% of the company’s stock.

Wall Street Analyst Weigh In

REFI has been the topic of several recent analyst reports. Zacks Research upgraded shares of Chicago Atlantic Real Estate Finance from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 19th. Oppenheimer cut shares of Chicago Atlantic Real Estate Finance from an “outperform” rating to a “market perform” rating in a research note on Monday, March 16th. 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.com, Chicago Atlantic Real Estate Finance presently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

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.