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

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) issued its quarterly earnings data on Tuesday. The company reported $0.49 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.01), FiscalAI reports. Chicago Atlantic Real Estate Finance had a return on equity of 11.53% and a net margin of 54.57%. The company had revenue of $13.66 million during the quarter, compared to the consensus estimate of $14.95 million.

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

• Distributable earnings were $0.49 per fully diluted share, above the $0.47 quarterly dividend; the company said it has now paid that dividend for 18 consecutive quarters.
• The portfolio totaled $527.7 million across 28 borrowers, with a 14.8% weighted-average yield to maturity. Floating-rate loans make up 64% of the portfolio, and management estimates each 25-basis-point rate increase would add about $0.015 per share to quarterly distributable earnings.
• The proposed merger with LIEN, which remains subject to SEC review and stockholder approvals, is now expected to close in 2027. Management cited potential benefits from greater scale and a broader investment mandate, while noting those benefits are not assured.
• Liquidity is tight: the company reported about $15.2 million available on its revolving facility and approximately $12 million of total liquidity after estimated liabilities and anticipated fundings, and expects originations to slow in the fourth quarter.
• Non-accruals were 3.1% of the portfolio, down from 3.7% at the prior quarter-end mainly because the portfolio grew; the amount of non-accruals was unchanged. Adjusted book value per share slipped to $14.12 from $14.15.

Chicago Atlantic Real Estate Finance Price Performance

NASDAQ:REFI opened at $9.30 on Wednesday. The firm’s 50-day moving average price is $9.89 and its 200-day moving average price is $11.00. The company has a market capitalization of $238.27 million, a PE ratio of 6.79 and a beta of 0.28. Chicago Atlantic Real Estate Finance has a 1-year low of $8.59 and a 1-year high of $13.49.

Chicago Atlantic Real Estate Finance Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a $0.47 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 20.2%. Chicago Atlantic Real Estate Finance’s dividend payout ratio is currently 137.23%.

Insider Activity at Chicago Atlantic Real Estate Finance

In other Chicago Atlantic Real Estate Finance news, CEO Peter Sack acquired 3,500 shares of the business’s stock in a transaction on Wednesday, August 19th. The shares were acquired at an average price of $10.45 per share, for a total transaction of $36,575.00. Following the completion of the acquisition, the chief executive officer owned 123,356 shares in the company, valued at $1,289,070.20. This trade represents a 2.92% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anthony Cappell acquired 45,000 shares of the business’s stock in a transaction on Monday, August 17th. The stock was acquired at an average price of $10.40 per share, for a total transaction of $468,000.00. Following the acquisition, the chief executive officer owned 466,706 shares of the company’s stock, valued at approximately $4,853,742.40. This trade represents a 10.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 122,856 shares of company stock valued at $1,287,094 in the last three months. Company insiders own 6.50% of the company’s stock.

Key Chicago Atlantic Real Estate Finance News

Here are the key news stories impacting Chicago Atlantic Real Estate Finance this week:

• Positive Sentiment: REFI estimates that each 25-basis-point increase in interest rates would add about $0.015 per share to quarterly distributable earnings, offering potential income support if rates rise. Article: REFI outlines rate sensitivity and Q4 expectations
• Neutral Sentiment: The company reported third-quarter earnings of $0.49 per share, near but below the $0.50 analyst consensus. Article: Chicago Atlantic announces third-quarter results
• Negative Sentiment: Revenue of $13.66 million fell short of the $14.95 million consensus estimate. The company also expects Q4 originations to slow, which could limit new loan deployment and future revenue generation. Article: REFI Q3 earnings and shrinking pipeline

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the stock. Zacks Research lowered shares of Chicago Atlantic Real Estate Finance from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Citizens Jmp decreased their price target on shares of Chicago Atlantic Real Estate Finance from $18.00 to $16.00 and set a “market outperform” rating for the company in a research note on Wednesday, August 12th. Citigroup restated a “market outperform” rating on shares of Chicago Atlantic Real Estate Finance in a report on Wednesday, August 12th. Weiss Ratings lowered shares of Chicago Atlantic Real Estate Finance from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Finally, Atlantic Securities set a $16.00 price objective on Chicago Atlantic Real Estate Finance in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $16.00.

About Chicago Atlantic Real Estate Finance

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) is a specialty finance company organized as a real estate investment trust (REIT). The company focuses on originating, acquiring, and managing commercial real estate loans and other credit investments, with an emphasis on opportunities in the cannabis industry. Chicago Atlantic Real Estate Finance primarily provides senior secured loans to state-licensed cannabis operators, cultivators, processors, dispensaries, and related businesses. Its financing may be secured by commercial real estate, cannabis-related assets, or other collateral.