Chicago Atlantic Real Estate Finance Announces Fourth Quarter 2022 Financial Results

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[{"type":"text","content":"CHICAGO, March 09, 2023 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) (“Chicago Atlantic” or the “Company”), a commercial real estate finance company, today announced its results for the fourth quarter and year ended December 31, 2022. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, “The safety and stability of our dividend is paramount, and we have worked hard to assemble a well-diversified portfolio with strong real estate and other asset collateral to create a fortress balance sheet. Cannabis lending is a nascent industry with tremendous upside within the limited-license states in the U.S. accompanied by a rapidly changing environment that requires constant vigilance. Our focus on creating a long-term, sustainable platform has positioned us to trade faster loan portfolio growth for higher returns and stronger credit operators without sacrificing the ability for Chicago Atlantic to continue to lead this market as its first and largest capital provider.” Tony Cappell, Chief Executive Officer of Chicago Atlantic, added, “We improved the credit quality of the portfolio substantially this quarter. In addition to net new originations of nearly $6 million, we increased the floating rate portion of our portfolio to 83% and increased the weighted average yield to maturity to 19.7%. With multiple large credit facilities originated during the quarter and in the first months of 2023, we believe we have also reset the pricing for senior secured direct cannabis lending. The disciplined, opportunistic capital raise in February, along with the extension and potential further expansion of our credit facility, provide for additional deployment opportunities in 2023.” Investment Activity and Portfolio Performance As of December 31, 2022, total loan commitments of approximately $351.4 million ($336.3 million drawn, $15.0 million in future fundings) across 22 portfolio companies.The portfolio’s weighted average yield to maturity increased to approximately 19.7% as of December 31, 2022 compared with approximately 18.3% as of September 30, 2022.On February 15, 2023 the Company completed a direct offering of 395,779 shares of common stock to institutional investors at a price of $15.16 per share, raising net proceeds of approximately $6 million. The Company completed the offering without the use of unde...

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