Chicago Atlantic Real Estate Finance Announces Second Quarter 2023 Financial Results

About this update from Chicago Atlantic Real Estate Finance, Inc.

[{"type":"text","content":"CHICAGO, Aug. 09, 2023 (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 results for the second quarter ended June 30, 2023. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, “Our capital structure is among the best in the mortgage REIT sector and the strongest in the cannabis space. We have no shortage of demand for capital from strong credit operators, and that demand is reflected in our pipeline. As planned, we intentionally held back on our loan originations pace during the quarter to remain highly selective on new investments. In doing so, we have been able to take advantage of a new program with the State of New York that offers the opportunity within the REIT to fund up to $50 million in long-term financing at an attractive rate.” Tony Cappell, Chief Executive Officer, added, “With an ongoing shakeout within the industry of both capital providers and less-experienced cannabis operators, we continue to benefit from our past decisions to focus primarily on vertically integrated operators and limited license states. The loan portfolio is well-positioned with the percentage of floating rate loans at 88%, real estate collateral coverage of 1.5x, a loan-to-enterprise value of 41% and a weighted average yield to maturity at 19.2%. With leverage of 16% at quarter end and over $46 million of current liquidity, we have the flexibility to pursue continued growth in the portfolio.” Portfolio Performance As of June 30, 2023, total loan commitments of approximately $329.2 million ($315.6 million funded, $13.6 million in future fundings) across 25 portfolio investments.Weighted average yield to maturity was approximately 19.2% as of June 30, 2023 compared with approximately 19.4% as of March 31, 2023.Real estate collateral coverage was 1.5x as of June 30, 2023 compared with 1.6x as of March 31, 2023.Loan to enterprise value (calculated as outstanding principal balance divided by total value of collateral) was approximately 41.0% as of June 30, 2023 and March 31, 2023.The percentage of loans which bear a variable interest rate remained stable at approximately 88% as of June 30, 2023 and March 31, 2023. Investment Activity During the second quarter, Chicago Atlantic had total gross origina...

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