Chicago Atlantic Real Estate Finance Announces Second Quarter 2024 Financial Results

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

[{"type":"text","content":"CHICAGO, Aug. 07, 2024 (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, 2024. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, “The pace and direction of federal and state regulations are creating a tailwind in the cannabis industry. The comment period closed on DEA rescheduling with an overwhelmingly positive response – nearly 90% were in favor. The Ohio adult use rollout is happening as we speak, and Florida adult use is on the ballot in November. We have already seen a positive impact to our originations pipeline from both new and existing operators in these states as well as operators with growth opportunities in recent states such as Maryland, Minnesota, and Missouri.” Peter Sack, Co-Chief Executive Officer, added, “We have continued to grow the portfolio in a measured fashion while maintaining a substantial spread above our cost of capital. Our loan underwriting has always assumed that regulatory reform at the federal level does not occur, resulting in a very conservative posture with relatively low loan to value and loan to enterprise value across the portfolio. We raised more than $6 million of capital through the ATM program during the quarter and increased the size of the revolving credit facility to $105 million in total. With the additional capital and capacity, we expect originations to be increasingly active in the second half of the year.” Portfolio Performance As of June 30, 2024, total loan principal outstanding of $383.3 million, across 31 portfolio investments, with $6.0 million of unfunded commitments to existing borrowers.Weighted average yield to maturity was approximately 18.7% as of June 30, 2024, compared with 19.4% as of March 31, 2024, primarily due to amendments related to improved collateral and grid-based pricing shifting downwards due to strong borrower performance.Real estate collateral coverage was 1.3x as of June 30, 2024 and March 31, 2024.Loan to enterprise value (calculated as outstanding principal balance divided by total value of collateral on a weighted average basis) was approximately 42.0% as of June 30, 2024 compared with approximately 40.5% as of March 31, 2024.The percentage of loans whic...

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