Chicago Atlantic Real Estate Finance Announces Third Quarter 2023 Financial Results

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

[{"type":"text","content":"CHICAGO, Nov. 08, 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 third quarter ended September 30, 2023. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, “We underwrite new opportunities with a two-fold purpose – to provide our investors with an attractive yield and protection of principal. The underlying performance of the loan portfolio during the quarter continues to demonstrate that our diligent underwriting and focus on the strongest operators in limited license states are accomplishing these two primary objectives for our investors. With the substantial improvement in the equities of the cannabis operators of late and a more positive indication of future regulatory relief, the creditworthiness of our borrowers has improved in the past quarter. This credit improvement and more positive outlook align well with our expectation of greater demand for capital from some of the larger operators over the next 12 to 18 months.” Tony Cappell, Chief Executive Officer, added, “The sequential gross originations growth of $35 million and the ability to improve our weighted average yield to maturity to 19.3% this quarter demonstrate our success in continuing to capture a greater share of new loan demand in the cannabis industry. Credit quality remains paramount with real estate collateral coverage of 1.5x. While we remain under-levered at 23% and with $25 million of liquidity, we are re-initiating discussions to expand our credit facility to provide even more capacity to fund new opportunities from our active investment pipeline.” Portfolio Performance As of September 30, 2023, total loan commitments of approximately $355.9 million ($344.7 million funded, $11.2 million in future fundings) across 27 portfolio investments.Weighted average yield to maturity was approximately 19.3% as of September 30, 2023 compared with approximately 19.2% as of June 30, 2023.Real estate collateral coverage was 1.5x as of September 30, 2023 compared with 1.5x as of June 30, 2023.Loan to enterprise value (calculated as outstanding principal balance divided by total value of collateral on a weighted average basis) was approximately 42.5% as of September 30, 2023 compared with approximate...

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