Chicago Atlantic Real Estate Finance, Inc. · NASDAQ:REFI
Chicago Atlantic Real Estate Finance — Q4 2024 Earnings Presentation
25 slides from Chicago Atlantic Real Estate Finance's earnings presentation, Mar 12, 2025
Slide 1: Earnings Supplemental
Earnings Supplemental For the quarter and year ended December 31, 2024
Slide 2: Important Disclosure Information
Important Disclosure Information This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), regarding future events and the future resul
Slide 3: Company Overview
Chicago Atlantic Real Estate Finance Company Overview $2.1B+ 90+ Commercial mortgage REIT and institutional lender to in loans closed since cannabis loans closed state-licensed operators in the cannabis industry. platform inception(1) across platform(1) Manages a diversified portfolio of borrowe
Slide 4: Industry-Leading Management and Investment Team
Industry-Leading Management and Investment Team Deep Cannabis, Credit and Real Estate Expertise With Entrepreneurial Approach John Mazarakis(1) Tony Cappell(1) Peter Sack(1) Andreas Bodmeier(1) David Kite(1) Phil Silverman Executive Chairman Co-CEO Co-CEO President and CIO Chief Operating Officer Ch
Slide 5: Veteran Independent Directors
Veteran Independent Directors Significant Public Board, REIT, Financial and Corporate Governance Expertise Jason Papastavrou Fredrick C. Herbst Brandon Konigsberg Michael Steiner Lead Independent Director Audit Committee Chair Former CFO at J.P. Morgan Current investor in Chicago Securities
Slide 6: Target Loan Profile
Target Loan Profile USES OF CAPITAL Real estate financing, capital expenditure and growth/acquisition capital SIZE $10-$50 million TERM 2-3 years STRUCTURE Term loans and delayed draw term loans COLLATERAL Mortgage/deed of trust, stock pledge, all asset UCC-1 lien, guarantees AMORTIZATION 50-150 bps
Slide 7: Market Performance: Total Returns vs. Major Indexes
Market Performance Total Returns vs. Major Indexes Source: Bloomberg (data assumes dividend reinvestment) Benchmarked since inception (12/10/2021) through January 2025
Slide 8: Market Performance: Total Returns vs. Select Peers
Market Performance Total Returns vs. Select Peers Source: Bloomberg (data assumes dividend reinvestment) Benchmarked since inception (12/10/2021) through January 2025.
Slide 9: Portfolio Diversification
Portfolio Diversification Our portfolio is diversified across operators, geographies, and asset types P R I N C I P AL O U T S T A N D I N G (1) By Loan By Rate Type Floating Loans by Prime Rate Floor 35.0% 30.3% 30.0% 35.7% 28.9% 38.7% 25.0% Weighted 38.9% 20.4% Average 20.0% Loan Size = $410.2M 17
Slide 10: Portfolio Diversification (Continued)
Portfolio Diversification (Continued) Our portfolio is diversified across operators, geographies, and asset types PRINCIPAL OUTSTANDING1 By Real Estate Percentage of Real Estate Collateral by By Location Collateral Type State and Operator Type2 1% 2% 2% 4% 20.0% 1% 8% 6% 18.0% 9% 16.0% 5% 35.0% 14.0
Slide 11: Loan Collateral Coverage
Loan Collateral Coverage 47% loan to enterprise value and 1.1x real estate collateral coverage P R I N C I P AL B Y L T E V R A T I O (1) R E AL E S T A T E C O L L AT E R A L C O V E R AG E (2) $180,000,000 30% $160,000,000 25% $140,000,000 $120,000,000 29% 20% 29% 21% $100,000,000 29% 15% $80,000,
Slide 12: Distributable Earnings and Dividends
Distributable Earnings and Dividends1 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Basic Distributable EPS Regular Dividend Special Dividend 1Distributable earnings per share based on basic weight
Slide 13: The Cannabis Landscape in the U.S.
The Cannabis Landscape in the U.S. Where We See Opportunities LACK OF TRADITIONAL FINANCING Banks generally don’t lend to firms in this industry, allowing higher interest rates, attractive collateral, and lender-friendly covenants. HIGH BARRIERS TO ENTRY THE CANNABIS INDUSTRY Each state has unique i
Slide 14: The Cannabis Landscape in the U.S. (cont'd)
The Cannabis Landscape in the U.S. (cont’d) How the landscape changed over past 5 years 2019 2024 Legalized recreational and medical use Legalized medical use only No regulated use Legal in 35 states and the District of Columbia1 Legal in 41 states and the District of Columbia1 Medical use onl
Slide 15: The Cannabis Industry: Size of Opportunity and Growth Projections
The Cannabis Industry: Size of Opportunity and Growth Projections The U.S. cannabis industry is estimated to be $32B in top-line Assuming the cannabis market enterprise value at 1x retail revenue in 2024 and is projected to grow to $58B by revenue, and a 35% debt to 65% equity capital structure2, 20
Slide 16: Competitive Investment Landscape
Competitive Investment Landscape COMPETITORS: GROUPS COMPETITIVE ADVANTAGES Shorter loan durations Greater diversification Sale/ Mortgage BDCs Leaseback REITs REITs Lower LTVs Deal leads Close relationships with Ability to upsize Cannabis- Community management teams Focused Banks Lenders REIT shares
Slide 17: Comprehensive Investment Process: Underwriting
Comprehensive Investment Process 1 2 OVERVIEW GEOGRAPHY / INDUSTRY FINANCIALS / OPERATIONS Direct Origination Focus primarily on U.S. borrowers Historical financial statements / tax returns Brand Recognition (Local) industry dynamics Projects of the business and financials Ability to A
Slide 18: Comprehensive Investment Process (cont'd): Structuring
Comprehensive Investment Process (cont’d) 4 CAPITAL PREDICTABLE EXIT RETURN CONSERVATIVE STRONG CURRENT PRESERVATION STRATEGY ENHANCEMENT STRUCTURE INCOME Typically, a first lien on the Fixed amortization and Additional yield generation Conservative leverage Contractual coupon and fees bor
Slide 19: Loan Origination Pipeline
Loan Origination Pipeline Driven by proprietary deal sourcing Over 1,000 Qualified Deals Total current pipeline of Sourced and Reviewed ~$492.9mm1 Continued legalization at the state level creates a new influx of ~$37.4mm1 in Upcoming Fundings opportunities Increase in M&A activity requires addi
Slide 20: Appendix: Financial Overview
Appendix Financial Overview For the quarter and year ended December 31, 2024 Chicago Atlantic Real Estate Finance, Inc. | 20
Slide 21: Consolidated Balance Sheets
Consolidated Balance Sheets Chicago Atlantic Real Estate Finance, Inc. | 21
Slide 22: Portfolio Overview (as of December 31, 2024)
Portfolio Overview1 (as of December 31, 2024) Loan Number Location(s) Origination Date Maturity Date Principal Balance Unfunded Commitment Rate Type Cash Rate PIK Rate YTM IRR 1 Various 10/27/2022 10/30/2026 $ 19,324,557 $ - Floating 14.00% 0.00% 17.1% 2 Michigan 12/31/2021 12/31/2025 27,110,506 - F
Slide 23: Consolidated Statements of Operation
Consolidated Statements of Operation Chicago Atlantic Real Estate Finance, Inc. | 22
Slide 24: Reconciliation of Distributable Earnings to GAAP Net Income
Reconciliation of Distributable Earnings to GAAP Net Income Chicago Atlantic Real Estate Finance, Inc. | 23
Slide 25: About Chicago Atlantic
About CHICAGOATLANTIC The Sponsor is a credit-focused investment firm founded in 2019 INCEPTION REFI completed its IPO in December 2021 Sponsor assets under management: $1.6B(1)(2) SIZE One of the largest institutional lenders in the cannabis space TEAM 85 professionals, including over 30 invest
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