Chicago Atlantic Real Estate Finance, Inc. · NASDAQ:REFI
Chicago Atlantic Real Estate Finance — Q1 2025 Earnings Presentation
24 slides from Chicago Atlantic Real Estate Finance's earnings presentation, May 7, 2025
Slide 1: Earnings Supplemental
Earnings Supplemental For the quarter ended March 31, 2025
Slide 2: Important Disclosure Information
Important Disclosure Information Forward Looking Statements 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
Slide 3: Important Disclosure Information
Important Disclosure Information Market and Industry Data In this presentation, the Company relies on and refers to certain information and statistics obtained from third-party sources which it believes to be reliable, including reports by market research firms. The Company has not independently ver
Slide 4: Chicago Atlantic Real Estate Finance Company Overview
Chicago Atlantic Real Estate Finance Company Overview $2.7B+ 95+ ▪ 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 borrow
Slide 5: 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 6: 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 7: 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 8: Market Performance
Market Performance Total Return of the Top 10 Performing Mortgage REITs Total Return1 We compared the performance of Chicago (December 8, 2021 to April 24, 2025) Atlantic Real Estate Finance, Inc. (NASDAQ: 50% 48% REFI) since its inception on December 8, 47% 2021, against all NYSE and NASDAQ listed
Slide 9: Portfolio Diversification
Portfolio Diversification Our portfolio is diversified by size and interest rate type P R I NC I P AL O UT S T A N DI N G (1) By Loan By Rate Type(2) Floating Loans by Prime Rate Floor(2) $80,000,000 $70,000,000 29.7% $60,000,000 38.5% 36.2% Average 41.5% $50,000,000 Loan Size = $407.0M $40,000,000
Slide 10: Portfolio Diversification (Continued)
Portfolio Diversification (Continued) Our portfolio is diversified across operators, geographies, and asset types PR INC IPAL O UTSTA N DIN G1 By Real Estate Percentage of Real Estate Collateral Value By Location3 Collateral Type by State and Operator Type2 2% 3.3% 20.0% 4% 8% 4% 6% 18.0% 9% 16.0% 5
Slide 11: Loan Collateral Coverage
Loan Collateral Coverage 47.5% loan to enterprise value and 1.1x real estate collateral coverage P R I N C I P A L B Y L T E V R A T I O (1) R E A L E S T A T E C O L L A T E R A L C O V E R A G E(2) $180,000,000 40.0% $160,000,000 35.0% $140,000,000 30.0% $120,000,000 29% 29% 25.0% 21% $100,000,000
Slide 12: Distributable Earnings and Dividends
Distributable Earnings and Dividends1 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 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 Q1 2025 Basic Distributable EPS Regular Dividend Special Dividend 1Distributa
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.
The Cannabis Landscape in the U.S. How the landscape has changed over past 6 years 2019 2025 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 only: 25
Slide 15: The Cannabis Industry
The Cannabis Industry Size of Opportunity and Growth Projections The U.S. cannabis industry is estimated to be $35B in top-line Assuming the cannabis market enterprise value at 1x retail revenue in 2025 and is projected to grow to $69B by revenue, and a 35% debt to 65% equity capital structure 2, 20
Slide 16: Competitive Investment Landscape
Competitive Investment Landscape C OMP E TITOR S : GR OU PS C OMPETITIVE AD VAN TA GES Shorter loan durations Greater diversification Sale/ Mortgage Leaseback REITs REITs Lower LTVs Deal leads Close relationships with Ability to upsize Cannabis- Community management teams Focused Banks Lenders REIT
Slide 17: Comprehensive Investment Process
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)
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: Financial Overview
Appendix Financial Overview For the three months ended March 31, 2025 Chicago Atlantic Real Estate Finance, Inc. | 19
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets March 31, 2025 December 31, 2024 (unaudited) Assets Loans held for investment $ 360,987,934 $ 364,238,847 Loans held for investment - related party (Note 8) 38,467,545 38,238,199 Loans held for investment, at carrying value 399,455,479 402,477,046 Current expected credit
Slide 21: Portfolio Overview
Portfolio Overview1 (as of March 31, 2025) Loan Number Location(s) Maturity Date Principal Balance Unfunded Commitment Percentage of Portfolio Rate Type3 Cash Rate PIK Rate YTM IRR 1 Various 10/30/2026 $ 19,255,716 $ - 4.7% Floating (P) 14.00% 0.00% 17.1% 2 Michigan 12/31/2025 27,110,506 - 6.7% Floa
Slide 22: Consolidated Statements of Operation
Consolidated Statements of Operation For the three months ended March 31, 2025 2024 Revenues Interest income $ 15,107,315 $ 15,343,667 Interest expense (2,065,382 ) (2,104,050 ) Net interest income 13,041,933 13,239,617 Expenses Management and incentive fees, net 1,735,533 1,754,741 General and admi
Slide 23: Reconciliation of Distributable Earnings to GAAP Net Income
Reconciliation of Distributable Earnings to GAAP Net Income Three months Three months ended ended March 31, 2025 March 31, 2024 Net Income $ 10,041,312 $ 8,730,003 Adjustments to net income Stock based compensation 649,312 531,293 Amortization of debt issuance costs 110,309 90,915 (Benefit) provisio
Slide 24: 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 capital under management: $1.9B(1)(2) SIZE ✓ One of the largest institutional lenders in the cannabis space TEAM 85+ professionals, including over 30 inve
Chicago Atlantic Real Estate Finance — Q1 2025 Earnings Presentation on 6ix