What is the revenue and EPS growth rate for Chicago Atlantic year over year?

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What does Chicago Atlantic do and what are its main business segments?

What guidance did Chicago Atlantic's management provide for the next earnings period?

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What were the key takeaways from Chicago Atlantic's earnings call?

What factors drove the changes in Chicago Atlantic's revenue and profit?

- **$441M Pipeline Growth**: Focus on low-leverage, principal-protected investments across cannabis, real estate, and M&A.
- **$75M Verano Facility**: Largest U.S. cannabis-backed revolver, 86% of loan portfolio protected from rate declines.
- **Share Buybacks**: Management purchases 1.8M shares amid 30%+ discount to book value.
- **Q3 Financials**: Net interest income $13.7M, distributable EPS $0.50, 33% leverage.
- **Banking Expansion**: Partnering with banks deploying $500M+ in cannabis credit.

**【CEO Summary Section】**
- Highlighted $441 million pipeline of growth investments across cannabis, real estate, and M&A opportunities, emphasizing low-leverage, principal-protected deals.
- Announced $75 million revolving credit facility with Verano, largest real estate-backed facility in U.S. cannabis history.
- 14% of loan portfolio exposed to interest rate declines, with 86% protected by fixed rates or floors at 7%+.
- Management and Board purchased 1.8 million shares, reflecting confidence in strategy.

**【CFO Financial Commentary】**
- Q3 2025 net interest income $13.7 million (-5.1% YoY) due to nonrecurring prepayment fees and rate cuts.
- Distributable earnings per share $0.50 (basic) and $0.49 (diluted), down from $0.52 prior quarter.
- Book value per share $14.71, with 21.5M shares outstanding.
- Total leverage 33% of book equity, $69.1M liquidity available.

**【Q&A Key Highlights】**
- Pipeline: $441M pipeline refreshed quarterly, with ESOPs remaining key focus despite $415M Q3 level.
- Loan Maturation: 86% of floating rate loans protected by floors; 14% exposed to rate declines.
- Virginia Expansion: Targeting medical and recreational markets with controlled licensure structure.
- Underwriting Approach: Focus on limited-license states, 2x EBITDA leverage, and real estate collateral.
- 280E Impact: Treat uncertain tax provisions as leverage in covenant compliance.
- Verano Facility: $75M revolver complements $292M term loan, supporting Verano's growth.
- Bank Competition: Welcome banks entering cannabis space as partners, with $500M+ deployments.
- New York Lending: NY Social Equity Fund paused deployments at 23 stores, awaiting drawdowns.

**【Share Repurchases】**
- Management and Board purchased 1.8M shares, reflecting belief in 30%+ discount to book value.


Chicago Atlantic Real Estate Finance, Inc. (REFI) Q3 2025 Earnings Call Transcript

- **Pipeline Expansion**: Cannabis pipeline surged 41% to $650 million, fueled by M&A and ESOPs.
- **Financial Performance**: Net interest income up 10.6%, distributable earnings per share rose to $0.52.
- **Liquidity Strength**: $94 million available liquidity post-Q3 prepayments.
- **Strategic Positioning**: Extended credit facility and diversified funding sources enhance competitive edge.

**【CEO Summary Section】**
- Cannabis pipeline expanded from $462 million to $650 million, driven by M&A, ESOP transactions, and maturing loans.
- Maintained disciplined approach with low-leverage profiles, focusing on credit quality and risk-adjusted returns.
- Extended credit facility to 2028 with unchanged terms, enhancing liquidity and flexibility.
- Aims to deliver a low-levered risk-return profile insulated from cannabis equity volatility.

**【COO Remarks】**
- Portfolio of $421.9 million across 30 companies with a 16.8% yield-to-maturity.
- Gross originations of $16.5 million offset by $3.1 million in amortization.
- 40.7% fixed-rate loans, 59.3% floating-rate loans with 70.9% protected against 50bps rate declines.
- Leverage increased to 39% (from 28%), DSCR of 4.27:1.
- Post-quarter, $56.8 million in prepayment proceeds and $1 million in make-whole fees.

**【CFO Financial Commentary】**
- Net interest income rose 10.6% to $14.4 million, driven by $1.5 million in fees and new deployments.
- CECL reserve increased to $4.4 million due to a nonaccrual loan.
- Distributable earnings per share grew to $0.52, with a 90-100% dividend payout ratio.
- Book value of $14.71 per share with 21.5 million shares outstanding.

**【Q&A Highlights】**
- Pipeline growth attributed to M&A, ESOPs, and refinancings, with no change in credit criteria.
- Q3 prepayments of $56.8 million to be redeployed, with uncertain future prepayment volume.
- New York program success with 23 dispensaries, despite regulatory challenges.
- Market participants adopting a wait-and-see approach amid federal reform hopes.
- Benefits of multi-funding source platform for flexibility and borrower support.

Chicago Atlantic Real Estate Finance (REFI)-7 Aug 25-2025 Q2 Earnings call transcript

- **Pipeline Strength**: $462M pipeline signals disciplined growth, with Q2/Q3 originations expected to accelerate.
- **Financial Resilience**: 28% leverage and $65M liquidity provide buffer against rate volatility.
- **Operational Win**: Restructured loan #9 now senior secured, with dispensaries operational post-foreclosure.
- **Policy Watch**: Rescheduling could enhance borrower cash flow but may not immediately reduce lending yields.


**【CEO Opening Remarks】**
- Cannabis lending pipeline stands at $462 million, with a focus on disciplined deployment and credit quality.
- Q1 originations were limited ($4.4M) due to market caution, but expect acceleration in Q2/Q3.
- Long-term goal: Be the top-performing mortgage REIT, outpacing peers by 51% since inception.

**【COO Operational Update】**
- Loan portfolio totals $407M with a weighted average yield of 16.9%.
- 71.2% of loans are fixed-rate or floating with floors ≥ prime; 28.8% exposed to rate declines.
- Total leverage reduced to 28% of book equity (from 34% Q4), with $65M liquidity.
- Restructured loan #9 ($16.5M) now senior secured, with dispensaries reopened post-foreclosure.

**【CFO Financial Highlights】**
- Q1 net interest income: $13M (-7.3% YoY) due to lower fees and prime rate cuts.
- Distributable earnings per share: $0.47 (flat vs. Q4), with a 90-100% payout ratio target.
- CECL reserve reduced to $3.3M (from $4.4M), driven by loan #9 restructuring.

**【Key Q&A Takeaways】**
- **Pipeline Visibility**: 2025 maturities (~$161M in 2024) will be key refinance opportunities.
- **Pricing Strategy**: State-by-state underwriting adjusts for price compression (e.g., Massachusetts exit).
- **Policy Impact**: Rescheduling could boost borrower cash flow but may not immediately attract new lenders.
- **Leverage Outlook**: Unlikely to see typical mortgage REIT leverage ratios due to industry-specific risks.


Chicago Atlantic Real Estate Finance (REFI)-7 May 25-2025 Q1 Earnings call transcript

- **Q4 Highlights**: $90.7M in originations, 6.7% stock price growth vs 61% cannabis ETF decline.
- **Portfolio Strength**: 68% of loans insulated from rate declines, 91% rated 3+.
- **Dividend Performance**: $2.06 annual dividend, 99% payout ratio.
- **Risk Management**: Completed foreclosure on loan #9, targeting 2025 accrual restoration.
- **Industry Outlook**: Focus on state-level execution, avoiding federal policy dependency.

**【CEO Opening Remarks】**
- Q4 2024 gross originations of $90.7M across 9 investments, with a pipeline of $490M and $67M liquidity.
- Stock price increased 6.7% from pre-election lows, outperforming the cannabis ETF (MSOS) which declined 61%.
- Ranked #3 among mortgage REITs on total return (dividends reinvested), targeting #1.
- Completed foreclosure milestones on loan #9, aiming to restore accrual status in 2025.

**【COO Financial Overview】**
- Portfolio of $410M with 30 borrowers, weighted average yield 17.2% (down from 18.3% Q3).
- 68% of portfolio insulated from rate declines (fixed-rate or floors ≥ prime).
- Total leverage 34% of book equity, debt service coverage ratio 5.5x.
- Senior credit facility utilization $38.5M, unsecured term loan fully drawn at $50M.

**【CFO Financial Results】**
- Q4 net interest income $14.1M (-2.7% vs Q3), annualized distributable earnings $2.08.
- Interest expense increased $0.4M due to 9% unsecured term loan.
- Operating expenses (ex management fees) up $250K, CECL reserve $4.3M (1.1% of portfolio).
- Dividends paid $2.06 in 2024, payout ratio 99%.

**【Q&A Key Takeaways】**
- **Leverage & Deployment**: No near-term leverage increase; aim to deploy $67M pipeline in 2025.
- **Credit Quality**: 91% of portfolio risk-rated 3+; loan #9 operational restructuring ongoing.
- **Industry Trends**: Cannabis equity valuations near lows, but strong borrowers remain.
- **Policy Risks**: Underwrite assuming no federal rescheduling; focus on state-level execution.
- **New York Market**: Encouraged by NY dispensary growth, product differentiation, and black market crackdowns.

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