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- **$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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REFI

REFI fundamentals

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