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Chicago Atlantic Real Estate ate Finance Inc (REFI)
NASDAQ:REFI
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Chicago Atlantic Real Estate ate Finance Inc
(NASDAQ:REFI)
62Neutral
Positive Factors
Dividend Yield
REFI maintained its quarterly dividend of $0.47, representing a current yield of 11.9%, which is considered attractive to investors.
Earnings Performance
REFI reported adjusted distributable EPS of $0.56, beating both Citizens JMP and consensus estimates of $0.52 and $0.48, respectively, driven by a positive interest rate spread on the loan book and lower G&A expenses.
Negative Factors
Valuation Concerns
Shares of REFI currently trade at 1.05x P/B, above the mortgage REIT peer group of 0.73x, reflecting concerns about a larger premium despite the outsized yield profile.
Chicago Atlantic Real Estate ate Finance Inc (REFI) vs. S&P 500 (SPY)
Market Cap
$307.14M
Dividend Yield12.79%
Average Volume (3M)173.73K
Price to Earnings (P/E)7.8
Beta (1Y)0.53
Revenue Growth-1.31%
EPS Growth-10.24%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength65
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)1.88
Shares Outstanding20,893,785
10 Day Avg. Volume147,534
30 Day Avg. Volume173,728
Financial Highlights & Ratios
PEG Ratio36.37
Price to Book (P/B)N/A
Price to Sales (P/S)7.87
Price to Cash Flow (P/CF)44.00
P/FCF Ratio27.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside35.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Chicago Atlantic Real Estate ate Finance Inc Business Overview & Revenue Model
Company DescriptionChicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2021 and is based in Chicago, Illinois.
How the Company Makes MoneyChicago Atlantic Real Estate Finance Inc generates revenue through the interest income earned on its loan portfolio. The company provides loans secured by commercial real estate, and it earns money by charging interest on these loans. Additionally, REFI may generate fee income through loan origination fees, servicing fees, and other related financial services. The company’s earnings are significantly influenced by the volume of loans originated, the interest rates applied, and the quality of its credit underwriting process. Strategic partnerships with real estate operators and financial institutions also play a role in expanding its loan portfolio and enhancing revenue opportunities.
Chicago Atlantic Real Estate ate Finance Inc Financial Statement Overview
Summary
REFI's financials present a mixed picture. The balance sheet is strong and resilient with low leverage, but the income statement raises concerns with zero revenue in the latest year, indicating potential operational issues. Cash flows are stable but show a reliance on external financing in 2024.Income Statement
The income statement shows significant volatility with a complete absence of revenue in the latest year. Historical revenue growth was strong until 2023, but the abrupt stop is concerning. The company's net profit margin is high due to significant net income despite zero revenue, indicating irregularities or non-operational income. Overall, the income statement highlights potential instability and requires further investigation into the revenue absence.30
Negative
Balance Sheet
The balance sheet is robust with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, showing conservative leverage. The company's stockholders' equity has grown consistently, reflecting solid financial health. However, the high cash and equivalents in 2024 against zero revenue may require scrutiny.75
Positive
Cash Flow
Cash flows are stable, with strong operating cash flow and free cash flow in 2023. The free cash flow growth rate is positive, but the significant financing cash inflow in 2024 might indicate reliance on external funding. The operating cash flow to net income ratio suggests efficient cash generation from operations.60
Neutral
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 54.78M | 57.33M | 48.86M | 11.08M | Gross Profit |
| 54.78M | 48.54M | -3.84B | 10.17M | EBIT |
| -7.15B | 38.53M | 34.91M | 9.57M | EBITDA |
| 0.00 | 44.46M | 34.91M | 9.57M | Net Income Common Stockholders |
| 37.05M | 38.71M | 32.29M | 9.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 26.40B | 7.90M | 344.99M | 80.25M | Total Assets |
| 435.15B | 359.23M | 343.27M | 278.17M | Total Debt |
| 49.10B | 66.00M | 58.00M | 197.72M | Net Debt |
| 22.70B | 58.10M | 52.28M | 117.47M | Total Liabilities |
| 126.19B | 87.37M | 79.24M | 14.09M | Stockholders Equity |
| 308.96B | 271.85M | 264.03M | 264.08M |
| Cash Flow | Free Cash Flow | ||
| 23.16B | 28.42M | 17.01M | 6.67M | Operating Cash Flow |
| 23.16B | 28.42M | 17.01M | 6.67M | Investing Cash Flow |
| -39.30B | -1.93M | -125.24M | -145.22M | Financing Cash Flow |
| 34.64B | -24.31M | 33.71M | 218.80M |
Chicago Atlantic Real Estate ate Finance Inc Technical Analysis
Negative
14.79
Price Trends
15.14
Negative
15.00
Negative
14.58
Positive
Market Momentum
-0.13
Positive
38.64
Neutral
-14.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFI, the sentiment is Negative. The current price of 14.79 is below the 20-day moving average (MA) of 15.07, below the 50-day MA of 15.14, and above the 200-day MA of 14.58, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of -14.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REFI.
Chicago Atlantic Real Estate ate Finance Inc Risk Analysis
Chicago Atlantic Real Estate ate Finance Inc disclosed 108 risk factors in its most recent earnings report. Chicago Atlantic Real Estate ate Finance Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chicago Atlantic Real Estate ate Finance Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.45B | 13.26 | 7.06% | 8.07% | -5.09% | 6.25% | |
63 Neutral | $1.04B | 11.67 | 6.92% | 11.45% | 7.13% | 64.82% | |
62 Neutral | $307.14M | 7.82 | 12.76% | 12.79% | -1.31% | -10.24% | |
61 Neutral | $1.33B | ― | -6.02% | 11.48% | -9.71% | -426.57% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
60 Neutral | $3.43B | ― | -5.01% | 10.20% | -12.86% | -182.05% | |
58 Neutral | $660.18M | 10.91 | 6.45% | 11.78% | -10.05% | ― |
* Real Estate Sector Average
Performance Comparison
REFI
Chicago Atlantic Real Estate ate Finance Inc
14.79
1.13
8.27%
ARI
Apollo Real Estate
9.48
-0.26
-2.67%
CIM
Chimera Investment
12.79
0.98
8.30%
BXMT
Blackstone Mortgage
19.87
2.58
14.92%
LADR
Ladder Capital
11.40
1.37
13.66%
TRTX
Tpg Re Finance
8.13
1.29
18.86%
Chicago Atlantic Real Estate ate Finance Inc Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -3.90% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment, with strong portfolio management and dividend achievements outweighing challenges such as decreased net interest income and industry pressures. The company's strategic management of credit facilities and progress on non-accrual loans further support a positive outlook.Highlights
Strong Portfolio Performance
The company increased its senior secured credit facility to $110 million and closed on a $50 million unsecured term loan at attractive pricing. Gross origination during the quarter was $90.7 million across diverse states, maintaining a strong portfolio across thirty companies.
Dividend Achievements
The company delivered $2.06 per share in dividends to shareholders in 2024, maintaining a high payout ratio of approximately 99% of base distributable earnings.
Robust Risk Management
The company increased the percentage of its portfolio insulated from interest rate declines from 24% to nearly 68% by adjusting the mix of floating and fixed-rate loans.
Strategic Credit Facility Management
Total leverage equaled 34% of book equity at year-end compared to 24% at the end of 2023, indicating strategic leverage management to support growth.
Successful Non-Accrual Loan Management
Significant progress was made on non-accrual loan number nine, with operational control achieved and a strategy to restore it to accrual status in 2025.
Lowlights
Decreased Net Interest Income
Net interest income decreased by 2.7% from $14.5 million in Q3 to $14.1 million in Q4 due to a decrease in prime rate and deployment timing of proceeds from unsecured notes.
Challenges in Cannabis Industry
The US cannabis industry faced challenges including muted market notes, failure of Florida's ballot initiative, lack of federal reform prioritization, and overall pricing pressures.
Decreased Weighted Average Yield
The weighted average yield to maturity of the loan portfolio decreased from 18.3% to 17.2% due to a decrease in the prime rate and new originations below historical averages.
Company Guidance
During the Chicago Atlantic Real Estate Finance, Inc. Fourth Quarter 2024 Earnings Call held on March 12, 2025, key financial metrics and strategic updates were shared. The company reported a 6.7% increase in their refi stock price from $15.13 to $16.15 per share between November 4, 2024, and March 6, 2025. They declared two dividends, contributing to a total dividend of $2.06 per share for 2024, representing a payout ratio of approximately 99% based on base distributable earnings of $2.08. Chicago Atlantic's loan portfolio principal totaled $410 million across 30 portfolio companies, with a weighted average yield to maturity of 17.2%. The company's senior secured credit facility increased to $110 million, and they closed a $50 million unsecured term loan. Their debt service coverage ratio was approximately 5.5 to 1, and they maintained a total leverage of 34% of book equity at the end of 2024. The company aims to maintain a dividend payout ratio of 90% to 100% based on basic distributable earnings per share for 2025, with potential special distributions in Q4 if required.Chicago Atlantic Real Estate ate Finance Inc Corporate Events
DividendsFinancial Disclosures
Chicago Atlantic Reports Q4 2024 Financial Results
Neutral
Mar 12, 2025
On March 12, 2025, Chicago Atlantic Real Estate Finance announced its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a decrease in net income and distributable earnings compared to the previous year, attributed to a decline in interest income due to a lower prime rate. Despite these challenges, the company maintained a strong loan portfolio and liquidity position, with significant investments in new and existing borrowers. The company also declared regular and special dividends for the fourth quarter of 2024, highlighting its commitment to returning value to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.