Chicago Atlantic Real Estate ate Finance Inc (REFI) AI Stock Analysis

• Market Cap: $302.42M
• Dividend Yield: 14.31%
• Average Volume (3M): 92.85K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.52
• Revenue Growth: 1.75%
• EPS Growth: -7.07%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.51
• Shares Outstanding: 21,074,625
• 10 Day Avg. Volume: 67,050
• 30 Day Avg. Volume: 92,854
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 6.36
• Enterprise Value/Gross Profit: -0.41
• Enterprise Value/Ebitda: 8.48
• 1Y Price Target: $16.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $15.00 ▲(4.17% Upside)

Chicago Atlantic Real Estate Finance Inc. has a solid overall stock score driven by strong valuation metrics and positive technical indicators. The earnings call further supports the company's strategic growth, despite financial performance challenges. Investors should consider the high dividend yield and low P/E ratio as key strengths.

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 Business Overview & Revenue Model

Company Description

Chicago 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 Money

Chicago Atlantic Real Estate Finance Inc. generates revenue primarily through long-term leases with cannabis operators, which provide a steady stream of rental income. The company's revenue model is anchored in its strategy of acquiring properties that are leased to licensed cannabis businesses under triple-net lease agreements. In these arrangements, tenants are responsible for property expenses such as taxes, insurance, and maintenance, allowing REFI to maintain a predictable cash flow. Additionally, REFI may benefit from property appreciation and potential refinancing opportunities. The company may also engage in strategic partnerships with cannabis operators to enhance its portfolio, thereby contributing to its overall earnings.

Chicago Atlantic Real Estate ate Finance Inc Financial Statement Overview

Summary

The financial performance of REFI is mixed. The balance sheet is strong with low leverage and high equity, but the income statement shows concerning irregularities with zero revenue in the latest year. Cash flows are stable, though reliance on financing in 2024 is notable. Overall, the company needs to address revenue generation to sustain long-term stability.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.47M	54.78M	63.00M	51.47M	11.08M
Gross Profit	-949.37M	55.53M	54.22M	44.97M	10.17M
EBITDA	45.40M	44.20M	44.46M	34.91M	9.57M
Net Income	38.05M	37.05M	38.71M	32.29M	9.50M
Balance Sheet
Total Assets	455.21B	435.15M	359.23M	343.27M	278.17M
Cash, Cash Equivalents and Short-Term Investments	35.56B	26.40M	7.90M	5.72M	80.25M
Total Debt	49.22B	49.10B	66.00M	58.00M	197.72M
Total Liabilities	145.19B	126.19M	87.37M	79.24M	14.09M
Stockholders Equity	310.03B	308.96M	271.85M	264.03M	264.08M
Cash Flow
Free Cash Flow	21.33B	23.16M	28.42M	17.01M	6.67M
Operating Cash Flow	24.12M	23.16M	28.42M	17.01M	6.67M
Investing Cash Flow	-15.77M	-39.30M	-1.93M	-125.24M	-145.22M
Financing Cash Flow	20.14M	34.64M	-24.31M	33.71M	218.80M

Chicago Atlantic Real Estate ate Finance Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFI, the sentiment is Positive. The current price of 14.4 is above the 20-day moving average (MA) of 14.15, above the 50-day MA of 13.85, and above the 200-day MA of 14.18, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REFI.

Chicago Atlantic Real Estate ate Finance Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REFI	67 Neutral	$302.42M	7.82	12.63%	14.31%	1.75%	-7.07%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
AOMR	63 Neutral	$235.75M	6.41	14.91%	12.74%	75.08%	-21.03%
EARN	61 Neutral	$213.34M	15.16	6.89%	17.02%	271.03%	31.81%
NREF	61 Neutral	$274.33M	6.12	21.74%	13.00%	25.17%	―
ACRE	48 Neutral	$276.13M	―	-3.30%	15.59%	-27.60%	62.75%
CMTG	48 Neutral	$521.54M	―	-21.24%	22.08%	-65.30%	-318.17%

Chicago Atlantic Real Estate ate Finance Inc Corporate Events

Chicago Atlantic Extends Credit Facility Maturity Date

On August 5, 2025, Chicago Atlantic Lincoln, LLC, a subsidiary of Chicago Atlantic Real Estate Finance, Inc., amended its secured revolving credit facility to extend the maturity date from June 30, 2026, to June 30, 2028, with an option for an additional one-year extension. This amendment, announced on August 7, 2025, is part of the company’s strategy to manage its loan portfolio effectively and capitalize on growth opportunities in the cannabis sector, as demonstrated by their second quarter financial results.