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

• Market Cap: $313.88M
• Dividend Yield: 12.56%
• Average Volume (3M): 149.32K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.50
• Revenue Growth: -1.31%
• EPS Growth: -10.24%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 82
• Industry: REIT - Mortgage
• EPS (TTM): 0.46
• Shares Outstanding: 20,967,457
• 10 Day Avg. Volume: 87,744
• 30 Day Avg. Volume: 149,325
• PEG Ratio: -1.49
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.01
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: -0.42
• Enterprise Value/Ebitda: -0.04
• 1Y Price Target: $20.00
• Price Target Upside: 33.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

REFI's overall stock score of 63 reflects a balance of strengths and challenges. The strong balance sheet and cash flow stability are offset by concerns over zero revenue and reliance on financing. Attractive valuation and high dividend yield provide investor appeal. The latest earnings call highlights positive strategic management, though industry pressures remain a concern. Improvement in revenue generation is critical for a higher score.

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 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 are mixed. A strong balance sheet reflects financial resilience with low leverage. However, the income statement shows irregularities with zero revenue in the latest year, raising concerns about core operations. Cash flows are stable, though the reliance on financing in 2024 warrants attention. Addressing revenue generation is crucial for 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
54.78M	57.33M	48.86M	11.08M
	Gross Profit
54.11M	48.54M	-3.84B	10.17M
	EBIT
-7.19B	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
435.15M	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
126.19M	87.37M	79.24M	14.09M
	Stockholders Equity
308.96B	271.85M	264.03M	264.08M
Cash Flow		Free Cash Flow
23.16M	28.42M	17.01M	6.67M
	Operating Cash Flow
23.16M	28.42M	17.01M	6.67M
	Investing Cash Flow
-39.30M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 15.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.01 is above the 20-day moving average (MA) of 14.30, above the 50-day MA of 14.64, and above the 200-day MA of 14.61, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, 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
AOMR	67 Neutral	$238.76M	6.76	14.14%	12.67%	54.49%	-17.44%
REFI	63 Neutral	$313.88M	7.95	12.86%	12.56%	-1.31%	-10.24%
NREF	61 Neutral	$260.59M	6.52	19.15%	13.94%	11.78%	65.73%
Sector *	60 Neutral	$2.82B	11.08	0.22%	8543.15%	6.09%	-16.11%
EARN	52 Neutral	$206.58M	19.69	3.99%	17.88%	440.31%	21.03%
CMTG	52 Neutral	$360.95M	―	-11.91%	34.98%	-45.51%	-3658.39%
ACRE	48 Neutral	$266.23M	―	-2.33%	18.59%	-52.08%	10.36%

Chicago Atlantic Real Estate ate Finance Inc Corporate Events

Chicago Atlantic Reports Q4 2024 Financial Results

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.