Cannabis Industry Lender Chicago Atlantic Real Estate Finance Reports Q4 Net Income Of $4.4M On Heels Of IPO

Cannabis-focused mortgage REIT Chicago Atlantic Real Estate Finance, Inc. REFI has reported its financial results for the fourth quarter and period ended December 31, 2021.

“In the short time since our initial public offering, we have remained laser-focused on growing the loan originations pipeline, putting our capital to work at attractive yields, and building on Chicago Atlantic’s first-mover advantage in the cannabis space,” Anthony Cappell, the company’s CEO, said.

Financial Highlights

• Net income of approximately $4.4 million in the fourth quarter of 2021, or $0.57 per basic weighted average common share
• Adjusted distributable earnings of approximately $4.6 million in the fourth quarter of 2021, or $0.61 per basic weighted average common share
• Net income of approximately $9.5 million in 2021 (for the period April 1 to December 31, 2021), or $1.47 per basic weighted average common share
• Adjusted distributable earnings of approximately $9.9 million in 2021 (for the period April 1 to December 31, 2021), or $1.54 per basic weighted average common share
• Book value per common share of $15.13 as of December 31, 2021

Investment Activity & Portfolio Performance

• As of December 31, 2021, total loan commitments of approximately $235.1 million, across 21 portfolio companies
• As of March 17, 2022, total loan commitments of approximately $324.2 million, across 23 portfolio companies
• Since the IPO through March 17, 2022, funded a total of approximately $114.7 million.
• The portfolio’s weighted average yield to maturity was approximately 17.3% as of March 17, 2022 compared with approximately 18.6% as of December 31, 2021, and approximately 17.1% as of December 8, 2021, the date of the IPO

Fourth Quarter 2021 Financial Results

• Total interest income of approximately $5.8 million
• Total expenses of approximately $1.4 million
• Net Income of approximately $4.4 million, or $0.57 per basic weighted average common share
• Adjusted distributable earnings of approximately $4.6 million, or $0.61 per basic weighted average common share

2021 Financial Results (For the Period April 1 – December 31, 2021)

• Total interest income of approximately $10.7 million
• Total expenses of approximately $1.6 million
• Net Income of approximately $9.5 million, or $1.47 per basic weighted average common share
• Adjusted distributable earnings of approximately $9.9 million, or $1.54 per basic weighted average common share

Capital Markets Activity

• Successfully completed an initial public offering and concurrent private placement in December 2021, and the IPO underwriters partially exercised their over-allotment option in January 2022 for a total of 7,021,550 shares issued, raising approximately $103.7 million in net proceeds.
• As of March 17, 2022, the Company has 17,752,603 diluted common shares outstanding.
• Upsized revolving credit facility from $10 million to $45 million on December 16, 2021

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Photo: Courtesy of Nataliya Vaitkevich from Pexels