Chicago Atlantic Real Estate Finance, Inc. functions as a commercial real estate financing enterprise operating throughout the United States. Its primary activities ...
Chicago Atlantic Real Estate Finance, Inc. (REFI) is a commercial real estate finance company that functions as a mortgage real estate investment trust (REIT) in the United States. The company was established in 2021 and is headquartered in Chicago, Illinois, though its operations span across the country. Its primary business ...Chicago Atlantic Real Estate Finance, Inc. (REFI) is a commercial real estate finance company that functions as a mortgage real estate investment trust (REIT) in the United States. The company was established in 2021 and is headquartered in Chicago, Illinois, though its operations span across the country. Its primary business involves developing, arranging, and deploying capital into secured debt instruments, particularly first mortgage loans collateralized by commercial properties. A significant niche for the company is providing senior-priority loans to state-approved operators and property owners within the legal cannabis industry, leveraging the expertise of its management team in real estate credit and the cannabis sector.
The company's strategy focuses on generating attractive risk-adjusted returns for stockholders through a diversified portfolio of real estate loans. It aims to capitalize on financing gaps in the market, particularly in the cannabis industry where traditional lenders are often reluctant to provide capital. By electing to be taxed as a REIT, the company distributes at least 90% of its taxable profits to investors, avoiding federal corporate income tax and ensuring a steady dividend stream.
Financially, REFI has shown strong performance metrics, with a market capitalization of approximately $216 million, a price-to-earnings ratio of about 7, and a dividend yield of 18.5%. The company has a net profit margin of over 50%, demonstrating effective cost management. Its revenue is primarily derived from interest income on its loan portfolio, and it maintains a moderate level of leverage with a debt-to-equity ratio of 0.38.
Key personnel include Anthony Cappell, who co-founded the company and serves as Co-Chief Executive Officer and Director. Other co-founders include John Mazarakis. The management team possesses extensive experience in real estate credit, direct lending, and risk management.
Looking ahead, the company aims to continue expanding its lending activities, particularly in the cannabis sector, while maintaining disciplined underwriting standards. It seeks to grow its portfolio and provide consistent returns to shareholders. As of the latest data, the company has deployed over $1.8 billion across more than 50 loans, and it continues to explore new opportunities in commercial real estate financing.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$63.1M
+15.2%
+0.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$36.0M
-2.8%
+54.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+86.9%
-13.1%
+0.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+57.1%
—
+42.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+57.1%
-15.6%
+53.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$28.8M
+24.3%
+186.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+45.6%
+7.9%
+185.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
32.0%
-5.1%
-57.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.28x
-98.7%
-0.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Thank you. Good day, and welcome to the Chicago Atlantic Real Estate Finance, Inc. Second Quarter 2026 Earnings Call. Please note this event is being recorded. I'd now like to turn the conference over to Lisa Kampf from ICR. Please go ahead.
Lisa KampfInvestor RelationsSentiment 0.0
Good morning. Welcome to the Chicago Atlantic Real Estate Finance conference call to review the company's results. On the call today will be Peter Sack, Co-Chief Executive Officer, David Kite, President and Chief Operating Officer, and Phil Silverman, Chief Financial Officer. Our results were released this morning in our earnings press release, which can be found on the Investor Relations section of our website, along with our supplemental information package furnished to the SEC. A live audio webcast of this call is being made available today. For those who listen to the replay of this webcast, we remind you that the remarks made herein are as of today and will not be updated subsequent to this call. During this call, certain comments and statements we make may be deemed forward-looking statements within the meaning prescribed by securities laws, including statements related to the future performance of our portfolio, our pipeline of potential loans, and other investments, future dividends, financing activities, the proposed merger of the company with and into Chicago Atlantic BDC, Inc., LIEN, and its expected timing and benefits, and the anticipated benefits of our recent financing transaction to affiliates of Koach Capital. We will discuss certain non-GAAP measures, including, but not limited to, distributable earnings. Definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures are included in our earnings release and supplemental information available on our website and furnished to the SEC. I'd like to remind our listeners that today's remarks and accompanying investor presentation contain forward-looking statements that are subject to significant risks and uncertainties that can cause actual results to differ materially from our current expectations. Investors are urged to carefully review various disclosures made by the company, including the risks and other information disclosed in the company's filings with the SEC. Risks and uncertainties include the ability to complete the merger of REFI and LIEN on the anticipated timeline, to obtain shareholder and regulatory approvals and required lender consent, to realize the anticipated benefits of the transaction and developments in the cannabis regulatory environment, as well as other risks described in our SEC filings and in the legends in today's filed material. Actual results may differ materially, and we undertake no obligation to update except as required by law. The transcript of this call is being filed with the SEC pursuant to Rule 425 under the Securities Act of 1933 and is being filed under Rule 14a-12 under the Securities Exchange Act of 1934. In connection with the proposed merger, LIEN filed with …
