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Jun 30
Chicago Atlantic Q2 2025 Earnings Report
Chicago Atlantic Real Estate Finance announced its second quarter 2025 financial results, demonstrating disciplined management of its loan portfolio and extending its revolving credit facility maturity.
Key Takeaways
Chicago Atlantic Real Estate Finance reported a net income of $8.88 million and diluted EPS of $0.41 for Q2 2025. The company maintained a disciplined focus on its cannabis loan portfolio and extended its revolving credit facility to 2028, positioning itself for future growth opportunities within its substantial pipeline.
Net income for Q2 2025 was $8.88 million, with diluted earnings per share at $0.41.
The company successfully extended its secured revolving credit facility maturity from June 30, 2026, to June 30, 2028.
Chicago Atlantic continues to manage its loan portfolio with a disciplined focus on solid consumer and product-focused cannabis operators in limited-license states.
The company has a pipeline of approximately $650 million in cannabis opportunities, reinforcing its position as the largest capital provider to the industry.
Chicago Atlantic
Chicago Atlantic
Forward Guidance
Chicago Atlantic affirmed its previously issued outlook for 2025, indicating continued focus on capitalizing on its pipeline of cannabis opportunities and redeploying recent repayments.
Positive Outlook
- Affirmed 2025 outlook, suggesting stability and confidence in future performance.
- Significant pipeline of approximately $650 million in cannabis opportunities available for deployment.
- Extension of the revolving credit facility maturity to 2028 provides enhanced financial flexibility.
- Ability to redeploy recent unscheduled principal repayments totaling $56.8 million into new opportunities.
- Maintained position as the largest capital provider to the cannabis industry.
Challenges Ahead
- No specific updated financial guidance or revised projections were provided for the remainder of 2025.
- Reliance on the cannabis industry, which can be subject to evolving regulatory landscapes.
- Unscheduled principal repayments, while positive for liquidity, can impact future interest income if not quickly redeployed.
- The debt/equity ratio increased from 26.2% in Q2 2024 to 38.8% in Q2 2025.
- Weighted average yield to maturity decreased from 18.7% in Q2 2024 to 16.8% in Q2 2025.