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Chicago Atlantic Real Estate Finance Inc. (REFI+1.04%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations as a commercial mortgage real estate investment trust, primarily investing in first mortgage loans and alternative structured financings secured by commercial real estate properties. The portfolio is mainly comprised of senior loans to state-licensed operators in the cannabis industry.
For the year ended December 31, 2024, Chicago Atlantic reported interest income of $62.1 million, a slight decrease from $62.9 million in the previous year. The decrease is attributed to a decline in the Prime Rate and a decrease in prepayment fees.
Interest expense increased to $7.2 million from $5.8 million, primarily due to the issuance of $50 million in senior unsecured notes and increased borrowings under the company's revolving loan.
Net income for the year was $37.0 million, down from $38.7 million in the previous year. The decrease was driven by higher interest expenses and stock-based compensation.
The company declared total cash dividends of $2.06 per share for 2024, compared to $2.17 per share in 2023. The dividends were funded by cash flow from operations.
As of December 31, 2024, the company's loan portfolio totaled approximately $410.2 million in principal, with a weighted-average yield-to-maturity internal rate of return of 17.2%. The portfolio includes a mix of floating-rate and fixed-rate loans.
Chicago Atlantic's management fees and incentive compensation totaled $8.1 million, a decrease from $8.8 million in the prior year, reflecting a decrease in core earnings.
The company maintains compliance with REIT requirements, distributing at least 90% of its taxable income to stockholders. It also operates under an exemption from the Investment Company Act.
Chicago Atlantic continues to focus on financing opportunities in the cannabis industry, leveraging its expertise and relationships to originate loans with attractive risk-adjusted returns.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Chicago Atlantic Real Estate Finance Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.