Chicago Atlantic Real Estate Finance, Inc. reported its financial results for the fiscal year ending December 31, 2024, revealing a net income of $37.0 million, a decrease of 4% from $38.7 million in the previous year. The company's interest income slightly declined to $62.1 million from $62.9 million, primarily due to a 100 basis point decrease in the Prime Rate, which affected the floating-rate loans that constitute approximately 62.1% of its portfolio. Interest expense rose significantly by 24% to $7.2 million, driven by new debt financing through senior unsecured notes issued in October 2024, which contributed approximately $1.0 million to the increase.
The company’s total loans held for investment increased to approximately $402.5 million as of December 31, 2024, up from $353.6 million in 2023. This growth was attributed to new loan fundings of $161.3 million, offset by principal repayments and sales of loans. The weighted average yield-to-maturity internal rate of return (YTM IRR) on the loan portfolio decreased to 17.2% from 19.4% in the prior year, reflecting adjustments made to de-risk the portfolio and the impact of the declining Prime Rate.
Strategically, Chicago Atlantic continues to focus on the cannabis industry, with its portfolio primarily consisting of first mortgage loans to state-licensed operators. As of the end of 2024, the company had 30 loans in its portfolio, with 36.5% backed by personal or corporate guarantees. The company aims to maintain a diversified portfolio across various jurisdictions and sectors within the cannabis industry, including cultivators, processors, and dispensaries. The company’s management believes that the ongoing state-level legalization of cannabis will continue to drive demand for its financing services.
Looking ahead, Chicago Atlantic anticipates that the demand for financing in the cannabis sector will remain strong, supported by favorable market conditions and the potential for further state-level legalization. However, the company also acknowledges the risks associated with federal regulations and the evolving legal landscape surrounding cannabis, which could impact its operations and financial performance. The company is committed to managing these risks while pursuing growth opportunities in the cannabis financing market.
About Chicago Atlantic Real Estate Finance, Inc.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.