Chicago Atlantic Real Estate Finance, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the third quarter of 2024, the company achieved interest income of $16.3 million, a 7% increase from $15.2 million in Q3 2023. Net interest income also rose by 5% to $14.5 million, up from $13.7 million. Total expenses decreased by 15% to $3.2 million, down from $3.8 million, contributing to a net income of $11.2 million, reflecting a 12% increase from $10.0 million in the same quarter of the prior year. Basic earnings per share improved to $0.57 from $0.55, while diluted earnings per share rose to $0.56 from $0.54.

For the nine months ended September 30, 2024, interest income was $46.6 million, a slight increase of 1% from $46.4 million in 2023. However, net interest income decreased by 3% to $40.9 million, down from $42.3 million. Total expenses for this period fell by 10% to $11.8 million, compared to $13.1 million in the previous year. Net income before income taxes was $29.1 million, slightly down from $29.3 million, with net income also decreasing to $29.1 million from $29.3 million. Basic earnings per share for the nine-month period were $1.53, down from $1.62, while diluted earnings per share decreased to $1.49 from $1.60.

As of September 30, 2024, the company reported total assets of $365.9 million, up from $359.2 million at the end of 2023. Loans held for investment increased to $354.7 million, compared to $353.6 million at year-end 2023. The company’s total liabilities decreased significantly to $70.4 million from $87.4 million, while total stockholders' equity rose to $295.5 million from $271.9 million.

Strategically, the company advanced approximately $76.1 million in gross loan principal during the nine months ended September 30, 2024, and transferred $19.0 million of loans to held for sale. The company also reported a reversal of approximately $1.0 million in its current expected credit loss (CECL) reserve, reflecting improved borrower credit metrics. The portfolio consisted of loans to 29 borrowers, up from 27 at the end of 2023, with a notable shift in the composition of floating-rate loans, which decreased to 62.8% from 80.5%.

The company continues to focus on providing loans to state-licensed operators in the cannabis industry, navigating the complexities of market conditions and regulatory environments.