Chicago Atlantic Real Estate Finance, Inc. (REFI) reported net income of $36 million for the year ended December 31, 2025, a decrease of $1.03 million, or 3%, compared to $37.04 million in 2024. The company's interest income increased slightly to $62.93 million from $62.10 million in the previous year. Interest expense also increased to $7.54 million from $7.15 million. Management and incentive fees, net, rose to $8.20 million from $8.06 million, while general and administrative expenses decreased slightly to $5.30 million from $5.38 million. The company's provision for current expected credit losses increased significantly to $731,051, compared to a benefit of $583,298 in the prior year.
The company's portfolio composition shifted slightly, with fixed-rate loans comprising 37.6% of the portfolio and floating-rate loans making up 62.4% as of December 31, 2025. This is compared to 37.9% and 62.1% respectively in the previous year. The weighted average yield-to-maturity internal rate of return (YTM IRR) on the loan portfolio decreased to 16.3% from 17.2%. The company's outstanding principal balance increased to $411.07 million from $404.72 million. The company's current expected credit loss reserve increased to $5.06 million from $4.34 million.
Strategic developments included amendments to several loans, extending maturity dates and in some cases, increasing commitments. The company also originated a new $5 million term loan. The company's revolving loan facility had aggregate commitments of $110 million, with $49.1 million outstanding as of December 31, 2025. The company also has $50 million in senior unsecured notes outstanding. The company sold 64,557 shares of common stock under its at-the-market offering program, generating net proceeds of $0.9 million.
Key operational developments included placing two loans on non-accrual status and restructuring another. The company's geographic concentration remained focused on Florida, Illinois, Ohio, and Pennsylvania. The company declared regular quarterly dividends of $0.47 per share, totaling $1.88 for the year. The company's outlook includes targeting loans with real estate collateral coverage of at least one times the principal balance and diversifying financing sources. The company also expects demand for financing in the cannabis market to continue to rise.
About Chicago Atlantic Real Estate Finance, Inc.
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