Chicago Atlantic Real Estate Finance, Inc. reported its financial results for the third quarter of 2025, revealing a net income of $8.9 million, a decrease of 20% from $11.2 million in the same period last year. For the nine months ending September 30, 2025, the company achieved a net income of $27.9 million, down 4% from $29.1 million in 2024. Interest income for the quarter was $15.3 million, a 6% decline from $16.3 million in the prior year, while interest expense decreased by 13% to $1.6 million. The company’s net interest income for the quarter was $13.7 million, reflecting a 5% decrease compared to the previous year.
The company’s total assets as of September 30, 2025, were approximately $427.1 million, a slight decrease from $435.1 million at the end of 2024. Loans held for investment amounted to $398.1 million, down from $402.5 million, with a current expected credit loss (CECL) reserve of $5.0 million, up from $4.3 million. The increase in the CECL reserve was attributed to new reserves from loan originations and borrower-specific credit factors. The company’s total liabilities decreased to $117.2 million from $126.2 million, primarily due to a reduction in dividend payables and management fees.
In terms of operational developments, Chicago Atlantic's loan portfolio consisted of 26 borrowers as of September 30, 2025, with a weighted average yield to maturity of 16.5%. The company reported that 63.3% of its loans were floating-rate, which are sensitive to changes in the Prime Rate. The company also noted that it received principal repayments totaling $56.8 million during the third quarter, which contributed to its liquidity position. The company’s cash and cash equivalents increased to $28.9 million from $26.4 million at the end of 2024.
Looking ahead, Chicago Atlantic aims to continue expanding its portfolio by capitalizing on opportunities in the cannabis industry, which remains a significant focus for the company. The management indicated that they are closely monitoring market conditions and borrower performance, particularly in light of the evolving legal landscape surrounding cannabis. The company plans to maintain its REIT status by distributing at least 90% of its taxable income, which is crucial for avoiding federal income taxes. The company declared a regular cash dividend of $0.47 per share for the third quarter, consistent with previous distributions.
About Chicago Atlantic Real Estate Finance, Inc.
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