Chicago Atlantic Real Estate Finance, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $8.9 million, a slight decrease of 3% from $9.2 million in the same period last year. For the first half of 2025, the company achieved a net income of $18.9 million, up 6% from $17.9 million in the first half of 2024. The increase in net income was primarily driven by a 10% rise in interest income, which reached $16.5 million for the quarter, compared to $15.0 million in the prior year. However, interest expenses also increased by 13% to $2.1 million, reflecting higher borrowing costs associated with the company's financing activities.
The company's total assets grew to approximately $455.2 million as of June 30, 2025, up from $435.1 million at the end of 2024. This increase was largely attributed to a rise in loans held for investment, which reached $414.0 million, compared to $402.5 million at the end of the previous fiscal year. The current expected credit loss reserve increased slightly to $4.4 million, representing about 1.07% of the total loans held for investment. The company noted that two loans were placed on non-accrual status, impacting the overall credit quality of its portfolio.
In terms of operational developments, Chicago Atlantic continued to focus on its core strategy of providing financing to state-licensed operators in the cannabis industry. The company reported that as of June 30, 2025, its loan portfolio consisted of 29 borrowers, with a significant portion of loans secured by real estate and other assets. The company also engaged in refinancing activities, including extending the maturity date of Loan #7 to June 30, 2028, and making a $13 million commitment add-on.
Looking ahead, Chicago Atlantic remains optimistic about its growth prospects, particularly as the cannabis market continues to evolve and expand. The company plans to leverage its existing relationships and expertise to capitalize on new lending opportunities. However, it also acknowledged the potential risks associated with regulatory changes in the cannabis industry, which could impact its operations and loan performance. The company intends to maintain a diversified portfolio and actively manage its risk exposure to navigate these challenges effectively.
About Chicago Atlantic Real Estate Finance, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
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.