Chicago Atlantic BDC (LIEN) investor relations material

Executive summary

• Achieved record net investment income of $10 million ($0.44 per share) in Q1 2026, driven by strong portfolio growth and disciplined execution in both cannabis and non-cannabis lending.

• Investment portfolio fair value grew 26% year-over-year to $364 million as of March 31, 2026, with $93.9 million funded across seven companies, including three new borrowers.

• All current debt investments are senior secured, with a gross weighted-average yield of 15.8%.

• Declared a $0.34 dividend for the seventh consecutive quarter, reflecting consistent performance and dividend coverage.

• No loans on non-accrual status as of March 31, 2026.

Financial highlights

• Gross investment income for Q1 2026 was $16.7 million, up from $14.2 million in Q4 2025, with fee income contributing $2.1 million.

• Net investment income reached $10 million ($0.44 per share), up from $8.3 million ($0.36 per share) in Q4 2025.

• Net asset value per share increased to $13.33 from $13.30 in Q4 2025.

• Net increase in net assets from operations was $8.5 million, up from $7.6 million in Q1 2025.

• Net expenses increased to $6.7 million, mainly from higher management, incentive, and interest expenses.

Outlook and guidance

• Pipeline at quarter end totaled $810 million in potential debt transactions, with $402 million in cannabis and $328 million in non-cannabis opportunities.

• Regulatory reforms and federal policy shifts are expected to improve revenue visibility, margin durability, and lending opportunities.

• Management expects continued portfolio growth and premium yields, maintaining disciplined underwriting and below-industry-average leverage.