Chicago Atlantic Real Estate Finance (REFI) investor relations material

Executive summary

• Delivered stable Q1 2026 results amid macroeconomic volatility, focusing on short-duration, geographically diversified loans to profitable, state-licensed cannabis operators.

• Net income for Q1 2026 was $4.8 million, down 52% year-over-year, primarily due to higher credit loss provisions and lower portfolio yield.

• Interest income rose to $15.2 million, driven by exit/success fees from loan repayments, while weighted average portfolio yield declined to 15.8%.

• Maintained a robust origination team and proprietary sourcing network, targeting risk-adjusted returns and consistent dividends.

• Federal rescheduling of medical cannabis to Schedule III is expected to improve borrower cash flows and credit profiles.

Financial highlights

• Net interest income for Q1 2026 was $13.1 million, flat year-over-year and down from $14.2 million in Q4 2025.

• Distributable earnings for Q1 2026 were $9.83 million, or $0.47 per basic share and $0.46 per diluted share.

• Book value per share stood at $14.39 as of March 31, 2026.

• Regular quarterly dividend of $0.47 per share declared and paid in April 2026, totaling $9.9 million.

• Total assets reached $435.9 million, with $132.5 million in liabilities and $303.4 million in equity.

Outlook and guidance

• Expects to maintain a dividend payout ratio of 90–100% of distributable earnings per diluted share for 2026.

• May issue a special dividend in Q4 2026 if taxable income exceeds regular dividends.

• Management expects continued loan origination growth and plans to raise additional equity or debt to support portfolio expansion.

• Regulatory reforms, including federal rescheduling and a ban on unregulated THC, are expected to improve revenue visibility, margin durability, and lending opportunities.

• Liquidity position and available credit are considered sufficient for the next twelve months.