Chicago Atlantic Real Estate Finance (REFI) investor relations material

Executive summary

• Delivered a productive Q2 2026 with net income of $7.47 million, down from $8.88 million in Q2 2025, as distributable earnings per share fell below the dividend due to capital redeployment timing and lower exit fees.

• Announced a merger agreement with Chicago Atlantic BDC (LIEN), aiming to create a $771M+ portfolio BDC focused on cannabis and underserved markets, with closing expected in Q4 2026.

• Closed a $62.5 million Koach Capital transaction, issuing 4.3 million shares for second lien notes secured by 32 cannabis-leased retail properties, diversifying revenue streams.

• Portfolio performance remained strong despite earnings pressure from timing of repayments and deployments.

• Focus remains on lending to state-licensed cannabis operators, leveraging a diversified portfolio across geographies and asset types.

Financial highlights

• Loan portfolio principal totaled $453.1 million across 26 companies as of June 30, 2026, with a weighted average yield to maturity of 15.8%.

• Gross originations were $59.2 million, offset by $19.7 million in repayments, including $16.4 million from full prepayments.

• Net interest income for Q2 2026 was $12.83 million, down from $14.42 million in Q2 2025.

• Distributable earnings per share were $0.44 (basic) and $0.43 (diluted); Q2 dividend was $0.47 per share.

• Book value per share was $14.15 as of June 30, 2026; 21.7 million shares outstanding, rising to 26 million pro forma for Koach Capital transaction.

Outlook and guidance

• Expectation to distribute 90%-100% of distributable earnings as dividends for the 2026 tax year; a special dividend may be issued in Q4 2026 if required.

• Merger with LIEN anticipated to close in Q4 2026, subject to approvals, with transition to a BDC structure.

• Conservative outlook maintained despite positive regulatory momentum; strategy does not depend on federal policy changes.

• Regulatory reforms, including federal rescheduling of medical cannabis, anticipated to improve operator cash flows and increase lending opportunities.

• No formal forward guidance on earnings or dividends was provided.