Chicago Atlantic Real Estate ate Finance Inc (REFI) Q2 2026 Earnings Report

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Previous Report: Q1 2026

REFI Q2 2026 EPS Results

Actual EPS$0.43

Consensus EPS$0.48

Beat/MissMissed by -$0.05

One Year Ago EPS$0.51

REFI Q2 2026 Revenue Results

Actual Revenue$15.22M

Expected Revenue$14.17M

Beat/MissBeat by +$1.05M

YoY Revenue Growth-7.77%

Earnings Announcement Details

QuarterQ2 2026

Date08/11/2026

TimeBefore Open

Conference CallTuesday, August 11, 2026

REFI Upcoming Earnings

Chicago Atlantic Real Estate ate Finance Inc's next earnings date is estimated for November 11, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

REFI Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Aug 11, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call presented a mix of strategic progress and short-term operational/financial frictions. Highlights include strong portfolio yield (15.8%), portfolio growth (~$453M principal), a large $649M pipeline, a value-accretive Koach financing (12% blended yield plus exit-fee convexity), improving credit metrics (non-accruals down to 3.7%), and a planned merger with LIEN intended to deliver scale and diversification. Offsetting these positives were timing-related distributable earnings falling short of the declared dividend ($0.44 vs $0.47), an increase in leverage (47% vs 38% prior quarter), limited immediate liquidity (~$15M available), higher interest expense, share issuance dilution from the Koach deal (~4.3M shares), and execution/regulatory risks tied to the merger and federal cannabis policy evolution. Management framed many negatives as temporary or structural trade-offs tied to growth and strategic transactions rather than credit deterioration.

Company Guidance

REFI reiterated that it expects the proposed merger with LIEN to close in Q4 2026 (subject to stockholder, lender and regulatory approvals), will distribute any accumulated REIT taxable income prior to the merger, and plans to maintain a dividend payout ratio of 90–100% of basic distributable earnings for the 2026 tax year. Key metrics cited: a $649 million pipeline ( $204 million real-estate‑backed), a loan portfolio principal of ~$453 million across 26 companies with a weighted average yield to maturity of 15.8%, Q2 gross originations of $56.8 million offset by $19.7 million of repayments (≈$3.3M scheduled amortization, $16.4M prepayments), portfolio mix 37.5% fixed / 62.5% floating (74% of floating to prime, 26% to SOFR; prime at 6.75% with 100% of prime loans at floors and only ~3.6% of principal exposed to further rate declines), CECL reserves of ~$9.4 million (~2.3% of loans) with $0.6M on two new loans, non‑accruals at 3.7% (down from 4.8%), risk‑rated ≥4 at 10.8%, real‑estate coverage ~1.2x and loan‑to‑enterprise value ≈46%, total leverage 47% of book equity (vs. 38% prior), $90.1M outstanding on the revolver and $49.5M on the unsecured term loan with ~ $15M available liquidity, Q2 net interest income of $12.8M (down 2.2% from Q1) and interest expense of ~$2.4M, distributable earnings per share of $0.44 basic / $0.43 diluted with a $0.47 per‑share Q2 dividend, book value per share $14.15 (21.7M shares outstanding, ~26M pro forma after the Koach transaction). The Koach financing (32 retail properties) contributed ~$62.5M of second‑lien notes bearing 12% interest (10% cash, 2% PIK) plus exit fees up to 2.5x, issued ~4.3M shares at $14.53 (a 1% premium to prior book value); those notes are expected to qualify as REIT assets though they will be presented as a reduction to equity for GAAP purposes.

Robust Portfolio Yield and Growth

Loan portfolio principal totaled ~$453M as of June 30, 2026, up ~ $40M quarter-over-quarter, with a weighted average yield to maturity of 15.8% (consistent with Q1 2026). Gross originations in Q2 were ~$56.8M while repayments were ~$19.7M (including ~$16.4M of full prepayments).

Strong Opportunity Pipeline

Pipeline of cannabis opportunities stands at $649M as of June 30, 2026, with $204M of that pipeline backed by real estate collateral, indicating substantial near- and medium-term deployment opportunities.

Decreasing Credit Stress / Conservative Reserves

Non-accrual loans declined to ~3.7% of the portfolio from ~4.8% in Q1 2026 (a ~1.1 percentage-point improvement). CECL reserves for loans held for investment were ~$9.4M, representing ~2.3% of outstanding principal; CECL reserves of $0.6M reflect provisioning on two new loans.

Favorable Portfolio Interest Structure

Portfolio composition: 37.5% fixed-rate and 62.5% floating-rate loans. Of floating-rate loans, ~74% are prime-benchmarked and ~26% are SOFR-benchmarked; with the prime rate at 6.75%, 100% of prime loans are at floors and only ~3.6% of loan principal is exposed to further rate declines — a structural advantage vs. many mortgage REIT peers.

Koach Second-Lien Financing with Convex Upside

Closed a second-lien financing on 32 retail properties (aggregate principal ~$62.5M) leased to cannabis tenants. Notes bear a blended 12% annual rate (10% cash, 2% PIK) plus exit fee mechanics (up to 2.5x commitment at repayment in certain conditions). REFI issued ~4.3M new shares at $14.53 (~1% premium to prior book value) in exchange for the notes, providing immediate yield and potential upside if cap rates compress.

Strategic Merger to Create Scale and Diversification

Announced agreement to convert REFI to a BDC and merge into Chicago Atlantic BDC, Inc. (LIEN) in an NAV-for-NAV all-stock transaction; both boards unanimously approved and the companies expect the transaction to close in Q4 2026 subject to shareholder, lender and regulatory approvals. Management believes the merger will improve scale, diversification and stock liquidity.

Dividend Track Record and Book Value

Distributed a Q2 dividend of $0.47 per common share in July. Since inception, REFI has distributed $9.41 per common share, representing an annualized yield on cost of ~12.4% versus IPO price. Book value per common share was $14.15 as of June 30, 2026.

Liquidity and Leverage Visibility

As of June 30, 2026, $90.1M was outstanding on the senior secured revolver and $49.5M on an unsecured term loan; management reported ~ $15M of availability on the senior revolver as of the call, providing clarity on near-term deployable liquidity.

REFI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 11, 2026	2026 (Q3)	0.50 / -	0.49	―
Aug 11, 2026	2026 (Q2)	0.48 / 0.43	0.51	-15.69% (-0.08)
May 07, 2026	2026 (Q1)	0.48 / 0.46	0.46	0.00% (0.00)
Mar 12, 2026	2025 (Q4)	0.46 / 0.43	0.46	-6.52% (-0.03)
Nov 04, 2025	2025 (Q3)	0.47 / 0.49	0.56	-12.50% (-0.07)
Aug 07, 2025	2025 (Q2)	0.47 / 0.51	0.5	2.00% (+0.01)
May 07, 2025	2025 (Q1)	0.50 / 0.46	0.52	-11.54% (-0.06)
Mar 12, 2025	2024 (Q4)	0.51 / 0.46	0.512	-10.16% (-0.05)
Nov 07, 2024	2024 (Q3)	0.52 / 0.56	0.57	-1.75% (>-0.01)
Aug 07, 2024	2024 (Q2)	0.55 / 0.50	0.55	-9.09% (-0.05)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed