Chicago Atlantic Real Estate ate Finance Inc(REFI)
$8.80-0.46 (-4.97%)
REFI
Chicago Atlantic Real Estate ate Finance Inc earnings date
$8.80
At close:-0.46 (-4.97%)
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Chicago Atlantic Real Estate ate Finance Inc (REFI) Q3 2026 Earnings Report
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REFI Q3 2026 EPS Results
- Actual EPS
- $0.49
- Consensus EPS
- $0.50
- Beat/Miss
- Missed by -$0.01
- One Year Ago EPS
- $0.49
REFI Q3 2026 Revenue Results
- Actual Revenue
- $16.63M
- Expected Revenue
- $14.95M
- Beat/Miss
- Beat by +$1.69M
- YoY Revenue Growth
- +9.07%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/10/2026
- Time
- Before Open
- Conference Call
- Tuesday, November 10, 2026
REFI Upcoming Earnings
Chicago Atlantic Real Estate ate Finance Inc's next earnings date is estimated for March 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
REFI Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive on operating execution, portfolio yield, quarterly fundings, Koach contribution, dividend continuity, rate sensitivity, and the potential strategic benefits of the REFI-LIEN combination. However, the company also reported significant share-price underperformance, limited liquidity, an expected fourth-quarter origination slowdown, higher interest expense, credit reserves, and continued merger approval uncertainty. The highlights outweighed the lowlights, supporting a positive overall sentiment.
Company Guidance
Management said it expects originations to slow during the fourth quarter of 2026; as of today, approximately $15.2 million was available on the senior credit facility and total liquidity net of estimated liabilities and anticipated fundings was approximately $12 million. Management said the press release gives the expected merger timing as "'27," while the process remains ongoing, and said it expects additional opportunities to rotate properties, although the specific cadence will be difficult to forecast. Management does not expect a broad shift into syndicates or agency credits or mortgage-backed securities. Each 25 basis point interest rate increase is expected to lead to $0.015 per share improvement in quarterly distributable earnings.
- Strong Quarterly Fundings and EarningsThe company deployed more than $85 million of new principal fundings during the quarter, delivered $0.49 of adjusted distributable earnings on a fully diluted basis, and paid a regular quarterly dividend of $0.47 per share, marking its 18th consecutive quarter of doing so.
- Scaled Loan Portfolio with High YieldAs of September 30, the loan portfolio totaled approximately $527.7 million across 28 portfolio companies, with a weighted average yield to maturity of 14.8%.
- Portfolio Originations and RepaymentsGross originations were approximately $85.1 million, consisting of $17.5 million funded to new borrowers, $5 million funded to existing borrowers, and $62.6 million represented by the Koach transactions. These fundings were offset by approximately $13.2 million of repayments, including $3.8 million of scheduled amortization, $7 million of full loan prepayments, and $2.4 million of partial prepayments.
- Koach Transaction Generated Earnings and Fee IncomeThe Koach transaction closed in July with REFI issuing approximately 4.3 million new common shares at $14.535 per share in exchange for second lien notes with an aggregate principal balance of $62.6 million. One of the 32 Koach notes was repaid in full following the sale of a Florida property, generating approximately $900,000 in fee income. The Koach notes contributed approximately $2.6 million to third-quarter distributable earnings.
- Koach Portfolio Yield and UpsideAlthough the Koach portfolio has a stated annual yield of approximately 12%, the notes generated an annualized return greater than 18% during the quarter. Management also stated that future exit fees would be accretive to book value as the notes are repaid.
- Adjusted Net Interest Income Increased 18%Reported net interest income was $12.5 million, down $0.3 million or 2.3% from $12.8 million in the second quarter. Adjusted for cash interest proceeds from the Koach notes, total net interest income was $15.1 million, representing an approximate 18% increase, driven by Koach interest and fee income, the timing of capital deployments and repayments, and the modest impact of the 25 basis point prime rate increase.
- Rate-Sensitive Portfolio StructureApproximately 57% of the portfolio benefits from interest rate increases, and management stated that each 25 basis point interest rate increase is expected to improve quarterly distributable earnings by $0.015 per share. The portfolio consisted of 36% fixed-rate loans and 64% floating-rate loans, with no interest rate caps and rate floors on floating-rate loans.
- Credit Quality Remained Relatively ConsistentPortfolio risk ratings and credit quality remained relatively consistent in the third quarter, with 89.3% of the portfolio risk rated 3 or below. Non-accruals remained unchanged in dollar amount from June 30 and declined to approximately 3.1% of the total loan portfolio based on outstanding principal, compared with approximately 3.7% as of June 30, primarily due to the increase in portfolio size.
- Low-Leverage Operating ModelTotal leverage equaled 48% of book equity at September 30, compared with approximately 3x to 5x total debt to stockholder equity across the cited commercial mortgage REIT peer group. REFI also reported an unlevered weighted average portfolio yield of approximately 14.8%, compared with approximately 6% to 8% among select commercial mortgage REIT peers.
- Expanded Revolving Credit CapacityAdditional commitments from the existing bank syndicate increased available borrowing capacity under the revolving loan by $7.5 million, bringing total availability to $117.5 million.
- Differentiated Portfolio and Direct Origination StrategyManagement stated that REFI has no overlap in borrowers with any other public mortgage REIT, holds no residential mortgage-backed securities, commercial mortgage-backed securities, or agency securities, and directly originates nearly the entirety of its portfolio through low-leverage investments with strong covenant documentation and direct borrower insight.
- Potential Strategic Benefits of the REFI-LIEN CombinationManagement believes the proposed merger and BDC election could create a combined company with greater scale and a broader investment mandate, potentially providing diversification across borrowers, sectors, and collateral types, increasing trading liquidity, and broadening the universe of potential investors. Management also stated that the combined vehicle may be compared with BDC and private credit markets rather than primarily with mortgage REITs.
- Potential Cannabis Market Expansion OpportunitiesManagement stated that election results could create opportunities in medical markets including Pennsylvania, Texas, and Georgia, with Pennsylvania potentially seeing expansion of adult-use legislation. Management said these developments could open opportunities for both REFI and LIEN.
- Stable Adjusted Book Value FrameworkAdjusted book value per common share on an as-paid basis was $14.12 as of September 30, compared with $14.15 as of June 30. Management stated that as Koach loans are repaid, book value will accrete back toward the prior level, with exit fees also accretive to book value.
REFI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 17, 2027 | 2026 (Q4) | 0.49- | 0.43 | ― | ― |
| Nov 10, 2026 | 2026 (Q3) | 0.500.49 | 0.49 | 0.00% (+0.00) | |
| Aug 11, 2026 | 2026 (Q2) | 0.480.43 | 0.51 | -15.69% (-0.08) | |
| May 07, 2026 | 2026 (Q1) | 0.480.46 | 0.46 | 0.00% (+0.00) | |
| Mar 12, 2026 | 2025 (Q4) | 0.460.43 | 0.46 | -6.52% (-0.03) | |
| Nov 04, 2025 | 2025 (Q3) | 0.470.49 | 0.56 | -12.50% (-0.07) | |
| Aug 07, 2025 | 2025 (Q2) | 0.470.51 | 0.5 | 2.00% (+0.01) | |
| May 07, 2025 | 2025 (Q1) | 0.500.46 | 0.52 | -11.54% (-0.06) | |
| Mar 12, 2025 | 2024 (Q4) | 0.510.46 | 0.51 | -10.16% (-0.05) | |
| Nov 07, 2024 | 2024 (Q3) | 0.520.56 | 0.57 | -1.75% (-0.01) |
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
