Chicago Atlantic Real Estate ate Finance Inc (REFI) AI Stock Analysis

• Market Cap: $266.80M
• Dividend Yield: 16.27%
• Average Volume (3M): 145.94K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.51
• Revenue Growth: 1.75%
• EPS Growth: -7.07%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.51
• Shares Outstanding: 21,074,625
• 10 Day Avg. Volume: 161,817
• 30 Day Avg. Volume: 145,943
• PEG Ratio: -0.78
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 5.43
• P/FCF Ratio: 12.84
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 6.36
• Enterprise Value/Gross Profit: -0.41
• Enterprise Value/Ebitda: 8.48
• 1Y Price Target: $15.00
• Price Target Upside: 18.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $14.00 ▲(10.58% Upside)

Chicago Atlantic Real Estate Finance Inc's overall stock score reflects a mix of strengths and challenges. The company's strong growth in the cannabis pipeline and attractive dividend yield are significant positives. However, financial performance issues, particularly in profitability and cash flow conversion, along with mixed technical indicators, temper the overall score.

Positive Factors

Cannabis Pipeline Growth

The significant growth in the cannabis pipeline indicates strong potential for future revenue expansion and market penetration, supporting long-term business growth.

Credit Facility Extension

Extending the credit facility enhances financial flexibility, allowing the company to support growth initiatives and manage its portfolio effectively over the long term.

Net Interest Income Growth

The increase in net interest income reflects effective capital deployment and a strong loan portfolio, contributing to sustained profitability and cash flow generation.

Negative Factors

Loan on Nonaccrual Status

A loan on nonaccrual status indicates potential credit risk and could lead to increased reserves, impacting profitability and financial stability.

Increased Leverage

Rising leverage can strain financial resources and increase risk, potentially affecting the company's ability to finance future growth sustainably.

Cash Flow Conversion Issues

Challenges in converting income into cash can limit operational flexibility and hinder the company's ability to reinvest in growth opportunities.

Chicago Atlantic Real Estate ate Finance Inc Business Overview & Revenue Model

Company Description

Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2021 and is based in Chicago, Illinois.

How the Company Makes Money

Chicago Atlantic Real Estate Finance Inc. generates revenue primarily through long-term leases with cannabis operators, which provide a steady stream of rental income. The company's revenue model is anchored in its strategy of acquiring properties that are leased to licensed cannabis businesses under triple-net lease agreements. In these arrangements, tenants are responsible for property expenses such as taxes, insurance, and maintenance, allowing REFI to maintain a predictable cash flow. Additionally, REFI may benefit from property appreciation and potential refinancing opportunities. The company may also engage in strategic partnerships with cannabis operators to enhance its portfolio, thereby contributing to its overall earnings.

Chicago Atlantic Real Estate ate Finance Inc Financial Statement Overview

Summary

The financial performance of Chicago Atlantic Real Estate Finance Inc is mixed. Revenue growth and a manageable debt level are positive, but challenges in profitability and cash flow conversion persist. Cost management and operational efficiency improvements are needed.

Income Statement

The income statement shows mixed results. The company has experienced revenue growth in the TTM period, but the gross profit margin is negative, indicating cost management issues. Net profit margin is positive, suggesting some profitability, but EBIT and EBITDA margins are inconsistent, reflecting operational challenges.

Balance Sheet

The balance sheet indicates a relatively low debt-to-equity ratio in the TTM period, which is a positive sign of financial stability. However, the return on equity is low, suggesting inefficient use of equity. The equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

Cash flow analysis shows a strong free cash flow to net income ratio, indicating good cash generation relative to profits. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. Free cash flow growth is minimal, pointing to limited cash flow expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.47M	54.78M	63.00M	51.47M	11.08M
Gross Profit	-949.37M	55.53M	54.22M	44.97M	10.17M
EBITDA	45.40M	44.20M	44.46M	34.91M	9.57M
Net Income	38.05M	37.05M	38.71M	32.29M	9.50M
Balance Sheet
Total Assets	455.21B	435.15M	359.23M	343.27M	278.17M
Cash, Cash Equivalents and Short-Term Investments	35.56B	26.40M	7.90M	5.72M	80.25M
Total Debt	49.22B	49.10B	66.00M	58.00M	197.72M
Total Liabilities	145.19B	126.19M	87.37M	79.24M	14.09M
Stockholders Equity	310.03B	308.96M	271.85M	264.03M	264.08M
Cash Flow
Free Cash Flow	21.33B	23.16M	28.42M	17.01M	6.67M
Operating Cash Flow	24.12M	23.16M	28.42M	17.01M	6.67M
Investing Cash Flow	-15.77M	-39.30M	-1.93M	-125.24M	-145.22M
Financing Cash Flow	20.14M	34.64M	-24.31M	33.71M	218.80M

Chicago Atlantic Real Estate ate Finance Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFI, the sentiment is Negative. The current price of 12.66 is below the 20-day moving average (MA) of 12.89, below the 50-day MA of 13.17, and below the 200-day MA of 13.57, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 30.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REFI.

Chicago Atlantic Real Estate ate Finance Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MITT	67 Neutral	$233.55M	8.52	8.66%	11.01%	22.45%	-44.01%
SEVN	66 Neutral	$155.51M	9.90	5.71%	12.93%	-16.74%	-32.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AOMR	63 Neutral	$225.53M	6.14	14.91%	13.49%	75.08%	-21.03%
NREF	61 Neutral	$251.47M	5.78	21.74%	14.09%	25.17%	―
REFI	58 Neutral	$266.80M	6.90	12.63%	16.27%	1.75%	-7.07%
ACRE	48 Neutral	$257.43M	―	-3.30%	14.96%	-27.60%	62.75%

Chicago Atlantic Real Estate ate Finance Inc Corporate Events

Chicago Atlantic Extends Credit Facility Maturity Date

On August 5, 2025, Chicago Atlantic Lincoln, LLC, a subsidiary of Chicago Atlantic Real Estate Finance, Inc., amended its secured revolving credit facility to extend the maturity date from June 30, 2026, to June 30, 2028, with an option for an additional one-year extension. This amendment, announced on August 7, 2025, is part of the company’s strategy to manage its loan portfolio effectively and capitalize on growth opportunities in the cannabis sector, as demonstrated by their second quarter financial results.