CHICAGO, May 07, 2024 (GLOBE NEWSWIRE) -- Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) ("Chicago Atlantic" or the "Company"), a commercial mortgage real estate investment trust, today announced its results for the first quarter ended March 31, 2024. John Mazarakis, Executive Chairman of Chicago Atlantic, noted, "We are thrilled with progress toward regulatory reform resulting from the recent news of the DEA's commitment to the rescheduling of cannabis. Once enacted, the policy change is likely to bring significant benefits to the U.S. cannabis industry, including the elimination of punitive federal tax burdens, increased access to capital, and increased employment and investment opportunity to the expected benefit of our shareholders. While there is still uncertainty as to exactly how and when the rescheduling will conclusively take place, this report signals encouraging progress for the industry as a whole." Peter Sack, Co-Chief Executive Officer, added, "We grew the portfolio this quarter funding one new borrower and drove improvement in book value per share with accretive sourcing of capital through our ATM program. The portfolio demonstrated remarkable stability with the weighted average yield to maturity remaining above 19%, while we continue to be selective in adding new operators to the portfolio. The originations pipeline is robust as operators look to take advantage of improving sentiment in the industry and pursuing growth in states such as Maryland, Missouri, and Ohio." Portfolio Performance As of March 31, 2024, total loan commitments of approximately $401.3 million (all of which are funded) across 28 portfolio investments. Weighted average yield to maturity was approximately 19.4% as of March 31, 2024 and December 31, 2023. Real estate collateral coverage was 1.3x compared with 1.5x as of December 31, 2023. Loan to enterprise value (calculated as outstanding principal balance divided by total value of collateral on a weighted average basis) was approximately 40.5% as of March 31, 2024 compared with approximately 44.1% as of December 31, 2023. The percentage of loans which bear a variable interest rate was 76.6% as of March 31, 2024 compared with 80.5% as of December 31, 2023. Investment Activity During the first quarter, Chicago Atlantic had total gross originations of $22.5 million, of which $6.7 million and $15.8 million was funded to a new borrower and existing borrowers, respectively.  Capital Activity and Dividends On February 28, 2024, Chicago Atlantic amended its $100.0 million secured revolving credit facility, without any other change in terms or structure, to extend the maturity date to June 2026 with a one-year extension option, subject to customary conditions. The amendment also increased the accordion feature of the secured revolving credit facility to facilitate additional commitments up to $150.0 million. During the quarter, Chicago Atlantic issued 896,443 shares through its ATM program at a weighted average price of $15.93, raising net proceeds of approximately $13.9 million. As of March 31, 2024, the Company had $81.3 million outstanding on its secured revolving credit facility, resulting in a leverage ratio (debt to book equity) of approximately 28%. As of May 7, 2024, the Company has $19.2 million available on its secured revolving credit facility, and total liquidity, net of estimated liabilities, of approximately $22 million. On April 15, 2024, Chicago Atlantic paid a regular quarterly cash dividend of $0.47 per share of common stock for the first quarter of 2024 to common stockholders of record on March 28, 2024. First Quarter 2024 Financial Results Net interest income of approximately $13.2 million, a sequential decrease of 10.8% from $14.8 million in the fourth quarter of 2023 due to no prepayments and related fees received during the first quarter of 2024 compared with $1.8 million of prepayment fees and the acceleration of original issue discounts during the three months ended December 31, 2023. Total expenses of approximately $4.1 million before provision for current expected credit losses, representing a sequential decrease of 28.4%; primarily attributable to a decrease in management and incentive fees. Net Income of approximately $8.7 million, or $0.47 per weighted average diluted common share, representing a sequential decrease of 7.8% on a per share basis. The total reserve for current expected credit losses increased sequentially by $0.4 million to $5.4 million and amounts to approximately 1.4% of the portfolio principal balance of $377.6 million as of March 31, 2024. Distributable Earnings of approximately $9.7 million, or $0.52 per weighted average diluted common share, representing a sequential decrease of 1.9% on a per share basis. Book value per common share of $14.97 as of March 31, 2024 compared with $14.94 as of December 31, 2023, due to first quarter basic earnings per share in excess of the regular quarterly dividend of $0.47, and accretion from the issuance of common stock at a premium to book value. 2024 OutlookChicago Atlantic affirmed its 2024 outlook previously issued on March 12, 2024. Conference Call and Quarterly Earnings Supplemental DetailsThe Company will host a conference call later today at 9:00 a.m. Eastern Time. Interested parties may access the conference call live via webcast on Chicago Atlantic's investor relations website or may participate via telephone by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. A replay of the conference call webcast will be archived on the Company's website for at least 30 days. Chicago Atlantic posted its First Quarter 2024 Earnings Supplemental on the Investor Relations page of its website. Chicago Atlantic routinely posts important information for investors on its website, www.refi.reit. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in Chicago Atlantic to monitor the Investor Relations page of its website, in addition to following its press releases, SEC filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications. About Chicago Atlantic Real Estate Finance, Inc.Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) is a market-leading commercial mortgage REIT utilizing significant real estate, credit and cannabis expertise to originate senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States. REFI is part of the Chicago Atlantic platform which has deployed over $2.0 billion in credit and equity investments to date, and has a team of over 75 professionals with offices in Miami, Florida, and Chicago, Illinois. Forward-Looking StatementsThis release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as "believes," "expects," "will," "intends," "plans," "guidance," "estimates," "projects," "anticipates," and "future" or similar expressions are intended to identify forward- looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. More information on these risks and other potential factors that could affect our business and financial results is included in our filings with the SEC. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Contact: Tripp Sullivan SCR CHICAGO ATLANTIC REAL ESTATE FINANCE, INC.CONSOLIDATED BALANCE SHEETS       March 31, 2024     December 31, 2023       (unaudited)         Assets             Loans held for investment   $ 359,317,126     $ 337,238,122   Loans held for investment - related party (Note 7)     16,527,188       16,402,488   Loans held for investment, at carrying value     375,844,314       353,640,610   Current expected credit loss reserve     (5,356,018 )     (4,972,647 ) Loans held for investment at carrying value, net     370,488,296       348,667,963   Cash and cash equivalents     6,904,113       7,898,040   Other receivables and assets, net     5,143,318       705,960   Interest receivable     926,852       1,004,140   Related party receivables     192,354       107,225   Debt securities, at fair value