Chicago Atlantic Real Estate Finance(REFI) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for the third quarter was approximately $11.2 million, or$ 0.56 per weighted average diluted common share, representing a sequential increase of 21.7% on a per share basis[15]. - Net income for the three months ended September 30, 2024, was $11,211,636, compared to$ 9,976,998 for the same period in 2023, representing a 12.4% increase[24]. - Net interest income for the third quarter was approximately $14.5 million, an increase from$ 13.2 million as of June 30, 2024[14]. - Net interest income for the three months ended September 30, 2024, was $14,459,393, up from$ 13,734,307 in the same period last year, indicating a growth of 5.3%[24]. - Distributable Earnings for the three months ended September 30, 2024, were $11,159,241, compared to$ 10,537,182 for the same period in 2023, reflecting a 5.9% increase[27]. - Basic earnings per common share for the three months ended September 30, 2024, were $0.57, compared to$ 0.55 for the same period in 2023, marking a 3.6% increase[24]. - Total expenses for the three months ended September 30, 2024, were $3,247,757, down from$ 3,842,876 in the same period last year, a decrease of 15.5%[24]. - Adjusted Distributable Earnings per Weighted Average Share for the three months ended September 30, 2024, were $0.56, compared to$ 0.57 for the same period in 2023, a decrease of 1.8%[27]. Loan and Portfolio Information - As of September 30, 2024, total loan principal outstanding was $362.3 million across 29 portfolio companies, with a$ 6.0 million unfunded commitment[3]. - The portfolio weighted average yield to maturity was approximately 18.3%, down from 18.7% as of June 30, 2024, primarily due to repricing amendments and a 50-basis point decrease in the prime rate[4]. - Total gross originations during the third quarter amounted to $32.7 million, with$ 24.0 million funded to new borrowers and $8.7 million to existing borrowers[7]. - The total reserve for current expected credit losses decreased to$ 4.1 million, approximately 1.1% of the aggregate portfolio principal balance of $362.3 million[16]. - The company reported a decrease in the provision for current expected credit losses of$ (989,597) for the three months ended September 30, 2024, compared to $(41,351) in the same period last year[27]. Shareholder Information - Book value per common share increased to$ 15.05 as of September 30, 2024, compared to $14.92 as of June 30, 2024[17]. - The weighted average number of common shares outstanding increased to 19,625,190 for the three months ended September 30, 2024, from 18,175,467 in the same period last year, an increase of 8.0%[27]. - Stock-based compensation for the three months ended September 30, 2024, was$ 845,524, compared to $540,426 for the same period in 2023, representing a 56.5% increase[27]. - The company intends to pay dividends to stockholders in an amount equal to its net taxable income, subject to Board authorization[25]. Liquidity and Financing - As of November 7, 2024, the Company had approximately$ 94.5 million available on its secured revolving credit facility, with total liquidity of approximately $80 million[12]. - The Company entered into a$ 50.0 million unsecured term loan with a fixed interest rate of 9.0% on October 18, 2024[11]. Collateral Coverage - Real estate collateral coverage was 1.2x as of September 30, 2024, compared to 1.3x as of June 30, 2024, and improved to approximately 1.3x as of November 7, 2024[5].