Chicago Atlantic Real Estate Finance Inc (NASDAQ: REFI) is a commercial real estate finance company that originates and holds senior secured loans to cannabis operators across the United States. Revenue comes primarily from interest income on those loans, which carried a weighted average yield to maturity of 16.3% as of December 31, 2025, with individual loan yields ranging from 9.7% to 26.9%. REFI is externally managed by an affiliate operating under the Chicago Atlantic brand, which has originated more than 100 loans totaling approximately $2.6 billion to cannabis industry companies since making its first cannabis loan in April 2019. The company is structured as a REIT and is required to distribute at least 90% of annual REIT taxable income. Net income was $36.0 million for the year ended December 31, 2025, and distributable earnings were $40.4 million, or $1.92 per basic weighted average share. Co-Chief Executive Officers Peter Sack and Phillip Silverman lead the company alongside Chief Operating Officer Andreas Kite, who joined in December 2021.

Revenue model

Interest income on senior secured loans originated to cannabis operators, supplemented by origination fees and other loan-related income. The portfolio is debt-financed in part through a revolving credit facility, which had $142.1 million in drawdowns and approximately $148 million in repayments during the year ended December 31, 2025. As a REIT, at least 90% of annual REIT taxable income must be distributed to shareholders; approximately $43.8 million in dividends were paid during FY2025.

Products and services

Senior secured loans to cannabis operators, including senior term loans, senior delayed draw term loans, senior secured revolvers, and senior real estate corporate loans. Collateral types span industrial and retail cannabis facilities across multiple states. The portfolio as of December 31, 2025 included loans secured by properties in states such as California, Illinois, Missouri, Arizona, Ohio, and multi-state operators.

Customers and end markets

Cannabis operators in the United States, including multi-state operators and single-state licensees running retail dispensaries and industrial cultivation or processing facilities. The company targets operators with existing, profitable facilities rather than ground-up construction projects. End market demand is tied to state-level cannabis legalization and the capital needs of licensed operators.

Value-chain role

Direct lender occupying the senior secured position in the capital structure of cannabis operators. The company originates loans, holds them on its balance sheet, and collects principal and interest. It is externally managed and does not employ its own investment personnel; the manager's Investment Committee sources and underwrites transactions, with REFI reimbursing allocated compensation and operating costs under a Management Agreement.

Geographic exposure

United States only. Loan collateral as of December 31, 2025 is located across multiple states including California, Illinois, Missouri, Arizona, Ohio, and multi-state portfolios. Specific revenue breakdown by state is not disclosed in the excerpts.

Source: SEC 10-K, filed 2026-03-12

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