Chicago Atlantic BDC, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total investment income for the quarter ended September 30, 2026, was $15.4 million ($0.68 per share), compared to $14.0 million ($0.61 per share) in the prior quarter and $15.1 million ($0.66 per share) in the same period last year.
• Net investment income was $8.3 million ($0.36 per share), down from $7.7 million ($0.34 per share) in the prior quarter and $9.5 million ($0.42 per share) year-over-year.
• Net expenses were $7.1 million ($0.32 per share), up from $6.3 million ($0.27 per share) in the prior quarter and $5.6 million ($0.24 per share) year-over-year.
• Net increase in net assets resulting from operations was $8.0 million ($0.35 per share), compared to $6.1 million ($0.27 per share) in the prior quarter and $8.8 million ($0.39 per share) year-over-year.
• Net realized loss on investments was $0.1 million for the quarter, compared to no realized gains or losses in the prior quarter and year-ago period.
• Net change in unrealized depreciation on investments was $0.2 million ($0.01 per share) for the quarter, compared to $1.6 million ($0.07 per share) in the prior quarter and $0.7 million ($0.03 per share) year-over-year.
• Net asset value (NAV) per share was $13.27 as of September 30, 2026, flat from the prior quarter's $13.26 and unchanged from the $13.27 recorded in September 2025.
• Distributions declared for the quarter were $7.8 million ($0.34 per share), consistent with the prior quarter and the same period last year.

Guidance and Future Outlook:

• The company expects the merger with Chicago Atlantic Real Estate Finance, Inc. (REFI) to close in 2027, subject to stockholder approval and other customary conditions.
• Based on NAVs as of March 31, 2026, former REFI stockholders are expected to own approximately 50.5% of the combined company post-merger, though the final percentage depends on the exchange ratio calculated at closing.
• The company has a shelf registration statement effective for up to $500 million in securities to enhance financial flexibility for portfolio growth.
• Management highlighted a robust pipeline of differentiated investment opportunities in less competitive, uncorrelated credit markets.

Business Segments and Product Lines:

• The portfolio consists of 39 portfolio companies as of September 30, 2026, up from 37 in the prior quarter and 37 in September 2025.
• Total investments at fair value reached $399.6 million as of September 30, 2026, up from $334.8 million in the prior quarter and $311.4 million in September 2025.
• The company funded $72.0 million to two new borrowers in the third quarter, contributing to a year-to-date deployment of $167.4 million.
• The portfolio is 100% senior secured debt, with a weighted average yield of 15.5% for the quarter, down from 16.0% in the prior quarter and 15.8% in the prior year.
• 84.1% of the loan portfolio bore a variable interest rate as of September 30, 2026, compared to 81.0% in the prior quarter and 69.0% in September 2025.
• The company received $5.1 million in scheduled and unscheduled principal repayments and sold a loan position for $3.0 million during the quarter.
• Subsequent to quarter-end, $2.0 million was funded to an existing portfolio company.

Market and Competitive Landscape:

• Chicago Atlantic BDC is positioned as one of the few publicly traded BDCs primarily focused on lending to cannabis operators and lower middle-market companies often overlooked by traditional providers.
• The company maintains a differentiated investment approach targeting stable risk ratings, with no investments on non-accrual status as of September 30, 2026.
• The company operates in a market where federal rescheduling of medical cannabis is a potential future development that could impact operations.

Risks and Challenges:

• The merger with REFI is subject to risks including failure to obtain required stockholder approvals, regulatory approvals, and third-party consents.
• There is a risk that the merger may divert management's attention from ongoing business operations.
• The cannabis industry faces risks related to federal, state, and local legal and regulatory changes, including the implementation of federal rescheduling.
• Macroeconomic conditions, changes in interest rates, and credit spreads could impact the company's performance.
• The merger may negatively affect relationships with borrowers, employees, and other counterparties.

Management Commentary and Tone:

• CEO Peter Sack stated the third quarter demonstrated the company's ability to generate attractive risk-adjusted returns with a disciplined focus on capital preservation.
• Management noted that 2026 is a record year for gross originations, with the portfolio reaching the largest size in company history.
• Management emphasized the strength of the portfolio, citing stable risk ratings, zero non-accrual investments, and a 100% senior secured debt structure.
• The tone reflected confidence in the company's unique market position and the robust pipeline of opportunities in uncorrelated credit sectors.

Other Key Points:

• On November 9, 2026, the Board declared a regular quarterly dividend of $0.34 per share for the fourth quarter, payable January 15, 2027, totaling approximately $7.8 million.
• The third-quarter dividend of $0.34 per share was the eighth consecutive dividend at that rate.
• Liquidity as of September 30, 2026, was $10.2 million, comprising $1.2 million in cash and $9.0 million available to draw on a $100.0 million senior credit facility.
• As of November 11, 2026, outstanding borrowings on the senior credit facility were $94.5 million, with approximately $6.7 million in liquidity remaining.
• The debt-to-equity ratio increased to 0.30x as of September 30, 2026, from 0.09x in the prior quarter and 0.04x in September 2025.
• The company entered into a merger agreement on June 17, 2026, with REFI, an affiliated REIT externally managed by an affiliate of the Company's investment adviser.
• A preliminary registration statement (Form N-14) including a joint proxy statement/prospectus was filed on July 31, 2026, and amended on September 23, 2026, pending SEC review.