Chicago Atlantic Real Estate Finance — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net interest income for the three months ended September 30, 2026, was $12.47 million, down from $13.69 million in the same period in 2025 and $12.83 million in the second quarter of 2026.
• Total expenses before provision for expected credit losses were $4.46 million in Q3 2026, compared to $4.19 million in Q3 2025 and $4.59 million in Q2 2026.
• Net income for Q3 2026 was $6.43 million ($0.25 per diluted share), a decrease from $8.93 million ($0.42 per diluted share) in Q3 2025 and $7.47 million ($0.34 per diluted share) in Q2 2026.
• Provision for current expected credit losses was $2.77 million in Q3 2026, an increase from $0.56 million in Q3 2025 and $0.55 million in Q2 2026.
• Distributable earnings (diluted) were $0.49 per share in Q3 2026, flat with $0.49 per share in Q3 2025, but down from $0.43 per share in Q2 2026.
• Regular dividends declared were $0.47 per share for Q3 2026, consistent with Q2 2026 and Q3 2025.
• Total loan principal outstanding increased to $527.70 million as of September 30, 2026, from $453.13 million as of June 30, 2026, and $399.95 million as of September 30, 2025.
• The portfolio included 28 portfolio companies as of September 30, 2026, up from 26 in the prior two quarters.
• Gross unlevered weighted average yield to maturity was 14.8% in Q3 2026, down from 15.8% in Q2 2026 and 16.5% in Q3 2025.
• 56.8% of the aggregate loan portfolio bore a variable interest rate in Q3 2026, compared to 62.5% in Q2 2026 and 63.3% in Q3 2025.
• Adjusted book value per share (as-paid) was $14.12 as of September 30, 2026, down from $14.15 in Q2 2026 and $14.71 in Q3 2025.
• Debt-to-equity ratio was 47.5% as of September 30, 2026, up from 46.6% in Q2 2026 and 32.8% in Q3 2025.
• Total assets were $468.19 million as of September 30, 2026, compared to $424.92 million as of December 31, 2025.
• Total liabilities were $165.54 million as of September 30, 2026, compared to $117.10 million as of December 31, 2025.
• Total stockholders' equity was $302.65 million as of September 30, 2026, down from $307.81 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company expects to maintain a dividend payout ratio based on Distributable Earnings per weighted average diluted share of approximately 90% to 100% for the full year 2026.
• The 2026 outlook assumes the Company continues to operate on a standalone basis and does not reflect the effects of the pending Merger with Chicago Atlantic BDC, Inc.

Business Segments and Product Lines:

• The Company's real estate secured cannabis pipeline decreased from approximately $204 million to $174 million since the end of the previous quarter.
• The Company originated the Koach transaction in the third quarter, resulting in Notes receivable from stockholders (Koach Notes) with a principal balance of $59.09 million as of September 30, 2026.
• As of September 30, 2026, the Company held 31 individual Koach Notes secured by 31 retail properties, presented as one portfolio company for comparability.
• New portfolio company advances totaled $80.38 million in Q3 2026, while existing portfolio company advances were $7.62 million.
• Scheduled principal repayments from existing portfolio companies were $3.85 million in Q3 2026.
• Unscheduled principal repayments totaled $9.58 million in Q3 2026, including $3.79 million from new portfolio companies and $5.79 million from existing portfolio companies.

Market and Competitive Landscape:

• The Company operates in a challenging macroeconomic environment with heightened uncertainty across the regulatory landscape and the mortgage REIT sector.
• Management states that the Company's credit fundamentals compare favorably to peers, leveraging specialized market knowledge and established relationships in the cannabis sector.
• The Company focuses on originating senior secured loans primarily to state-licensed cannabis operators in limited-license states in the United States.

Risks and Challenges:

• Risks include the potential failure to complete the proposed Merger with Chicago Atlantic BDC, Inc. on anticipated terms or timing, or at all.
• Risks involve the failure to obtain required stockholder approvals for the Merger, including REFI's election to be regulated as a business development company.
• Regulatory risks include developments in the cannabis industry, such as federal, state, and local legal changes and the implementation of federal rescheduling.
• The Koach transaction carries credit and collateral risks, including the subordination of the Koach Notes to senior first lien indebtedness.
• Changes in interest rates, credit spreads, and macroeconomic conditions pose risks to the business.
• The Merger may divert management's attention from ongoing business operations.

Management Commentary and Tone:

• Peter Sack, Co-Chief Executive Officer, expressed confidence in the Company's ability to navigate an evolving landscape while staying disciplined in underwriting.
• Management highlighted that strategic decisions, such as the Koach transaction, position the Company for long-term success despite the challenging environment.
• Management emphasized that their deep understanding of risk allows them to structure investments with insight that broader-based lenders often lack.

Other Key Points:

• On June 17, 2026, the Company entered into an Agreement and Plan of Merger with Chicago Atlantic BDC, Inc. (LIEN), with LIEN continuing as the surviving company.
• Based on NAVs as of March 31, 2026, former REFI stockholders would be expected to own approximately 50.5% of LIEN immediately following the Merger, though this is subject to changes prior to closing.
• The Merger is expected to close in 2027, subject to stockholder and regulatory approvals.
• On July 9, 2026, the Company issued 4,306,754 shares of common stock to Koach in a private placement in exchange for approximately $62.6 million of second lien promissory notes.
• During the three months ended September 30, 2026, the Company increased its Revolving Loan borrowing capacity from $110.0 million to $117.5 million.
• As of September 30, 2026, total drawn leverage was approximately $144.4 million, consisting of $94.4 million on the secured revolving credit facility and $50.0 million in outstanding senior unsecured notes due 2028.
• As of November 10, 2026, the Company had $15.2 million available on its secured revolving credit facility and total liquidity, net of estimated liabilities, of approximately $12.0 million.
• Distributable Earnings for the nine months ended September 30, 2026, were $31.69 million ($1.38 per diluted share), compared to $31.10 million ($1.45 per diluted share) in the same period in 2025.
• The Company's definition of Distributable Earnings was updated beginning in Q3 2026 to include interest income, exit fees, and other amounts earned under the Koach Notes that are recorded directly in stockholders' equity under GAAP.