Overview

• US commercial mortgage REIT's Q1 net interest income was stable year-over-year

• Q1 net income fell year-over-year due to higher credit loss provision

• Company expects to maintain 90-100% dividend payout ratio for 2026

Outlook

• Company expects 2026 dividend payout ratio of about 90% to 100% of distributable earnings

• Company may issue a special dividend in Q4 2026 if taxable income requires additional distribution

• Company expects federal cannabis rescheduling to improve borrower credit profiles in coming months

Result Drivers

• CREDIT LOSS PROVISION - Higher provision for expected credit losses reduced net income in Q1

• PORTFOLIO STRATEGY - Co said focus on shorter-duration, less broadly marketed loans backed by diversified, profitable operators helped insulate portfolio from broader market pressures

• INTEREST RATE STRUCTURE - All loans protected by fixed rates or floating rates with floors at or above Prime, supporting consistent portfolio yield

Company press release: ID:nGNXCy5hw

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Chicago Atlantic Real Estate Finance Inc is $16.00, about 30.6% above its May 6 closing price of $12.25

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.