Chicago Atlantic Real Estate Finance Reports Amid Cannabis Industry Momentum

LOS ANGELES- Chicago Atlantic Real Estate Finance, Inc.  an Illinois-based cannabis real estate investment trust (REIT), has disclosed a substantial 17% increase in net interest income for the fiscal year 2023, reaching $57.1 million. This financial upswing underscores the company’s strong performance and strategic positioning within the burgeoning cannabis industry.

In the course of its fourth-quarter earnings discussion, Chicago Atlantic’s leadership underscored the promising horizon of federal cannabis legislation reform. Such reforms, including the possible rescheduling of cannabis and the removal of Section 280E of the Internal Revenue Code, are anticipated to significantly boost cash flows for the company’s associated borrowers. This optimistic outlook is driven by the belief that federal policy adjustments could unlock new investment opportunities and enhance client equity.

Notwithstanding a 5.8% decrease in net income during the fourth quarter compared to the preceding quarter—a decline attributed to heightened management and incentive fees—Chicago Atlantic’s prospects remain positive. Co-CEO Tony Cappell highlighted the escalating demand for credit within the cannabis sector, especially with Ohio preparing for recreational cannabis introductions and the potential for adult-use legalization in Florida. Cappell noted, “The demand for credit in this capital-constrained industry should only accelerate as a result,” pointing to the dynamic expansion and financing needs of the cannabis market.

As of December 31, Chicago Atlantic’s committed lending totaled approximately $378.8 million across 27 portfolio investments, showcasing its substantial commitment to financing cannabis-related real estate endeavors.

Furthermore, the company announced significant executive team promotions, solidifying its leadership structure. Peter Sack, previously co-President, has been elevated to the role of co-CEO alongside Tony Cappell. Meanwhile, Phil Silverman has transitioned from his interim role to become the permanent Chief Financial Officer, marking a pivotal step in the company’s ongoing development and strategic execution.

With its robust financial performance and strategic leadership appointments, Chicago Atlantic Real Estate Finance, Inc. is poised to capitalize on the growing momentum within the cannabis industry, leveraging legislative advancements and increasing credit demand to foster continued growth and success.