REIT - Analyst Highlights Asset-Backed Cannabis Loans In Chicago Atlantic's REFI With Overweight Rating | Benzinga
Zuanic & Associates (Z&A) recently initiated coverage of Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI) with an Overweight rating. Chicago Atlantic is an externally managed commercial mortgage real estate investment trust.
"REFI is among the few active and sizeable publicly traded capital providers to the growing cannabis industry, benefitting from a supply-demand imbalance of capital that allows for YTM rates in the high teens, in the case of mortgage REITs," reads Z&A's latest report.
- With the ability to fund a $350 million loan book and a history of closing $2 billion in loans, including syndications, REFI is well-equipped for growth in the burgeoning cannabis sector.
- REFI's core business involves providing senior loans to state-licensed cannabis industry operators, with collateral including real estate, equipment receivables, and other assets.
- The trust is managed by Chicago Atlantic REIT Manager LLC, a subsidiary of Chicago Atlantic Group LP, responsible for management fees and incentive compensation.