REFI - Chicago Atlantic Real Estate Finance: 12% Dividend Yield As Cannabis Set For Reclassification
2024-06-04 05:36:06 ET
Summary
- Chicago Atlantic Real Estate Finance is a lender to US cannabis operators with total loan commitments of roughly $401.3 million.
- REFI is currently trading at an 8.4x multiple to annualized first-quarter EPS and a small 4.9% premium to its book value.
- The uncertainty for REFI shareholders is whether the current dividend faces a near-term reduction with the payout running at 100% against EPS.
Chicago Atlantic Real Estate Finance ( REFI ) is a lender to US cannabis operators with total loan commitments of roughly $401.3 million across 28 portfolio investments and with a weighted average yield to maturity of 19.4% as of the end of its fiscal 2024 first quarter. The outstanding principal was at $377.6 million. The cannabis mortgage REIT is flat on a total return basis year to date and is currently trading at an 8.4x multiple to annualized first-quarter EPS. Earnings were $0.47 per share in the first quarter, dipping by 13 cents versus its year-ago comp. The mREIT is also trading at a small 4.9% premium to its book value of $14.97 per share at the end of the first quarter....
Chicago Atlantic Real Estate Finance: 12% Dividend Yield As Cannabis Set For Reclassification