Chicago Atlantic: The Selloff Opens Up The Commons To Recovery

2026-01-18 06:34:38 ET

Chicago Atlantic Real Estate Finance ( REFI ) offers a covered double-digit dividend yield that's grown to a record level. This is backed by a credit portfolio of commercial real estate ("CRE") operated by state-licensed operators in the cannabis industry. The externally managed mortgage REIT's loan portfolio is comprised of senior loans secured by property, licenses, equipment, and other assets. REFI's portfolio was valued at just under $400 million as of the end of its fiscal 2025 third quarter. The mREIT also has a smaller business lending to non-cannabis-related CRE. I view the common shares as offering a more attractive upside potential following a 17.34% dip over the last 1 year. While this has somewhat reflected broader malaise across mREITs, the iShares Mortgage Real Estate Capped ETF ( REM ) is actually up 9.34% over the same time frame. ...

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