Chicago Atlantic Real Estate Finance: A New Cannabis Lender With A 12.2% Yield

BeanKounter Capital profile picture
BeanKounter Capital
5.18K Followers

Summary

  • REFI is a small cap cannabis lender that went public in late 2021.
  • The REIT is one of several newer players looking to take advantage of the structural imbalance of supply and demand for capital in the cannabis industry.
  • REFI has grown the portfolio rapidly since the IPO and has a huge yield on their loans.
  • The external management is the biggest red flag with REFI, and the main reason I have kept my position small.
  • REFI has hiked their dividend every quarter since going public. The forward yield now sits at 12.2% if they can maintain their current $0.47 payout.

Loan bags, row of rising coins on a table

William_Potter

I have followed the cannabis sector for a couple years, and I have been investing a small portion in my portfolio in some of the multi-state operators because I think the long-term risk/reward is favorable, especially for some of the better

REFI Loan Portfolio

REFI Loan Portfolio (Chicago Atlantic Real Estate Finance)

REFI Loan Portfolio Growth

REFI Loan Portfolio Growth (Chicago Atlantic Real Estate Finance)

REFI External Management Agreement

External Management Agreement (Chicago Atlantic Real Estate Finance)

This article was written by

BeanKounter Capital profile picture
5.18K Followers
CPA and former Big 4 auditor. I break down investments in qualitative and quantitative terms, and I look for investments that will compound my money over the long term.

Disclosure: I/we have a beneficial long position in the shares of REFI, IIPR, NLCP, AFCG, TCNNF, GTBIF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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