Chicago Atlantic Real Estate Finance, Inc. has provided a significant update regarding its third-quarter earnings and a proposed merger with Chicago Atlantic BDC, Inc. This filing is crucial as it outlines the company’s strategy to enhance shareholder value and expand its operations in the cannabis sector.

Chicago Atlantic Real Estate Finance operates as a real estate investment trust (REIT) focused on the cannabis industry. The company, incorporated in Maryland, trades under the ticker REFI on the Nasdaq exchange. Its recent filings include a 425 form submitted on November 10, 2026, which details the company’s financial performance and strategic plans.

The filing reveals that the company’s leadership, including Co-CEO Peter Sack, President David Kite, and CFO Phil Silverman, participated in a conference call discussing the third-quarter results. During this call, they emphasized the company’s focus on originating high-quality loans and maintaining disciplined underwriting standards.

"We believe that the performance of REFI’s borrowers has little correlation with the broader residential and commercial mortgage real estate markets," said Sack during the call.

Chicago Atlantic's unique position in the real estate investment trust industry is highlighted by its focus on the cannabis sector, which differentiates it from traditional mortgage REITs. The company reported an unlevered weighted average portfolio yield of approximately 14.8%, significantly higher than the 6% to 8% yield reported by comparable commercial mortgage REIT peers.

The proposed merger with Chicago Atlantic BDC, Inc. is seen as a strategic move to overcome structural constraints that may limit REFI's ability to enhance shareholder value. The merger aims to provide greater scale and a broader investment mandate, which could attract more institutional investors and increase trading liquidity.

According to the filing, the special committee and board of directors have recommended the merger, citing that it would allow for diversification across borrowers, sectors, and collateral types. However, the merger remains subject to stockholder approval.

As part of its ongoing strategy, Chicago Atlantic Real Estate Finance has been active in deploying capital, with over $85 million in new principal fundings during the third quarter. The company also reported a quarterly dividend of $0.47 per share, marking its 18th consecutive quarter of dividend payments.

Looking ahead, Chicago Atlantic's management is optimistic about the merger and its potential benefits. They are preparing for upcoming stockholder meetings to discuss the merger and other strategic initiatives. The company is also exploring opportunities to expand liquidity, although they expect originations to slow in the fourth quarter of 2026.

In conclusion, the recent SEC filing underscores Chicago Atlantic Real Estate Finance's commitment to its unique niche in the cannabis-focused REIT market and its strategic plans for growth through the proposed merger with Chicago Atlantic BDC, Inc. The outcome of the merger and its implications for the company and its shareholders will be closely watched in the coming months.