Chicago Atlantic Real Estate Finance's Stock Valuation & Dividend Yield Are Leaving Competitors Behind
- Chicago Atlantic Real Estate Finance (NASDAQ:REFI):
- Stands out in cannabis capital providers and mortgage REIT sectors due to premium valuation, impressive dividend yield, and growth track record.
- Trades at a 3% premium to book value, reflecting strong investor confidence in growth prospects.
- Offers a high dividend yield of 12.2%, significantly higher than peers like AFC Gamma, Inc. and Innovative Industrial Properties Inc.
- Leverage ratio increased to 28% in March 2024 from 14% a year earlier, showing strategic use of debt for growth.
- Growth track record includes a $50 million increase in the loan book year-over-year, supported by diverse state exposure.
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Advanced Flower Capital Inc. Reports Q3 2025 Financial Results
Financial Performance: Advanced Flower Capital Inc. reported a GAAP net loss of $(12.5) million for Q3 2025, with Distributable Earnings of $3.5 million, equating to $(0.57) and $0.16 per share, respectively.
Conversion to BDC: Shareholders approved the company's conversion from a mortgage REIT to a business development company (BDC), allowing AFC to expand its investment scope beyond real estate-backed loans.
Dividend Payment: The company paid a cash dividend of $0.15 per common share for Q3 2025 to shareholders of record as of September 30, 2025.
Future Outlook: AFC's management expressed optimism about identifying lending opportunities in the lower-middle market, which they believe can yield attractive risk-adjusted returns for shareholders.
Advanced Flower Capital Moves Forward with BDC Conversion to Foster Long-Term Growth and Value Creation
Shareholder Meeting Announcement: Advanced Flower Capital Inc. (AFC) has scheduled a special meeting for shareholders on November 6, 2025, to vote on proposals necessary for its conversion from a real estate investment trust (REIT) to a business development company (BDC).
Board Recommendations: The AFC Board of Directors unanimously recommends that shareholders vote "FOR" the proposals, which include a new investment advisory agreement and the application of reduced asset coverage requirements, to facilitate the strategic shift and enhance portfolio diversification.
