Cannabis REIT Chicago Atlantic's Net Income Grows 20% YoY In 2023
Portfolio Pulse from Jelena Martinovic
Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) reported a 20% year-over-year growth in net income for 2023, with net interest income increasing by 17% and total expenses up by 39.4%. The company saw a sequential decrease in net income and distributable earnings in Q4 2023 due to increased management and incentive fees. Despite this, REFI's shares rose 2.20% in pre-market trading. The company expects to maintain a dividend payout ratio of 90% to 100% in 2024 and may issue a special dividend in Q4 2024 to meet taxable income distribution requirements.
March 12, 2024 | 12:55 pm
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Chicago Atlantic reported a 20% YoY growth in net income for 2023, with a sequential decrease in Q4 due to higher fees. Shares rose 2.20% pre-market. The company plans a 90-100% dividend payout ratio in 2024.
The positive year-over-year growth in net income and the company's optimistic outlook for maintaining a high dividend payout ratio are likely to be viewed positively by investors, contributing to the pre-market stock price increase. However, the sequential decrease in net income and distributable earnings in Q4 2023 due to increased fees may temper some enthusiasm.
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