Annaly Capital Management (NLY) for cannabis real estate.

Starwood Property Trust (STWD) for cannabis properties.

• First Mortgage Loans: Provides primary debt financing secured by commercial real estate properties.
• Alternative Structured Financings: Offers customized debt solutions beyond standard mortgages, also secured by commercial real estate properties.
• Senior Loans to Cannabis Industry: Specializes in providing senior debt to state-licensed cannabis operators and property owners.

Tony Cappell Co-Chief Executive Officer

Tony Cappell is a Co-founder of Chicago Atlantic and Co-CEO of Chicago Atlantic Real Estate Finance, Inc. He possesses over 15 years of experience as a debt investor in the specialty finance sector, having completed more than 150 deals totaling over $5 billion in credit. Before co-founding Chicago Atlantic, Mr. Cappell served as a Managing Director and Head of Underwriting at Stonegate Capital, a private credit investment firm, where he was responsible for credit, underwriting, and the growth strategy of the loan portfolio for lower middle market businesses and emerging brands. His earlier career included roles as a Senior Underwriter at First Midwest Bank and Gibraltar Business Capital.

Peter Sack Co-Chief Executive Officer

Peter Sack is a Managing Partner at Chicago Atlantic and Co-CEO of Chicago Atlantic Real Estate Finance, Inc. He is a credit investor and portfolio manager with experience investing across the capital structure. Prior to joining Chicago Atlantic, Mr. Sack was a Principal at BC Partners Credit, where he was involved in sourcing and underwriting across opportunistic and senior lending strategies in various industries, including cannabis-related direct lending. He also managed the portfolio of BC Partners Lending Corporation, a private business development company. Previously, he was an Associate at Atlas Holdings LLC, a private equity firm focused on supporting distressed manufacturing and distribution companies globally. Mr. Sack also serves as Chief Executive Officer of Chicago Atlantic BDC, Inc.

Phil Silverman Chief Financial Officer

Phil Silverman serves as the Chief Financial Officer of Chicago Atlantic Real Estate Finance, Inc. He is a licensed Certified Public Accountant with over 10 years of finance and accounting experience, specializing in financial reporting, operations, and internal controls for investment management firms. Mr. Silverman was Interim Chief Financial Officer from September 2022 until March 2024, before being appointed CFO in March 2024. From June 2021 to September 2022, he held the positions of Controller of the Company and CFO of Chicago Atlantic Group, L.P. Before Chicago Atlantic, he spent nearly nine years at BDO USA, LLP, as a Senior Manager in the Financial Services and Private Equity group, where he was responsible for audits of private equity and venture capital funds, business development companies, and other asset managers.

John Mazarakis Executive Chairman

John Mazarakis is a Partner at Chicago Atlantic and has served as Executive Chairman since the company's inception. He is an entrepreneur and operator with over 20 years of experience across real estate, retail, and hospitality sectors. Mr. Mazarakis has launched successful companies, built and operated more than 35 restaurants, developed a real estate portfolio exceeding 30 properties, completed over 1 million square feet of commercial real estate development, and executed multiple real estate financing transactions. He also successfully grew a distribution company from $12 million to over $90 million in annual sales in under two years.

Andreas Bodmeier, Ph.D. President

Andreas Bodmeier is a Partner of Chicago Atlantic and serves as President of Chicago Atlantic Real Estate Finance, Inc. He brings over 15 years of experience in finance and analytics. Before joining Chicago Atlantic, Dr. Bodmeier co-founded a boutique technology and consulting firm specializing in FX and commodity risk management for multinational corporations, as well as advising on capital structure decisions and investor relations. He also co-founded an SEC-registered online investment adviser for retirement accounts.

1. Federal Illegality of Cannabis and Regulatory Uncertainty

   Despite state-level legalization, cannabis remains illegal at the federal level in the United States, creating significant legal and operational risks for REFI and its borrowers. Properties used for cannabis-related activities are technically subject to forfeiture by the U.S. government, which could render REFI's mortgage collateral unsecured. Additionally, federally regulated financial institutions are often hesitant to engage with cannabis businesses due to the risk of violating anti-money laundering laws, limiting traditional banking and financing options for REFI's clients and potentially affecting REFI's own access to capital. Any changes in federal or state cannabis regulations, whether favorable or unfavorable, introduce uncertainty and could significantly impact the market for cannabis properties and the operational viability of REFI's borrowers.

2. Credit Risk and Borrower Defaults

   As a lender, REFI is directly exposed to the risk of its borrowers defaulting on their loans. The cannabis industry faces unique financial challenges, including intense competition that can compress business margins, thereby increasing the likelihood of borrower defaults. In the event of a default, the specialized nature of cannabis real estate can make it difficult to repurpose properties for non-cannabis uses, which could negatively impact the recovery value of collateral. REFI has noted ongoing "credit stress in spots," including loans that are non-accrual or have required workouts, indicating the presence of credit risk within its portfolio.

3. Liquidity and Capital Availability

   REFI's ability to fund its robust loan pipeline and execute its growth strategy is contingent on sufficient liquidity and access to capital. The company has indicated "constrained liquidity relative to the pipeline," suggesting that limited available cash could restrict its capacity to fund new lending opportunities quickly. While REFI manages its debt and has a strong pipeline, a prolonged period of limited capital availability or increased borrowing costs could impede its ability to originate new loans and expand its business effectively.

The clear emerging threat to Chicago Atlantic Real Estate Finance (REFI) is the potential for federal regulatory changes regarding cannabis, particularly the passage of legislation like the SAFE Banking Act or outright federal legalization. REFI currently thrives by providing financing to the cannabis industry, a sector largely underserved by traditional banks and financial institutions due to federal illegality. If federal legislation is enacted that allows traditional banks to service cannabis businesses without penalty or legalizes cannabis nationwide, these institutions would likely enter the market. This influx of traditional capital providers, often with lower costs of capital and broader service offerings, would significantly increase competition for REFI, potentially eroding its current competitive advantage, reducing loan yields, and impacting its market share.

The addressable market for Chicago Atlantic Real Estate Finance (REFI) is primarily within the U.S. cannabis industry, focusing on real estate financing.

The cannabis real estate market in the U.S. represents a significant opportunity, estimated at approximately $100 billion. This market size is for the United States.

More broadly, the U.S. cannabis industry is projected to require between $65.6 billion and $130.7 billion in sustainable growth capital over the next decade to support new and existing cannabis businesses. Furthermore, the U.S. cannabis industry's retail revenue was estimated at $35 billion in 2025 and is projected to reach $69 billion by 2031.

Chicago Atlantic Real Estate Finance (REFI) is expected to drive future revenue growth over the next two to three years through several key factors:

1. Expansion of Lending Opportunities within the Evolving Cannabis Industry: Chicago Atlantic Real Estate Finance specializes in providing senior loans to state-licensed operators and property owners in the cannabis industry. The company anticipates significant benefits from potential federal regulatory changes, such as the rescheduling of cannabis from Schedule I to Schedule III. This policy shift is expected to reduce punitive federal tax burdens, enhance access to capital, and increase investment opportunities for cannabis businesses, thereby expanding the addressable market and demand for REFI's specialized lending services. Management views these regulatory developments as encouraging progress for the industry, leading to a robust pipeline of investment opportunities in states like Maryland, Missouri, and Ohio.
2. Execution on a Robust Investment Pipeline and New Loan Originations: The company consistently reports a substantial investment pipeline, which stood at approximately $616 million as of March 2026, indicating strong demand for its financing solutions. Management expresses confidence in its ability to execute on this pipeline, targeting net portfolio growth through new originations. This growth comes from both new borrowers and additional funding to existing portfolio companies, expanding its client base and deepening relationships within its niche market.
3. Strategic Portfolio Structuring to Maintain High Yields Amidst Interest Rate Dynamics: Chicago Atlantic Real Estate Finance has strategically structured its loan portfolio to include a significant portion of fixed-rate loans or floating-rate loans with high interest rate floors. This approach insulates over 90% of its portfolio from potential interest rate declines, helping to preserve net interest income and maintain a consistent weighted-average portfolio yield, which was around 16.3% as of December 2025. By mitigating the adverse effects of declining interest rates, REFI aims to sustain its high-margin lending in cannabis real estate, thereby supporting stable revenue generation.

Share Repurchases

• Chicago Atlantic Real Estate Finance has not made significant share repurchases, with a reported buyback yield of 0.0% for the period of 2021-2024.

Share Issuance

• In early 2023, Chicago Atlantic Real Estate Finance issued 395,779 shares of common stock through a registered direct placement at a price of $15.16 per share, resulting in approximately $5.985 million in net proceeds.
• As of December 31, 2025, there were approximately 21.5 million common shares outstanding on a fully diluted basis.
• The company has a shelf registration capacity of $452.1 million for future offerings under a 2026 S-3 shelf.

Outbound Investments

• Chicago Atlantic Real Estate Finance advanced approximately $79.4 million in gross loan principal during 2025.
• The company's total loan principal outstanding reached $411.1 million across 26 portfolio companies as of December 31, 2025.
• From January 1, 2026, to March 12, 2026, approximately $51.1 million in new gross loan principal was advanced, comprising $16.2 million to a new borrower and $34.9 million to existing borrowers.

Capital Expenditures

• No specific dollar value information for capital expenditures is available over the last 3-5 years.