The 2026Q2 dividend of $10.9M exceeded the $7.6M of FFO by 43% (a 142.8% payout ratio) even as operating cash flow reached $9.1M, suggesting distributions may increasingly draw on reserves rather than current-period interest earnings.
Chicago Atlantic Real Estate Finance, Inc. (REFI) cash flow statement — 5-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Cash from Operations | 26.92M | 28.79M | 23.16M | 28.42M | 17.01M | 6.67M |
| Operating CF Growth % | 238.08% | 24.33% | -18.5% | 67.11% | 154.97% | - |
| Operating CF / Revenue % | 44.76% | 45.63% | 42.27% | 49.57% | 34.81% | 46.1% |
| Net Income | 29.41M | 36.01M | 37.05M | 38.71M | 32.29M | 9.5M |
| Depreciation & Amortization | -246.12M | 0 | 0 | 0 | 563.46M | 101.15K |
| Stock-Based Compensation | -1.27B | 3.37M | 3.06M | 1.48M | 435.62K | 39.48K |
| Other Non-Cash Items | 22.29B | -8.74M | -11M | -11.13M | -568.81M | -1.28M |
| Working Capital Changes | -1.58M | -1.84M | -5.94M | -642.77K | -10.38M | -1.69M |
| Cash from Investing | -28.13M | 8.74M | -39.3M | -1.93M | -125.24M | -145.22M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 27.11M | 0 | 0 | 0 | 6.7B | 0 |
| Other Investing | -55.24M | 8.74M | -39.3M | -1.93M | -6.82B | -145.22M |
| Cash from Financing | -21M | -48.98M | 34.64M | -24.31M | 33.71M | 218.8M |
| Dividends Paid | -40.63M | -43.84M | -41.63M | -39.13M | -28.17M | -6.85M |
| Common Dividends | -40.63M | -43.84M | -41.63M | -39.13M | -28.17M | -6.85M |
| Debt Issuance (Net) | 0 | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -167.61K | -270.74K | -1.22M | -112.28K | -625.54K | 1.71M |
| Net Change in Cash | -22.21M | -11.45M | 18.5M | 2.18M | -74.53M | 80.25M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 27.86M | 26.4M | 7.9M | 5.72M | 80.25M | 0 |
| Cash at End | 13.35M | 14.95M | 26.4M | 7.9M | 5.72M | 80.25M |
| Free Cash Flow | 26.92M | 28.79M | 23.16M | 28.42M | 17.01M | 6.67M |
| FCF Growth % | 11.63% | 24.33% | -18.5% | 67.11% | 154.97% | - |
| FCF / Revenue % | 44.76% | 45.63% | 42.27% | 49.57% | 34.81% | 46.1% |
Quick answers to the most common questions about buying REFI stock.
Chicago Atlantic Real Estate Finance, Inc. (REFI) generated $28.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chicago Atlantic Real Estate Finance, Inc. (REFI) generated $28.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Chicago Atlantic Real Estate Finance, Inc. (REFI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Chicago Atlantic Real Estate Finance, Inc. (REFI) returned $43.8M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Dividend coverage instability
Metrics are mathematically derived from official filings.
Dividend Outruns FFO in Recent Quarters
Chicago Atlantic's $10.9M dividend in 2026Q2 was 43% above the $7.6M of reported FFO for the quarter, per company filings, the second consecutive reported period with a payout ratio above 1.0x, which suggests distributions may increasingly rely on balance sheet reserves rather than current-period interest earnings.
The payout ratio of 1.43x in 2026Q2 follows a 2025Q4 where AFFO printed negative $238.1M against a $9.9M dividend, implying an effectively uncapped payout that quarter. Absent reported AFFO for 2025Q2 through 2026Q1, investors should monitor whether the $8.2M of quarterly OCF in 2025Q3 and $9.1M in 2026Q2 can be sustained against a dividend that has consistently run $9.9M to $10.9M per quarter.
Cash Conversion Swings on Accruals
Chicago Atlantic's operating cash flow converted at just 23% of net income in 2024Q4, at $1.8M versus $7.9M of GAAP earnings, per recent filings, before recovering to 121% in 2026Q2, a swing suggesting interest accrual timing and non-cash items, not loan performance, drive reported conversion.
Operating cash flow has ranged from $1.8M to $9.1M over ten quarters while net income stayed in a tighter $4.8M to $11.2M band, producing FCF margins from 13.1% to 59.8%. This disconnect implies that cash interest received can lag GAAP interest accrued, which matters for a mortgage REIT where the dividend is funded from collected cash rather than book income.
GAAP Earnings Mask 2025Q4 Credit Event
GAAP net income of $8.2M in 2025Q4 contrasted with FFO of negative $238.1M, per company filings, a roughly $246M gap driven by non-cash charges, which suggests depreciation and unrealized adjustments are masking material credit or valuation events that cash-based metrics better reflect.
Because Chicago Atlantic holds loans rather than depreciable real estate, a negative $238.1M FFO print against positive GAAP net income appears to reflect write-downs or impairments rather than depreciation, reversing the usual REIT pattern where FFO normally exceeds net income. The recovery to $7.6M of FFO in 2026Q2 suggests the reset was largely absorbed, but the fact that FFO has only been reported in four of ten quarters limits confidence in the trend.
Interest Collection Timing Remains Volatile
As reported in financial statements, Chicago Atlantic's FCF margin swung from 13.1% in 2024Q4 to 59.5% in 2026Q2, a 46-point swing against a broadly stable net income base, which may indicate shifts in interest collection timing and accrued but uncollected cash interest across the loan portfolio.
The 2024Q4 trough, where OCF fell to $1.8M on $7.9M of net income, is the sharpest example of GAAP income decoupling from realized cash, and it coincides with a dividend payout ratio of 1.17x that quarter. Investors should treat quarterly OCF as noisy relative to FFO/AFFO when assessing true distributable capacity.
Equity Compensation Erodes Cash Base
Chicago Atlantic reported $957.6K of share-based compensation in 2026Q2, about 12.8% of that quarter's net income, per SEC filings, a level broadly consistent with 2025Q3's $928.7K, which suggests equity-linked pay is a meaningful, recurring non-cash use rather than a one-off event.
SBC has climbed from $531.3K in 2024Q1 to $957.6K in 2026Q2, an 80% increase that dilutes per-share cash distributions even though it does not consume operating cash directly. For a REIT whose dividend already exceeds FFO, sustained dilution from equity compensation may further strain the AFFO per share available to holders.
Disclosure Gaps Cloud Cash Flows
Chicago Atlantic reported zero property capex across all ten quarters, per company filings, structurally expected for a mortgage REIT but leaving no reserve build against loan impairment, while the anomalous -$1.3B 2025Q4 share-based compensation figure and sparse AFFO disclosure warrant further investigation.
AFFO has only been reported in two of the last ten quarters, making it impossible to verify the $1.43x 2026Q2 payout ratio against a true distributable cash figure rather than an implied one. Combined with the unexplained negative $1.3B SBC entry in 2025Q4 and 2025Q4 FFO/AFFO convergence at exactly negative $238.1M, these disclosure gaps suggest the reported figures may not fully capture the portfolio's cash obligations.