Chicago Atlantic BDC Inc Q3 net investment income per share falls

Overview

• US specialty lender's Q3 investment income rose slightly, net investment income per share fell yr/yr

• Company maintained regular quarterly dividend of $0.34 per share

• Merger with Chicago Atlantic Real Estate Finance still pending, subject to approvals

Outlook

• Company expects merger with Chicago Atlantic Real Estate Finance to close in 2027, pending approvals

• Company says shelf registration provides flexibility to access capital markets for portfolio growth

• Company reports a robust pipeline of differentiated investment opportunities

Result Drivers

• PORTFOLIO GROWTH - Co said record gross originations and $72 mln deployed to two new borrowers in Q3 expanded portfolio to largest size in its history

• NICHE LENDING FOCUS - Co attributed performance to focus on lending to cannabis operators and lower middle market borrowers, sectors often overlooked by traditional capital providers

• PORTFOLIO QUALITY - Co said portfolio remained stable with no loans on non-accrual and 100% senior secured debt, generating a weighted average yield of 15.5%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy"

• Wall Street's median 12-month price target for Chicago Atlantic BDC Inc is $11.00, about 20% above its November 11 closing price of $9.17

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 9 - Crescent Capital BDC Q3 net investment income falls

• Nov 9 - Bain Capital Specialty Finance Q3 net investment income falls q-o-q

• Nov 9 - WhiteHorse Finance Q3 investment income rises 3%, declares distributions

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)