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Chicago Atlantic BDC Inc Q3 net investment income per share falls

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Asset Value Per Share

$13.27


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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