Chicago Atlantic BDC, Inc.

For the first quarter of 2026, gross investment income was $16.7 million, up from $14.2 million in the fourth quarter of 2025. Net expenses were $6.7 million versus $5.9 million in Q4 2025. Net investment income was a record $10 million, or $0.44 per share, up from $8.3 million, or $0.36 per share, in Q4 2025. The company also reported a net unrealized loss of $1.4 million, due to widening spreads rather than underlying credit performance. Net assets reached $304.2 million, and NAV per share was $13.33 versus $13.30 in Q4 2025. On the portfolio side, the company funded a record $93.9 million in new debt investments and had $54.5 million of debt outstanding at quarter end, all drawn on the revolving line of credit. As of May 13, 2026, liquidity was approximately $51.5 million, including $50 million of borrowing capacity under the $100 million credit facility and about $1.5 million of cash. Management also filed a shelf registration to allow issuance of up to $500 million in securities, with a stated focus on future debt financing. The company declared a $0.34 dividend, its seventh consecutive quarter at that rate.

Peter Sack framed the quarter as validation of Chicago Atlantic BDC’s niche strategy, saying the company is benefiting from limited competition, senior-secured lending, and strong downside protection. He emphasized that 94% of the portfolio at par is either fixed rate or floating at floor, and said a 100 basis point drop in benchmark rates would have less than a 15 basis point annualized impact on interest income. His tone was constructive and confident, especially around cannabis policy changes and the belief that the company can keep expanding while staying disciplined on underwriting.

Tom Geoffroy focused on the financial buildout: gross investment income rose to $16.7 million, net expenses were $6.7 million, and NII reached a record $10 million, or $0.44 per share. He highlighted a 15.8% gross weighted-average yield on the debt portfolio, no loans on nonaccrual, and 22.8 million shares outstanding at quarter end. He also noted the balance sheet had $54.5 million of revolver debt outstanding and approximately $51.5 million of liquidity as of May 13, and said the $500 million shelf was intended to add flexibility and potentially accretive leverage.

Analysts focused on the $500 million shelf, asking whether it would mainly be debt and what rates the company could obtain; management said the filing was primarily for future debt issuance but it was too early to discuss pricing or timing. Questions also centered on leverage and portfolio mix: Peter Sack said the company expects to stay well below the BDC average leverage of 1.3x, and explained that the non-cannabis lending book is intentionally smaller and expected to remain about 20% to 30% of the portfolio. On growth, management said the non-cannabis pipeline expanded significantly, while cannabis M&A activity is increasingly appearing in the pipeline but has not yet fully translated into closed transactions.