Chicago Atlantic BDC (LIEN) Q4 2024 earnings summary

Executive summary

• Completed first full quarter as Chicago Atlantic BDC, Inc., following the acquisition of a $219.6 million loan portfolio from Chicago Atlantic Loan Portfolio, LLC, and a name/ticker change to LIEN.

• Focused on senior secured investments in cannabis and underserved lending markets, with all current debt investments being senior secured and primarily floating rate with high interest rate floors.

• Declared two consecutive quarterly dividends of $0.34 per share, a 36% increase from the prior quarter.

• Closed a $100 million senior secured revolving credit facility at SOFR +3.00%, undrawn as of year-end, to support future growth.

• Deployed $45.5 million in gross fundings from October 1, 2024, to March 31, 2025.

Financial highlights

• Full year 2024 gross investment income was $21.7 million, up from $11.9 million in 2023; Q4 2024 investment income was $12.7 million.

• Net investment income for 2024 was $9.5 million ($0.91/share), or $14.8 million ($1.43/share) excluding acquisition expenses.

• Q4 2024 net investment income was $8.0 million ($0.35/share); excluding transaction expenses, $8.3 million ($0.36/share).

• Net assets at year-end were $301.2 million; NAV per share was $13.20.

• Share count increased to 22,820,386 at year-end.

Outlook and guidance

• Pipeline of nearly $644 million in potential debt transactions across 39 companies.

• Management expects to continue scaling the portfolio, focusing on high-yield, senior secured loans in niche markets, leveraging regulatory complexity for attractive risk-adjusted returns.

• The $100 million credit facility provides additional capital for expansion and is expected to enhance return on equity and dividend potential.

• Conservative leverage strategy, with a maximum leverage ratio of 0.30x equity even at full draw, well below industry averages.

• Leverage expected to remain below BDC averages as the portfolio grows.