This Cannabis REIT Offers 13%+ Yield, Safer Returns Than Fed-Backed Bonds
Chicago Atlantic REFI (NASDAQ:REFI) stands out in the cannabis finance sector, receiving an “Overweight” rating from senior analyst Pablo Zuanic at Zuanic & Associates. With a near 14% dividend yield, REFI offers an attractive, less volatile way to gain exposure to the cannabis market.
The company’s loan portfolio boasts a yield to maturity (YTM) of over 18%, indicating the potential average annual return from its loans if held until repayment. Furthermore, with 4.6% of loans in non-accrual status—meaning borrowers have stopped making payments—REFI demonstrates robust risk management.
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Loan Portfolio And Yield
REFI’s new loans, up 32% year-over-year, highlight its strong growth potential in year-to-date funding. This growth is supported by a $559 million pipeline, with additional upside from potential cannabis legalization in states like Pennsylvania and Virginia, which could boost demand for financing.
The portfolio includes loans across diverse markets, with top states such as Maryland (14%), Pennsylvania (12%) and Missouri (10%) representing a significant portion of the book. …