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Chicago Atlantic Real Estate Finance (Chicago Atlantic Real Estate Finance) ROE % : 12.52% (As of Mar. 2024)


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What is Chicago Atlantic Real Estate Finance ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chicago Atlantic Real Estate Finance's annualized net income for the quarter that ended in Mar. 2024 was $34.92 Mil. Chicago Atlantic Real Estate Finance's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $278.91 Mil. Therefore, Chicago Atlantic Real Estate Finance's annualized ROE % for the quarter that ended in Mar. 2024 was 12.52%.

The historical rank and industry rank for Chicago Atlantic Real Estate Finance's ROE % or its related term are showing as below:

REFI' s ROE % Range Over the Past 10 Years
Min: 12.23   Med: 13.34   Max: 14.45
Current: 13.32

During the past 3 years, Chicago Atlantic Real Estate Finance's highest ROE % was 14.45%. The lowest was 12.23%. And the median was 13.34%.

REFI's ROE % is ranked better than
85.64% of 794 companies
in the REITs industry
Industry Median: 4.325 vs REFI: 13.32

Chicago Atlantic Real Estate Finance ROE % Historical Data

The historical data trend for Chicago Atlantic Real Estate Finance's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chicago Atlantic Real Estate Finance ROE % Chart

Chicago Atlantic Real Estate Finance Annual Data
Trend Dec21 Dec22 Dec23
ROE %
- 12.23 14.45

Chicago Atlantic Real Estate Finance Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.95 12.67 14.53 13.73 12.52

Competitive Comparison of Chicago Atlantic Real Estate Finance's ROE %

For the REIT - Mortgage subindustry, Chicago Atlantic Real Estate Finance's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Chicago Atlantic Real Estate Finance's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Chicago Atlantic Real Estate Finance's ROE % distribution charts can be found below:

* The bar in red indicates where Chicago Atlantic Real Estate Finance's ROE % falls into.



Chicago Atlantic Real Estate Finance ROE % Calculation

Chicago Atlantic Real Estate Finance's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=38.71/( (264.033+271.853)/ 2 )
=38.71/267.943
=14.45 %

Chicago Atlantic Real Estate Finance's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=34.92/( (271.853+285.961)/ 2 )
=34.92/278.907
=12.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Chicago Atlantic Real Estate Finance  (NAS:REFI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=34.92/278.907
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(34.92 / 52.944)*(52.944 / 371.4405)*(371.4405 / 278.907)
=Net Margin %*Asset Turnover*Equity Multiplier
=65.96 %*0.1425*1.3318
=ROA %*Equity Multiplier
=9.4 %*1.3318
=12.52 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=34.92/278.907
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (34.92 / 34.92) * (34.92 / 52.944) * (52.944 / 371.4405) * (371.4405 / 278.907)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * 65.96 % * 0.1425 * 1.3318
=12.52 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Chicago Atlantic Real Estate Finance ROE % Related Terms

Thank you for viewing the detailed overview of Chicago Atlantic Real Estate Finance's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chicago Atlantic Real Estate Finance (Chicago Atlantic Real Estate Finance) Business Description

Traded in Other Exchanges
N/A
Address
1680 Michigan Avenue, Suite 700, Miami Beach, FL, USA, 33139
Chicago Atlantic Real Estate Finance Inc is engaged in a commercial real estate finance company. Its primary investment objective is to provide attractive risk-adjusted returns for stockholders over time, through consistent current income dividends and other distributions and secondarily through capital appreciation.
Executives
John Mazarakis director, officer: Exec. Chair of the Board C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Andreas Bodmeier director, officer: Co-President and CIO C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Peter Sack director, officer: Co-President C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Anthony Cappell director, officer: Chief Executive Officer C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Phillip Silverman officer: Interim CFO C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
David Kite officer: Chief Operating Officer C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Jason D Papastavrou director C/O GXO LOGISTICS, INC., TWO AMERICAN LANE, GREENWICH CT 06831
Frederick C Herbst director
Lindsay Menze officer: Chief Financial Officer C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Michael L. Steiner director C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Brandon Konigsberg director C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Chicago Atlantic Fund Qp, Llc 10 percent owner 420 NORTH WABASH AVE., SUITE 500, CHICAGO IL 60611
Donald E. Gulbrandsen director C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611
Chicago Atlantic Cre Holdings, Llc 10 percent owner C/O CHICAGO ATLANTIC REAL ESTATE FINANCE, 420 NORTH WABASH AVENUE, SUITE 500, CHICAGO IL 60611

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