Chicago Atlantic BDC, Inc. (NASDAQ: LIEN) reported its financial results for the second quarter ended June 30, 2026, highlighting continued portfolio stability despite lower investment income compared with the previous quarter. The specialty finance company generated $14.0 million in total investment income and $7.7 million in net investment income, or $0.34 per share. Net assets resulting from operations increased by $6.1 million, or $0.27 per share.
Investment Portfolio
As of June 30, Chicago Atlantic BDC’s investment portfolio had a fair value of approximately $334.8 million across 37 portfolio companies, compared with $364.0 million across 40 companies at the end of the first quarter. Management said the decline was primarily driven by repayments and amortization rather than deterioration in credit quality.
The company’s debt investments generated a 16.0% weighted-average yield, up from 15.8% in the previous quarter. Importantly, none of the company’s loans were on non-accrual status at quarter-end, while its portfolio remained entirely composed of senior secured debt.
Balance Sheet and Liquidity
Total assets stood at $344.0 million, while net assets were $302.5 million. Net asset value declined modestly to $13.26 per share, compared with $13.33 at March 31.
Chicago Atlantic BDC ended the quarter with $73.9 million in liquidity and $27.0 million in outstanding borrowings, resulting in a debt-to-equity ratio of just 0.09x. The company also maintains access to additional capital through a $500 million shelf registration statement filed with the SEC.
Dividend Maintained
The company’s board declared a third-quarter 2026 dividend of $0.34 per share, payable October 9 to shareholders of record as of September 25. The dividend maintains the same quarterly rate for the seventh consecutive quarter, underscoring management’s continued focus on shareholder distributions.
REFI Merger Adds Strategic Focus
A major development remains Chicago Atlantic BDC’s planned merger with Chicago Atlantic Real Estate Finance (NASDAQ: REFI). Under the proposed NAV-for-NAV stock transaction, former REFI shareholders could own approximately 50.5% of the combined company, based on March 31 NAV figures. The transaction remains subject to shareholder and regulatory approvals and is currently expected to close in the fourth quarter of 2026.
Overall, the second-quarter results show a company maintaining strong portfolio yields, low leverage and solid credit performance while preparing for a potentially transformative merger later this year.
