LIEN: Second-Quarter NII Falls to the Dividend Level

By Fly High Investing | August 16, 2026

Chicago Atlantic BDC (NASDAQ: LIEN) reported on August 13, 2026, that second-quarter net investment income was ﹩0.34 per share, down from ﹩0.44 in the first quarter and equal to its declared third-quarter dividend. Total investment income fell to ﹩14.0 million from ﹩16.7 million as quarterly fundings slowed to $2.7 million and repayments, amortization, and refinancing totaled ﹩32.2 million. Net asset value was ﹩13.26 per share at June 30, compared with ﹩13.33 at March 31. No loans were on non-accrual, and the debt portfolio’s weighted average yield was 16.0%.

Why it matters

Dividend coverage narrowed during the quarter because net investment income matched the ﹩0.34 distribution rather than exceeding it. The decline appears tied mainly to lower deployed assets, not a reported deterioration in credit quality. LIEN ended the quarter with debt-to-equity of 0.09 times and ﹩73.9 million of liquidity.

Management said some anticipated fundings shifted into the third quarter, including a ﹩25 million investment completed after quarter-end. Investors should watch whether deployment restores earnings above the dividend and how the proposed merger with Chicago Atlantic Real Estate Finance affects ownership, leverage, and portfolio composition. The merger remains subject to approvals and closing conditions.

Sources

Disclosure: This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.