WEST PALM BEACH, Fla., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (“SUNS” or the “Company”) (Nasdaq: SUNS), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced that it has originated, closed, and exited a $14.0 million commitment to a $21.6 million senior bridge loan to finance the acquisition of the western portion (11,000 acres) of Silver Mountain Ranch, a landmark property located in Huerfano County, Colorado (the “Property”). The borrower, JW Cattle R ...

Core Viewpoint - Sunrise Realty Trust, Inc. has declared a quarterly dividend of $0.30 per share for the quarter ending December 31, 2025, which is consistent with the previous quarter's dividend [2]. Company Overview - Sunrise Realty Trust, Inc. (Nasdaq: SUNS) is an institutional commercial real estate lender that provides flexible financing solutions primarily in the Southern United States, focusing on transitional commercial real estate projects with potential for near-term value creation [3]. - The company is part of the Tannenbaum Capital Group (TCG) Real Estate platform, which includes affiliated debt funds and aims to capitalize on top-tier assets in rapidly expanding Southern markets [4].

Economic Overview - The year 2025 has been challenging for mortgage real estate investment trusts (mREITs) focused on commercial mortgages due to a decline in U.S. economic momentum [1] - The unemployment rate increased to 4.44% in September 2025, indicating economic stress [1] Investment Insights - The investment approach focuses on fundamental long-term perspectives, particularly in REITs, preferred stocks, and high-yield bonds [1] - The strategy includes combining long stock positions with covered calls and cash secured puts, reflecting a tactical investment methodology [1]

Financial Data and Key Metrics Changes - For the quarter ended September 30, 2025, the company generated distributable earnings of $0.31 per share, covering the dividend of $0.30 per share [5][13] - The net interest income for the same quarter was reported at $6.1 million, with GAAP net income of $4.05 million [13][14] - As of September 30, 2025, total assets were $258.8 million, and total shareholder equity was $184.6 million, resulting in a book value of $13.76 per share [14] Business Line Data and Key Metrics Changes - The company’s portfolio had $367 million in commitments, with $253 million funded across 13 loans as of September 30, 2025 [14] - Subsequent to the quarter end, the company closed on $56 million of loan commitments, including a $30 million senior bridge loan for a retail property refinancing [12] Market Data and Key Metrics Changes - The company noted a significant increase in financing requests compared to the first half of the year, attributed to borrowers' confidence in declining short-term interest rates [8][9] - Traditional commercial banks are gradually re-entering the market, focusing on lower leverage lending, which is seen as a positive sign for liquidity in the commercial real estate financing ecosystem [9][10] Company Strategy and Development Direction - The company focuses on originating transitional loans primarily in the southern United States, leveraging local expertise for attractive risk-adjusted returns [5][6] - The long-term goal is to achieve an investment-grade rating within the next three to five years, with a current leverage of approximately 0.4 times, significantly below the peer average [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market environment, noting a healthy increase in transaction volume and a narrowing bid-ask spread [9][10] - The company remains focused on transitional real estate projects, which are believed to provide the strongest risk-adjusted returns [10] Other Important Information - The weighted average loan-to-cost at closing is reported at 56%, contributing to strong credit performance [6] - Approximately 95% of the company’s loans are floating rate, with an average SOFR floor of about 4%, which is expected to enhance net interest margins as SOFR decreases [6] Q&A Session Summary Question: What new geographies within the southern U.S. are being seen in the pipeline? - The company is focusing on Florida, Texas, North Carolina, Georgia, and Tennessee, with ongoing deal flow in these areas [16][17] Question: Are there any geographies that stand out as the most attractive for investment? - Texas and Florida continue to present interesting opportunities, with the Carolinas and Tennessee also being areas of focus [18][19] Question: How is the debt side of the business strategy progressing? - The company is not pursuing a repo line and aims for an investment-grade rating, focusing on expanding bank lines and considering preferred or unsecured debt offerings [24][25] Question: How is the portfolio performing and what trends are being observed? - The portfolio is performing as expected, with steady progress in construction activities and a recent pickup in for-sale projects due to migration trends [30][31]

Financial Data and Key Metrics Changes - For Q3 2025, the company generated distributable earnings of $0.31 per share, covering the dividend of $0.30 per share [5][13] - Net interest income for the quarter was $6.1 million, with GAAP net income at $4.05 million [13][14] - The company ended the quarter with total assets of $258.8 million and total shareholder equity of $184.6 million, resulting in a book value of $13.76 per share [14] Business Line Data and Key Metrics Changes - The portfolio had $367 million in commitments and $253 million in principal outstanding across 13 loans as of September 30, 2025 [14] - The weighted average loan-to-cost at closing was 56%, indicating conservative positioning [6] - Approximately 95% of the loans are floating rate, with an average SOFR floor of about 4% [6] Market Data and Key Metrics Changes - There has been a notable increase in financing requests, indicating a recovery in the real estate market [8][9] - The bid-ask spread between buyers and sellers is narrowing, which is increasing transaction volume [9] - Most new financing activity is concentrated in the bridge lending space, particularly in multifamily and industrial properties [10] Company Strategy and Development Direction - The company focuses on originating transitional loans primarily in the southern United States, aiming for attractive risk-adjusted returns [5][6] - The long-term goal is to achieve an investment-grade rating within the next three to five years [6] - The company is expanding its real estate pipeline, with two signed non-binding term sheets totaling approximately $170 million [11] Management's Comments on Operating Environment and Future Outlook - Management noted a renewed sense of interest rate stability, encouraging more sponsors to engage in capital planning [8] - The company remains confident in its ability to capitalize on attractive opportunities in the current market environment [12] - The underlying performance of the portfolio is progressing as expected, with no significant issues reported [30][31] Other Important Information - The company has a CESL reserve of approximately $400,000, or 17 basis points for loans at carrying value [14] - The board declared a dividend of $0.30 per share, paid on October 15, 2025 [13] Q&A Session Summary Question: What new geographies within the southern U.S. are being seen in the pipeline? - The company is focusing on Florida, Texas, North Carolina, Georgia, and Tennessee for new deals [17][18] Question: Are there any geographies that stand out as the most attractive for investment? - Texas and Florida continue to present interesting opportunities, with the Carolinas and Tennessee also being areas of focus [18][19] Question: How is the debt side of the business strategy progressing? - The company is not pursuing a repo line and is focused on obtaining an investment-grade rating while expanding bank lines [24][25] Question: How is the portfolio performing and what trends are being observed? - The portfolio is performing as expected, with steady progress in construction and sales [30][31]

Financial Data and Key Metrics Changes - For Q3 2025, the company generated distributable earnings of $0.31 per share, covering the dividend of $0.30 per share [5][15] - The net interest income for the quarter was $6.1 million, with GAAP net income of $4.05 million [14][15] - As of September 30, 2025, total assets were $258.8 million, and total shareholder equity was $184.6 million, resulting in a book value of $13.76 per share [16] Business Line Data and Key Metrics Changes - The company’s portfolio had $367 million in commitments and $253 million in principal outstanding across 13 loans as of September 30, 2025 [16] - The weighted average loan-to-cost at closing was only 56%, indicating conservative positioning [6] - The portfolio yield to maturity was approximately 11.8% [16] Market Data and Key Metrics Changes - There has been a notable increase in financing requests, indicating a recovery in the real estate market [9] - The bid-ask spread between buyers and sellers is narrowing, which is increasing transaction volume [10] - Most new financing activity is concentrated in the bridge lending space, particularly in multifamily and industrial properties [11] Company Strategy and Development Direction - The company focuses on originating transitional loans primarily in the southern United States, aiming for attractive risk-adjusted returns [5][6] - The long-term goal is to achieve an investment-grade rating within the next three to five years [6] - The company is expanding its presence in the southern U.S., with a focus on states like Florida, Texas, North Carolina, Georgia, and Tennessee [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted a renewed sense of interest rate stability, encouraging more sponsors to engage in capital planning [9] - The company remains confident in its ability to capitalize on attractive opportunities in the current market environment [13] - The underlying construction activity and progression of loans are performing as expected, with no significant issues reported [32] Other Important Information - The company has a CESL reserve of approximately $400,000, or 17 basis points for loans at carrying value [16] - The company is not pursuing a repo line and aims to maintain a conservative leverage strategy [26][29] Q&A Session Summary Question: What new geographies within the southern U.S. are being seen in the pipeline? - The company is focusing on Florida, Texas, North Carolina, Georgia, and Tennessee, with a preponderance of deals in these areas [19] Question: Are there any geographies that stand out as the most attractive for investment? - Texas and Florida continue to present interesting opportunities, with the Carolinas and Tennessee also being areas of focus [20] Question: How is the debt side of the business strategy progressing? - The company is focused on expanding bank lines and is considering preferred or unsecured debt offerings, avoiding high-leverage deals [26][27][29] Question: How is the portfolio performing and what trends are being observed? - The portfolio is performing as expected, with steady progress in construction and sales, and a recent pickup in for-sale projects noted [32]

Company Overview - Sunrise Realty Trust (SUNS) is an institutional lender focused on originating and funding commercial real estate loans, primarily in the Southern United States[16] - The company targets a portfolio net internal rate of return (IRR) in the low-teens[16] - The management team has structured over $21 billion in CRE and credit transactions[16] Market Opportunity - Approximately $656 billion of CRE deals have been sourced by SUNS Manager and its affiliates since October 2023, with the company pursuing only about 16% of these deals[17] - Over $2 trillion in CRE loans are maturing by the end of 2027, creating an opportunity for SUNS to scale quickly[17] - Target states in the Southern U S have experienced significant population and employment growth from Q4 2019 to Q2 2025, with total population increasing by 89% and total employment by 106%, outpacing the rest of the U S [34] Portfolio Composition - As of November 3, 2025, total current commitments were $4211 million, with a principal balance of $2952 million and a weighted average yield to maturity of 118%[55] - Senior loans constitute 94% of the portfolio, while subordinate loans make up the remaining 6%[59] - Residential assets account for 62% of the portfolio, with geographic exposure concentrated in Florida (52%) and Texas (35%)[59] Financial Performance - For the three months ended September 30, 2025, net income was $405 million, or $030 per basic common share[66] - Distributable earnings for the same period were $412 million, or $031 per basic weighted average share[67] - Loans held for investment at carrying value, net of current expected credit loss reserve, totaled $25023 million as of September 30, 2025[65]

Core Viewpoint - Sunrise Realty Trust, Inc. reported quarterly earnings of $0.31 per share, matching the Zacks Consensus Estimate and showing an increase from $0.25 per share a year ago [1]. Financial Performance - The company posted revenues of $6.06 million for the quarter ended September 2025, which was 2.32% below the Zacks Consensus Estimate, compared to $3.18 million in the same quarter last year [2]. - Over the last four quarters, Sunrise Realty Trust has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [1][2]. Stock Performance - Shares of Sunrise Realty Trust have declined approximately 33.3% since the beginning of the year, while the S&P 500 has gained 16.5% [3]. - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $6.56 million, and for the current fiscal year, it is $1.23 on revenues of $23 million [7]. - The outlook for the Real Estate - Operations industry, to which the company belongs, is currently in the bottom 37% of over 250 Zacks industries, which may impact stock performance [8].

Financial Performance - For the third quarter of 2025, Sunrise Realty Trust, Inc. reported GAAP net income of $4.05 million, or $0.30 per basic weighted average common share, and Distributable Earnings of $4.12 million, or $0.31 per basic weighted average common share[1][2]. - The company paid a cash dividend of $0.30 per common share, distributing a total of $4.0 million in dividends, which is slightly lower than the Distributable Earnings of $0.31 per share for the same period[4]. - The reconciliation of GAAP net income to Distributable Earnings showed a total of $4.12 million in Distributable Earnings for the quarter, compared to $1.85 million for the same period in 2024, indicating a significant year-over-year increase[16]. - The basic weighted average shares of common stock outstanding for the quarter were 13,247,030, compared to 6,800,500 shares in the same quarter of the previous year[16]. - The company emphasizes the importance of Distributable Earnings as a non-GAAP financial measure to assess overall performance, which is useful for investors[11][15]. Business Strategy - The CEO highlighted the company's focus on originating loans for transitional real estate assets primarily in the Southern United States, aiming for a consistent and stable dividend while diversifying the portfolio[3]. - The company continues to focus on transitional commercial real estate projects that present opportunities for near-term value creation, particularly in rapidly expanding Southern markets[9][10]. Future Outlook - Forward-looking statements indicate that the company anticipates future growth and strategies, although actual results may differ due to various uncertainties[17]. Regulatory Compliance - The company filed its Quarterly Report on Form 10-Q with the SEC on November 13, 2025, providing detailed financial information for investors[5]. - The company encourages stakeholders to monitor its Investor Relations webpage for important updates and disclosures[6].

Core Insights - Sunrise Realty Trust, Inc. reported a GAAP net income of $4.05 million or $0.30 per basic weighted average common share for Q3 2025, with Distributable Earnings of $4.12 million or $0.31 per share [1][2]. Financial Performance - The company paid a cash dividend of $0.30 per common share on October 15, 2025, distributing a total of $4.0 million in dividends, which is slightly lower than the Distributable Earnings of $0.31 per share for the same period [4]. - The reconciliation of GAAP net income to Distributable Earnings shows that for the three months ended September 30, 2025, the Distributable Earnings amounted to $4.12 million, reflecting adjustments for stock-based compensation and expected credit losses [16][18]. Strategic Focus - The CEO emphasized the company's commitment to its strategic objectives established 18 months ago, focusing on originating loans for transitional real estate assets primarily in the Southern United States [3]. - The company aims to diversify its portfolio across various asset classes, geographies, and borrowers while maintaining a consistent and stable dividend [3]. Company Overview - Sunrise Realty Trust, Inc. operates as an institutional commercial real estate lender, providing flexible financing solutions for commercial real estate projects, particularly in the Southern U.S. [8]. - The company is part of the Tannenbaum Capital Group's real estate platform, which includes affiliated debt funds focused on transitional commercial real estate properties [10].