Financial Results - Sunrise Realty Trust, Inc. announced preliminary financial results for Q1 2025 on April 22, 2025[4] - The press release detailing financial results is included as Exhibit 99.1[6] Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]

SUNS distributes its earnings releases via its website and email lists. Those interested in receiving firm updates by email can sign up for them here. WEST PALM BEACH, Fla., April 15, 2025 (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 will release its financial results for the first quarter ended March 31, 2025 on Wednesday, May 7th, 2025 before market open. Management wil ...

WEST PALM BEACH, Fla., March 18, 2025 (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 closed on a $46.5 million commitment to a $62.0 million senior loan originated by the TCG Real Estate platform to refinance The Bohéme, a Class-A Multifamily asset in Dallas, TX ("Bohéme" or "Property"), with $44.3 million of the SUNS commitment funded at closing. The remaining $15.5 millio ...

A TCG Company S U N S | I N V E S T O R P R E S E N T A T I O N S U N S | I N V E S T O R P R E S E N T A T I O N March 6, 2025 D I S C L A I M E R S Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and we intend such statements to be covered by the safe harbor provisions contained therein. Such forward-looking statements are based on the current intent, belief, expectations and views of f ...

Financial Data and Key Metrics Changes - For Q4 2024, the company generated distributable earnings of $0.30 per weighted average share of common stock, with a GAAP net income of $1.9 million or $0.27 per share [10][28] - The total assets as of December 31, 2024, were $317.5 million, and total shareholder equity was $114.1 million, resulting in a book value of $16.29 per share [30] - The company ended the fiscal year with $190.9 million of current commitments and $132.6 million of principal outstanding across nine loans [29] Business Line Data and Key Metrics Changes - The TCG real estate platform originated $538 million of loans in FY 2024, with SUNS committing $220 million and funding $162 million [12] - As of March 1, 2025, the SUNS portfolio consisted of $259.3 million of current commitments and $162.1 million of principal outstanding across ten loans, with a weighted average portfolio yield to maturity of 12.4% [29][30] - 83% of the loan commitments are in Florida and Texas, with a focus on residential and mixed-use assets [20][22] Market Data and Key Metrics Changes - The TCG real estate platform has an active pipeline of $1.4 billion, indicating strong market opportunities in the southern US [14][23] - The company is pursuing opportunities in southern states like Georgia, South Carolina, and Tennessee, in addition to Florida and Texas [21] Company Strategy and Development Direction - The company aims to maintain a dividend consistent with the earnings power of the business over the medium term, with a focus on high-quality assets in growing markets [11][22] - The strategy includes leveraging local market expertise and strong relationships to provide appropriately leveraged loans for short to medium-term needs [26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the demand for real estate credit, particularly in transitional commercial real estate projects, as short-term interest rates are expected to remain elevated [16][22] - The visibility for earnings growth is expected to improve significantly in 2026 due to the timing of loan fundings and the quality of loans originated [65][66] Other Important Information - The company successfully completed an equity raise of approximately $77 million, which is expected to enhance liquidity and access to financing [14] - Management has agreed to waive at least $1 million of future fees to mitigate earnings drag as equity and debt capital are deployed [15] Q&A Session Summary Question: Interest expense and debt profile - The interest expense was lower than modeled due to investments being deployed later in December, with the Swiss bank line drawn at year-end and fully repaid after the equity raise [33][35] Question: Pipeline mix and deployment timeline - The expectation is to maintain a significant portion of the portfolio in senior loans, with a potential full deployment of capital by the third quarter, although full earnings impact may not be realized until 2026 [45][49] Question: Dividend strategy and future growth - The dividend is set conservatively at $0.30, with expectations to gradually increase it over time, depending on the pace of earnings growth [59][62] Question: Management and incentive fee waivers - Management fees and incentive fees are expected to be waived in the first quarter, contributing to the $1 million waiver discussed [76][78] Question: Credit line expansion - The company plans to expand its credit line towards the $200 million capacity, with no significant barriers anticipated for senior leverage [81][85]

Sunrise Realty Trust, Inc. Announces Financial Results for Fourth Quarter and Year Ended 2024 Fourth quarter 2024 GAAP net income of $1.9 million or $0.27 per basic weighted average common share and Distributable Earnings of $2.0 million or $0.30 per basic weighted average common share (1) Year ended 2024 GAAP net income of $6.9 million or $1.01 per basic weighted average common share and Distributable Earnings of $7.2 million or $1.07 per basic weighted average common share (1) WEST PALM BEACH, FL, March 6 ...

Core Points - The company reported a GAAP net income of $1.9 million or $0.27 per basic weighted average common share for Q4 2024, and a total GAAP net income of $6.9 million or $1.01 per share for the year ended 2024 [1][2] - Distributable Earnings for Q4 2024 were $2.0 million or $0.30 per share, while for the year ended 2024, it was $7.2 million or $1.07 per share [1][2] - The CEO highlighted the company's momentum since becoming an independent public company, committing to $75.0 million in deals in Q4 and an additional $74.8 million post-quarter [3] Financial Performance - Interest income for Q4 2024 was $3.6 million, with net interest income of $3.4 million after interest expenses [16] - Total expenses for Q4 2024 amounted to $1.6 million, leading to a net income before income taxes of approximately $1.9 million [16] - The company declared a regular cash dividend of $0.30 per common share for Q1 2025, payable on April 15, 2025 [4] Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focusing on transitional commercial real estate in the Southern United States [8] - The company aims to provide flexible financing solutions and capitalize on near-term value creation opportunities [8][9] Additional Information - The company has made available an investor presentation and filed its Annual Report on Form 10-K with the SEC [5] - A conference call was scheduled to discuss financial results, allowing interested parties to participate [7]

Core Insights - Sunrise Realty Trust, Inc. reported a GAAP net income of $1.9 million or $0.27 per basic weighted average common share for Q4 2024, and a total GAAP net income of $6.9 million or $1.01 per share for the year 2024 [2][8] - The company declared a regular cash dividend of $0.30 per common share for Q1 2025, payable on April 15, 2025 [4] - The CEO highlighted the company's momentum, with $75 million in deals committed in Q4 2024 and an additional $74.8 million committed post-quarter-end [3] Financial Performance - For Q4 2024, Distributable Earnings were reported at $2.0 million or $0.30 per basic weighted average common share, while for the year 2024, Distributable Earnings totaled $7.2 million or $1.07 per share [2][8] - The company achieved net interest income of $3.4 million for Q4 2024 and $10.6 million for the year [16] - Total expenses for Q4 2024 were $1.6 million, with management and incentive fees accounting for $393,063 and general and administrative expenses at $697,204 [16] Corporate Actions - The company filed its Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC on March 6, 2025 [5] - A conference call was scheduled for March 6, 2025, to discuss the business update and financial results [7] - The company emphasizes the importance of its website for investor relations and material information disclosure [6]

Loan Origination and Investment Strategy - As of March 1, 2025, the company has a loan origination pipeline of approximately $1.4 billion in commercial real estate deal commitments under review[41] - The company plans to capitalize on a $2.0 trillion looming commercial real estate maturity by 2026, taking advantage of market dislocations and declining liquidity[45] - The company is focusing on the Southern U.S. due to positive demographic trends and a shortage in residential and commercial real estate supply[44] - The company has sourced a pool of approximately $40.7 billion in commercial real estate deals, indicating a strong market presence[41] - The company intends to build a diversified portfolio combining higher-yielding investments with stable senior mortgage loans to maximize risk-adjusted returns[49] - The company is currently negotiating definitive loan documents for potential investments, which remain subject to satisfactory completion of underwriting and due diligence[42] Market Position and Regulatory Environment - The company believes non-bank lenders can generate higher returns with lower leverage levels due to recent shifts in the credit market[43] - The company is not burdened by the same regulatory hurdles as traditional lenders, allowing for more flexible structuring of credit positions[43] - The company is subject to various regulations under U.S. federal and state laws, including the Dodd-Frank Act, which may impact its operations[112] - The company relies on the Section 3(c)(5) Exemption under the Investment Company Act, requiring at least 55% of its portfolio to consist of qualifying assets[115] Management and Compensation Structure - The Management Agreement has an initial term until February 22, 2027, with automatic annual renewals unless terminated with 180 days' notice[61] - The termination fee for unsatisfactory performance by the Manager is three times the average annual Base Management Fee and average annual Incentive Compensation earned during the previous 12 months[61] - An Internalization Transaction can occur when equity reaches or exceeds $1,000,000,000, with the initial offer price determined by a special committee of independent directors[65] - The Internalization Price is calculated as five times the sum of the annual Base Management Fee, annual Incentive Compensation, and aggregate Outside Fees earned during the previous 12 months[66] - The Investment Guidelines prohibit loans that would cause the company to fail as a REIT or be regulated as an investment company under the Investment Company Act[69] - The Investment Committee is responsible for reviewing loan opportunities and ensuring compliance with Investment Guidelines on at least a quarterly basis[71] - The allocation policy aims to distribute loan opportunities fairly among various investment vehicles managed by the Manager, considering factors like available capital and investment objectives[76] - The Manager has adopted a Conflicts of Interest Policy to guide compliance with legal standards and avoid conflicts in investment advisory activities[80] - The Manager has agreed to waive an additional $1.0 million in fees and the inclusion of net proceeds from the January 2025 Offering in the Company's Equity for management fee calculations until December 31, 2025, or until the proceeds are utilized[85] - Base Management Fees amount to 0.375% of the Company's Equity, payable quarterly in cash, and will not be less than zero regardless of portfolio performance[91] - Incentive Compensation is contingent upon achieving Core Earnings exceeding a Hurdle Amount, defined as 2% of Adjusted Capital from the previous quarter[94] - The calculation of Incentive Compensation includes a Catch-Up Amount and an Excess Earnings Amount based on Core Earnings exceeding specified thresholds[94] - The Manager's compensation includes reimbursement for expenses incurred on behalf of the Company, with specific allocations for personnel based on time spent on Company affairs[88] - The termination fee is equal to three times the sum of the annual Base Management Fee and annual Incentive Compensation earned during the previous 12 months[88] - The Company maintains a conflict of interest policy to manage potential conflicts arising from Covered Persons' personal and professional relationships[84] - The Manager is responsible for ensuring compliance with the conflict of interest policy and may delegate certain responsibilities to other Covered Persons[83] - The Company may grant equity-based awards under the 2024 Stock Incentive Plan to the Manager and other eligible awardees[90] - The definition of Equity for management fee calculations includes net proceeds from equity securities and retained earnings, adjusted for specific non-cash items[92] Financial Performance and Risk Management - The company has an Adjusted Capital of $100.0 million as of the last day of the immediately preceding fiscal quarter[102] - Core Earnings for the specified quarter represent a quarterly yield of 15.0% on Adjusted Capital, amounting to $3.75 million[102] - The Hurdle Amount is calculated at $2.0 million, based on a hurdle rate of 2.0% quarterly[103] - The hypothetical quarterly Incentive Compensation payable to the Manager would be $0.75 million, derived from the Catch-Up Amount and Excess Earnings Amount[103] - The Catch-Up Amount is approximately $666,667, calculated based on Core Earnings exceeding the Hurdle Amount[103] - The Excess Earnings Amount is approximately $83,333, calculated from Core Earnings exceeding 166-2/3% of the Hurdle Amount[103] - The company expects to continue to diversify its loan portfolio as loans in the pipeline are evaluated and originated through the deployment of capital[498] - The company is subject to interest rate risk, which could lead to a decline in net interest spread and net interest margin during periods of rising interest rates[488] - Credit risk is managed through a comprehensive review and selection process, with ongoing monitoring of loans for variance from expected performance[496] - The company’s loans are typically valued using a yield analysis, which may be affected by changes in market yields and recovery rates[489] - The company’s investment decisions will depend on prevailing market conditions and may change over time in response to opportunities available in different interest rate, economic, and credit environments[497] Loan Portfolio Composition - As of December 31, 2024, the loan portfolio was concentrated with the top three borrowers representing approximately 49.0% of the aggregate outstanding principal balances and approximately 53.4% of the total loan commitments[498] - The company had six floating-rate loans as of December 31, 2024, representing approximately 79% of the portfolio based on aggregate outstanding principal balances[489] - A hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $1.0 million[489] - The company evaluates its loans on a quarterly basis, with fair value determined by the Board through its independent Audit and Valuation Committee[484] - The company’s investment mix includes high-quality residential, retail, office, hospitality, industrial, and specialty-use real estate[481]

Company Overview - Sunrise Realty Trust, Inc. (Nasdaq: SUNS) is an institutional commercial real estate lender providing flexible financing solutions to sponsors of commercial real estate projects in the Southern United States [3] - The company focuses on transitional commercial real estate business plans that have the potential for near-term value creation, backed by top-tier assets in established and rapidly expanding Southern markets [3] Financial Results Announcement - The company will release its financial results for the fourth quarter and full year ended December 31, 2024, on March 6, 2025, before market open [1] - Management will review the financial results via a webcast at 10:00 am ET, accessible on the Investor Relations website [1] - A replay of the event will be available one hour after the live presentation [1] TCG Real Estate Platform - TCG Real Estate consists of affiliated commercial real estate-focused debt funds, including Sunrise Realty Trust, Inc. and Southern Realty Trust, Inc. [4] - These funds provide flexible financing on transitional commercial real estate properties that present opportunities for near-term value creation, focusing on top-tier assets in primary and secondary metropolitan areas of the Southern U.S. [4]