WEST PALM BEACH, Fla., Dec. 15, 2025 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced its dividend for the quarter ending December 31, 2025. The Board of Directors of SUNS declared a quarterly dividend of $0.30 per outstanding share of common stock for the quarter ending December 31, 2025. The dividend is payable on January 15, 2026, to the common stockholders of record on December ...

2025 has proven to be a challenging year for mREITs focused on commercial mortgages. U.S. economic momentum has notably declined, as evidenced by a tick-up in the unemployment rate to 4.44% in September 2025I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approac ...

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].

Dividends and Shareholder Returns - The company declared cash dividends of $0.30 per share for three separate periods, totaling $0.90 per share for the nine months ended September 30, 2025, amounting to $12,079,097[127]. - The company established a dividend reinvestment plan (DRIP) on September 3, 2025, allowing shareholders to reinvest cash dividends in additional shares[164]. - The company intends to distribute at least 90% of its REIT taxable income annually to shareholders, with potential tax implications for undistributed income[181]. Financial Performance - Distributable earnings for the three months ended September 30, 2025, were $4,121,401, translating to $0.31 per basic weighted average share[137]. - Net income allocable to common shareholders for the three months ended September 30, 2025, was approximately $4.1 million, or $0.30 per basic common share, compared to $1.7 million, or $0.26 per share for the same period in 2024[139]. - For the three months ended September 30, 2025, interest income increased by approximately $4.3 million, or 132.7%, compared to the same period in 2024, driven by an expansion of the loan portfolio from six to thirteen loans[140]. - Net interest income for the three months ended September 30, 2025, was approximately $6.1 million, compared to $3.2 million for the same period in 2024, reflecting a significant increase[139]. - Total expenses for the three months ended September 30, 2025, were approximately $2.2 million, up from $1.5 million in the same period in 2024, primarily due to increased management and administrative fees[139]. Loan Portfolio and Investments - The company focuses on originating and investing in secured commercial real estate loans, targeting investments across various asset classes[122]. - As of September 30, 2025, the total loan portfolio included thirteen loans held at carrying value, with an aggregate originated commitment of approximately $367.0 million[150]. - The company funded approximately $163.1 million of new loans and additional principal on existing loans during the nine months ended September 30, 2025[150]. - The company committed a total of $30.0 million for a senior bridge loan to refinance a retail property in Houston, Texas, with a maturity date in October 2028[129]. - In September 2025, the company and affiliated co-investors purchased a $60.0 million senior first mortgage loan for a residential property in Miami, Florida, with a cash rate of SOFR plus 4.75%[125]. - The senior loan for the residential property in Sarasota, Florida, was repaid in full, with an outstanding principal of approximately $25.5 million at the time of repayment[126]. - The company entered into two senior secured mortgage loans in October 2025, with an aggregate commitment of $36.6 million for industrial properties in Florida[128]. Capital Structure and Financing - The company aims for a leverage ratio of 1.5:1 debt-to-equity, with a target capitalization of one-third equity, one-third secured debt, and one-third unsecured debt[123]. - The company had $67.2 million outstanding borrowings under the Revolving Credit Facility as of September 30, 2025, with $72.8 million available for borrowing[168]. - The company intends to raise future equity capital and issue debt securities to fund future investments in loans[165]. - The company completed a public offering of 6,400,000 shares in January 2025, generating net proceeds of approximately $71.3 million[162]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025, was approximately $(1.9) million, a decrease of approximately $(4.6) million compared to the same period in 2024[174]. - Net cash used in investing activities was approximately $(105.6) million for the nine months ended September 30, 2025, compared to $(93.9) million in 2024, reflecting an increase in loan issuances[175]. - Net cash used in financing activities was approximately $(71.6) million for the nine months ended September 30, 2025, a decrease of approximately $(201.7) million compared to the same period in 2024[176]. - As of September 30, 2025, the company had unrestricted cash totaling approximately $5.5 million, down from $184.6 million as of December 31, 2024[159]. Risk and Credit Quality - The company is subject to credit risk associated with its loan portfolio, which includes commercial real estate loans[198]. - The provision for current expected credit losses decreased by $0.1 million for the three months ended September 30, 2025, compared to the same period in 2024, while the reserve balance as of September 30, 2025, was approximately $0.4 million, or 0.17% of total loans[146]. - Approximately 96% of loans held at carrying value had floating interest rates as of September 30, 2025, with benchmark rates including one-month SOFR at 4.1%[150]. - A hypothetical 100 basis points increase in the floating benchmark rate would result in an increase in annual interest income of approximately $2.4 million[194]. - The top three borrowers represented approximately 42.0% of the aggregate outstanding principal balances and approximately 41.0% of total loan commitments as of September 30, 2025[202]. - The company has not guaranteed any obligations of unconsolidated entities or entered into any commitment to provide additional funding to such entities[180]. Investment Strategy - The company’s investment mix includes high-quality residential, retail, office, hospitality, and industrial real estate, with capital allocation depending on prevailing market conditions[185]. - The company’s loans are typically valued using a yield analysis, which may fluctuate due to changes in market yields and recovery rates[189]. - The company may be required to fund distributions from working capital or through equity or debt financings if cash available for distribution is less than required[182]. - As of September 30, 2025, total unfunded commitments amounted to $114,065,360, with $96,104,586 due in less than 1-3 years and $17,960,774 due in 3-5 years[178].