Company Overview - Sunrise Realty Trust (SUNS) is an institutional lender focused on commercial real estate projects in the Southern United States[12] - The management team has structured over $21 billion in CRE and credit transactions[12] - SUNS targets a portfolio net internal rate of return (IRR) in the low-teens[12] Portfolio Composition - As of May 1, 2025, total current commitments were approximately $352 million[52] - Residential assets comprise approximately 71% of the portfolio[52] - Approximately 88% of the portfolio consists of senior loans[55] - Approximately 12% of the portfolio consists of subordinate loans[55] - The portfolio's weighted average yield to maturity is approximately 12.1%[51] Market Opportunity - The company sourced approximately $47.6 billion of CRE deals since October 2023, pursuing approximately 1.5% of deals sourced[13] - The company has an active pipeline of approximately $800 million[13] - Over $2 trillion in CRE loans maturing by the end of 2027 create opportunity for SUNS to scale quickly[13] Financial Performance (Q1 2025) - Net income for the three months ended March 31, 2025, was $3099437, or $027 per common share[62] - Distributable earnings for the three months ended March 31, 2025, were $3460706, or $031 per basic weighted average share[63]

Core Viewpoint - Sunrise Realty Trust, Inc. reported a GAAP net income of $3.1 million or $0.27 per basic weighted average common share for the first quarter of 2025, alongside Distributable Earnings of $3.5 million or $0.31 per share, indicating a stable financial performance in a favorable market environment for commercial real estate lending [1][2]. Financial Performance - The company achieved a GAAP net income of $3.1 million for Q1 2025, translating to $0.27 per basic weighted average common share [1][2]. - Distributable Earnings for the same period were reported at $3.5 million, or $0.31 per basic weighted average common share [1][2]. - A cash dividend of $0.30 per common share was paid on April 15, 2025, totaling $4.0 million in dividends distributed [4]. Market Position and Strategy - The CEO highlighted that SUNS entered 2025 with a strong balance sheet and a portfolio of performing loans, positioning the company to capitalize on attractive commercial real estate loan opportunities, particularly in residential and mixed-use assets across the Southern United States [3]. - The current market conditions are favorable for SUNS, as many transitional lenders are focused on legacy loan books, allowing SUNS to pursue new lending opportunities [3]. Guidance and Future Outlook - The company anticipates generating Distributable Earnings close to $0.30 per share for the first two quarters of 2025, based on the deployment of capital from its January 2025 equity offering [5]. - The company maintains its guidance for the second quarter of 2025, although this estimate is subject to change [5]. Additional Information - SUNS has made available an investor presentation titled "First Quarter 2025 Investor Presentation" on its website, along with its Quarterly Report on Form 10-Q filed with the SEC [6]. - A conference call to discuss financial results was scheduled for May 7, 2025, allowing interested parties to participate and gain further insights into the company's performance [8].

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported a net income of **$3.1 million** for Q1 2025, with significant loan portfolio growth to **$230.5 million** funded by a **$71.4 million** stock offering [Consolidated Balance Sheets](index=4&type=section&id=Balance%20Sheets) Total assets decreased to **$234.4 million** due to cash deployment into loans, while shareholders' equity increased to **$184.8 million** following a stock issuance Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Assets** | | | | Loans held for investment, net | $230,480,478 | $130,711,848 | | Cash and cash equivalents | $1,642,780 | $184,626,770 | | **Total assets** | **$234,442,565** | **$317,535,780** | | **Liabilities** | | | | Line of credit payable | $43,200,000 | $123,840,000 | | Line of credit payable to affiliate | $0 | $75,000,000 | | **Total liabilities** | **$49,634,467** | **$203,398,033** | | **Shareholders' Equity** | | | | **Total shareholders' equity** | **$184,808,098** | **$114,137,747** | [Consolidated Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Net income increased to **$3.1 million** for Q1 2025, driven by a significant rise in interest income to **$5.0 million** from an expanded loan portfolio Consolidated Statements of Operations Highlights (unaudited) | Metric | Three months ended March 31, 2025 (USD) | Three months ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Interest income | $4,958,523 | $2,026,306 | | Net interest income | $4,622,364 | $2,026,306 | | Total expenses | $1,405,279 | $263,961 | | **Net income** | **$3,099,437** | **$1,762,345** | | Diluted earnings per share | $0.27 | $0.26 | [Consolidated Statement of Cash Flows](index=7&type=section&id=Statement%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$183.0 million** due to significant cash usage in investing activities for new loans and financing activities for credit facility repayments Cash Flow Summary (unaudited) | Activity | Three months ended March 31, 2025 (USD) | Three months ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Net cash from operating activities | $(914,591) | $1,117,808 | | Net cash from investing activities | $(95,727,807) | $(46,414,144) | | Net cash from financing activities | $(86,341,592) | $14,400,000 | | **Net decrease in cash** | **$(182,983,990)** | **$(30,896,336)** | [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) Notes detail the company's spin-off, REIT election intent, loan portfolio growth to **$230.5 million**, and a **$71.4 million** stock offering - The company was spun-off from Advanced Flower Capital Inc. ("AFC") on July 9, 2024, becoming an independent, publicly traded company focused on commercial real estate (CRE) debt investments in the Southern United States[19](index=19&type=chunk)[22](index=22&type=chunk) - The company intends to elect to be taxed as a REIT for the taxable year ending December 31, 2024[21](index=21&type=chunk)[76](index=76&type=chunk) - In January 2025, the company completed a public offering of **6.4 million** shares of common stock, raising total net proceeds of approximately **$71.4 million**[63](index=63&type=chunk) - For Q1 2025, the Manager waived Base Management Fees of **$568,790** and Incentive Fees of **$298,306**[88](index=88&type=chunk)[89](index=89&type=chunk) - A regular cash dividend of **$0.30 per share**, totaling approximately **$4.0 million**, was declared on March 4, 2025[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's focus on CRE loan origination, significant portfolio growth in Q1 2025, and a net income of **$3.1 million** with **$3.5 million** in Distributable Earnings - The company focuses on originating secured CRE loans of **$15-100 million** with 2-5 year durations, targeting a portfolio net IRR in the low-teens and an expected leverage ratio of **1.5:1** debt-to-equity[114](index=114&type=chunk) - In Q1 2025, the company originated several new loans, including a **$30.8 million** commitment in Aventura, FL, a **$44.0 million** commitment in New Orleans, LA, and a **$46.5 million** commitment in Dallas, TX[117](index=117&type=chunk)[118](index=118&type=chunk)[121](index=121&type=chunk) Reconciliation of GAAP Net Income to Distributable Earnings | Metric | Three months ended March 31, 2025 (USD) | Three months ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Net income | $3,099,437 | $1,762,345 | | Adjustments | $361,269 | $0 | | **Distributable earnings** | **$3,460,706** | **$1,762,345** | | Distributable earnings per basic share | $0.31 | $0.26 | - Book value per share was approximately **$13.77** as of March 31, 2025, compared to **$16.29** as of December 31, 2024[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, credit, and real estate market risks, with **89%** of its loan portfolio having floating rates and a **$2.1 million** estimated annual interest income increase from a 100 bps rate hike - As of March 31, 2025, **89%** of the company's loan portfolio had floating interest rates, primarily tied to SOFR[143](index=143&type=chunk)[182](index=182&type=chunk) - A hypothetical **100 basis point** increase in the floating benchmark rate would increase annual interest income by approximately **$2.1 million**; a **100 basis point** decrease would reduce annual interest income by approximately **$0.4 million**, limited by interest rate floors[182](index=182&type=chunk) - The loan portfolio is concentrated, with the top three borrowers accounting for **41.9%** of the aggregate outstanding principal balance as of March 31, 2025[190](index=190&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[192](index=192&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[193](index=193&type=chunk) [Part II. Other Information](index=36&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company was not subject to any material legal proceedings as of March 31, 2025 - The company reports no material legal proceedings as of March 31, 2025[194](index=194&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, except for a new risk concerning U.S. tariff regulations impacting construction costs and real estate asset values - A new risk factor was noted regarding U.S. tariff regulations, which could adversely affect borrowers and the value of real estate assets, particularly due to tariffs on foreign goods used in construction[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales or repurchases of its equity securities during the three months ended March 31, 2025 - There were no unregistered sales of equity securities during the quarter[196](index=196&type=chunk) - The company did not repurchase any of its Common Stock during the quarter[197](index=197&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None[198](index=198&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[199](index=199&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[200](index=200&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements related to spin-off, management, credit facilities, and officer certifications

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]

Core Insights - Sunrise Realty Trust, Inc. ("SUNS") has provided a preliminary estimate of distributable earnings for Q1 2025, ranging from $0.30 to $0.32 per basic weighted average common share, consistent with the previous quarter's earnings of $0.30 [2][4] - The expected book value per share for SUNS is projected to be between $13.60 and $13.90 [2] Financial Performance - For the quarter ended March 31, 2025, the Tannenbaum Capital Group (TCG) Real Estate platform originated loans totaling $212.5 million, with SUNS committing $147.5 million and funding $109.8 million [3] - As of March 31, 2025, SUNS had $352.1 million in commitments, with $233.4 million funded, which increased to $235.4 million funded by April 18, 2025 [3] Company Overview - SUNS operates as an institutional commercial real estate lender, focusing on transitional CRE projects in the Southern United States, aiming for near-term value creation [5][6] - The company is part of a group of affiliated CRE-focused debt funds under TCG Real Estate, which includes both public and private mortgage REITs [6] Non-GAAP Metrics - Distributable Earnings is a non-GAAP financial measure used by the company to evaluate performance, excluding certain transactions and GAAP adjustments [7][9] - This measure is considered useful for investors to assess the overall performance of the business, as it reflects the company's current loan activity and operations [8][10]

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 with potential for near-term value creation, collateralized by top-tier assets in established and rapidly expanding Southern markets [3] Financial Results Announcement - The company will release its financial results for the first quarter ended March 31, 2025, on May 7, 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] 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] - The funds provide flexible financing on transitional commercial real estate properties that present opportunities for near-term value creation, focusing on top-tier assets in Southern U.S. markets benefiting from economic growth [4]

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]

Financial Data and Key Metrics Changes - For the quarter ended December 31, 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 basic weighted average common share [10][28] - The company ended the fourth quarter with total assets of $317.5 million and total shareholder equity of $114.1 million, resulting in a book value of $16.29 per share [30] Business Line Data and Key Metrics Changes - The TCG real estate platform originated $538 million of loans during the fiscal year, with the company committing $220 million and funding $162 million [12] - As of March 1, 2025, the company's portfolio consisted of $259.3 million of current commitments, with $162.1 million of principal outstanding across ten loans, achieving a weighted average portfolio yield to maturity of 12.4% [29][19] Market Data and Key Metrics Changes - The company noted that 83% of its loan commitments are in Florida and Texas, which are two of the largest markets in the US, and it is also pursuing opportunities in other southern states like Georgia, South Carolina, and Tennessee [20][21] - The active pipeline of the TCG real estate platform is approximately $1.4 billion, indicating strong market dynamics in the southern US for commercial real estate lenders [13][23] Company Strategy and Development Direction - The company aims to construct a portfolio of new vintage assets by leveraging local market expertise and strong relationships across the Southern United States [26] - The management emphasized a focus on providing credit to sponsors of transitional commercial real estate projects, with an expectation that the need for real estate credit will remain elevated due to high short-term interest rates [16][22] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities in the current lending environment, particularly as many lenders remain conservative, allowing the company to select high-quality assets [17] - The management highlighted that while 2025 may be harder to predict in terms of earnings growth, there is high visibility for 2026 due to the nature of the loans being funded [51][66] Other Important Information - The Board of Directors declared a $0.30 dividend per share for the quarter ended March 31, 2025, which will be paid on April 15, 2025 [31] - The company has agreed to waive at least $1 million of future fees to mitigate earnings drag as it deploys equity and debt capital [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 leverage not fully utilized until mid-December [35] Question: Pipeline mix and deployment timeline - The expectation is to maintain a significant portion of the portfolio in senior loans, with a potential for full deployment by the third quarter, but actual earnings impact may not be fully realized until 2026 [48][51] Question: Dividend strategy and future growth - The company aims to set the dividend conservatively, with expectations to gradually out-earn the dividend and potentially increase it over time [61][62] Question: Management and incentive fee waivers - The management confirmed that all management and incentive fees will be waived in the first quarter [77] Question: Credit line expansion - The company plans to expand its credit line towards the $200 million capacity, with no significant hold-ups expected in senior leverage [88]