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].

Core Insights - Sunrise Realty Trust, Inc. (SUNS) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended September 2025 [1] - The earnings report is scheduled for release on November 13, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2] - The consensus estimate for quarterly earnings is $0.31 per share, reflecting a 24% year-over-year increase, with revenues projected at $6.2 million, a 95% increase from the previous year [3] Estimate Revisions Trend - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly reassessed their initial estimates during this period [4] Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent estimate revisions may provide more accurate insights into expected earnings [6][7] - A positive Earnings ESP reading is a strong indicator of an earnings beat, especially when combined with a solid Zacks Rank, which enhances predictive power [9]

Core Insights - Sunrise Realty Trust, Inc. has committed $30 million to a $45 million senior bridge loan for refinancing a Class-A retail property in Houston, Texas [1] - The project is fully leased to high-end lifestyle establishments, indicating strong tenant demand and market positioning [2][3] Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focused on transitional CRE projects in the Southern United States [4] - The company aims to provide flexible financing solutions that support near-term value creation, primarily in established and rapidly expanding markets [4] Project Details - The retail property is located at the intersection of Galleria and River Oaks, two desirable areas in Houston, and is fully leased to a mix of high-performing tenants [2][3] - Tenants include a private social club, an upscale restaurant, and a leading-edge healthcare facility, showcasing a diverse and complementary tenant mix [2] Market Positioning - The CEO of Sunrise Realty Trust expressed confidence in the project due to its prime location, fully leased status, and strong demographic trends, suggesting it is well-positioned to capture demand [3] - The project is a joint venture involving experienced leaders in hospitality and luxury development, further enhancing its credibility and potential for success [1][3]

Core Insights - Sunrise Realty Trust, Inc. has committed $25.6 million to a $36.6 million senior loan for the CollectionSuites project, which includes developments in Doral and Palm Springs, Florida [1] - The CollectionSuites project aims to set a new standard in luxury industrial real estate, featuring high-end designs and exclusive amenities [2][3] - The project is sponsored by JMF Consulting, which specializes in premium real estate development [1][4] Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focused on providing flexible financing solutions primarily in the Southern United States [4] - The company targets transitional commercial real estate projects with potential for near-term value creation, backed by top-tier assets in rapidly expanding markets [4][5] - TCG Real Estate, the affiliated group, includes both public and private mortgage REITs, emphasizing flexible financing for transitional properties [5]

Core Insights - Sunrise Realty Trust, Inc. (SUNS) will release its financial results for Q3 2025 on November 13, 2025, before market open [1] - A management review of the financial results will take place at 10:00 am ET via webcast [1] - Participants can register for the conference call in advance and a replay will be available one hour after the event [1] Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focused on providing flexible financing solutions primarily in the Southern United States [3] - The company targets transitional commercial real estate projects with potential for near-term value creation, backed by top-tier assets in established and rapidly growing Southern markets [3] - TCG Real Estate, which includes SUNS, is a group of affiliated CRE-focused debt funds that provide financing on transitional properties with growth potential [4]

Core Insights - Sunrise Realty Trust, Inc. has committed $35.0 million to a $370.0 million first mortgage loan for the Lofty & Standard condominium development in Miami, Florida [1] - The project features two towers with a total of 784 luxury units and high-end amenities, indicating strong demand in the Miami real estate market [2][3] Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focusing on transitional CRE projects in the Southern United States [4] - The company aims to provide flexible financing solutions that facilitate near-term value creation, primarily targeting established and rapidly expanding markets [5] Project Details - The Lofty tower will have 362 luxury units, while the Standard tower will have 422 units, both offering premium amenities [2] - The project is a joint venture between Two Roads Development and Newgard Development Group, highlighting collaboration with leading developers in the region [1][3]

Core Viewpoint - Sunrise Realty Trust, Inc. has declared a quarterly dividend of $0.30 per share for the third quarter of 2025, maintaining the same level as the previous quarter [2]. Dividend Announcement - The Board of Directors declared a quarterly dividend of $0.30 per outstanding share of common stock for the quarter ending September 30, 2025 [2]. - The dividend is payable on October 15, 2025, to shareholders of record as of September 30, 2025 [2]. Dividend Reinvestment Plan (DRIP) - The Company has implemented a Dividend Reinvestment Plan (DRIP) that allows shareholders to reinvest their cash dividends into additional shares of common stock [3][4]. - Participation in the DRIP is optional and will not affect cash dividends unless shareholders choose to participate [3]. - Only dividends declared after September 15, 2025, will be eligible for reinvestment in the DRIP [5]. DRIP Administration and Participation - Participants in the DRIP will receive Reinvestment Shares either through the open market or directly from the Company [5]. - Beneficial shareholders interested in participating in the DRIP should contact their financial intermediaries for enrollment details and potential fees [6]. - The DRIP will be administered by Equiniti Trust Company, and registered shareholders can obtain enrollment forms from the company's website [6]. Company Overview - Sunrise Realty Trust, Inc. is an institutional commercial real estate lender focused on providing flexible financing solutions primarily in the Southern United States [9]. - The Company targets transitional commercial real estate projects with potential for near-term value creation, collateralized by high-quality assets in growing markets [9][10].

Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company generated distributable earnings of $0.31 per share, covering the dividend of $0.30 per share [6][16] - The net interest income for the same quarter was $5,700,000, with GAAP net income reported at $3,400,000 or $0.25 per share [15][16] - Total assets as of June 30, 2025, were $256,500,000, and total shareholder equity was $184,300,000, resulting in a book value of $13.73 per share [17] Business Line Data and Key Metrics Changes - The company committed $9,000,000 to a senior secured loan for a residential property in Park City, Utah, reflecting the market dynamics [11] - As of June 30, 2025, the portfolio had $360,000,000 in commitments, with $251,000,000 funded, and a weighted average portfolio yield to maturity of approximately 12.2% [13][17] Market Data and Key Metrics Changes - The U.S. commercial real estate market saw a noticeable pickup in Q1 2025, which slowed in Q2 due to tariffs and macroeconomic conditions, but activity has since rebounded [9][10] - The company noted an increase in competitors reentering the market, particularly in financing near-stabilized projects, while it continues to focus on transitional real estate projects [10][11] Company Strategy and Development Direction - The company aims to pursue opportunities in transitional real estate projects, which are expected to provide the strongest risk-adjusted returns [11] - The strategy includes expanding into unsecured markets for debt capital, with a focus on maintaining a balanced capital structure [8][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities in the current market, particularly as interest rates are expected to trend downward, which could enhance net interest margins [50][52] - The company remains focused on its core competencies in structuring deals for transitional assets backed by experienced sponsors [12][13] Other Important Information - The company has a senior secured revolving credit facility with commitments totaling $140,000,000, which can expand to $200,000,000, providing financial flexibility [6][7] - The CECL reserve as of June 30, 2025, was approximately $626,000, or 25 basis points for loans at carrying value [17] Q&A Session Summary Question: Interest rate profile of the $275,000,000 term sheets in the pipeline - The term sheets are all first mortgages, and the spreads are currently above the blended portfolio rate of existing loans [20][21] Question: Details on the Park City loan and geographic expansion - The Park City loan was attractive due to its value, and the company is opportunistically exploring new geographies while maintaining a focus on its current operational states [22][24][25] Question: Origination targets for 2025 and 2026 - The company does not provide specific forecasts but is encouraged by the active pipeline and the number of signed term sheets [28][30][32] Question: Performance of Florida condo loans - The Florida projects are performing as expected, with no noticeable decrease in activity, particularly due to their more affordable price points [33][34] Question: Timeline for scaling leverage and unsecured issuance - The company plans to draw on its $75,000,000 unsecured line and monitor the unsecured market for potential issuance in the fourth quarter [36][39] Question: Competition in the market - Increased competition has been noted in the near-stabilized financing markets, but the company continues to find opportunities in transitional projects [44][46] Question: Impact of potential interest rate decreases on business - A decrease in interest rates could enhance net interest margins and improve conditions for securing better terms in the unsecured markets [50][52]