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]

Financial Performance - GAAP net income was $5 million, or $0.08 per diluted common share[12] - Distributable Earnings were $6 million, or $0.10 per diluted common share[12] - Excluding realized losses of $2 million or $0.03 per diluted common share, Distributable Earnings were $7 million, or $0.13 per diluted common share[12] - Book value was $521 million, or $9.47 per common share ($11.60 per common share excluding CECL reserve)[12] Portfolio & Balance Sheet - The company collected $162 million of repayments in 3Q 2025, bringing the YTD repayments to $498 million[12] - The company reduced office loans by $29 million QoQ to $495 million, a decrease of 6% QoQ and 26% YoY[12] - The company maintained a strong balance sheet with $173 million of available capital as of September 30, 2025, including $88 million of cash[12] - The company's total portfolio is $1.4 billion, comprised of loans held for investment and REO properties[15] CECL Reserve - The CECL reserve is $117 million, representing 9% of outstanding principal balance of loans held for investment[12,45] - 95% of the CECL reserve relates to risk rated 4 and 5 loans[46] - 90% of the CECL reserve relates to office and residential/condo loans[46] Ares Management Overview - Ares Management has approximately $596 billion in assets under management[22] - Ares Real Estate has $109 billion+ in Real Estate AUM[30]

Core Insights - Landmark Bancorp, Inc. reported a 25% increase in diluted earnings per share (EPS) for Q3 2025, reaching 85 cents compared to 68 cents in the same quarter last year, with net income rising to $4.9 million from $3.9 million [2] - The company's total revenues increased to $18.2 million, up from $15.9 million a year earlier, driven by higher net interest income and improved credit quality [2] Financial Performance - Net interest income rose to $14.1 million, reflecting a 21.5% year-over-year increase, with a steady net interest margin of 3.83%, up 53 basis points from the prior year [3] - The efficiency ratio improved to 60.7% from 66.5% a year earlier, indicating better cost management [4] - Average loan balances grew by $26.7 million from the previous quarter, with significant growth in commercial real estate, residential real estate, and consumer portfolios [3][5] Loan and Deposit Trends - Gross loans at the quarter-end stood at $1.1 billion, flat with the prior quarter, but average loans expanded nearly 10% on an annualized basis [5] - Deposits increased by $51.6 million sequentially to $1.3 billion, with growth in certificates of deposit and money market accounts [6] - The loan-to-deposit ratio improved to 83.4% from 86.6% in the previous quarter, indicating better liquidity for future loan expansion [6] Credit Quality - Non-performing loans decreased by $7 million to $10 million, or 0.89% of gross loans, from 1.52% in the previous quarter, reflecting improved credit quality [7] - The allowance for credit losses ended the quarter at $12.3 million, representing 1.10% of total loans [7] Management Commentary - The CEO described the quarter as a solid period of earnings and increased profitability, attributing it to growth in both net interest and non-interest income [9] - Management emphasized ongoing investments in talent and infrastructure to support customer expansion and long-term shareholder value [11] Factors Influencing Results - The quarterly performance benefited from loan-driven revenue growth, improved funding mix, and reduced credit costs, with tangible book value increasing by 6.6% sequentially to $20.96 per share [12] - Unrealized losses on the securities portfolio declined to $9.2 million from $13.9 million in the previous quarter [12] Future Outlook - Management expressed confidence in sustaining earnings momentum, with expectations of stable credit trends and a healthy Kansas economy supporting lending opportunities [14] - The board declared a cash dividend of 21 cents per share and a 5% stock dividend, marking the 25th consecutive annual stock dividend [15]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GAAP net income of $48 million, or $0.34 per diluted share, with distributable earnings of $42 million, or $0.30 per share [8] - Run rate distributable earnings were $32 million, or $0.23 per share, slightly below the dividend level due to the timing of capital redeployment [8][9] - The book value per share, excluding general CECL allowance and depreciation, was $12.73 at the end of the quarter [10] Business Line Data and Key Metrics Changes - The company committed to an additional $1 billion of new loans during the quarter, bringing year-to-date originations to $3 billion [4][10] - Residential loans represent the largest underlying property type in the portfolio at 31% [5] - The loan portfolio's carrying value totaled $8.3 billion, with a weighted average unleveraged yield of 7.7% [10][12] Market Data and Key Metrics Changes - The company is the most active alternative lender in Europe, benefiting from a fragmented lender universe and healthy fundamentals across property types [4] - Repayments during the quarter totaled $1.3 billion, bringing year-to-date repayments to $2.1 billion [5][10] - The weighted average risk rating of the portfolio remained unchanged at 3.0 [11] Company Strategy and Development Direction - The company is focused on capital rotation out of focus assets, which is expected to have a meaningful impact on earnings going forward [6][9] - The strategy includes diversifying the lender base and expanding sources of capital, with a new secured borrowing facility established in Europe [6][12] - The company aims to maintain leverage levels around four times when fully deployed and capital efficient [17][38] Management's Comments on Operating Environment and Future Outlook - Management noted improved operating performance in the broader real estate market, with capital markets fully open and a healthy pace of repayments expected to continue [22][23] - The company anticipates bringing The Brooke to market in late spring or early summer 2026, with hopes of closing a transaction in late Q3 or early Q4 [16][20] - Management expressed optimism regarding the office portfolio, noting increased leasing momentum in key markets like New York and London [44] Other Important Information - The company recognized a $17.4 million gain from a litigation settlement, contributing to an increase in book value per share [10] - Liquidity at the end of the quarter was strong at $312 million, with leverage down from 4.1 times to 3.8 times [12] Q&A Session Summary Question: Update on focused assets and timeline for monetizing The Brooke and 111 West 57th Street - Management expects to finish selling remaining units at 111 West 57th Street in early 2026 and plans to bring The Brooke to market in late spring or early summer 2026 [15][16] Question: Thoughts on leverage levels for the business - Management indicated a target leverage level in the mid-threes, with a focus on originating senior loans and maintaining capital efficiency [17] Question: Update on Liberty Center asset - Management is involved in the bankruptcy process of the parent company of the movie theater at Liberty Center and expects to assess timing for an exit in late Q1 or early Q2 of next year [20][21] Question: Elevated repayment levels in Q3 - Management attributed the increase in repayments to open capital markets and improved operating performance across asset classes, expecting a healthy pace of repayments to continue [22][23] Question: Update on office portfolio trends - Management noted positive leasing momentum in key markets and increased capital market activity for office deals [44]

Core Points - Ready Capital Corporation will release its third quarter 2025 financial results on November 6, 2025, after the market closes [1] - A webcast and conference call will be held on November 7, 2025, at 8:30 a.m. Eastern Time to discuss the financial results [1] Company Overview - Ready Capital Corporation is a multi-strategy real estate finance company that focuses on originating, acquiring, financing, and servicing lower-to-middle-market commercial real estate loans [5] - The company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans [5] - Headquartered in New York, the company employs approximately 500 professionals nationwide [5]

Financial Data and Key Metrics Changes - GAAP net income allocable to common shares for Q3 2025 was $9.8 million or $1.34 per share, which included a $13.1 million gross gain from the sale of a real estate investment [10] - Earnings available for distribution (EAD) for Q3 2025 was $1.01 per share, a significant increase from $0.04 per share in Q2 2025 [11] - GAAP book value per share increased to $29.63 on September 30 from $27.93 on June 30 [12] - The company's GAAP debt to equity leverage ratio decreased to 2.7 times at September 30 from 3 times at June 30 [12] Business Line Data and Key Metrics Changes - The company funded new commitments of $106.4 million in Q3 2025, offset by loan payoffs and sales totaling $153.2 million, resulting in a net decrease of $46.8 million in the loan portfolio [5] - The weighted average spread of floating rate loans in the $1.4 billion commercial real estate loan portfolio is now 3.63% over one-month Term SOFR [6] - The weighted average risk rating of the loan portfolio improved to 3.0 from 2.9 in the previous quarter [6] Market Data and Key Metrics Changes - The total allowance for credit losses at September 30 was $26.4 million, representing 1.89% of the commercial real estate loan portfolio [11] - The company experienced a decrease in current expected credit losses (CECL) reserves of $4 million compared to a decrease of $780,000 in the previous quarter [11] Company Strategy and Development Direction - The company is focused on executing its business strategy by building a pipeline of high-quality investments and actively managing its portfolio to enhance shareholder value [5] - The strategic plan includes using capital loss carryforwards to maximize shareholder value through asset sales and redeployment into new loans [7] - The company aims to optimize portfolio leverage to drive equity returns [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a substantial number of new loan closings expected in Q4 2025, which will contribute to positive growth in the loan portfolio for the full year [5] - The management team highlighted that the third quarter showed progress in selling assets and redeploying gains into new loans, with a full pipeline available for securitization [14] Other Important Information - The company repurchased 153,000 common shares for $2.9 million at an approximate 36% discount to book value [12] - The net operating loss carryforward was $32.1 million or approximately $4.55 per share at the end of Q3 2025 [13] Q&A Session Summary Question: What are the plans for asset-specific financing and CLO market entry? - Management indicated that they are currently originating new loans and expect to have sufficient collateral for a transaction in Q1 2026 [18] Question: Are there any expectations for early loan payoffs? - Management does not foresee significant early paydowns and remains on target for net growth as previously outlined [19] Question: Will the company be more active in construction financing? - The company does not typically provide construction financing within the REIT but is active in construction loans through its fund business, which will benefit the REIT [20][21] Question: What is the expected future book value after remaining property sales? - Management stated that a target of approximately $30 per share is reasonable as they approach the sale of remaining properties [28][30] Question: Is there any update on potential dividends? - Management indicated that dividends would be considered once book value objectives are met and after monetizing assets [33]

Core Insights - ACR reported impressive earnings per share (EPS) of $1.01, significantly surpassing the estimated $0.01, indicating effective strategic execution [2][6] - The company's GAAP net income for Q3 2025 was $9.8 million, translating to $1.34 per diluted share, showcasing strong profit generation capabilities [2][6] - ACR generated revenue of $21.04 million, slightly below the estimated $21.9 million, but remains optimistic about future growth through portfolio expansion [3][6] Financial Metrics - ACR's price-to-earnings (P/E) ratio stands at 6.35, suggesting the company is undervalued relative to its earnings [4][6] - The price-to-sales ratio is 1.10, indicating that investors are paying $1.10 for every dollar of sales [4] - The enterprise value to sales ratio is 11.39, reflecting the company's total valuation in relation to its sales [4] Shareholder Value Initiatives - ACR has authorized an additional $7.5 million for its share repurchase program, demonstrating a commitment to enhancing shareholder value [5] - The repurchase initiative aims to buy back outstanding common and preferred stock, potentially increasing the value of remaining shares [5]

Financial Data and Key Metrics Changes - The company reported a quarterly net loss of $1.9 million, an improvement from a $2 million loss in the prior quarter [2][6] - Pre-provision net loss was $1.3 million, also showing improvement compared to the previous quarter [2] - Net interest income increased by $551,000 to $12.2 million, driven by an 11.8% annualized increase in interest income [6][4] - Tangible book value per share increased to $15.14 [4] - Non-performing loans rose to $11.4 million, or 66 basis points of total loans, up from $6.3 million, or 38 basis points in the prior quarter [9] Business Line Data and Key Metrics Changes - Loan growth totaled $41.9 million, with commercial real estate and consumer loan portfolios driving this increase [3][9] - The commercial loan portfolio grew by $7.2 million, with strong origination activity of $81.3 million [3] - Consumer loan portfolio increased by $38 million, supported by purchases of unsecured consumer loans [3] - Core deposits grew by over 10% year-to-date, while commercial deposits increased by over 17% [3] Market Data and Key Metrics Changes - The net interest margin expanded by six basis points to 2.34%, supported by a nine basis point increase in asset yields [4][6] - The cost of average interest-bearing liabilities declined to 2.72% [6] Company Strategy and Development Direction - The company is focused on growing core deposits, diversifying the loan portfolio, and expanding the net interest margin [2] - A relationship-driven approach has been emphasized to enhance loan growth and deposit acquisition [3][21] - The company plans to de-emphasize CDs in favor of money market products to manage funding costs [12][13] Management's Comments on Operating Environment and Future Outlook - Management expects downward rate movements to benefit funding costs and net interest margin over time [5] - The company anticipates a relatively flat margin in Q4, with a significant pickup expected in 2026 due to repricing activities [17][18] - Credit quality remains sound, with minimal charge-offs and a disciplined approach to risk management [8][9] Other Important Information - The company repurchased over 837,000 shares at a weighted average price of $9.09 per share, with a total of 8.65 million shares repurchased since the program's inception [4] - Liquidity and capital remain strong, with $423 million in borrowing capacity and $178 million in unencumbered securities [4] Q&A Session Summary Question: Margin outlook and response to rate cuts - Management discussed strategies to manage funding costs and expectations for matching Fed rate cuts [12][13] Question: Loan growth outlook and consumer loan portfolio - Management confirmed a target growth range of 7% to 8% for the structured consumer loan portfolio [26] Question: Buyback activity and future expectations - Management indicated that the recent buyback activity may not be a sustainable run rate, but they still have shares available for repurchase [27][28]

Financial Data and Key Metrics Changes - The company reported third quarter GAAP net income attributable to common stockholders of $1 million or $0.01 per share, distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share [3][16] - Current liquidity stands at $280 million, with $87 million in unrestricted cash [4][18] - GAAP net book value decreased to $7.53 per share from $7.65 in the previous quarter, while undepreciated book value decreased to $8.68 from $8.75 per share [17] Business Line Data and Key Metrics Changes - The loan portfolio currently stands at $2.4 billion across 85 loans, with an average loan balance of $28 million [11] - The watchlist portion of the loan portfolio is now 8%, with a total gross book value of $182 million, down from $411 million at the start of 2024 [11][8] - The company achieved net positive loan originations for the second consecutive quarter, originating 10 loans totaling $224 million during the third quarter [6][10] Market Data and Key Metrics Changes - The commercial real estate markets are showing continued improvements, with tightening credit and lending spreads contributing to increased loan inquiries [6][7] - The CMBS and CLO markets remain highly active, with solid new issuance growth [7] Company Strategy and Development Direction - The company aims to grow its loan book to approximately $3.5 billion, with a focus on resolving watchlist loans and increasing loan originations [8][9] - The strategy includes preparing for a new CLO securitization and generating liquidity through the sale of real estate owned assets [8][9][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing improvements in the commercial real estate market and a favorable interest rate environment [5][6] - The company anticipates that the coming quarters will be productive, driven by new loan originations and progress on watchlist loans [9][42] Other Important Information - The company recorded a specific CECL reserve of approximately $18 million related to the Oregon office loan, which was resolved during the quarter [16] - The general CECL provision decreased to $127 million, with a debt-to-assets ratio of 63% and a debt-to-equity ratio of 1.9x [18] Q&A Session Summary Question: Update on liquidity position post-quarter date originations - Management indicated liquidity is around $100 million in cash, with future originations expected from asset resolutions [21] Question: Pace of Q4 originations - Management expects a similarly active pace for Q4 originations, with a growing pipeline and increased loan inquiries [22] Question: Thoughts on net lease portfolio and potential growth - Management is satisfied with current assets and has no plans to enter the triple net market [25] Question: Impact of potential Fed rate cuts on demand - Management noted that the market sentiment is improving, with a dovish Fed and decreasing long-term rates contributing to increased transaction volume [26][28] Question: Growth of loan book and REO impact - Management believes they are at a point where the loan book can grow, with increased momentum in loan originations [32] Question: Contribution of San Jose Hotel to distributable earnings - Management anticipates a sub-$10 million NOI for the hotel, with significant events planned for 2026 [34] Question: Details on new CLO issuance - Management could not provide specifics on the size and timing of the expected CLO issuance [38] Question: Second office property for sale - The second property is one of the Long Island City properties, currently soliciting offers [39]

Financial Data and Key Metrics Changes - The company reported third quarter GAAP net income attributable to common stockholders of $1 million or $0.01 per share, distributable earnings of $3.3 million or $0.03 per share, and adjusted distributable earnings of $21.2 million or $0.16 per share [3][16] - Current liquidity stands at $280 million, with $87 million in unrestricted cash [4][18] - GAAP net book value decreased to $7.53 per share from $7.65 in the previous quarter, while undepreciated book value decreased to $8.68 from $8.75 per share [17] Business Line Data and Key Metrics Changes - The loan portfolio currently stands at $2.4 billion across 85 loans, with an average loan balance of $28 million [11] - The watchlist portion of the loan portfolio is 8%, comprised of five loans totaling $182 million, down from $411 million at the start of 2024 [11][8] - The company achieved net positive loan originations for the second consecutive quarter, originating 10 loans totaling $224 million during the third quarter [6][10] Market Data and Key Metrics Changes - The commercial real estate markets are showing continued improvements, with tightening credit and lending spreads contributing to increased loan inquiries [5][6] - The CMBS and CLO markets remain highly active, with solid new issuance growth [6] Company Strategy and Development Direction - The company aims to grow its loan book to approximately $3.5 billion, with a focus on resolving watchlist loans and increasing loan originations [8][9] - The strategy includes preparing for a new CLO securitization and generating liquidity through the sale of real estate owned assets [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business, citing improvements in the commercial real estate market and a favorable interest rate environment [5][6] - The company anticipates that the coming quarters will be among the most productive, driven by new loan originations and progress on watchlist loans [9][15] Other Important Information - The company recorded a GAAP impairment of $2.5 million related to a multi-tenanted office equity property, which had no impact on undepreciated book value [16] - The company is actively marketing two real estate owned office properties for sale [12][39] Q&A Session Summary Question: Update on liquidity position post-quarter date originations - Management indicated liquidity is around $100 million in cash, with future originations expected to come from asset resolutions [20] Question: Pace of Q4 originations - Management expects a similarly active pace for Q4 originations, with a growing pipeline and increased loan inquiries [21] Question: Thoughts on net lease portfolio and potential growth - Management is satisfied with current assets and has not explored entering the triple net market, focusing instead on existing assets [24] Question: Impact of potential Fed rate cuts on demand - Management noted that the market sentiment is improving, with a dovish Fed contributing to increased transaction sales volume [25][26] Question: Growth of loan book and REO impact - Management believes they are at a point to grow the loan book, with increased momentum in loan originations [30][31] Question: Contribution of San Jose Hotel to distributable earnings - Management anticipates a sub-$10 million NOI for the hotel, with significant events planned for 2026 [32][34] Question: Details on new CLO issuance - Management could not provide specifics on the size and timing of the expected CLO issuance [38] Question: Second office property for sale - The second office property for sale is one of the Long Island City properties [39]