Sunrise Realty Trust (NASDAQ:SUNS) Posts Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Sunrise Realty Trust beat earnings expectations, reporting $0.35 per share versus the $0.29 consensus and revenue of $10.27 million, well above estimates of $6.18 million.
• The company said distributable earnings of $0.35 per share covered its $0.30 quarterly dividend, and management credited loan fees, new deal closings, and repayments for supporting results.
• The loan portfolio remained fully current and performing, with about $380 million of commitments across 14 loans as of May 8 and a weighted average yield to maturity of roughly 12.4%.

Sunrise Realty Trust (NASDAQ:SUNS - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.06, FiscalAI reports. Sunrise Realty Trust had a net margin of 56.29% and a return on equity of 7.70%. The company had revenue of $10.27 million for the quarter, compared to the consensus estimate of $6.18 million.

Here are the key takeaways from Sunrise Realty Trust's conference call:

• Sunrise Realty Trust reported distributable earnings of $0.35 per share in Q1 2026, which covered its $0.30 dividend. Management said results benefited from loan fees, new deal closings, and repayments that allowed capital to be recycled at attractive returns.
• The portfolio remained fully current and performing, with $397.1 million of commitments and $299.3 million of principal outstanding across 15 loans at quarter-end. As of May 8, the portfolio had $380.2 million of commitments across 14 loans, with a weighted average yield to maturity of about 12.4%.
• The company continued to emphasize its focus on transitional real estate loans in growing Southern markets, where it believes it can structure deals better than lenders chasing stabilized assets. Management said this niche is creating a strong pipeline and should benefit as more bridge and construction loans come due.
• During the quarter, SUNS originated or participated in two notable loans, including a $48 million B-note in the Graduate Hotels refinancing and a short-term bridge loan on Silver Mountain Ranch that was quickly repaid. The company also highlighted healthy sponsor inquiry activity, though some pipeline deals paused temporarily when capital markets volatility picked up.
• The Thompson San Antonio hotel loan was foreclosed, and management said it is now being marketed by Eastdil with multiple attractive bids received. They expect a resolution over the next couple of quarters, but said the asset is unlikely to generate income until it is sold or refinanced into a note structure.

Sunrise Realty Trust Price Performance

Shares of Sunrise Realty Trust stock traded up $0.67 during trading on Thursday, hitting $8.02. The company's stock had a trading volume of 302,449 shares, compared to its average volume of 101,941. Sunrise Realty Trust has a 52 week low of $7.34 and a 52 week high of $11.78. The stock has a market cap of $108.43 million, a price-to-earnings ratio of 8.53, a price-to-earnings-growth ratio of 0.55 and a beta of 0.77. The stock has a 50-day moving average price of $8.07 and a two-hundred day moving average price of $9.05.

Sunrise Realty Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.20 annualized dividend and a dividend yield of 15.0%. Sunrise Realty Trust's payout ratio is currently 127.66%.

Institutional Trading of Sunrise Realty Trust

Several institutional investors have recently modified their holdings of SUNS. Osaic Holdings Inc. lifted its stake in shares of Sunrise Realty Trust by 7.1% in the fourth quarter. Osaic Holdings Inc. now owns 16,947 shares of the company's stock worth $160,000 after acquiring an additional 1,127 shares during the period. Corsair Capital Management L.P. lifted its stake in shares of Sunrise Realty Trust by 407.0% in the fourth quarter. Corsair Capital Management L.P. now owns 50,704 shares of the company's stock worth $478,000 after acquiring an additional 40,704 shares during the period. Royal Bank of Canada lifted its stake in shares of Sunrise Realty Trust by 12.5% in the fourth quarter. Royal Bank of Canada now owns 13,782 shares of the company's stock worth $130,000 after acquiring an additional 1,535 shares during the period. Mariner LLC lifted its stake in shares of Sunrise Realty Trust by 42.3% in the fourth quarter. Mariner LLC now owns 34,359 shares of the company's stock worth $324,000 after acquiring an additional 10,220 shares during the period. Finally, Barclays PLC lifted its stake in shares of Sunrise Realty Trust by 7.3% in the fourth quarter. Barclays PLC now owns 22,183 shares of the company's stock worth $209,000 after acquiring an additional 1,518 shares during the period.

Analyst Ratings Changes

SUNS has been the subject of a number of research reports. Zacks Research cut Sunrise Realty Trust from a "hold" rating to a "strong sell" rating in a research note on Tuesday, March 24th. Keefe, Bruyette & Woods dropped their price target on Sunrise Realty Trust from $9.50 to $8.75 and set a "market perform" rating for the company in a research note on Wednesday, March 18th. Wall Street Zen cut Sunrise Realty Trust from a "hold" rating to a "sell" rating in a research note on Saturday, March 14th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Sunrise Realty Trust in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Sell" and a consensus price target of $8.75.

About Sunrise Realty Trust

Sunrise Realty Trust is a real estate investment trust (REIT) that focuses on acquiring, owning and leasing convenience store and fuel retail properties under long-term net leases. The company targets sale-leaseback transactions and joint-venture investments with high-credit tenants in the convenience retail sector. Sunrise Realty Trust's portfolio comprises single-tenant properties that benefit from predictable cash flows, structured lease agreements and tenant-driven site improvements, providing exposure to a segment of the retail real estate market that aligns closely with consumer essentials.

The company's primary business activities include sourcing and underwriting new property investments, negotiating sale-leaseback and ground lease transactions, and managing asset performance throughout the lease term.

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