Aug 6, 2026, 7:35 AM ETReal Estate

Sunrise Realty Trust, Inc. — Second Quarter 2026 Earnings Summary

SUNSSUNRISE REALTY TRUST INC

Financial Performance

Reported GAAP net income of $3.1 million ($0.23 per basic weighted average common share) for the quarter ended June 30, 2026, compared to $3.4 million ($0.25 per share) in the same period in 2025.
Reported Distributable Earnings of $3.9 million ($0.29 per basic weighted average common share) for the quarter, compared to $4.1 million ($0.31 per share) in the prior year period.
For the six months ended June 30, 2026, GAAP net income was $7.3 million, compared to $6.5 million in the same period in 2025.
Distributable Earnings for the first six months of 2026 totaled $8.6 million ($0.65 per share), an increase from $7.5 million ($0.62 per share) in the first half of 2025.
Provision for current expected credit losses (CECL) was $557,248 for the quarter, compared to $468,493 in the same period last year; for the six-month period, CECL was $617,531 versus $586,141 in 2025.
Stock-based compensation expense was $297,484 for the quarter and $667,446 for the six-month period.
No depreciation, amortization, unrealized gains/losses, TRS income/loss, or one-time events were recorded as adjustments to net income for the periods presented.

Management expects strong demand for flexible, structured capital as elevated interest rates continue to constrain senior debt capacity across the commercial real estate sector.
The company intends to remain selective in deploying capital, focusing only on opportunities that meet specific return and structural requirements.
The full repayment of the investment in Panther National shortly after quarter end reinforces the company's ability to originate, structure, and exit transitional investments.

The company operates as a lender on the Tannenbaum Capital Group (TCG) Real Estate platform, providing flexible financing solutions for transitional commercial real estate business plans with potential for near-term value creation.
All loans in the portfolio remain current as of the reporting date.
The portfolio consists of collateralized assets predominantly located in established and rapidly expanding Southern U.S. markets.

The commercial real estate market is characterized by elevated interest rates limiting senior debt capacity, creating an opportunity for the company's flexible, structured capital solutions.
The company focuses on top-tier assets in Southern U.S. markets benefiting from economic tailwinds and growth potential.

Forward-looking statements note inherent uncertainties regarding the manager's ability to locate suitable loan opportunities, monitor the portfolio, and implement the investment strategy.
Actual results may differ materially from projections due to factors including demand for commercial real estate investment and management's estimates of expected credit losses.
Specific risk factors are detailed in the company's filings with the SEC, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Brian Sedrish, Chief Executive Officer, described the second quarter results as reflecting a "resilient portfolio."
Management highlighted that Distributable Earnings exceeded dividends through the first six months of the year.
The tone emphasizes the company's ability to execute exits and its disciplined approach to capital deployment amidst a challenging interest rate environment.

On July 15, 2026, the company paid a cash dividend of $0.30 per common share for the second quarter, totaling $4.1 million.
For the first six months of 2026, Distributable Earnings of $0.65 per share exceeded the $0.60 per share of dividends declared over the same period.
The company filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, with the SEC on August 6, 2026.
An investor presentation titled "Second Quarter 2026 Investor Presentation" was issued and is available on the company's Investor Relations website.
A conference call to discuss financial results was hosted on August 6, 2026, at 10:00 a.m. Eastern Time.