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

Financial Performance:

• Reported GAAP net income of $2.9 million ($0.21 per basic weighted average common share) for the quarter ended September 30, 2026, compared to $4.1 million ($0.31 per share) in the same period in 2025.
• Reported Distributable Earnings of $3.2 million ($0.24 per basic weighted average common share) for the quarter, compared to $4.1 million ($0.31 per share) in the prior year period.
• Distributable Earnings for the nine months ended September 30, 2026, totaled $11.8 million ($0.89 per share), compared to $11.7 million ($0.93 per share) in the same period in 2025.
• GAAP net income for the nine months ended September 30, 2026, was $10.2 million, compared to $10.5 million in the same period in 2025.
• Adjustments to net income for the quarter included $276,114 in stock-based compensation expense, $238,735 in unrealized gains, and a reversal of current expected credit losses (CECL) of $184,755.
• Adjustments to net income for the nine-month period included $943,560 in stock-based compensation expense, $238,735 in unrealized gains, and a provision for CECL of $432,776.
• Basic weighted average common shares outstanding were 13,341,545 for the quarter and 13,330,328 for the nine-month period.

Guidance and Future Outlook:

• Management stated the company heads into 2027 with balance sheet flexibility to be selective as borrowers require structured capital.
• The Company expects its Board of Directors to declare a dividend for the remainder of the fourth quarter of 2026 (covering November 5, 2026, through December 31, 2026), with the amount and record date to be announced in the ordinary course.
• Forward-looking statements indicate the Company intends to pay dividends in an amount at least equal to REIT taxable income, if and to the extent authorized by the Board of Directors.

Business Segments and Product Lines:

• The Company completed its merger with Southern Realty Trust Inc. ("SRT") on November 5, 2026, creating a larger, more efficient platform.
• The merger is expected to enhance competitiveness by improving access to attractive back leverage and broadening transaction sourcing.
• The expanded capital base allows the pursuit of larger transactions while maintaining a focus on portfolio diversification.
• The Company continues to focus on transitional CRE business plans with potential for near-term value creation, collateralized by top-tier assets in established and rapidly expanding Southern markets.

Market and Competitive Landscape:

• The Company operates as a lender on the Tannenbaum Capital Group ("TCG") Real Estate platform.
• The platform provides flexible financing on transitional CRE properties in Southern U.S. markets benefiting from economic tailwinds.

Risks and Challenges:

• Forward-looking statements highlight risks including the ability of the manager to locate suitable loan opportunities, monitor the loan portfolio, and implement the investment strategy.
• Risks include the ability to realize anticipated benefits of the Merger, the timing and amount of share repurchases, demand for commercial real estate investment, and management's estimates of expected credit losses.
• Actual results may differ materially from projections due to inherent uncertainties in predicting future results and conditions.

Management Commentary and Tone:

• CEO Brian Sedrish stated the merger provides a larger, more efficient platform that enhances competitiveness and allows for larger transactions.
• Management expressed confidence in the balance sheet flexibility to be selective in a market where borrowers need structured capital.

Other Key Points:

• On October 15, 2026, the Company paid a cash dividend of $0.30 per common share for the third quarter of 2026, totaling $4.1 million distributed.
• For the first nine months of 2026, Distributable Earnings totaled $0.89 per share, compared to $0.90 per share of dividends declared over the same period.
• In connection with the Merger, the Company paid a prorated cash dividend of $0.09 per common share covering the period from October 1 through November 4, 2026, to stockholders of record as of November 2, 2026.
• The press release notes approximately 6 cents per share of one-time merger-related expenses included in the Distributable Earnings calculation.
• The Company filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, with the SEC on November 10, 2026.
• A conference call to discuss financial results was scheduled for November 11, 2026, at 10:00 a.m. Eastern Time.