Sunrise Realty Trust (NASDAQ:SUNS) Posts Earnings Results, Misses Estimates By $0.01 EPS

Sunrise Realty Trust (NASDAQ:SUNS) issued its quarterly earnings data on Thursday. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.01), FiscalAI reports. The company had revenue of $8.56 million during the quarter, compared to analysts’ expectations of $7.17 million. Sunrise Realty Trust had a net margin of 53.33% and a return on equity of 8.24%.

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

• Proposed SRT merger is expected to increase SUNS’s equity base by approximately 60%, improve financing access and trading liquidity, and generate G&A savings. The management agreement would also reduce the incentive fee rate to 17.5% and provide a $1 million fee waiver over four quarters.
• Second-quarter distributable earnings were $0.29 per share, while first-half distributable earnings of $0.65 per share exceeded the $0.60 per share in declared dividends, indicating continued portfolio earnings coverage.
• All loans were current and performing at quarter-end, with a weighted-average portfolio yield to maturity of approximately 12.3%. The Panther National loan repaid in full after quarter-end, reducing debt outstanding from $141.7 million to approximately $85.6 million and creating capital for redeployment.
• Management reported improving multifamily fundamentals in selected markets, including stronger absorption, rent increases and fewer concessions, while identifying a broader pipeline of need-driven structured lending opportunities. SUNS also signed a term sheet for a proposed $93 million senior construction loan for a Texas multifamily development.
• SUNS and its affiliates agreed to sell The Thompson San Antonio, with the buyer having funded $6 million in non-refundable option payments, while SUNS will provide seller financing. Management did not disclose expected loan-to-value or interest-rate terms for that financing.

Sunrise Realty Trust Stock Down 0.6%

Shares of SUNS traded down $0.05 during mid-day trading on Friday, reaching $7.80. 112,199 shares of the stock traded hands, compared to its average volume of 58,318. The stock has a fifty day simple moving average of $8.23 and a 200 day simple moving average of $8.41. Sunrise Realty Trust has a 12-month low of $7.34 and a 12-month high of $11.78. The firm has a market cap of $105.46 million, a price-to-earnings ratio of 8.04, a P/E/G ratio of 0.59 and a beta of 1.02.

Sunrise Realty Trust Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were given a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.20 annualized dividend and a yield of 15.4%. Sunrise Realty Trust’s dividend payout ratio (DPR) is 121.21%.

Institutional Trading of Sunrise Realty Trust

Institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. raised its stake in shares of Sunrise Realty Trust by 7.1% in the 4th quarter. Osaic Holdings Inc. now owns 16,947 shares of the company’s stock valued at $160,000 after purchasing an additional 1,127 shares in the last quarter. Barclays PLC grew its stake in 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 purchasing an additional 1,518 shares in the last quarter. Royal Bank of Canada increased its holdings in Sunrise Realty Trust by 12.5% in the fourth quarter. Royal Bank of Canada now owns 13,782 shares of the company’s stock valued at $130,000 after buying an additional 1,535 shares during the last quarter. Rhumbline Advisers raised its stake in Sunrise Realty Trust by 22.5% during the first quarter. Rhumbline Advisers now owns 9,780 shares of the company’s stock valued at $108,000 after buying an additional 1,794 shares in the last quarter. Finally, Bank of America Corp DE lifted its holdings in Sunrise Realty Trust by 60.4% during the 4th quarter. Bank of America Corp DE now owns 5,183 shares of the company’s stock worth $73,000 after buying an additional 1,952 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on SUNS shares. Zacks Research upgraded shares of Sunrise Realty Trust from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 28th. Weiss Ratings downgraded shares of Sunrise Realty Trust from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 16th. Keefe, Bruyette & Woods lifted their target price on shares of Sunrise Realty Trust from $7.75 to $8.00 and gave the stock a “market perform” rating in a research note on Monday, May 18th. Finally, Wall Street Zen raised Sunrise Realty Trust from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $8.00.

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.