Sunrise Realty Trust (NASDAQ:SUNS) Issues Quarterly Earnings Results

Sunrise Realty Trust (NASDAQ:SUNS) issued its earnings results 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. Sunrise Realty Trust had a net margin of 53.33% and a return on equity of 8.24%. The company had revenue of $8.56 million during the quarter, compared to analysts’ expectations of $7.17 million.

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%

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

Sunrise Realty Trust Announces Dividend

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

Analyst Ratings Changes

SUNS has been the topic of several recent research reports. Keefe, Bruyette & Woods boosted their price target on shares of Sunrise Realty Trust from $7.75 to $8.00 and gave the company a “market perform” rating in a research report on Monday, May 18th. Weiss Ratings lowered shares of Sunrise Realty Trust from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, July 16th. Zacks Research upgraded Sunrise Realty Trust from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 28th. 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 research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Sunrise Realty Trust currently has an average rating of “Reduce” and a consensus target price of $8.00.

Institutional Trading of Sunrise Realty Trust

A number of large investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Sunrise Realty Trust by 90.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,077 shares of the company’s stock valued at $67,000 after acquiring an additional 2,880 shares in the last quarter. Bank of America Corp DE increased 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 purchasing an additional 1,952 shares during the period. Wells Fargo & Company MN increased its holdings in Sunrise Realty Trust by 46.2% during the 4th quarter. Wells Fargo & Company MN now owns 11,394 shares of the company’s stock worth $107,000 after purchasing an additional 3,602 shares during the period. Rhumbline Advisers raised its position in Sunrise Realty Trust by 22.5% in the 1st quarter. Rhumbline Advisers now owns 9,780 shares of the company’s stock valued at $108,000 after purchasing an additional 1,794 shares in the last quarter. Finally, Royal Bank of Canada raised its position in Sunrise Realty Trust by 12.5% in the 4th quarter. Royal Bank of Canada now owns 13,782 shares of the company’s stock valued at $130,000 after purchasing an additional 1,535 shares in the last quarter.

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.