Sunrise Realty Trust (NASDAQ:SUNS) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Sunrise Realty Trust (NASDAQ:SUNSGet Free Report) announced its quarterly earnings data on Thursday. The company reported $0.29 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.01), FiscalAI reports. Sunrise Realty Trust had a return on equity of 8.24% and a net margin of 53.33%.The business had revenue of $8.56 million for the quarter, compared to analyst estimates 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 Trading Down 0.6%

NASDAQ SUNS traded down $0.05 during trading on Friday, hitting $7.80. 112,199 shares of the company traded hands, compared to its average volume of 58,318. Sunrise Realty Trust has a 12 month low of $7.34 and a 12 month high of $11.78. The business has a fifty day simple moving average of $8.23 and a 200 day simple moving average of $8.41. The company has a market capitalization of $105.46 million, a P/E ratio of 8.04, a PEG ratio of 0.59 and a beta of 1.02.

Sunrise Realty Trust Dividend Announcement

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in Sunrise Realty Trust by 19.2% in the 3rd quarter. Vanguard Group Inc. now owns 588,554 shares of the company’s stock worth $6,115,000 after purchasing an additional 94,628 shares during the last quarter. Corsair Capital Management L.P. grew its holdings in Sunrise Realty Trust by 407.0% during the fourth quarter. Corsair Capital Management L.P. now owns 50,704 shares of the company’s stock valued at $478,000 after purchasing an additional 40,704 shares during the last quarter. Geode Capital Management LLC grew its holdings in Sunrise Realty Trust by 8.4% during the fourth quarter. Geode Capital Management LLC now owns 252,711 shares of the company’s stock valued at $2,383,000 after purchasing an additional 19,565 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of Sunrise Realty Trust by 67.3% in the fourth quarter. Renaissance Technologies LLC now owns 47,000 shares of the company’s stock valued at $443,000 after purchasing an additional 18,900 shares during the period. Finally, Curi Capital LLC acquired a new stake in shares of Sunrise Realty Trust in the second quarter worth $138,000.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on SUNS. Zacks Research raised shares of Sunrise Realty Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 28th. Wall Street Zen upgraded shares of Sunrise Realty Trust from a “sell” rating to a “hold” rating in a research report on Saturday, May 16th. Weiss Ratings lowered shares of Sunrise Realty Trust from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, July 16th. Finally, Keefe, Bruyette & Woods upped their price target 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. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Sunrise Realty Trust currently has a consensus rating of “Reduce” and a consensus price target of $8.00.

View Our Latest Analysis on Sunrise Realty Trust

About Sunrise Realty Trust

(Get Free Report)

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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Earnings History for Sunrise Realty Trust (NASDAQ:SUNS)

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