SUNS

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET President - Robyn Tannenbaum Executive Chairman - Leonard Tannenbaum Chief Executive Officer - Brian Sedrish Chief Financial Officer - Brandon Hetzel Operator: Good day, and thank you for standing by. Welcome to the Sunrise Realty Trust Q2 2026 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Robyn Tannenbaum, President of Sunrise Realty Trust. Robyn Tannenbaum: Good morning, and thank you all for joining Sunrise Realty Trust's earnings call for the quarter ended June 30, 2026. I'm joined this morning by Leonard Tannenbaum, our Executive Chairman; Brian Sedrish, our Chief Executive Officer; and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information is included in our July 17, 2026, press release and is posted on the Investor Relations portion of our website at sunriserealtytrust.com, along with our second quarter 2026 earnings release and investor presentation. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, market developments, our investment pipeline, anticipated portfolio yields, financial performance and projections in 2026 and beyond, and the proposed SUNS-SRT merger. These statements are subject to inherent uncertainties in predicting future results. Please refer to Sunrise Realty Trust's most recent periodic filings with the SEC, including our quarterly report on Form 10-Q filed earlier this morning, for certain conditions and significant factors that could cause actual results to differ materially from these forward-looking statements and projections. During today's conference call, management will refer to non-GAAP financial measures, including distributable earnings. Please see our second quarter earnings release available on our website for reconciliations of the non-GAAP financial measures with the most directly comparable GAAP measures. The format for today's call is as follows: Leon will provide an update on today's proposed merger announcement. Next, Brian will cover our view on the state of the CRE lending market, discuss our existing portfolio, and provide an outlook for our investment pipeline. Then Brandon will provide an update on our financial position. After that, we'll open the lines for Q&A. With that, I will now turn the call over to our Executive Chairman, Leon Tannenbaum. Leonard Tannenbaum: Thank you, Robyn. Good morning, and welcome to our second quarter 2026 earnings conference call. Before turning to the proposed merger that we announced earlier today, for the quarter ended June 30, 2026, SUNS generated distributable earnings of $0.29 per basic weighted average share of common stock. For the first 6 months of 2026, distributable earnings of $0.65 per share exceeded the $0.60 per share of dividends that we declared over the same period. This reflected the continued earnings power of our portfolio. Turning to the proposed merger. Earlier today, we announced and filed with the SEC a signed definitive merger agreement, under which SUNS will acquire Southern Realty Trust, or SRT, a private mortgage REIT on the TCG Real Estate Platform. We believe the transaction represents an attractive opportunity for our stockholders. Under the terms of the proposed transaction, SRT, which has $107 million of equity, will merge into the SUNS platform and create a combined company with approximately $290 million of total equity value on a pro forma basis as of June 30, 2026. Upon closing the merger, SRT shareholders will receive newly issued SUNS common stock based on an exchange ratio that applies a 6% premium to SRT's book value per share relative to SUNS' book value per share as of the measurement date. Before turning to the strategic rationale, I want to note that this was an arm's-length negotiated process. SUNS and SRT each formed an independent special committee comprised entirely of independent directors. Each of the special committees retained outside legal counsel and independent financial advisers, with Oppenheimer & Co. representing SUNS and KBW Keefe, Bruyette & Woods representing SRT. Each of the SUNS and SRT special committees and both companies' Boards unanimously approved the transaction. In connection with the closing, SUNS' management agreement will be amended and restated. Among other changes, #1, the incentive fee rate will be reduced from 20% to 17.5%. #2, the hurdle rate will move from 8% to 7%. And #3, SUNS' manager will provide a management fee waiver of $1 million in the aggregate over the 4 quarters following the closing to the benefit of all SUNS stockholders. Strategically, we believe the combination will benefit SUNS stockholders in several ways. We expect this transaction to immediately increase our equity base by approximately 60%, which should provide benefits to our cost of capital. A larger platform should provide improved and increased trading liquidity, broader index inclusion eligibility, and enhanced access to the unsecured markets. We believe the increased float and market cap may attract a wider universe of investors who have a minimum market cap threshold for deployment. Additionally, from an operating standpoint, we anticipate G&A savings on a combined basis, which will potentially increase our margins post-transaction as we begin eliminating duplicative accounting, legal, audit, board, and regulatory compliance costs inherent in maintaining 2 separate REIT platforms. Because management already oversees both portfolios, which contain pieces of the same underlying loans, we believe there is no material integration risk. We currently expect the transaction to close in the fourth quarter of 2026, subject to approval by SUNS and SRT stockholders and the satisfaction of other customary closing conditions. SUNS expects to file a proxy statement with the SEC containing additional information. Until the proxy statement is effective, we will limit our comments to the Form 8-K. With that, I'll turn it over to Brian to discuss the market environment and walk through our portfolio in more detail. Brian? Brian Sedrish: Thank you, Leon. Before reviewing the portfolio, I want to discuss how the current lending environment is translating into opportunities for SUNS. Looking at the broader market, industry estimates put roughly [ $900 billion ] of commercial real estate loans maturing in 2026 with a comparable wave in 2027. Much of it originated between 2019 and 2022 when rates were at historic lows. With rates still elevated, many of those loans now face a refinancing gap, and what matters is the cause of that gap. In most of the situations we target, the issue is not a shortfall in asset value. It's that leverage sized in a lower rate environment no longer fits today's senior debt capacity. That gap between yesterday's leverage and today's debt capacity is exactly the space our structured capital fills. Last quarter, we noted that several pipeline transactions were paused as sponsors reassessed their cost of capital amid rate volatility. That volatility continued through the second quarter, and transaction activity stayed uneven with borrowers delaying discretionary acquisitions and refinancings. The most durable demand is need-driven, sponsors facing near-term maturities where the incumbent lender will extend only against a principal paydown or fresh equity rather than a simple extension. Borrowers with real equity to protect are the ones most willing to engage in pricing and the structural protections that appropriately compensate us. Liquidity is available, and commercial banks have meaningfully reentered the market, particularly for stabilized and near-stabilized multifamily, industrial, and data center assets. We view that as confirmation of our positioning. That competition is compressing spreads in conventional first mortgage lending, which are the commodity lanes we deliberately do not compete in, and banks are the natural low-cost home for that stabilized product. What has stayed scarce in this cycle is not senior debt. It's equity. More bank liquidity does not fill a sponsor's equity gap. And in many cases, a bank's willingness to extend is conditioned on the borrower funding a paydown it cannot cover alone. Our model differs from many commercial mortgage REITs. Many concentrate on stabilized assets and lean on balance sheet leverage to reach a targeted return. We generate return the other way, through the complexity of transitional business plans, asset-level and sponsor underwriting, and negotiated structural protections. Because the unlevered return on that work is higher, we can carry it with comparatively modest corporate leverage, which also leaves us less exposed to the mark-to-market and margin pressure that a more heavily levered model carries. Where competition is concentrated, we step back; where capital is scarce, we lean in. Patience is not inactivity. During the quarter, our team reviewed a significant volume of transactions and declined those that did not meet our return or structure requirements. Our liquidity lets us stay selective rather than accept mispriced risks. Importantly, over the last several weeks, our investment team has seen a noticeable pickup in transactions that fit our targeted criteria, which we believe reflects the growing realization among borrowers and their advisers that rates are staying higher for longer and that continued inactivity is no longer a viable option. We continue to see healthy financing request volume. And while conversion still depends on pricing, structure, and sponsor alignment, the opportunity set in front of us has broadened. The Panther National repayment shortly after quarter end is a clean example of the model end-to-end. The credit facility, originated on the TCG Real Estate Platform in August 2024 and secured by a 392-acre private golf and residential community in Palm Beach Gardens, Florida, was repaid in full. The investment ran its full cycle in under 2 years: origination, business plan execution, and repayment at par. Its attractive unlevered return let us hold the position with limited balance sheet leverage. That is the SUNS approach: earning return through underwriting, structuring, and execution rather than through leverage. Our pipeline remains active, and we stay focused on deals with strong risk-adjusted returns. During the second quarter, the TCG Real Estate Platform signed a term sheet for a $93 million senior construction loan for a multifamily development in Texas, which we expect to structure with a third-party partner on an A/B [indiscernible] basis. This is the kind of transitional structured situation we target rather than stabilized senior lending. That is a ground-up business plan in a specific targeted submarket with the A/B structure allocating risk to fit our return requirements. We have additional deals in the pipeline and are negotiating further transactions. Turning to the portfolio. I'd like to begin with an update on our owned asset, the Thompson San Antonio. SUNS and its affiliates have entered into a purchase and sale agreement to sell the property to a third-party buyer who has funded 2 nonrefundable option payments totaling $6 million, which will be credited against the purchase price should the closing occur on or before September 30, 2026. As part of the transaction, SUNS and its affiliates have agreed to provide seller financing to help facilitate the purchase. Separately, SUNS and its affiliates continue to pursue available remedies under the former sponsor's guarantee. Entering the second half of the year, our priorities are clear: recycle capital from repayments, continue to fund construction loans in our existing book, and deploy selectively into transactions with strong risk-adjusted returns and negotiated downside protection. With our current loans -- with all of our loans current, modest balance sheet leverage, and the Panther proceeds available for redeployment, we look forward to deploying capital into new opportunities with attractive risk-adjusted returns. With that, I will now turn the call over to Brandon, our Chief Financial Officer. Brandon Hetzel: Thank you, Brian. For the quarter ended June 30, 2026, we generated net interest income of $5.8 million and distributable earnings of $3.9 million, or $0.29 per basic weighted average common share, and had GAAP net income of $3.1 million, or $0.23 per basic weighted average common share. We believe that providing distributable earnings is helpful to stockholders in assessing the overall performance of SUNS' business. Distributable earnings represents net income computed in accordance with GAAP, excluding noncash items such as stock compensation expense, unrealized gains or losses, and the provision for current expected credit losses, also known as CECL. In the second quarter of 2026, SUNS funded $25.4 million of new and existing loans and received $26 million of repayments. We ended the second quarter of 2026 with $377.4 million of current commitments and $298.7 million of principal outstanding across 14 loans. As of August 3, 2026, our portfolio consisted of $315 million of current commitments and $248.8 million of principal outstanding across 12 loans, which reflects the full repayment of the Panther National senior term loan and construction revolver subsequent to the quarter end. All loans are current and performing with a weighted average portfolio yield to maturity of approximately 12.3%. As of June 30, 2026, our CECL reserve was approximately $1.1 million, or 37 basis points of loans held at carrying value. As of June 30, 2026, our total debt outstanding was approximately $141.7 million. Subsequent to quarter end, the Panther National repayment proceeds were used to reduce our borrowings. And as of August 3, 2026, our total debt outstanding was approximately $85.6 million. As of June 30, 2026, we had total assets of $330.7 million, and our total shareholder equity was $181.8 million with a book value of $13.45 per share. For the quarter ended June 30, 2026, the Board of Directors declared a $0.30 dividend -- stock dividend per share outstanding, which was paid on July 15, 2026, to shareholders of record as of June 30, 2026. For the first 6 months of 2026, distributable earnings of $0.65 per basic weighted average share exceeds the $0.60 per share of dividends declared over the same period. With that, I will now turn it back over to the operator to start the Q&A. Operator: [Operator Instructions] Our first question comes from the line of Jade Rahmani from KBW. Jason Sabshon: This is Jason Sabshon on for Jade. So just to touch on the SRT deal. Do you expect it to be neutral earnings and dividends or potentially accretive? Leonard Tannenbaum: The combination of SUNS and SRT in the merger should get margin benefit from the reduction in G&A costs. There's a lot of duplicative costs. It's the same exact assets in different -- a little bit different proportions. So together, they should get an earnings increase. Jason Sabshon: Got it. And then do you have any interest in pursuing other M&A within the mortgage REIT space? Leonard Tannenbaum: I think one at a time is just fine for us, but thanks for the question. Jason Sabshon: Got it. And so just curious, what are you seeing on underlying property fundamentals in multifamily and residential in your markets and on the deals backing your loans? Leonard Tannenbaum: Brian? Brian Sedrish: Sure. Yes, I'll take that. It definitely depends on what -- where the mortgage -- where the assets are located. I would say, generally, we've definitely seen in the markets that we have spent a lot of time in that what was expected has come true and that the absorption has caught up to the supply out there. As we know, there was a cliff in new construction on multifamily. So that certainly helped. It's now getting absorbed. You're seeing some actual rent increases, less concessions in the markets that we're spending time on. So that's certainly a positive. And I see given elevated rates, we certainly are not seeing a tremendous amount of new construction, depends obviously on the markets. In some of the South Florida markets that we play in, we have definitely seen continued strong demand. I think that will continue. We have to be mindful of absorption and how quickly things lease up, but generally positive. Same thing I would confirm on our existing book as well. Jason Sabshon: And then just as a last question, on the hotel, potentially, what would you expect seller financing to look like potentially LTV or rate? Leonard Tannenbaum: Brandon, can you answer that question? Robyn Tannenbaum: I don't think we can answer this. Brandon Hetzel: I can't answer at this time, but I would anticipate kind of normal seller rates. Operator: Our next question comes from Gaurav Mehta from Alliance Global Partners. Gaurav Mehta: I wanted to ask a few questions on the merger. I understand the rationale that you guys have talked about merging the 2 REITs. But I guess in terms of timing, why did you guys decide to pursue this transaction at this time? Leonard Tannenbaum: The transaction really was -- the timing of the transaction was more towards SRT's timing than SUNS' timing to the combination. But for SUNS, it increases our scale and increases our ability to get unsecured financing, which I still would like to get outside unsecured financing. I'd like to get a credit rating. I think that's important. I also like to redo our credit facilities a little better when you have size and scale. The other interesting thing, which I don't know if was clear on this transaction, is anyway, as I said the same assets that are split into 2 buckets, and that provided some complexity for our lenders because who is in control of the assets and how they would lend the assets and be secured by them. So this removes that complexity, which we think will help us get better financing. Gaurav Mehta: And so in terms of like the overlap on the same asset, is it like 100% overlap between SRT and SUNS? Leonard Tannenbaum: 100% of the assets are the same. There are some different proportions of ownership. Every asset in SUNS is in SRT. Gaurav Mehta: Okay. Understood. And maybe lastly on the valuation. In the press release, when you say 6% premium to SRT's book relative to SUNS, does that mean the value for SRT is 1.06x book? Or how should I think about that, the book valuation? Leonard Tannenbaum: Brandon? Brandon Hetzel: Yes, that's the way to think about it. So it was a book value for book value transaction with them giving a 6% premium on their book value. Operator: I'm showing no further questions at this time. I would now like to turn it back to Robyn Tannenbaum, President of Sunrise Realty Trust, for closing remarks. Robyn Tannenbaum: Thank you so much for joining us today, and we look forward to keeping you updated on the merger and our progress. Operator: Thank you, Robyn, for your participation in today's conference. This does conclude the program. You may now disconnect. Thank you. 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Interested in Sunrise Realty Trust, Inc.? Here are five stocks we like better. Sunrise reported solid Q2 results, with distributable earnings of $0.29 per share and first-half earnings of $0.65 per share, exceeding dividends declared of $0.60 per share. The company declared a $0.30 quarterly dividend. Sunrise agreed to acquire Southern Realty Trust in an all-stock merger expected to close in Q4 2026. The transaction would increase Sunrise’s equity base by about 60%, while planned cost savings and lower management fees are expected to support earnings. The portfolio remained fully current and performing, with a 12.3% weighted-average yield to maturity. After the repayment of the Panther National loan, debt fell to approximately $85.6 million, while management cited improving lending opportunities amid commercial real estate refinancing needs. Sunrise Realty Trust (NASDAQ:SUNS) reported second-quarter distributable earnings of $0.29 per basic weighted average share and announced a definitive agreement to acquire Southern Realty Trust, a private mortgage REIT on the TCG Real Estate platform. For the first six months of 2026, Sunrise generated distributable earnings of $0.65 per share, exceeding the $0.60 per share in dividends declared during the period, Executive Chairman Leonard Tannenbaum said. The company declared a $0.30 per-share dividend for the second quarter, which was paid July 15 to shareholders of record as of June 30. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Under the proposed transaction, Southern Realty Trust, or SRT, would merge into Sunrise. SRT had $107 million of equity, and the combined company would have about $290 million of total equity value on a pro forma basis as of June 30, according to management. SRT shareholders would receive newly issued Sunrise common stock using an exchange ratio that provides a 6% premium to SRT’s book value per share relative to Sunrise’s book value per share as of the measurement date. Chief Financial Officer Brandon Hetzel described the arrangement as a book-value-for-book-value transaction in which SRT receives a 6% premium on its book value. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Both companies formed independent special committees made up entirely of independent directors, Tannenbaum said. Oppenheimer & Company advised Sunrise’s committee, while KBW, Keefe, Bruyette & Woods advised SRT’s committee. The special committees and both companies’ boards unanimously approved the transaction. The companies expect the merger to close in the fourth quarter of 2026, subject to shareholder approvals and customary closing conditions. Sunrise said it expects to file a proxy statement with the Securities and Exchange Commission containing additional information. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management said all assets in Sunrise’s portfolio are also held by SRT, although in differing ownership proportions. Tannenbaum said consolidating the platforms would remove complexity for lenders related to control of the assets and how the assets can secure financing. Sunrise expects the transaction to increase its equity base by approximately 60%. Management said the larger platform could improve trading liquidity, broaden index eligibility, enhance access to unsecured financing markets and attract investors with minimum market-capitalization requirements. The company also expects cost savings from eliminating duplicative accounting, legal, audit, board and regulatory compliance expenses. CEO Brian Sedrish said the combination should produce margin benefits from lower general and administrative costs and “should get an earnings increase.” In connection with the closing, Sunrise’s management agreement would be amended and restated. Changes would include: A reduction in the incentive fee rate to 17.5% from 20%. A reduction in the hurdle rate to 7% from 8%. A $1 million aggregate management-fee waiver over the four quarters following closing. Sedrish said industry estimates indicate roughly $900 billion of commercial real estate loans will mature in 2026, followed by a comparable volume in 2027. Many of those loans originated between 2019 and 2022, when interest rates were lower, creating refinancing gaps as current senior debt capacity does not support prior leverage levels. He said Sunrise is focused on providing structured capital for borrowers that need to address those gaps. The company does not seek to compete in conventional stabilized first-mortgage lending, where Sedrish said bank competition has compressed spreads, particularly in stabilized and near-stabilized multifamily, industrial and data-center properties. “What has stayed scarce in this cycle is not senior debt, it’s equity,” Sedrish said. He added that sponsors facing loan maturities and required principal paydowns are increasingly engaging with financing structures that provide appropriate returns and protections for Sunrise. Management said transaction activity remained uneven during the quarter, but the investment team has recently seen a noticeable increase in opportunities that meet its criteria. During the second quarter, the TCG Real Estate platform signed a term sheet for a $93 million senior construction loan for a Texas multifamily development. Sunrise expects to structure that financing with a third-party partner using an A-note/B-note arrangement. On multifamily fundamentals, Sedrish said absorption has caught up with supply in markets where the company has focused, following a decline in new construction. He said the company has observed rent increases and fewer concessions in those markets, while demand in certain South Florida markets has remained strong. For the second quarter, Sunrise reported net interest income of $5.8 million, distributable earnings of $3.9 million, or $0.29 per basic share, and GAAP net income of $3.1 million, or $0.23 per basic share. The company funded $25.4 million of new and existing loans during the quarter and received $26 million in repayments. As of June 30, Sunrise had $377.4 million of current commitments and $298.7 million of principal outstanding across 14 loans. Subsequent to quarter-end, the Panther National Senior Term Loan and Construction Revolver were repaid in full. The credit facility, which originated in August 2024 and was secured by a 392-acre private golf and residential community in Palm Beach Gardens, Florida, completed its investment cycle in less than two years, Sedrish said. As of Aug. 3, Sunrise had $315 million of current commitments and $248.8 million of principal outstanding across 12 loans. All loans were current and performing, with a weighted-average portfolio yield to maturity of approximately 12.3%. Total debt outstanding was approximately $141.7 million at June 30. After applying Panther National repayment proceeds to reduce borrowings, total debt was approximately $85.6 million as of Aug. 3. Sunrise ended the quarter with total assets of $330.7 million, shareholder equity of $181.8 million and book value of $13.45 per share. Sunrise and its affiliates entered into a purchase and sale agreement to sell The Thompson San Antonio to a third-party buyer. The buyer has funded two non-refundable option payments totaling $6 million, which will be credited against the purchase price if the transaction closes by Sept. 30. Sunrise and its affiliates also agreed to provide seller financing to facilitate the purchase. Management did not provide details on the potential loan-to-value ratio or rate, though Tannenbaum said he anticipated “normal seller note rates.” The company and its affiliate continue to pursue remedies under the former sponsor’s guarantee. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sunrise Realty Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second quarter 2026 GAAP net income of $3.1 million or $0.23 per basic weighted average common share and Distributable Earnings(1) of $3.9 million or $0.29 per basic weighted average common share WEST PALM BEACH, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced its results for the quarter ended June 30, 2026. For the second quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of $3.1 million, or $0.23 per basic weighted average common share, and Distributable Earnings of $3.9 million, or $0.29 per basic weighted average common share. Brian Sedrish, Chief Executive Officer of SUNS, said, “Our second quarter 2026 results reflect a resilient portfolio: Distributable Earnings exceeded dividends through the first six months of the year, and all our loans remain current. The full repayment of our investment in Panther National shortly after quarter end reinforces our ability to originate, structure, and exit transitional investments. With elevated rates continuing to constrain senior debt capacity across commercial real estate, we expect strong demand for flexible, structured capital. The proceeds from that repayment, together with our modest balance-sheet leverage, position us to stay selective and deploy only into opportunities that meet our return and structural requirements.” Common Stock Dividend On July 15, 2026, the Company paid a cash dividend of $0.30 per common share for the second quarter of 2026. SUNS distributed $4.1 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.29 per basic weighted average common share for such period. For the first six months of 2026, Distributable Earnings of $0.65 per basic weighted average share exceeded the $0.60 per share of dividends declared over the same period. Additional Information SUNS issued a presentation, titled “Second Quarter 2026 Investor Presentation,” which can be viewed at www.sunriserealtytrust.com under the Investor Relations section. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, with the Securities and Exchange Commission (the “SEC”) on August 6, 2026. SUNS routinely posts important information for investors on its website, www.sunriserealtytrust.com. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. SUNS encourages investors, analysts, the media and others interested in SUNS to monitor the Investor Relations section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section. Conference Call & Discussion of Financial Results SUNS will host a conference call at 10:00 a.m. (Eastern Time) on Thursday, August 6, 2026, to provide an update on the business. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of SUNS’s website found here: SUNS -- Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of the SUNS website. About Sunrise Realty Trust, Inc. Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”) is an institutional commercial real estate (“CRE”) lender providing flexible financing solutions to sponsors of CRE projects located primarily in the Southern United States. It focuses on transitional CRE business plans with the potential for near-term value creation, collateralized by top-tier assets predominantly located in established and rapidly expanding Southern markets. For additional information regarding the Company, please visit www.sunriserealtytrust.com. About TCG Real Estate TCG Real Estate refers to a group of affiliated commercial real estate (“CRE”) focused debt funds, including a Nasdaq-listed mortgage real estate investment trust (“REIT”), Sunrise Realty Trust, Inc. (Nasdaq: SUNS), and a private mortgage REIT, Southern Realty Trust Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets located primarily within markets in the Southern U.S. benefiting from economic tailwinds with growth potential. For additional information regarding TCG Real Estate, please visit www.theTCG.com. Non-GAAP Metrics In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most recently filed quarterly report. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information they provide are useful to investors since these measures permit investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance. The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings account for any Incentive Compensation earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses (“CECL”), (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors. We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least 90% of our annual REIT taxable income, subject to certain adjustments, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that shareholders invest in our common stock, we generally intend to attempt to pay dividends to our shareholders in an amount at least equal to such REIT taxable income, if and to the extent authorized by our Board of Directors. Distributable Earnings is one of many factors considered by our Board of Directors in authorizing dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends. Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs. The following table provides a reconciliation of GAAP Net income to Distributable Earnings: Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “may,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth, strategies for such growth, and our estimates of future distributable earnings, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for commercial real estate investment; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in SUNS’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of SUNS’s Annual Report on Form 10-K filed on March 12, 2026, and subsequently filed Quarterly Reports on Form 10-Q. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect SUNS. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Investor Relations Contact Robyn Tannenbaum (561) 510-2293 [email protected] Media Contact Doug Allen Dukas Linden Public Relations (646) 722-6530 [email protected] 1 Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.

This article first appeared on GuruFocus. Distributable Earnings: $3.9 million, or $0.29 per basic weighted average share for Q2 2026; $0.65 per share for the first six months of 2026. GAAP Net Income: $3.1 million, or $0.23 per basic weighted average share for Q2 2026. Net Interest Income: $5.8 million for Q2 2026. Portfolio Activity: Funded $25.4 million of new and existing loans and received $26 million of repayments during Q2 2026. Portfolio Composition (as of June 30, 2026): $377.4 million of current commitments and $298.7 million of principal outstanding across 14 loans. Portfolio Composition (as of August 3, 2026): $315 million of current commitments and $248.8 million of principal outstanding across 12 loans, reflecting the full repayment of the Panther National loan. Portfolio Yield: Weighted average portfolio yield to maturity of approximately 12.3%. CECL Reserve: Approximately $1.1 million, or 37 basis points of loans held at carrying value as of June 30, 2026. Total Debt: Approximately $141.7 million as of June 30, 2026; reduced to approximately $85.6 million as of August 3, 2026. Total Assets: $330.7 million as of June 30, 2026. Total Shareholder Equity: $181.8 million, with a book value of $13.45 per share as of June 30, 2026. Dividends: Declared a $0.30 stock dividend per share for Q2 2026, paid on July 15, 2026. Warning! GuruFocus has detected 5 Warning Signs with SUNS. Is SUNS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Distributable earnings of $0.29 per share for Q2 2026 and $0.65 per share for the first half of 2026 exceeded dividends declared, demonstrating strong earnings power. The proposed merger with Southern Realty Trust (SRT) is expected to increase equity base by approximately 60%, enhancing cost of capital, trading liquidity, and access to unsecured markets. The merger is expected to generate G&A savings by eliminating duplicative costs, potentially increasing margins, with no material integration risk as both portfolios contain the same underlying loans. The Panther National loan was repaid in full at par, showcasing the company's successful underwriting and execution model, with proceeds used to reduce debt to $85.6 million as of August 3, 2026. All loans are current and performing, with a weighted average portfolio yield of 12.3%, and the company maintains modest balance sheet leverage, reducing exposure to mark-to-market and margin pressure. The company has a signed term sheet for a $93 million senior construction loan for a multifamily development in Texas, indicating a broadening pipeline of opportunities. Transaction activity remained uneven in Q2 2026 due to continued rate volatility, with borrowers delaying discretionary acquisitions and refinancings. The company faces increased competition from commercial banks re-entering the market, compressing spreads in conventional first mortgage lending, though this is in areas the company deliberately avoids. The proposed merger with SRT involves a 6% premium to SRT's book value, which could dilute existing shareholders' ownership. The sale of the Thompson San Antonio property is contingent on a third-party buyer closing by September 30, 2026, with seller financing required, and the company continues to pursue remedies under the former sponsor's guarantee. The company's pipeline conversion remains dependent on pricing, structure, and sponsor alignment, and the company declined many transactions that did not meet return or structural requirements, indicating selectivity may limit deployment. The merger is subject to stockholder approvals and customary closing conditions, with expected closing in Q4 2026, creating uncertainty and potential delays. Q: Do you expect the SRT merger to be neutral to earnings and dividends or potentially accretive?A: Leonard Tannenbaum (Executive Chairman) stated that the combination of SUNS and SRT should result in a margin benefit from the reduction in G&A costs. Since both companies hold the same assets in different proportions, eliminating duplicative costs should lead to an earnings increase. Q: Why did you decide to pursue this merger transaction at this time?A: Leonard Tannenbaum (Executive Chairman) explained that the timing was driven more by SRT's needs than SUNS'. For SUNS, the merger increases scale, which improves access to unsecured financing and the potential for a credit rating. It also simplifies the capital structure for lenders, as the same assets were previously split across two entities, creating complexity in securing loans against them. Q: Is there 100% overlap between the assets of SRT and SUNS?A: Leonard Tannenbaum (Executive Chairman) confirmed that 100% of the assets are the same, though the proportions of ownership differ. Every asset in SUNS is also in SRT. Q: How should I interpret the 6% premium to SRT's book value relative to SUNS' book value in the merger valuation?A: Brandon Hetzel (CFO) clarified that the transaction is a book value-for-book value deal, with SRT shareholders receiving a 6% premium on their book value. Q: What are you seeing on underlying property fundamentals in multifamily and residential markets, and in the deals backing your loans?A: Brian Sedrish (CEO) noted that in the markets where SUNS is active, absorption has caught up with supply, leading to actual rent increases and fewer concessions. Elevated rates have curtailed new construction, which is a positive. Demand remains strong, particularly in South Florida markets, though the company remains mindful of absorption rates. Q: What would the seller financing for the Thompson San Antonio hotel sale potentially look like in terms of LTV or rate?A: Leonard Tannenbaum (Executive Chairman) declined to provide specific terms at this time but anticipated that the seller note rate would be in line with normal market rates. Q: Do you have any interest in pursuing other M&A within the mortgage REIT space?A: Leonard Tannenbaum (Executive Chairman) responded that the company prefers to focus on one transaction at a time, indicating no immediate plans for additional M&A. Q: Can you provide an update on the portfolio and the impact of the Panther National repayment?A: Brandon Hetzel (CFO) reported that as of August 3, 2026, the portfolio consisted of $315 million in current commitments and $248.8 million in principal outstanding across 12 loans, reflecting the full repayment of the Panther National loan. The proceeds were used to reduce total debt outstanding to approximately $85.6 million. All loans are current and performing, with a weighted average portfolio yield to maturity of approximately 12.3%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Sunrise Realty Trust, Inc. (SUNS) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.33%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.35, delivering a surprise of +20.69%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Sunrise Realty Trust, Inc., which belongs to the Zacks Real Estate - Operations industry, posted revenues of $5.82 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.45%. This compares to year-ago revenues of $5.67 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sunrise Realty Trust, Inc. shares have lost about 18.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Sunrise Realty Trust, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sunrise Realty Trust, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $6.5 million in revenues for the coming quarter and $1.32 on $26.81 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Mobile Infrastructure Corporation (BEEP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +18.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Mobile Infrastructure Corporation's revenues are expected to be $8.93 million, down 0.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sunrise Realty Trust, Inc. (SUNS) : Free Stock Analysis Report Mobile Infrastructure Corporation (BEEP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Sunrise Realty Trust, Inc.? Here are five stocks we like better. Sunrise Realty Trust beat its dividend coverage in Q1 2026, reporting distributable earnings of $0.35 per share versus a $0.30 quarterly dividend. Management said results were helped by loan originations, repayments, and fee income, with all loans current and performing. The company remained active in transitional commercial real estate lending, originating $91 million of loans during the quarter and ending with $292.1 million of principal outstanding across 14 loans as of May 8. Management said it continues to focus on southern U.S. markets, especially Florida, the Southeast and Texas. Sunrise’s Thompson San Antonio hotel foreclosure remains a key watch item, but the asset is now on the market and has drawn multiple bids. The company has not accepted an offer yet and does not expect income from the hotel until it is sold or financed differently. Sunrise Realty Trust (NASDAQ:SUNS) reported first-quarter 2026 distributable earnings that exceeded its quarterly dividend, as management cited loan originations, repayments and fee income as drivers of results while outlining a continued focus on transitional commercial real estate lending in southern U.S. markets. Executive Chairman Leonard Tannenbaum said Sunrise generated distributable earnings of $0.35 per share for the quarter ended March 31, covering the company’s $0.30 per-share dividend. He said the quarter benefited from a short-term loan on a Colorado property, new deal closings and the payoff of a loan tied to a multifamily property in Dallas. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “We were pleased with our first quarter results, which reflected the continued earnings power of our portfolio,” Tannenbaum said, adding that the results also showed the company’s ability to recycle capital through repayments and new originations at what management views as attractive risk-adjusted returns. During the quarter, the TCG Real Estate platform originated $91 million of loans, of which Sunrise committed $62 million across two loans, Chief Executive Officer Brian Sedrish said. Those commitments included $14 million of a $22 million senior bridge loan financing the acquisition of an 11,000-acre portion of Silver Mountain Ranch in Colorado. That loan was originated, closed and exited during the quarter. Sunrise also committed $48 million of a $69 million B-note as part of a $406 million refinancing of a 15-property portfolio of Graduate by Hilton hotels for AJ Capital Partners. → MP Materials Is Quietly Building a Rare Earth Powerhouse Sedrish said Sunrise funded $90 million of new and existing loans during the quarter and received $70 million of repayments, including full repayment on the Silver Mountain Ranch and Bohème loans. Subsequent to quarter-end, the Jovie Belterra loan was fully repaid. Management reported net interest income of $7.3 million, distributable earnings of $4.7 million, or $0.35 per basic weighted average common share, and GAAP net income of $4.3 million, or $0.32 per basic weighted average common share. The quarter included one-time fees from two investments: a $400,000 fee on the short-term Silver Mountain Ranch bridge loan and a $1.2 million prepayment fee on the Bohème loan. → Micron Investors Face a High-Stakes Moment After the Latest Rally As of March 31, Sunrise had $397.1 million of current commitments and $299.3 million of principal outstanding across 15 loans. As of May 8, the portfolio stood at $380.2 million of current commitments and $292.1 million of principal outstanding across 14 loans. Management said all loans were current and performing, with a weighted average portfolio yield to maturity of about 12.4%. The company ended the quarter with total assets of $330 million and total shareholders’ equity of $182.5 million, equal to book value of $13.50 per share. Its CECL reserve was approximately $550,000, or 19 basis points of loans at carrying value. The board declared a $0.30 dividend for the quarter, paid April 15 to shareholders of record as of March 31. Tannenbaum said Sunrise completed the foreclosure of its loan secured by Thompson San Antonio, a 162-key Class A hotel in Texas. He said the company believes it is now better positioned to evaluate alternatives because the asset is no longer subject to the former sponsor’s hotel management agreement and brand affiliation. Shortly after taking title, Sunrise engaged Eastdil to market the asset. Tannenbaum said the first round of bidding recently concluded and the company received multiple attractive offers. He said a potential transaction could be structured as an all-cash sale or as a sale that includes lower-leverage seller financing from Sunrise and its affiliates, along with a meaningful equity contribution from the buyer. In response to a question from Alliance Global Partners analyst Gaurav Mehta, Sedrish said the asset remains on the market and that no offer has been accepted. He said Sunrise is evaluating multiple opportunities and will update investors after accepting an offer. Asked by KBW analyst Jason Sabshon about income from the San Antonio joint venture, Sedrish said Sunrise did not receive income from the hotel in the first quarter and does not expect income from it in the current quarter. He said a resolution could occur over the next couple of quarters, but the company does not anticipate income from the hotel until it is sold or a note is attached to it. Sedrish said Sunrise has built its loan book around transitional real estate business plans in growing southern markets, with a focus on sponsors and projects requiring structuring expertise. He said acquisition financing remains more straightforward where asset cost bases have been reset to current market conditions, while refinancing opportunities remain harder to price because fewer comparable assets are trading. “Acquisitions where the cost basis has been reset to today’s market are generally where the underwriting works most cleanly and where we have been most active,” Sedrish said. He said Sunrise is finding some refinancing opportunities where incumbent senior lenders are forcing sponsors to find replacement capital. In the Q&A, he said refinancing situations can be attractive when sponsors are required to inject additional equity to carry assets through to stabilization. Sedrish also noted volatility in the quarter tied primarily to geopolitical developments, with Treasury yields rising and securitization spreads widening before partially retracing. He said sponsor inquiry activity remained healthy, though some transactions paused while parties reassessed cost of capital. By quarter-end, activity had largely normalized. Management said regional banks have returned to smaller, simpler stabilized deals, while larger debt funds and commercial mortgage REITs are competing for stabilized multifamily and industrial loans. Sedrish said that is not Sunrise’s focus, as the company is targeting less trafficked transitional business plans that require local market knowledge, structuring and asset-level conviction. Sunrise continues to emphasize Florida, the Southeast and Texas, while remaining selective in other markets. Sedrish said Florida and the broader Southeast remain constructive across most asset classes, supported by in-migration and employment growth. He said major Texas markets are showing signs of residential tightening, while some Western Sun Belt markets continue to absorb excess supply. In response to Mehta, Sedrish said he expects the “huge majority” of future deals to remain in Sunrise’s core southern markets, though the company may pursue opportunistic deals elsewhere. Asked by B. Riley Securities analyst Timothy D’Agostino what would cause Sunrise to increase its deal selectivity rate, Sedrish cited two factors: more opportunities involving discounted loans and discounted payoffs, and a sustained increase in acquisition volume. He said lower and more stable rates could lead to more investment activity, particularly in transitional loans. On the balance sheet, Tannenbaum said there is “nothing else on watch list” beyond the San Antonio matter, adding that portfolio assets are performing within the company’s plan. Looking ahead, Sedrish said Sunrise remains focused on disciplined origination, active portfolio management and prudent capital allocation. Management did not provide specific distributable earnings guidance, but said the board evaluates the dividend based on the medium-term earnings power of the portfolio, expected fundings, repayments, leverage capacity and forward originations. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sunrise Realty Trust Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the recycling of capital through timely repayments and new originations, specifically benefiting from a short-term Colorado bridge loan and a Dallas multifamily payoff. Management is focusing on 'transitional' business plans where complex underwriting and structuring create alpha, intentionally avoiding the highly competitive stabilized multifamily and industrial sectors. The company views the upcoming wave of stressed 2021-2022 vintage bridge loans as a tailwind, as it creates acquisition opportunities for the sponsors SUNS lends to at a reset cost basis. Strategic foreclosure of the Thompson San Antonio hotel was executed to remove restrictive management agreements and brand affiliations, allowing for a value-maximizing exit currently being marketed. Market dynamics show a bifurcation where Florida and the Southeast remain constructive due to migration, while Western Sun Belt markets are still absorbing excess supply. The investment philosophy prioritizes unlevered returns over capital markets execution, which insulated the portfolio from recent treasury yield volatility and spread widening. Future originations are expected to maintain a 'supermajority' of senior debt, though the firm will selectively add low-leverage subordinate tranches through senior lender partnerships. Management anticipates a resolution of the San Antonio REO asset over the next few quarters, potentially involving all-cash sales or seller financing with significant buyer equity. The pipeline is expected to remain concentrated in Southern markets, specifically leaning into 'reset basis' opportunities as overbuilt Western markets begin to stabilize. Earnings power is expected to be supported by the continued funding of existing construction commitments and the normalization of acquisition volume as rates eventually stabilize. Management assumes no income will be generated from the San Antonio hotel asset until a sale or financing transaction is finalized. Distributable earnings for the quarter were bolstered by $1.6 million in one-time fees, including a $1.2 million prepayment fee from the Bohem loan and a $400 thousand fee from a one-week bridge loan. The Thompson San Antonio foreclosure represents a temporary shift to REO status, with management actively evaluating multiple bids to exit the position. The senior secured revolving facility was expanded to $165 million following a $25 million commitment from Customers Bank in March. Management confirmed that outside of the San Antonio asset, there are currently no other loans on the company's internal watch list. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted a significant void in the market for transitional products as regional banks and larger debt funds focus exclusively on stabilized multifamily and industrial assets. The current pipeline is increasingly focused on refinancings where sponsors must inject incremental equity to reach stabilization. Management does not anticipate receiving any operational income from the hotel in the current or immediate next quarter. The asset is being marketed by Eastdil, and while multiple offers have been received, no offer has been formally accepted yet. Increased volume is dependent on a sustained rise in acquisition activity and the stabilization of interest rates, which would trigger more transitional lending opportunities. Management is waiting for more 'discounts' to appear as banks potentially enter into discounted pay-offs (DPOs) with existing borrowers.

First quarter 2026 GAAP net income of $4.3 million or $0.32 per basic weighted average common share and Distributable Earnings(1) of $4.7 million or $0.35 per basic weighted average common share WEST PALM BEACH, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced its results for the quarter ended March 31, 2026. For the first quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of $4.3 million, or $0.32 per basic weighted average common share, and Distributable Earnings of $4.7 million, or $0.35 per basic weighted average common share. Brian Sedrish, Chief Executive Officer of SUNS, said, “During the quarter, we continued to see a clear divergence between groups that are on offense and those that remain on defense as they work through their legacy loan books and look to shore up their balance sheets. Focusing on those that remained on offense, the bulk of capital continued to be directed at financing existing multifamily and industrial assets at low financing spreads, which has left a noticeable gap in capital available to finance transitional business plans. The result is that our team has continued to see an increase in attractive pipeline opportunities where SUNS can pair its expertise with the needs of sponsors executing transitional plans. We remain focused on building a diversified portfolio of loans across geographies, asset classes, and borrowers, and we believe a patient and deliberate approach to identifying and closing on select opportunities is warranted.” Common Stock Dividend On April 15, 2026, the Company paid a cash dividend of $0.30 per common share for the first quarter of 2026. SUNS distributed $4.1 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.35 per basic weighted average common share for such period. Additional Information SUNS issued a presentation, titled “First Quarter 2026 Investor Presentation,” which can be viewed at www.sunriserealtytrust.com under the Investor Relations section. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, with the Securities and Exchange Commission (the “SEC”) on May 14, 2026. SUNS routinely posts important information for investors on its website, www.sunriserealtytrust.com. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. SUNS encourages investors, analysts, the media and others interested in SUNS to monitor the Investors section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section. Conference Call & Discussion of Financial Results SUNS will host a conference call at 10:00 am (Eastern Time) on Thursday, May 14, 2026, to provide an update on the business. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of SUNS’s website found here: SUNS -- Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of the SUNS website. About Sunrise Realty Trust, Inc. Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”) is an institutional commercial real estate (“CRE”) lender providing flexible financing solutions to sponsors of CRE projects primarily in the Southern United States. It focuses on transitional CRE business plans with the potential for near-term value creation, collateralized by top-tier assets predominantly located in established and rapidly expanding Southern markets. For additional information regarding the Company, please visit www.sunriserealtytrust.com. About TCG Real Estate TCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage real estate investment trust (“REIT”), Sunrise Realty Trust, Inc. (Nasdaq: SUNS), and a private mortgage REIT, Southern Realty Trust Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets located primarily within markets in the Southern U.S. benefiting from economic tailwinds with growth potential. For additional information regarding TCG Real Estate, please visit www.theTCG.com. Non-GAAP Metrics In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most recently filed quarterly report. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information they provide are useful to investors since these measures permit investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance. The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings account for any Incentive Compensation earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses (“CECL”), (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors. We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least 90% of our annual REIT taxable income, subject to certain adjustments, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that shareholders invest in our common stock, we generally intend to attempt to pay dividends to our shareholders in an amount at least equal to such REIT taxable income, if and to the extent authorized by our Board of Directors. Distributable Earnings is one of many factors considered by our Board of Directors in authorizing dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends. Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs. The following table provides a reconciliation of GAAP Net income to Distributable Earnings: Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “may,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth, strategies for such growth, and our estimates of future distributable earnings, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for commercial real estate investment; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in SUNS’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of SUNS’s Annual Report on Form 10-K filed on March 12, 2026, and subsequently filed Quarterly Reports on Form 10-Q. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect SUNS. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Investor Relations Contact Robyn Tannenbaum (561) 510-2293 [email protected] Media Contact Doug Allen Dukas Linden Public Relations (646) 722-6530 [email protected] 1 Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.