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Sunrise Realty Trust Inc
(NASDAQ:SUNS)
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Rating:59Neutral
Price Target:
$6.50
▼(-14.47% Downside)
Action:Reiterated
Date:10/24/26
SUNS scores as moderate overall, led down by weak cash flow despite strong reported profitability, plus bearish-to-soft technicals (below key moving averages and negative MACD). Offsetting these are an attractive valuation (low P/E and very high yield) and a generally positive earnings-call backdrop highlighted by deleveraging and a merger that could improve scale and economics, though execution and market-rate risks remain.
Positive Factors
High Portfolio Yield
An approximately 12.3% weighted-average yield and an all-current, performing loan book support recurring interest income and attractive asset-level returns. This provides a durable earnings base, although realization still depends on borrower performance and portfolio management.
Negative Factors
Weak Cash Conversion
Persistent negative operating and free cash flow in 2025 and TTM contrasts with reported profitability, raising concern about cash conversion. If sustained, this can increase reliance on repayments, asset sales or external funding to support dividends, lending activity and corporate needs.
Read all positive and negative factors
Positive Factors
Negative Factors
High Portfolio Yield
An approximately 12.3% weighted-average yield and an all-current, performing loan book support recurring interest income and attractive asset-level returns. This provides a durable earnings base, although realization still depends on borrower performance and portfolio management.
Read all positive factors
Sunrise Realty Trust Inc (SUNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.83M
Dividend Yield18.9%
Average Volume (3M)96.15K
Price to Earnings (P/E)6.5
Beta (1Y)0.65
Revenue Growth86.13%
EPS Growth-8.21%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.97
Shares Outstanding13,515,851
10 Day Avg. Volume90,634
30 Day Avg. Volume96,153
Financial Highlights & Ratios
PEG Ratio-1.67
Price to Book (P/B)0.66
Price to Sales (P/S)4.56
P/FCF Ratio-35.03
Enterprise Value/Market Cap2.81
Enterprise Value/Revenue7.21
Enterprise Value/Gross Profit8.69
Enterprise Value/Ebitda11.60
Forecast
1Y Price Target
$8.50Price Target Upside11.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.22
Revenue Forecast (FY)$37.43M
Sunrise Realty Trust Inc Business Overview & Revenue Model
Company Description
Sunrise Realty Trust, Inc. engages in commercial real estate lending business in the United States. The company focuses on originating commercial real estate (CRE) loans and providing capital to borrowers and sponsors with business plants collater...
How the Company Makes Money
SUNS primarily makes money from the net interest income it earns on its real estate debt investments. The core revenue stream is interest income generated by originating or acquiring loans (commonly senior/first mortgage loans) to commercial real ...
Sunrise Realty Trust Inc Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial position: profitable distributable earnings, high portfolio yields (~12.3%), a successful post-quarter repayment that materially reduced debt (~39.6%), active pipeline opportunities (including a $93M term sheet), and a strategic merger expected to increase scale (~60% equity base increase) and improve fee economics. Headwinds include persistent rate-driven refinancing gaps, uneven transaction activity and competition in stabilized lending channels, a modest single-quarter dividend/distributable mismatch, and some asset-level complexity (Thompson San Antonio sale and seller financing). On balance, the positives around deleveraging, yield, pipeline pickup, and accretive governance/fee changes tied to the merger outweigh the near-term market and execution risks.Positive Updates
Distributable Earnings and Profitability
Q2 2026 distributable earnings of $3.9 million, or $0.29 per basic weighted average common share; GAAP net income of $3.1 million, or $0.23 per basic share. For the first 6 months of 2026, distributable earnings of $0.65 per share exceeded dividends declared of $0.60 per share (coverage ratio ~1.083).
Negative Updates
Market Volatility and Transaction Pauses
Transaction activity remained uneven in Q2 as rate volatility led sponsors to pause discretionary acquisitions and refinancings; competition from banks compressed spreads in conventional senior lending lanes.
Read all updates
Q2-2026 Updates
Positive
Negative
Distributable Earnings and Profitability
Q2 2026 distributable earnings of $3.9 million, or $0.29 per basic weighted average common share; GAAP net income of $3.1 million, or $0.23 per basic share. For the first 6 months of 2026, distributable earnings of $0.65 per share exceeded dividends declared of $0.60 per share (coverage ratio ~1.083).
Read all positive updates
Company Guidance
The company guided that current operating and capital priorities are to recycle capital from repayments and selectively deploy into high‑return, structured deals while pursuing the proposed SUNS–SRT merger expected to close in Q4 2026; key metrics disclosed include Q2 net interest income $5.8M, distributable earnings $3.9M ( $0.29 per basic weighted average share) and GAAP net income $3.1M ( $0.23 per share), first‑half distributable earnings $0.65 vs. $0.60 of dividends declared (Q2 dividend $0.30 paid July 15), funded $25.4M of loans and received $26.0M of repayments in the quarter, ended Q2 with $377.4M of current commitments and $298.7M principal outstanding across 14 loans (as of Aug 3: $315M commitments and $248.8M principal across 12 loans after the Panther repayment), weighted average portfolio yield ≈12.3%, CECL reserve ~$1.1M (37 bps), total assets $330.7M, total equity $181.8M and book value $13.45 per share, total debt $141.7M at June 30 reduced to ~$85.6M as of Aug 3, and a $93M senior construction term sheet on the platform; merger economics: SRT equity $107M, pro‑forma combined equity ≈$290M (≈60% increase to SUNS’ equity base), SRT shareholders receive SUNS stock at a 6% premium to book value, and post‑close manager economics include incentive fee cut 20%→17.5%, hurdle 8%→7% and a $1M management fee waiver over four quarters, with expected G&A synergies, improved liquidity and access to unsecured markets.Sunrise Realty Trust Inc Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 33.50M | 26.37M | 10.63M | 734.23K |
| Gross Profit | 27.78M | 23.92M | 9.81M | 734.23K |
| EBITDA | 20.82M | 16.94M | 6.69M | 234.62K |
| Net Income | 13.01M | 12.14M | 6.87M | 703.87K |
Balance Sheet | ||||
| Total Assets | 330.72M | 310.23M | 317.54M | 31.24M |
| Cash, Cash Equivalents and Short-Term Investments | 5.59M | 6.45M | 184.63M | 31.24M |
| Total Debt | 141.65M | 122.00M | 198.84M | 0.00 |
| Total Liabilities | 148.88M | 128.27M | 203.40M | 10.00K |
| Stockholders Equity | 181.85M | 181.96M | 114.14M | 31.23M |
Cash Flow | ||||
| Free Cash Flow | -657.03K | -3.43M | 1.64M | 244.62K |
| Operating Cash Flow | -657.04K | -3.43M | 1.64M | 244.62K |
| Investing Cash Flow | -57.63M | -153.06M | -125.18M | 0.00 |
| Financing Cash Flow | 58.31M | -21.69M | 276.92M | 31.00M |
Sunrise Realty Trust Inc Technical Analysis
Neutral
7.60
Price Trends
6.81
Negative
7.25
Negative
7.48
Negative
Market Momentum
-0.14
Negative
46.08
Neutral
58.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUNS, the sentiment is Neutral. The current price of 7.6 is above the 20-day moving average (MA) of 6.26, above the 50-day MA of 6.81, and above the 200-day MA of 7.48, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SUNS.
Sunrise Realty Trust Inc Risk Analysis
Sunrise Realty Trust Inc disclosed 119 risk factors in its most recent earnings report. Sunrise Realty Trust Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sunrise Realty Trust Inc Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $1.01B | 44.19 | 3.03% | 5.41% | 30.53% | ― | |
59 Neutral | $85.83M | 6.55 | 7.12% | 18.90% | 86.13% | -8.21% | |
50 Neutral | $248.82M | -18.91 | -7.46% | 7.55% | 1.18% | -39.73% | |
50 Neutral | $49.60M | -3.30 | 38.31% | 12.38% | -1.72% | 8.74% | |
47 Neutral | $481.24M | -14.32 | -11.75% | 11.30% | -0.46% | 32.70% |
* Real Estate Sector Average
SUNS
Sunrise Realty Trust Inc
6.35
-2.16
-25.36%
CSR
Centerspace
56.97
-0.18
-0.31%
BRT
BRT Apartments
13.24
-0.64
-4.62%
NXRT
NexPoint Residential
18.76
-9.43
-33.45%
CLPR
Clipper Realty
3.07
-0.53
-14.72%
BHM
Bluerock Homes Trust, Inc. Class A
8.05
-1.35
-14.36%
Sunrise Realty Trust Inc Corporate Events
Business Operations and StrategyDividendsM&A TransactionsShareholder Meetings
Sunrise Realty Holders Approve Shares for Southern Merger
Positive
Oct 23, 2026
On October 23, 2026, Sunrise Realty Trust stockholders approved the issuance of about 8.46 million new common shares in connection with the company’s pending merger with Southern Realty Trust. Roughly 59.5% of outstanding shares were represe...
Business Operations and StrategyStock BuybackM&A Transactions
Sunrise Realty Trust Announces Post-Merger Buyback Plan
Positive
Oct 13, 2026
On October 12, 2026, Sunrise Realty Trust’s board authorized a stock repurchase program of up to $20 million in common shares, running through December 31, 2027, contingent on the closing of its merger with Southern Realty Trust. Following c...
Business Operations and StrategyM&A Transactions
Sunrise Realty Trust Announces Southern Realty Merger Agreement
Positive
Aug 6, 2026
On August 5, 2026, Sunrise Realty Trust Inc. signed a definitive agreement to acquire Southern Realty Trust Inc. by merging SRT into a Sunrise subsidiary, creating a single public CRE lender with pro forma book value of about $289 million, $534 mi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.