Sunrise Realty Trust Inc (SUNS) AI Stock Analysis

• Market Cap: $110.19M
• Dividend Yield: 12.97%
• Average Volume (3M): 70.72K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.12
• Shares Outstanding: 13,519,655
• 10 Day Avg. Volume: 75,820
• 30 Day Avg. Volume: 70,717
• 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 Cap: 2.04
• Enterprise Value/Revenue: 8.53
• Enterprise Value/Gross Profit: 10.68
• Enterprise Value/Ebitda: 14.49
• 1Y Price Target: $9.88
• Price Target Upside: -3.94% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $26.39M

• Rating: 50 Neutral
• Price Target: $9.00 ▼(-12.45% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by inconsistent financial reporting signals and weakening cash flow (including negative operating/free cash flow in 2025), reinforced by bearish technical trend and momentum. These are partly offset by attractive valuation (low P/E and high dividend yield) and an earnings call that showed improved liquidity and solid portfolio yield, though tempered by the Thompson Hotel credit event and reduced pipeline.

Positive Factors

High portfolio yield & floating-rate exposure

A ~12% portfolio yield with 97% floating-rate exposure and ~3.9% floors provides durable interest income upside as rates rise and cushions margin compression. This structure supports persistent net interest income and risk-adjusted returns over the next several quarters, improving cash earnings resilience.

Expanded revolver and liquidity capacity

The enlarged $165M revolver (expandable to $200M) and broader lender group materially strengthen short-term liquidity and funding optionality. This durable capital flexibility supports originations, bridges timing gaps, and lowers refinance risk while management refines deployment over the coming months.

Niche, selective origination strategy

Management’s lower-leverage, selective focus on transitional CRE in the Southern U.S. targets an underserved niche where larger lenders pull back. That strategic positioning, coupled with active commitments and TCG platform activity, supports steadier deal flow and better risk-adjusted returns over multiple quarters.

Negative Factors

Weak cash generation

Negative operating (and free) cash flow in 2025 signals deteriorating cash conversion of income and raises sustainability concerns for dividends and operations. Over a 2-6 month horizon this increases reliance on revolver capacity and external financing, constraining strategic flexibility and raising liquidity risk.

Material credit event concentrated in one asset

The Thompson Hotel foreclosure and nonaccrual status knocked distributable earnings and reduced borrowing base availability. A single troubled, concentrated asset that constrains facility availability has persistent downside until resolution and can materially limit deployment and dividend coverage in the near term.

Income statement volatility and reporting inconsistency

Significant year-to-year volatility and a 2025 presentation showing zero revenue but positive net income undermine earnings quality and comparability. This makes forecasting distributable earnings and underwriting new loans harder, raising execution and credibility risk over the medium term.

Sunrise Realty Trust Inc Business Overview & Revenue Model

Company Description

Sunrise Realty Trust Inc (SUNS) is a real estate investment trust (REIT) that specializes in acquiring, managing, and developing a diversified portfolio of commercial real estate properties. Operating primarily in the United States, SUNS focuses on sectors such as office spaces, retail centers, and industrial properties. The company aims to generate stable and recurring income for its investors through strategic property acquisitions and efficient property management.

How the Company Makes Money

null

Sunrise Realty Trust Inc Financial Statement Overview

Summary

Financials show material volatility and consistency issues (notably zero reported revenue alongside positive net income in 2025), and cash generation deteriorated with negative operating/free cash flow in 2025. The balance sheet is acceptable with higher equity, but sharp swings in leverage and weaker cash earnings quality weigh heavily.

Income Statement

Results are volatile and hard to underwrite. Revenue grew strongly in 2024 (up ~13% vs. 2023), with very high margins and solid net income. However, 2025 shows reported revenue dropping to zero while net income rises to ~$12.1M, creating a major quality/consistency concern in the income statement presentation. Overall profitability looks strong in parts of the history, but the trajectory is not stable and comparability year-to-year is weak.

Balance Sheet

The balance sheet is mixed. Total assets are relatively stable (~$310–$318M), and equity increased meaningfully in 2025 (to ~$182.0M). Leverage spiked in 2024 with ~$198.8M of debt (about 1.74x debt-to-equity), then appears to drop to zero in 2025, which is a large swing that raises questions about sustainability/consistency. Returns on equity are modest (~2% to ~7%), suggesting acceptable but not exceptional profitability for the capital base.

Cash Flow

Cash generation is the weakest area. Operating cash flow was positive in 2023 and 2024, but turned negative in 2025 (about -$3.4M), and free cash flow mirrors this decline. While free cash flow growth is shown as positive across periods, the most recent year’s negative cash flow indicates funding pressure and weaker cash earnings quality versus reported profits.

Breakdown	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	26.37M	10.63M	734.23K
Gross Profit	23.92M	9.81M	734.23K
EBITDA	16.94M	6.87M	0.00
Net Income	12.14M	6.87M	703.87K
Balance Sheet
Total Assets	310.23M	317.54M	31.24M
Cash, Cash Equivalents and Short-Term Investments	6.45M	184.63M	31.24M
Total Debt	122.00M	198.84M	0.00
Total Liabilities	128.27M	203.40M	10.00K
Stockholders Equity	181.96M	114.14M	31.23M
Cash Flow
Free Cash Flow	-3.43M	1.64M	244.62K
Operating Cash Flow	-3.43M	1.64M	244.62K
Investing Cash Flow	-153.06M	-125.18M	0.00
Financing Cash Flow	-21.69M	276.92M	31.00M

Sunrise Realty Trust Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUNS, the sentiment is Negative. The current price of 10.28 is above the 20-day moving average (MA) of 9.10, above the 50-day MA of 9.22, and above the 200-day MA of 9.91, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 25.78 is Positive, neither overbought nor oversold. The STOCH value of 2.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUNS.

Sunrise Realty Trust Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CSR	55 Neutral	$1.04B	63.46	-4.93%	4.58%	36.82%	―
BRT	52 Neutral	$261.97M	-22.16	-4.96%	6.98%	1.62%	11.38%
SUNS	50 Neutral	$110.19M	9.90	8.33%	12.97%	―	―
NXRT	47 Neutral	$627.65M	-23.86	-12.63%	7.06%	-4.46%	-206.19%
CLPR	46 Neutral	$49.41M	-8.15	81.43%	11.34%	5.90%	-322.37%

Sunrise Realty Trust Inc Corporate Events

Sunrise Realty Trust Expands Revolving Credit Facility Capacity

On February 27, 2026, Sunrise Realty Trust, Inc. amended its Loan and Security Agreement to facilitate the entry of an additional lender, increase the maximum revolving credit facility by $25 million to $165 million, and revise lender consent requirements, changes that were announced publicly on March 5, 2026. With Customers Bank committing $25 million to the senior secured revolving credit facility, which remains expandable to $200 million, Sunrise aims to fund ongoing originations in its target CRE markets, support future draws and unfunded commitments, and bolster liquidity to move quickly on attractive lending opportunities while maintaining disciplined portfolio construction.

The expansion of the facility, originally established with East West Bancorp in November 2024 and now supported by a broader bank group including Customers Bank and Everbank, strengthens Sunrise’s capital base and diversifies its financing relationships. This enhanced access to revolving credit is expected to support portfolio growth in transitional commercial real estate across the Southern U.S., with implications for increased lending capacity and potentially improved competitiveness in the CRE debt market.

The most recent analyst rating on (SUNS) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on Sunrise Realty Trust Inc stock, see the SUNS Stock Forecast page.