Strategic Positioning and Strong Growth Potential Lead to Buy Rating for Sunrise Realty Trust, Inc.We are initiating coverage of Sunrise Realty Trust, Inc. (SUNS) with a Buy rating and a $15 price target, representing a potential 12-month total return of ~41%. SUNS is part of a new class of mREITs set up to capitalize on the increasing void being left by banks and other lenders. The current lending environment is helping SUNS achieve attractive spreads on its newer vintage originations. With its focus on Southeastern U.S. multifamily and hospitality properties, SUNS is generating a blended yield of 12%–14%. We estimate that SUNS's portfolio will likely grow to $297M at YE26, leveraging the recent upsized equity offering and available debt capacity.