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Sunrise Realty Trust Inc (SUNS)
NASDAQ:SUNS
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Sunrise Realty Trust Inc
(NASDAQ:SUNS)
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Select Model
Rating:57Neutral
Price Target:
$10.00
▼(-2.72% Downside)
Action:ReiteratedDate:12/30/25
The score is held back primarily by balance sheet and cash flow quality concerns (higher leverage vs. 2023 and weak cash conversion), plus a technically weak price trend below key moving averages. These are partly offset by attractive valuation (low P/E and high yield) and a generally positive earnings call highlighting dividend coverage and conservative leverage goals.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, suggesting potential for sustained expansion.
Strong Dividend Coverage
Stable dividend coverage reflects financial health and management's commitment to shareholder returns, enhancing investor confidence.
Conservative Leverage Goals
A conservative leverage position reduces financial risk and supports long-term stability, aiming for an investment-grade rating.
Negative Factors
Increased Leverage
Higher leverage increases financial risk and reduces balance sheet flexibility, potentially impacting future financial stability.
Weak Cash Flow Conversion
Weak cash flow conversion raises concerns about earnings quality and the company's ability to generate cash from operations.
Market Imbalance
Market imbalances could hinder growth and profitability, affecting the company's ability to capitalize on real estate opportunities.
Sunrise Realty Trust Inc (SUNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$125.75M
Dividend Yield12.97%
Average Volume (3M)70.72K
Price to Earnings (P/E)8.5
Beta (1Y)0.99
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.31
Shares Outstanding13,420,986
10 Day Avg. Volume75,820
30 Day Avg. Volume70,717
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)9.01
P/FCF Ratio58.37
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue8.27
Enterprise Value/Gross Profit10.62
Enterprise Value/Ebitda13.57
Forecast
1Y Price Target
$9.50Price Target Upside-7.59% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.32
Revenue Forecast (FY)$27.10M
Sunrise Realty Trust Inc Business Overview & Revenue Model
Company DescriptionSunrise 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 MoneySunrise Realty Trust Inc makes money primarily through leasing its portfolio of commercial properties to tenants. Rental income is the largest revenue stream, providing consistent cash flow. Additionally, the company may engage in property sales, particularly when asset appreciation presents lucrative opportunities, contributing to capital gains. SUNS also benefits from property management fees when managing properties for third-party owners. Strategic partnerships with property developers and financial institutions further bolster its revenue by facilitating large-scale development projects and securing favorable financing terms.
Sunrise Realty Trust Inc Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Sunrise Realty Trust, with strong dividend coverage, conservative leverage, and a robust portfolio performance, despite some market imbalances and slower originations in the quarter. The sentiment leans positive due to the outweighing highlights.Q3-2025 Updates
Positive Updates
Strong Dividend Coverage
SUNS generated distributable earnings of $0.31 per share, covering the $0.30 dividend, indicating stable dividend coverage.
Conservative Leverage Position
SUNS reported a leverage ratio of approximately 0.4 times, significantly below the target of one to one and a half times, aiming for an investment-grade rating in the future.
Positive Market Activity
There was a notable increase in financing requests and market activity, with a pickup in transaction volumes and narrowing bid-ask spreads.
Robust Portfolio Performance
The portfolio showed strong performance with $367 million in commitments and $253 million funded, with a weighted average portfolio yield to maturity of approximately 11.8%.
Successful Loan Closures
SUNS successfully closed $56 million of loan commitments post-quarter, including major projects in Florida and Texas.
Negative Updates
Market Imbalance
The commercial real estate market remains out of balance, with a gap between primary and secondary markets and at different asset life cycle stages.
Slower Q3 Originations
Originations for the quarter reflected slower market dynamics, though activity picked up post-quarter.
Company Guidance
During the Sunrise Realty Trust 2025 Q3 earnings call, the company provided several key metrics and insights into their strategic focus and financial performance. For the quarter ended September 30, 2025, Sunrise Realty Trust (SUNS) generated distributable earnings of $0.31 per share, covering their dividend of $0.30 per share. The company reported net interest income of $6.1 million and GAAP net income of $4.05 million. As of September 30, 2025, SUNS had $367 million in commitments with $253 million funded, and a weighted average loan to cost of 56%. Their portfolio is primarily composed of floating rate loans with an average SOFR floor of about 4%. The company aims for a leverage target of one to one and a half times, significantly below the peer average, and seeks to achieve an investment-grade rating within the next three to five years. The company’s pipeline includes approximately $170 million in deals, with a focus on transitional real estate projects in the Southern United States. The Board declared a $0.30 dividend per share, which was paid on October 15, 2025.Sunrise Realty Trust Inc Financial Statement Overview
Summary
Income statement is strong (sharp 2024 revenue growth and very high margins), but balance sheet risk increased materially (debt added; ~1.74x debt-to-equity). Cash flow quality is a key concern: operating/free cash flow declined YoY and cash conversion vs. net income looks weak, reducing confidence in the durability of reported profitability.Income Statement
Revenue expanded sharply in 2024 (+47.954% YoY) off a small 2023 base, with very strong profitability on the latest annual period (gross margin ~92.3% and net margin ~64.6%). That said, the step-change in scale versus 2023 and the unusually high margins suggest results may be volatile or influenced by non-recurring items, reducing confidence in durability.72
Positive
Balance Sheet
Leverage increased materially: total debt rose to ~$198.8M in 2024 with debt-to-equity at ~1.74x, a meaningful shift from a debt-free 2023 balance sheet. Equity remains positive (~$114.1M) and return on equity improved (~6.0%), but the higher leverage meaningfully raises financial risk and reduces balance sheet flexibility.46
Neutral
Cash Flow
Operating cash flow and free cash flow were positive in 2024 (~$1.64M), but declined ~38.9% versus 2023. More importantly, cash generation appears weak relative to reported profitability in 2024 (operating cash flow to net income ~0.24x using provided figures), suggesting earnings quality concerns and/or timing effects in cash conversion.34
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 22.65M | 10.63M | 734.23K |
| Gross Profit | 17.64M | 9.81M | 734.23K |
| EBITDA | 13.81M | 6.87M | 0.00 |
| Net Income | 12.37M | 6.87M | 703.87K |
Balance Sheet | |||
| Total Assets | 258.83M | 317.54M | 31.24M |
| Cash, Cash Equivalents and Short-Term Investments | 5.55M | 184.63M | 31.24M |
| Total Debt | 67.15M | 198.84M | 0.00 |
| Total Liabilities | 74.22M | 203.40M | 10.00K |
| Stockholders Equity | 184.61M | 114.14M | 31.23M |
Cash Flow | |||
| Free Cash Flow | -2.94M | 1.64M | 244.62K |
| Operating Cash Flow | -2.94M | 1.64M | 244.62K |
| Investing Cash Flow | -136.87M | -125.18M | 0.00 |
| Financing Cash Flow | 75.19M | 276.92M | 31.00M |
Sunrise Realty Trust Inc Technical Analysis
Neutral
10.28
Price Trends
9.46
Negative
9.60
Negative
9.99
Negative
Market Momentum
>-0.01
Negative
50.23
Neutral
48.97
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 10.28 is above the 20-day moving average (MA) of 9.34, above the 50-day MA of 9.46, and above the 200-day MA of 9.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 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 121 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% | |
57 Neutral | $125.75M | 8.48 | 8.33% | 12.97% | ― | ― | |
55 Neutral | $1.11B | 61.70 | 4.30% | 4.58% | 36.82% | ― | |
52 Neutral | $279.03M | -27.82 | -4.89% | 6.98% | 1.62% | 11.38% | |
47 Neutral | $719.24M | -22.34 | -12.63% | 7.06% | -4.46% | -206.19% | |
46 Neutral | $49.73M | -2.24 | ― | 11.34% | 5.90% | -322.37% |
* Real Estate Sector Average
SUNS
Sunrise Realty Trust Inc
9.37
-1.76
-15.81%
CSR
Centerspace
62.90
0.03
0.05%
BRT
BRT Apartments
14.67
-2.33
-13.72%
NXRT
NexPoint Residential
28.19
-11.45
-28.88%
CLPR
Clipper Realty
3.08
-0.91
-22.81%
BHM
Bluerock Homes Trust, Inc. Class A
10.10
-0.86
-7.86%
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.