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Sunrise Realty Trust Inc
(NASDAQ:SUNS)
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Rating:59Neutral
Price Target:
$8.00
▲(0.25% Upside)
Action:Reiterated
Date:08/06/26
The score is most constrained by weak cash generation (negative operating/free cash flow) and a bearish technical setup (below major moving averages with negative MACD). Offsetting these are attractive valuation metrics (low P/E and high yield) and a constructive earnings-call backdrop highlighted by profitable distributable earnings, high portfolio yields, and meaningful recent deleveraging tied to capital recycling and the proposed merger.
Positive Factors
Deleveraging / Improved balance sheet
A ~39.6% post-quarter debt reduction materially improves financial flexibility and lowers refinancing sensitivity. Lower leverage supports access to unsecured markets, reduces interest expense risk, and gives management room to selectively deploy capital into higher-return structured loans over the medium term.
Negative Factors
Negative operating and free cash flow
Persistent negative OCF and FCF undermines reported earnings quality and forces reliance on external funding, asset sales or capital recycling to support dividends and growth. Over the next several months this constraint can limit origination capacity and put pressure on liquidity if cash generation does not normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging / Improved balance sheet
A ~39.6% post-quarter debt reduction materially improves financial flexibility and lowers refinancing sensitivity. Lower leverage supports access to unsecured markets, reduces interest expense risk, and gives management room to selectively deploy capital into higher-return structured loans over the medium term.
Read all positive factors
Sunrise Realty Trust Inc (SUNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$105.98M
Dividend Yield15.31%
Average Volume (3M)116.86K
Price to Earnings (P/E)7.9
Beta (1Y)0.83
Revenue Growth139.61%
EPS Growth-2.50%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.97
Shares Outstanding13,518,205
10 Day Avg. Volume56,559
30 Day Avg. Volume116,864
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.00Price Target Upside12.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.28
Revenue Forecast (FY)$30.58M
Sunrise Realty Trust Inc Business Overview & Revenue Model
Company Description
Established in 2017, Sunrise Realty Trust has consistently addressed the increasing demand for new properties and development projects within Canada's rental sector. The company distinguishes itself through unwavering integrity and a steadfast com...
How the Company Makes Money
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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 | 24.93M | 26.37M | 10.63M | 734.23K |
| Gross Profit | 20.10M | 23.92M | 9.81M | 734.23K |
| EBITDA | 15.00M | 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 | 0.00 | 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 | 508.20K | -3.43M | 1.64M | 244.62K |
| Operating Cash Flow | 508.20K | -3.43M | 1.64M | 244.62K |
| Investing Cash Flow | -72.72M | -153.06M | -125.18M | 0.00 |
| Financing Cash Flow | 71.45M | -21.69M | 276.92M | 31.00M |
Sunrise Realty Trust Inc Technical Analysis
Negative
7.98
Price Trends
8.12
Negative
7.82
Negative
8.27
Negative
Market Momentum
-0.08
Positive
44.20
Neutral
39.38
Neutral
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 7.98 is below the 20-day moving average (MA) of 8.01, below the 50-day MA of 8.12, and below the 200-day MA of 8.27, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUNS.
Sunrise Realty Trust Inc Risk Analysis
Sunrise Realty Trust Inc disclosed 116 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% | |
59 Neutral | $105.98M | 7.92 | 7.12% | 15.04% | 139.61% | -2.50% | |
59 Neutral | $970.90M | 114.25 | 3.04% | 5.53% | 33.21% | ― | |
52 Neutral | $280.64M | -22.59 | -6.77% | 6.98% | 1.24% | -34.65% | |
47 Neutral | $668.27M | -20.72 | -11.75% | 7.98% | -1.46% | 0.65% | |
45 Neutral | $45.24M | -4.61 | 38.31% | 13.19% | -0.32% | 20.12% |
* Real Estate Sector Average
SUNS
Sunrise Realty Trust Inc
7.80
-1.27
-14.05%
CSR
Centerspace
56.68
5.71
11.21%
BRT
BRT Apartments
14.41
0.43
3.09%
NXRT
NexPoint Residential
25.53
-3.11
-10.85%
CLPR
Clipper Realty
2.86
-0.89
-23.75%
BHM
Bluerock Homes Trust, Inc. Class A
8.50
-4.44
-34.29%
Sunrise Realty Trust Inc Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Sunrise Realty Trust Shareholders Reelect Directors, Ratify Auditor
Positive
May 26, 2026
On May 26, 2026, Sunrise Realty Trust, Inc. shareholders reelected Class II directors Brian Sedrish and James Fagan for terms expiring at the 2029 annual meeting, reinforcing continuity in the company’s board leadership and governance struct...
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.