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- **Strong Earnings Coverage**: $0.31 distributable earnings vs. $0.30 dividend.
- **Conservative Risk Management**: 56% loan-to-cost, 11.8% portfolio yield.
- **Leverage Strategy**: Targeting 1-1.5x (current 0.4x) for investment-grade rating.
- **Interest Rate Opportunity**: 4% SOFR floors vs. 2.6% credit line floors.
- **Market Momentum**: Q3 pipeline growth; $56M post-quarter closings.
- **Debt Raising Plan**: Considering preferred stock at 7-8% yield.

**【Executive Chairman’s Overview】**
- Q3 2025 distributable earnings: $0.31 per share, covering the $0.30 dividend.
- Focus on transitional loans in the southern U.S. with a conservative 56% loan-to-cost ratio.
- Target leverage of 1-1.5x (current: 0.4x), aiming for investment-grade rating within 3-5 years.
- SOFR floors (4% portfolio average) provide margin expansion as rates decline below 4%.

**【CEO’s Portfolio & Pipeline Discussion】**
- Increased CRE activity driven by stable interest rates; pipeline improved in Q3.
- Originated $35M of a $60M Miami condominium loan; post-Q3 closed $56M in new loans (Texas retail, Florida industrial).
- 95% floating-rate portfolio with 4% SOFR floors; 8-person dedicated real estate team drives underwriting discipline.
- Focused on multifamily/industrial in Florida, Texas, Carolinas, Georgia, and Tennessee.

**【CFO’s Financial Update】
- Q3 net interest income: $6.1M; distributable earnings: $4.12M ($0.31 per share).
- GAAP net income: $4.05M ($0.30 per share); dividend paid on October 15.
- Portfolio: $253M funded across 13 loans; yield to maturity: 11.8%.
- Book value: $13.76 per share; CESL reserve: $400,000 (17bps of loans).

**【Q&A Highlights】**
- **Geographic Expansion**: Active in Texas, Florida, Carolinas, Georgia, and Tennessee.
- **Debt Strategy**: Avoiding high leverage; exploring preferred stock issuance at 7-8% yield.
- **Portfolio Performance**: Steady construction progress; no major delays or defaults.


Sunrise Realty Trust, Inc. (SUNS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SUNS

SUNS fundamentals

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