Sunrise Realty Trust, Inc. Announces Financial Results for the First Quarter 2026
Rhea-AI Summary
Sunrise Realty Trust (Nasdaq:SUNS) reported first quarter 2026 GAAP net income of $4.3 million ($0.32 per basic share) and Distributable Earnings of $4.7 million ($0.35 per basic share), up from $3.1 million and $3.5 million in Q1 2025.
The company paid a $0.30 per share common dividend on April 15, 2026, totaling $4.1 million. Sunrise is a commercial real estate lender focused on transitional projects in high-growth Southern U.S. markets.
Positive
- GAAP net income increased to $4.25 million from $3.10 million year over year
- Distributable Earnings rose to $4.68 million from $3.46 million year over year
- Distributable Earnings per share of $0.35 exceeded the $0.30 quarterly dividend
- Basic weighted average shares increased to 13.3 million from 11.2 million, supporting a larger capital base
Negative
- Provision for current expected credit losses was $60,283 in Q1 2026, reducing net income
- Higher basic share count versus Q1 2025 implies dilution of per-share ownership for existing shareholders
News Market Reaction – SUNS
In the May 14 session, SUNS gained 9.12%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.5% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Quarter & annual results | Positive | -2.1% | Reported Q4 2025 and full-year 2025 earnings with steady dividend declaration. |
| Nov 13 | Quarterly earnings | Positive | +0.2% | Q3 2025 results showed higher net income and Distributable Earnings with a $0.30 dividend. |
| Aug 07 | Quarterly earnings | Positive | +2.5% | Q2 2025 update with growing income and continued focus on transitional CRE lending. |
| May 07 | Quarterly earnings | Positive | -0.7% | Q1 2025 financial results and $0.30 cash dividend alongside maintained guidance. |
| Apr 22 | Preliminary earnings | Positive | +3.4% | Preliminary Q1 2025 Distributable Earnings and portfolio metrics for the lending platform. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have usually produced modest single-day moves, with both positive and negative reactions despite generally constructive operating updates.
Over the past year, SUNS has delivered a series of earnings reports showing steady GAAP profitability and Distributable Earnings, typically paired with a recurring $0.30 quarterly dividend. Prior updates, including Q1, Q2, Q3 and Q4 2025 results, highlighted commercial real estate lending growth and stable payout levels. These first-quarter 2026 results, with higher net income and Distributable Earnings per share, continue that pattern of incremental financial expansion within the same CRE lending strategy.
Key Terms
gaap financial
distributable earnings financial
reits financial
form 10-q regulatory
regulation fd regulatory
non-gaap financial
current expected credit losses financial
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
First quarter 2026 GAAP net income of
WEST PALM BEACH, Fla., May 14, 2026 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”), a lender on the Tannenbaum Capital Group (“TCG”) Real Estate platform, today announced its results for the quarter ended March 31, 2026.
For the first quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of
Brian Sedrish, Chief Executive Officer of SUNS, said, “During the quarter, we continued to see a clear divergence between groups that are on offense and those that remain on defense as they work through their legacy loan books and look to shore up their balance sheets. Focusing on those that remained on offense, the bulk of capital continued to be directed at financing existing multifamily and industrial assets at low financing spreads, which has left a noticeable gap in capital available to finance transitional business plans. The result is that our team has continued to see an increase in attractive pipeline opportunities where SUNS can pair its expertise with the needs of sponsors executing transitional plans. We remain focused on building a diversified portfolio of loans across geographies, asset classes, and borrowers, and we believe a patient and deliberate approach to identifying and closing on select opportunities is warranted.”
Common Stock Dividend
On April 15, 2026, the Company paid a cash dividend of
Additional Information
SUNS issued a presentation, titled “First Quarter 2026 Investor Presentation,” which can be viewed at www.sunriserealtytrust.com under the Investor Relations section. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, with the Securities and Exchange Commission (the “SEC”) on May 14, 2026.
SUNS routinely posts important information for investors on its website, www.sunriserealtytrust.com. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. SUNS encourages investors, analysts, the media and others interested in SUNS to monitor the Investors section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section.
Conference Call & Discussion of Financial Results
SUNS will host a conference call at 10:00 am (Eastern Time) on Thursday, May 14, 2026, to provide an update on the business. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of SUNS’s website found here: SUNS -- Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of the SUNS website.
About Sunrise Realty Trust, Inc.
Sunrise Realty Trust, Inc. (Nasdaq: SUNS) (“SUNS” or the “Company”) is an institutional commercial real estate (“CRE”) lender providing flexible financing solutions to sponsors of CRE projects primarily in the Southern United States. It focuses on transitional CRE business plans with the potential for near-term value creation, collateralized by top-tier assets predominantly located in established and rapidly expanding Southern markets. For additional information regarding the Company, please visit www.sunriserealtytrust.com.
About TCG Real Estate
TCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage real estate investment trust (“REIT”), Sunrise Realty Trust, Inc. (Nasdaq: SUNS), and a private mortgage REIT, Southern Realty Trust Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets located primarily within markets in the Southern U.S. benefiting from economic tailwinds with growth potential. For additional information regarding TCG Real Estate, please visit www.theTCG.com.
Non-GAAP Metrics
In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most recently filed quarterly report. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information they provide are useful to investors since these measures permit investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance.
The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings account for any Incentive Compensation earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses (“CECL”), (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.
We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least
Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
The following table provides a reconciliation of GAAP Net income to Distributable Earnings:
| Three Months Ended March 31, | |||||
| 2026 | 2025 | ||||
| Net income | $ | 4,253,350 | $ | 3,099,437 | |
| Adjustments to net income: | |||||
| Stock-based compensation expense | 369,962 | 243,621 | |||
| Depreciation and amortization | — | — | |||
| Unrealized (gains) losses, or other non-cash items | — | — | |||
| Provision for current expected credit losses | 60,283 | 117,648 | |||
| TRS (income) loss | — | — | |||
| One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | |||
| Distributable earnings | $ | 4,683,595 | $ | 3,460,706 | |
| Basic weighted average shares of common stock outstanding | 13,319,225 | 11,208,015 | |||
| Distributable earnings per basic weighted average share | $ | 0.35 | $ | 0.31 | |
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “may,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth, strategies for such growth, and our estimates of future distributable earnings, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for commercial real estate investment; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in SUNS’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of SUNS’s Annual Report on Form 10-K filed on March 12, 2026, and subsequently filed Quarterly Reports on Form 10-Q. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect SUNS. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Robyn Tannenbaum
(561) 510-2293
Media Contact
Doug Allen
Dukas Linden Public Relations
(646) 722-6530
1 Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.
