Sunrise Realty Trust, Inc. Announces Financial Results for the Third Quarter 2026

Quarterly Distributable Earnings fell from $0.31 per basic weighted average share a year earlier, below the $0.30 dividend.

Rhea-AI Summary

Sunrise Realty Trust (SUNS) reported third-quarter 2026 GAAP net income of $2.9 million for the quarter ended September 30.

Net income was $0.21 per basic weighted average common share. Distributable Earnings, a non-GAAP performance measure, were $3.2 million, or $0.24 per basic weighted average common share, versus $0.31 a year earlier. Results included approximately 6 cents per share of one-time merger-related expenses. The quarterly dividend was $0.30 per share. Nine-month Distributable Earnings were $0.89 per basic weighted average share, compared with $0.90 per share of dividends declared.

SUNS completed its merger with affiliated private mortgage REIT Southern Realty Trust on November 5, 2026. It paid a prorated $0.09-per-share dividend covering October 1 through November 4. The company expects its board to declare a dividend covering the remainder of the fourth quarter.

3 points · 0 major

NegativeiHow this balance works

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointSouthern Realty Trust merger completed November 5, 2026, expanding SUNS's capital base.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expanded capital base allows larger transactions, while SUNS expects improved financing access and broader transaction sourcing.
• Minor pointThird-quarter credit-loss provision reversal was $184,755, versus $193,865 in 2025.

Negative

• Moderate pointThird-quarter GAAP net income fell to $2,883,952 from $4,054,959 a year earlier.
• Moderate pointThird-quarter Distributable Earnings fell to $3,214,046 from $4,121,401; $0.24 per basic weighted average share trailed the $0.30 dividend.
• Moderate pointNine-month Distributable Earnings rose to $11,828,398 from $11,667,980, but per-share earnings fell to $0.89 from $0.93, below $0.90 dividends.
• Minor pointNine-month GAAP net income declined to $10,213,327 from $10,512,710 a year earlier.
• Minor pointOne-time merger-related expenses included in third-quarter results were approximately 6 cents per share.

3 minor points

• Minor pointNine-month credit-loss provision increased to $432,776 from $392,276 a year earlier.
• Minor pointStock-based compensation expense rose to $276,114 from $260,307 quarterly and $943,560 from $762,994 over nine months.
• Minor pointUnrealized losses or other non-cash items were $238,735 for both 2026 reporting periods, versus none in 2025.

Key Figures

GAAP net income: $2,883,952 vs $4,054,959 Distributable Earnings: $3,214,046 vs $4,121,401 Distributable Earnings per share: $0.24 vs $0.31 +3 more

GAAP net income

$2,883,952 vs $4,054,959

Three months ended September 30, 2026 vs 2025

Distributable Earnings

$3,214,046 vs $4,121,401

Three months ended September 30, 2026 vs 2025

Distributable Earnings per share

$0.24 vs $0.31

Three months ended September 30, 2026 vs 2025; basic weighted average share

Third-quarter dividend

$0.30 per common share

Paid October 15, 2026; compared with $0.24 per-share Distributable Earnings

Nine-month Distributable Earnings per share

$0.89

First nine months of 2026

Nine-month dividends declared per share

$0.90

First nine months of 2026

Previous Earnings Reports

3 past events · Latest: Aug 06

Same Type 3 events

1. Aug 06

   2Q 2026 earnings

   24h Move

   +1.7%

   Reported quarterly net income and Distributable Earnings; all loans remained current.

2. May 14

   1Q 2026 earnings

   24h Move

   +9.1%

   Reported net income and Distributable Earnings increases compared with Q1 2025.

3. Nov 13

   3Q 2025 earnings

   24h Move

   +0.2%

   Reported quarterly results and higher nine-month net income than the prior-year period.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, cecl, regulation fd, +1 more

5 terms

gaap financial

"generally accepted accounting principles (“GAAP”) net income"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Distributable Earnings is a measure that is not prepared in accordance with GAAP."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

cecl financial

"provision for (reversal of) current expected credit losses (“CECL”)"

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

regulation fd regulatory

"comply with its disclosure obligations under Regulation FD"

Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.

reit financial

"As a real estate investment trust (“REIT”)"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

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Third quarter 2026 GAAP net income of $2.9 million or $0.21 per basic weighted average common share and Distributable Earnings⁽¹⁾ of $3.2 million or $0.24 per basic weighted average common share

WEST PALM BEACH, Fla., Nov. 10, 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 September 30, 2026.

For the third quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of $2.9 million, or $0.21 per basic weighted average common share, and Distributable Earnings of $3.2 million, or $0.24 per basic weighted average common share, including approximately 6 cents per share of one-time merger-related expenses.

Brian Sedrish, Chief Executive Officer of SUNS, said, “Completing our merger with Southern Realty Trust gives us a larger, more efficient platform, which we believe will enhance our competitiveness by improving our access to attractive back leverage and broadening our transaction sourcing. Our expanded capital base also allows us to pursue larger transactions while maintaining our focus on portfolio diversification. We head into 2027 with the balance sheet flexibility to be selective at a time when borrowers need structured capital.”

Common Stock Dividend

On October 15, 2026, the Company paid a cash dividend of $0.30 per common share for the third quarter of 2026. SUNS distributed $4.1 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.24 per basic weighted average common share for such period. For the first nine months of 2026, Distributable Earnings totaled $0.89 per basic weighted average share, compared to $0.90 per share of dividends declared over the same period.

On November 5, 2026, SUNS completed its previously announced merger with Southern Realty Trust Inc. (“SRT”), its affiliated private mortgage real estate investment trust (the “Merger”). In connection with the Merger, SUNS paid a prorated cash dividend of $0.09 per common share covering the period from October 1 through November 4, 2026, to stockholders of record as of November 2, 2026. The Company expects its Board of Directors to declare a dividend for the remainder of the fourth quarter of 2026, covering November 5, 2026 through December 31, 2026, with the amount and record date to be announced in the ordinary course.

Additional Information

SUNS issued a presentation, titled “Third 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 September 30, 2026, with the Securities and Exchange Commission (the “SEC”) on November 10, 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, to comply with its 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 Investor Relations 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 a.m. (Eastern Time) on Wednesday, November 11, 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 located primarily in the Southern United States. SUNS 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 the family office sponsor of an affiliated CRE-focused debt vehicle, Sunrise Realty Trust, Inc. (Nasdaq: SUNS), a publicly traded commercial mortgage real estate investment trust. The platform provides 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 stockholders 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 it provides are useful to investors since these measures permit investors and stockholders 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 accounts 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 stockholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least 90% of our annual REIT taxable income, subject to certain adjustments, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, we generally intend to pay dividends to our stockholders in an amount at least equal to such REIT taxable income, if and to the extent authorized by our Board of Directors. Distributable Earnings is one of many factors considered by our Board of Directors in authorizing dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends.

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 September 30,								Nine months ended September 30,
	2026				2025				2026			2025
Net income	$	2,883,952			$	4,054,959			$	10,213,327		$	10,512,710
Adjustments to net income:
Stock-based compensation expense		276,114				260,307				943,560			762,994
Depreciation and amortization		—				—				—			—
Unrealized (gains) losses, or other non-    cash items		238,735				—				238,735			—
Provision for (reversal of) current    expected credit losses		(184,755	)			(193,865	)			432,776			392,276
TRS (income) loss		—				—				—			—
One-time events pursuant to changes in    GAAP and certain non-cash charges		—				—				—			—
Distributable earnings	$	3,214,046			$	4,121,401			$	11,828,398		$	11,667,980
Basic weighted average shares of    common stock outstanding		13,341,545				13,247,030				13,330,328			12,571,091
Distributable earnings per basic    weighted average share	$	0.24			$	0.31			$	0.89		$	0.93

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, our estimates of future distributable earnings, the anticipated benefits of the Merger, future dividends and the timing and amount of any repurchases of our common stock, 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; our ability to realize the anticipated benefits of the Merger; the timing and amount of any repurchases under our share repurchase program; 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 Contacts

Robyn Tannenbaum // Will Rotatori
(561) 510-2293 // (561) 510-6109
ir@theTCG.com

Media Contact

Jim Velgot
(561) 510-1416
ir@theTCG.com

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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Sunrise Realty Trust's third-quarter 2026 earnings?

Sunrise Realty Trust reported $2.9 million in GAAP net income, or $0.21 per basic weighted average common share. Distributable Earnings were $3.2 million, or $0.24 per basic weighted average common share. Results included approximately 6 cents per share of one-time merger-related expenses.

When did SUNS complete its merger with Southern Realty Trust?

SUNS completed its merger with affiliated private mortgage real estate investment trust Southern Realty Trust on November 5, 2026. The company expects the larger platform to improve access to attractive financing and broaden transaction sourcing.

How does Sunrise Realty Trust calculate Distributable Earnings?

Distributable Earnings starts with GAAP net income and excludes specified adjustments, including stock-based compensation and provisions for or reversals of expected credit losses. It retains accrued income on investments with deferred interest even when cash has not been received. The measure is not a substitute for GAAP net income and may not be comparable with similarly named measures at other REITs.