Sunrise Realty Trust (Nasdaq: SUNS) posts Q2 2026 earnings with $3.1M net income
Rhea-AI Filing Summary
Sunrise Realty Trust, Inc. reported second quarter 2026 GAAP net income of $3.1 million, or $0.23 per basic weighted average common share, and Distributable Earnings of $3.9 million, or $0.29 per basic weighted average common share. Management noted that all loans in the portfolio remain current and that the company received full repayment of its Panther National investment shortly after quarter end.
The company paid a $0.30 per share common dividend for the quarter, totaling $4.1 million, versus Distributable Earnings of $0.29 per share for the same period. For the first six months of 2026, Distributable Earnings were $8.6 million, or $0.65 per share, exceeding dividends declared of $0.60 per share. Sunrise Realty Trust filed its Form 10-Q for the quarter, published an investor presentation, and scheduled a conference call to discuss results.
Positive
- None.
Negative
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Filing Explained
The August 6 Form 8-K furnishes an Item 2.02 earnings release; its Distributable Earnings measure is non-GAAP and adjusts GAAP net income for items including stock compensation and expected-credit-loss provisions, so its per-share comparison with the dividend is not a GAAP-to-GAAP comparison.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 GAAP net income: $3.1 million
Q2 2026 Distributable Earnings: $3.9 million
Q2 2026 Distributable Earnings per share: $0.29
+5 more
8 metrics
Q2 2026 GAAP net income
$3.1 million
Net income for the quarter ended June 30, 2026
Q2 2026 Distributable Earnings
$3.9 million
Non-GAAP Distributable Earnings for the quarter ended June 30, 2026
Q2 2026 Distributable Earnings per share
$0.29
Distributable Earnings per basic weighted average common share in Q2 2026
Q2 2026 common dividend per share
$0.30
Cash dividend paid July 15, 2026 for the second quarter 2026
First-half 2026 Distributable Earnings per share
$0.65
Distributable Earnings per basic weighted average share for six months ended June 30, 2026
First-half 2026 dividends per share
$0.60
Total dividends declared per share over the first six months of 2026
Q2 2026 net income (exact)
$3,076,025
GAAP net income for the three months ended June 30, 2026
Q2 2026 basic weighted average shares
13,329,968
Basic weighted average common shares outstanding in Q2 2026
Key Terms
Distributable Earnings, current expected credit losses, taxable REIT subsidiary, original issue discount, +2 more
6 terms
Distributable Earnings financial
"we also use Distributable Earnings to evaluate our performance excluding the effects"
Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.
current expected credit losses financial
"Provision for current expected credit losses"
An accounting rule that requires lenders and creditors to estimate and record expected loan losses up front, based on current information and reasonable forecasts, rather than waiting until losses actually occur. Think of it as a bank setting aside a rainy-day fund based on the weather report instead of only after storms hit; for investors this affects reported profits, reserves and capital levels and can change perceptions of a firm’s financial strength.
taxable REIT subsidiary financial
"taxable REIT subsidiary (“TRS”) (income) loss, net of any dividends"
A taxable REIT subsidiary is a separate company owned by a real estate investment trust (REIT) that can carry out business activities the REIT itself cannot without losing its special tax status, and that pays regular corporate income tax on its profits. Think of it as a REIT’s side business that handles taxable operations—such as providing services to properties or holding non‑qualifying assets—so the parent preserves tax benefits; investors watch it because it affects overall tax bills, earnings, and the REIT’s flexibility to grow revenue.
original issue discount financial
"investments with a deferred interest feature (such as original issue discount, debt instruments"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
Management Agreement financial
"Core Earnings under our Management Agreement, provided that Core Earnings is a component"
A management agreement is a written contract that sets out who runs a company or specific assets, what duties they must perform, how long they serve, and how they are paid and evaluated. Think of it as a job contract or a property manager’s lease: it tells investors who is steering the business, what rules they must follow, and how their performance will affect costs and returns, so it directly influences company strategy, risk and shareholder value.
Incentive Compensation financial
"component of the calculation of any Incentive Compensation earned under the Management Agreement"
Incentive compensation is pay tied to specific goals—such as bonuses, stock options, or commission—that rewards employees or executives when the company meets financial, operational, or strategic targets. For investors, it matters because it influences company costs, can encourage behavior that boosts long-term value (or short-term results), and may dilute existing shares if paid in stock; think of it as a performance-based reward system that aligns pay with outcomes.
Earnings Snapshot
GAAP net income: $3,076,025
quarter ended June 30, 2026
GAAP net income
$3,076,025
compared with $3,358,314 for the three months ended June 30, 2025
Distributable Earnings
$3,930,757
compared with $4,085,873 for the three months ended June 30, 2025
Distributable Earnings per share
$0.29
compared with $0.31 per basic weighted average share for Q2 2025
First-half 2026 Distributable Earnings
$8,614,352
compared with $7,546,579 for the six months ended June 30, 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Sunrise Realty Trust (SUNS) GAAP net income and EPS for Q2 2026?
Sunrise Realty Trust reported Q2 2026 GAAP net income of $3.1 million, equal to $0.23 per basic weighted average common share. These figures summarize the REIT’s accounting profit for the quarter ended June 30, 2026.
What Distributable Earnings did Sunrise Realty Trust (SUNS) generate in Q2 2026?
For Q2 2026, Sunrise Realty Trust generated Distributable Earnings of $3.9 million, or $0.29 per basic weighted average common share. Distributable Earnings is a non-GAAP measure the company uses to evaluate performance and its ability to support dividends.
What dividend did Sunrise Realty Trust (SUNS) pay for Q2 2026 and how did it compare to earnings?
On July 15, 2026, Sunrise Realty Trust paid a cash dividend of $0.30 per common share, totaling $4.1 million. This exceeded Q2 2026 Distributable Earnings of $0.29 per share, though first-half 2026 Distributable Earnings of $0.65 per share were above dividends of $0.60.
How did Sunrise Realty Trust (SUNS) first-half 2026 results compare with 2025?
For the six months ended June 30, 2026, Sunrise Realty Trust reported GAAP net income of $7,329,375 versus $6,457,751 in 2025, and Distributable Earnings of $8,614,352 versus $7,546,579, reflecting higher profits and cash-earnings metrics year over year.
How does Sunrise Realty Trust (SUNS) define Distributable Earnings?
Sunrise Realty Trust defines Distributable Earnings as GAAP net income adjusted to exclude items such as stock-based compensation, depreciation and amortization, unrealized gains and losses, current expected credit loss provisions, taxable REIT subsidiary results, and certain one-time or non-cash charges, subject to board-approved criteria.
What did management highlight about Sunrise Realty Trust (SUNS) portfolio and recent repayments?
Management stated that all loans remain current and highlighted the full repayment of the company’s Panther National investment shortly after quarter end. They described a resilient portfolio and emphasized selective deployment of capital amid demand for flexible commercial real estate financing.
Did Sunrise Realty Trust (SUNS) provide access to its Q2 2026 results discussion?
Yes. Sunrise Realty Trust scheduled a conference call at 10:00 a.m. Eastern Time on August 6, 2026 and offered a live audio webcast via its Investor Relations webpage. A complete webcast replay will remain archived for 90 days on the company’s site.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
(Exact name of Registrant as Specified in Its Charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition.
On August 6, 2026, Sunrise Realty Trust, Inc. issued a press release announcing its financial and operational results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto.
The information contained in Item 2.02 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press Release issued by Sunrise Realty Trust, Inc. on August 6, 2026. | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUNRISE REALTY TRUST, INC. | ||||||||
| By: | /s/ Brandon Hetzel | |||||||
| Brandon Hetzel | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
| Date: August 6, 2026 | ||||||||
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Sunrise Realty Trust, Inc. Announces Financial Results for the Second Quarter 2026
Second quarter 2026 GAAP net income of $3.1 million or $0.23 per basic weighted average common share and Distributable Earnings(1) of $3.9 million or $0.29 per basic weighted average common share
WEST PALM BEACH, FL, August 6, 2026 – 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 June 30, 2026.
For the second quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of $3.1 million, or $0.23 per basic weighted average common share, and Distributable Earnings of $3.9 million, or $0.29 per basic weighted average common share.
Brian Sedrish, Chief Executive Officer of SUNS, said, “Our second quarter 2026 results reflect a resilient portfolio: Distributable Earnings exceeded dividends through the first six months of the year, and all our loans remain current. The full repayment of our investment in Panther National shortly after quarter end reinforces our ability to originate, structure, and exit transitional investments. With elevated rates continuing to constrain senior debt capacity across commercial real estate, we expect strong demand for flexible, structured capital. The proceeds from that repayment, together with our modest balance-sheet leverage, position us to stay selective and deploy only into opportunities that meet our return and structural requirements.”
Common Stock Dividend
On July 15, 2026, the Company paid a cash dividend of $0.30 per common share for the second quarter of 2026. SUNS distributed $4.1 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.29 per basic weighted average common share for such period. For the first six months of 2026, Distributable Earnings of $0.65 per basic weighted average share exceeded the $0.60 per share of dividends declared over the same period.
Additional Information
SUNS issued a presentation, titled “Second 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 June 30, 2026, with the Securities and Exchange Commission (the “SEC”) on August 6, 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 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.
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.
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Conference Call & Discussion of Financial Results
SUNS will host a conference call at 10:00 a.m. (Eastern Time) on Thursday, August 6, 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. 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 commercial real estate (“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 90% of our annual REIT taxable
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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 shareholders invest in our common stock, we generally intend to attempt to pay dividends to our shareholders 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.
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The following table provides a reconciliation of GAAP Net income to Distributable Earnings:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income | $ | 3,076,025 | $ | 3,358,314 | $ | 7,329,375 | $ | 6,457,751 | |||||||||||||||
| Adjustments to net income: | |||||||||||||||||||||||
| Stock-based compensation expense | 297,484 | 259,066 | 667,446 | 502,687 | |||||||||||||||||||
| Depreciation and amortization | — | — | — | — | |||||||||||||||||||
| Unrealized (gains) losses, or other non-cash items | — | — | — | — | |||||||||||||||||||
| Provision for current expected credit losses | 557,248 | 468,493 | 617,531 | 586,141 | |||||||||||||||||||
| TRS (income) loss | — | — | — | — | |||||||||||||||||||
| One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | — | — | |||||||||||||||||||
| Distributable earnings | $ | 3,930,757 | $ | 4,085,873 | $ | 8,614,352 | $ | 7,546,579 | |||||||||||||||
| Basic weighted average shares of common stock outstanding | 13,329,968 | 13,235,823 | 13,324,626 | 12,227,520 | |||||||||||||||||||
| Distributable earnings per basic weighted average share | $ | 0.29 | $ | 0.31 | $ | 0.65 | $ | 0.62 | |||||||||||||||
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.
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Investor Relations Contact
Robyn Tannenbaum
(561) 510-2293
ir@theTCG.com
Media Contact
Doug Allen
Dukas Linden Public Relations
(646) 722-6530
TCG@DLPR.com
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