Sunrise Realty Trust (NASDAQ: SUNS) Q1 2026 earnings and dividend update
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sunrise Realty Trust, Inc. reported first quarter 2026 GAAP net income of $4.3 million, or $0.32 per basic weighted average common share. Distributable Earnings, a non-GAAP measure the company uses to assess performance and support its dividend policy, were $4.7 million, or $0.35 per basic share, compared with $3.5 million, or $0.31, in the first quarter of 2025.
The company focuses on providing flexible financing for transitional commercial real estate projects, primarily in the Southern United States, and highlighted a growing pipeline of opportunities as capital remains scarce for these business plans. On April 15, 2026, Sunrise Realty Trust paid a cash dividend of $0.30 per common share, or $4.1 million in total, for the first quarter, which was covered by Distributable Earnings for the period.
Positive
- None.
Negative
- None.
Insights
Q1 2026 earnings show solid distributable coverage of the dividend.
Sunrise Realty Trust delivered Q1 2026 GAAP net income of $4.3 million and Distributable Earnings of $4.7 million, or $0.35 per share versus $0.31 a year earlier. The filing also details how Distributable Earnings adjust GAAP results for non-cash and one-time items.
The company paid a Q1 dividend of $0.30 per share, totaling $4.1 million, which sits below Distributable Earnings per share, indicating coverage for this period. As a REIT, Sunrise must distribute at least 90% of annual REIT taxable income, and management notes Distributable Earnings is one factor its board considers when authorizing dividends.
Management describes a lending focus on transitional commercial real estate in growing Southern U.S. markets and notes an increase in attractive pipeline opportunities. Future quarterly reports and investor presentations covering periods after March 31, 2026 will further clarify how this loan pipeline translates into earnings and dividend sustainability over time.
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
GAAP net income Q1 2026: $4,253,350
Distributable Earnings Q1 2026: $4,683,595
Distributable Earnings per share Q1 2026: $0.35 per basic share
+3 more
6 metrics
GAAP net income Q1 2026
$4,253,350
Quarter ended March 31, 2026
Distributable Earnings Q1 2026
$4,683,595
Quarter ended March 31, 2026
Distributable Earnings per share Q1 2026
$0.35 per basic share
13,319,225 basic weighted average shares
Distributable Earnings per share Q1 2025
$0.31 per basic share
Quarter ended March 31, 2025
Common dividend Q1 2026
$0.30 per share
Paid April 15, 2026; total $4.1 million
Basic weighted average shares 2026
13,319,225 shares
Quarter ended March 31, 2026
Key Terms
Distributable Earnings, Non-GAAP financial measure, current expected credit losses, REIT taxable income, +2 more
6 terms
Distributable Earnings financial
"Distributable Earnings of $4.7 million or $0.35 per basic weighted average common share"
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.
Non-GAAP financial measure financial
"Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
current expected credit losses financial
"Provision for current expected credit losses (“CECL”)"
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.
REIT taxable income financial
"As a real estate investment trust (“REIT”), we are required to distribute at least 90% of our annual REIT taxable income"
REIT taxable income is the portion of a real estate investment trust’s earnings that the tax code treats as subject to tax after allowable deductions and adjustments; it’s the number used to calculate what the REIT owes in taxes and how much income can be passed through to investors. It matters because it influences the size and tax character of distributions shareholders receive and whether the trust meets rules that protect its tax-advantaged status—think of it like a household’s taxable paycheck that determines how much you actually take home after taxes.
Regulation FD regulatory
"The Company intends to use this webpage as a means of disclosing material information, for complying with our 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.
forward-looking statements regulatory
"This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
GAAP net income: $4,253,350
Q1 2026
GAAP net income
$4,253,350
vs $3,099,437 in Q1 2025
Distributable Earnings
$4,683,595
vs $3,460,706 in Q1 2025
Distributable Earnings per share
$0.35
vs $0.31 in Q1 2025
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): May 14, 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):
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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).
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Item 2.02 Results of Operations and Financial Condition.
On May 14, 2026, Sunrise Realty Trust, Inc. issued a press release announcing its financial and operational results for the quarter ended March 31, 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 May 14, 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: May 14, 2026 | ||||||||
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Sunrise Realty Trust, Inc. Announces Financial Results for the First Quarter 2026
First quarter 2026 GAAP net income of $4.3 million or $0.32 per basic weighted average common share and Distributable Earnings(1) of $4.7 million or $0.35 per basic weighted average common share
WEST PALM BEACH, FL, May 14, 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 March 31, 2026.
For the first quarter of 2026, SUNS reported generally accepted accounting principles (“GAAP”) net income of $4.3 million, or $0.32 per basic weighted average common share, and Distributable Earnings of $4.7 million, or $0.35 per basic weighted average common share.
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 $0.30 per common share for the first quarter of 2026. SUNS distributed $4.1 million in dividends, or $0.30 per common share, compared to Distributable Earnings of $0.35 per basic weighted average common share for such period.
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.
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 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 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 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.
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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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FAQ
How much did Sunrise Realty Trust (SUNS) earn in Q1 2026?
Sunrise Realty Trust reported Q1 2026 GAAP net income of $4.3 million, or $0.32 per basic share. It also generated Distributable Earnings of $4.7 million, or $0.35 per basic share, compared with $3.5 million, or $0.31, in Q1 2025.
What dividend did Sunrise Realty Trust (SUNS) pay for Q1 2026?
For the first quarter of 2026, Sunrise Realty Trust paid a cash dividend of $0.30 per common share on April 15, 2026. Total dividends distributed were $4.1 million, which were covered by the quarter’s Distributable Earnings of $4.7 million.
What are Distributable Earnings for Sunrise Realty Trust (SUNS)?
Distributable Earnings is a non-GAAP financial measure that adjusts GAAP net income for items like stock-based compensation, CECL provisions and certain non-cash or one-time charges. Management uses it to evaluate performance and as one factor in determining dividend levels for shareholders.
How did SUNS’s Distributable Earnings change versus Q1 2025?
In Q1 2026, Sunrise Realty Trust generated Distributable Earnings of $4.7 million, or $0.35 per basic share. In Q1 2025, Distributable Earnings were $3.5 million, or $0.31 per basic share, indicating higher earnings available to support shareholder distributions year over year.
What is Sunrise Realty Trust’s (SUNS) business focus?
Sunrise Realty Trust is an institutional commercial real estate lender focused on transitional CRE business plans with potential near-term value creation. It primarily finances top-tier assets in established and fast-growing Southern U.S. markets through the TCG Real Estate platform.
Did Sunrise Realty Trust (SUNS) host a call for its Q1 2026 results?
Yes. Sunrise Realty Trust scheduled a conference call at 10:00 a.m. Eastern Time on May 14, 2026 to discuss Q1 2026 results. A live audio webcast and a 90-day archive are available through the Investor Relations section of the company’s website.