Sunrise Realty Trust, Inc. Q4 FY2024 earnings call

• Executive Chairman Leonard Tannenbaum noted strong momentum since the public listing in July, declared a $0.30 dividend per share for Q1 2025, and mentioned the TCG real estate platform originated $538 million of loans in 2024 with SUNS committing $220 million and funding $162 million.
• CEO Brian Sedrish discussed the commercial real estate lending market, existing portfolio closing $75 million in Q4 2024, portfolio composition with 83% in Florida and Texas, 85% of portfolio outstanding principal being floating rate with floors, and the addition of Alfred Tribulino to the investment team.
• CFO Brandon Hetzel provided financial updates including net interest income of $3.4 million, distributable earnings of $2 million or $0.30 per share, portfolio details as of Dec 31, 2024 and March 1, 2025, and book value information.

For the quarter ended December 31, 2024, Sunrise Realty Trust (SUNS) generated distributable earnings of $0.30 per weighted average share of common stock. Net interest income for the quarter was $3.4 million. As of March 1, 2025, the portfolio consisted of $259.3 million of current commitments and $162.1 million of principal outstanding across ten loans, with a weighted average portfolio yield to maturity of 12.4%. The revenue contribution is primarily from commercial real estate lending activities.

• The Board declared a $0.30 dividend per share for Q1 2025, expected to be on or close to first quarter distributable earnings.
• The TCG real estate platform has an active pipeline of $1.4 billion, with $115 million of loans originated in 2025 and SUNS committing $75 million.
• Expect portfolio composition to remain similar with emphasis on well-located residential and mixed-use assets, with visibility into earnings growth in 2026 due to peak vintage construction loans.

• Forward-looking statements are subject to uncertainties in predicting future results.
• Actual results may differ from forward-looking statements due to conditions and factors outlined in Sunrise Realty Trust's most recent periodic filings with the SEC.

Q: Randy Binner asked about debt profile timing and revolver details.

A: Brandon Hetzel explained that interest expense was affected by later deployment of investments in December and the repayment of the revolver. He also discussed the repayment and utilization of the credit lines.

Q: Stephen Laws inquired about the pipeline mix of senior vs mezz loans and deployment of new capital.

A: Brian Sedrish stated the majority of the pipeline is in senior loans, and Leonard Tannenbaum discussed that deployment is related to construction loans with visibility into 2026 as many are delayed fundings.

Q: Jade Ramani asked about the dividend and visibility in 2026.

A: Leonard Tannenbaum mentioned the dividend is based on current visibility, and improved visibility in 2026 due to peak vintage construction loans from the previous year.

Q: Gaurav Mehta asked about management and incentive fee waiver and credit line criteria.

A: Leonard Tannenbaum and Brandon Hetzel discussed waiving management and incentive fees in Q1 and plans to expand the credit line, including working on an unsecured raise to avoid cash drag.