Sunrise Realty Trust, Inc. Q1 FY2025 earnings call

General Business Overview - Approaching one year anniversary on NASDAQ. - Distributable earnings for Q1 were $0.31 per share, mid-range of pre-announced range. Book value per share was $13.77, mid-range of pre-announced $13.60 - $13.90 range. ### Commercial Real Estate Lending Market - Banks have pulled back, creating opportunities for SUNS. - Focus on well-located residential and mixed-use assets backed by experienced sponsors. - 88% of portfolio is floating rate with weighted average floor of 4.1%. ### Portfolio Update - Originated $213 million loans in Q1, committed $148 million, funded $110 million. - Closed $168 million of loan commitments in Q1, including various loans in Florida, Louisiana, Texas. - TCG Real Estate platform has $100 million in signed non-binding term sheets. ### Financial Position - Net interest income $4.6 million, distributable earnings $3.5 million. - Book value per share $13.77, total assets $234.4 million, total shareholder equity $184.8 million.

For the quarter ended March 31, 2025, Sunrise Realty Trust (SUNS) generated net interest income of $4.6 million and distributable earnings of $3.5 million ($0.31 per basic weighted average common share). GAAP net income was $3.1 million ($0.27 per basic weighted average common share). 88% of the current portfolio's outstanding principal is floating rate with a weighted average floor of 4.1%. As of March 31, 2025, book value per share was $13.77, total assets were $234.4 million, and total shareholder equity was $184.8 million.

Dividend - Q2 dividend expected to be on or close to Q1's $0.30 per share. ### Earnings Growth - Excited for potential earnings growth in H2 2025 and full year 2026 from construction loans funding. ### Management Fee - Intention to fulfill $1 million management fee waiver commitment, with $860,000 waived by Q1, expecting to waive remaining $140,000 in next quarter.

• Uncertainties in predicting future results due to inherent uncertainties in market developments. - Potential impacts from tariff policies on commercial real estate, including possible material impacts on project budgets/timelines (currently not anticipated but monitored). - Construction activity may be limited in near term due to re-underwriting of budgets for cost volatility and supply chain disruptions from trade environment.

Q: Could you provide more color on the loan pipeline change from $1.4 billion to $800 million active pipeline?

A: The pipeline is evolving with deals coming in and out. Lenders pulling back create opportunities, with two deals in non-binding term sheet mode and others pursued.

Q: Can you quantify the floor on the Dallas, Texas residential loan?

A: The floor for that loan is 3.9%, which is substantially higher than the 2.6% on SUNS' credit line.

Q: What's your view on the Florida residential market and capital availability?

A: Existing book sales holding up relatively well, monitoring absorption. Have enough capital to execute business plan, with undrawn unsecured line and expectation of bank line filling out. Intention to do unsecured raise in Q4 2025.

Q: What factors go into allocating TCG term sheets to SUNS and timeline?

A: TCG allocates to SUNS' private REIT SRT and side pocket. Allocation decisions made closer to deal closing, with conditions precedent affecting timeline.