Sunrise Realty Trust, Inc. Q3 FY2024 earnings call

• Sunrise Realty Trust is a standalone public entity since July 9, 2024, continuing strong momentum. - Affiliated with the TCG real estate platform, allowing pursuit of larger transactions. - Pipeline remains strong at $1.2 billion. - Closed $87.4 million in deals during Q3, including various loans in Southern U.S. markets. - Closed a senior secured revolving credit facility with East West Bank for $50 million initial commitment, expandable to $200 million. - Paid a $0.21 per share dividend in Q3 and declared a $0.42 per share dividend for Q4 2024. - Portfolio loans are current and performing, with no material impact from Hurricane Milton on Florida investments.

In the third quarter of 2024, Sunrise Realty Trust (SUNS) generated net interest income of $3.2 million and distributable earnings of $1.9 million or $0.27 per basic weighted average common share. The portfolio is 75% residential with zero exposure to office properties. As of November 1, 2024, the portfolio consisted of $150 million of current commitments and $104 million of principal outstanding across 7 loans with a weighted average portfolio yield to maturity of 13%.

• Board declared a $0.42 per common share dividend for the fourth quarter of 2024. - Anticipate portfolio growth and earnings to increase as the portfolio ramps up, with distributable earnings expected to rise as the portfolio expands.

• Forward-looking statements are subject to inherent uncertainties in predicting future results. - Refer to Sunrise Realty Trust's most recent periodic filings with the SEC for conditions and factors that could cause actual results to differ materially from forward-looking statements.

Q: Follow-up on the pipeline and competitive environment.

A: Leonard Tannenbaum noted limited competition, more refinance opportunities, and pipeline composition with most activity on refinance but new transactions picking up.

Q: Given current equity base and financing, what size portfolio can be supported?

A: Leonard Tannenbaum discussed a leverage target of 1.5 times, structuring with one third equity, one third sub-debt, and one third senior debt, with senior debt half drawn.

Q: On the $0.42 dividend, is distributable EPS in the fourth quarter and going forward likely in the $0.42 ballpark?

A: Leonard Tannenbaum stated they can't forecast numbers but earnings should increase as the portfolio ramps up.