Sunrise Realty Trust (SUNS) investor relations material

Executive summary

• Announced a definitive merger agreement to acquire Southern Realty Trust Inc. (SRT), creating a combined entity with $290 million in equity value as of June 30, 2026, and expected to close in Q4 2026.

• Focused on originating and managing commercial real estate (CRE) debt investments in the Southern U.S., with a diversified portfolio across residential, hospitality, retail, industrial, and other CRE asset classes.

• All loans in the portfolio are current and performing, reflecting portfolio resilience and disciplined investment.

• Management team has structured over $24 billion in CRE and credit transactions, with significant insider ownership aligning interests with shareholders.

• Operates as a single institutional lending segment, externally managed, and elected REIT status effective 2024.

Financial highlights

• Q2 2026 GAAP net income was $3.1 million ($0.23 per share), with distributable earnings of $3.9 million ($0.29 per share); six-month distributable earnings totaled $0.65 per share, exceeding dividends declared of $0.60 per share.

• Revenue for Q2 2026 was $8.56 million, up from $6.75 million in Q2 2025; net interest income was $5.82 million.

• Book value per share as of June 30, 2026, was $13.45; total assets were $330.7 million.

• Q2 2026 dividend declared at $0.30 per share, paid July 15, 2026.

• Interest income rose 26.8% year-over-year for Q2 and 60.8% for the six months, driven by higher average investment balances.

Outlook and guidance

• Management expects the merger with SRT to close in Q4 2026, subject to shareholder approval and customary conditions, and anticipates margin improvement from G&A savings and increased earnings post-merger.

• Active pipeline of approximately $1.0 billion in potential deals, with a focus on expanding the loan book in target geographies and deals offering strong risk-adjusted returns.

• Expects to benefit from over $1.5 trillion in CRE loans maturing by end of 2027, creating opportunities for rapid scaling.

• Management believes current liquidity and credit facilities are sufficient for operating needs over the next twelve months.

• Expects to continue diversifying the loan portfolio and maintain a target leverage ratio of 1.5:1 debt-to-equity.