Sunrise Realty Trust (SUNS) Registration Filing summary

Company overview and business model

• Operates as a real estate-focused debt fund, financing transitional commercial real estate (CRE) projects in the Southern U.S.

• Externally managed by Sunrise Manager LLC, part of Tannenbaum Capital Group, leveraging a broad network and back-office support.

• Focuses on originating and investing in secured CRE loans, including senior mortgage loans, mezzanine loans, B-notes, CMBS, and debt-like preferred equity.

• Targets high-quality borrowers with transitional business plans, aiming for near-term value creation and recapitalization opportunities.

• As of December 31, 2024, had a loan portfolio with $132.6 million in outstanding principal and a $1.2 billion pipeline under review.

Financial performance and metrics

• For the nine months ended September 30, 2024: $7.2 million interest income, $5.0 million net income, and $5.2 million distributable earnings.

• Book value per share as of September 30, 2024: $16.19 (post-split basis).

• Declared dividends of $0.21 and $0.42 per share for Q3 and Q4 2024, respectively.

• As of September 30, 2024: $167.8 million in total assets, $31.2 million in liabilities, and $112.1 million in shareholders' equity.

• Portfolio comprised of loans to eight borrowers, with a weighted average interest rate of 12.3%.

Use of proceeds and capital allocation

• Net proceeds from the IPO will fund existing delayed draw construction loan commitments, new CRE loans, working capital, and may repay debt under the Revolving Credit Facility.

• Pending deployment, proceeds may be invested in short-term, interest-bearing instruments consistent with REIT status.