Sunrise Realty Trust Reports 241% Revenue Growth and Increased Net Income in Latest Quarter

Sunrise Realty Trust, Inc. (SUNS) reported significant financial growth in its latest quarterly filing, showcasing a marked increase in both revenue and profitability. For the three months ending June 30, 2025, the company generated $6.8 million in interest income, a 241% increase from $2.0 million in the same period last year. Net income for the quarter reached approximately $3.4 million, or $0.25 per share, compared to $1.5 million, or $0.22 per share, in the prior year. For the first half of 2025, total revenue was $11.7 million, up from $4.0 million in the first half of 2024, while net income increased to $6.5 million from $3.3 million.

The company’s financial position has also evolved significantly, with total assets decreasing to $256.5 million as of June 30, 2025, down from $317.5 million at the end of 2024. This decline is primarily attributed to a reduction in cash and cash equivalents, which fell from $184.6 million to $5.6 million, reflecting increased loan funding activities. Loans held for investment at carrying value surged to $248.3 million, up from $130.7 million, indicating a strategic expansion in the company’s lending portfolio, which now includes 13 loans compared to 9 at the end of 2024.

Operationally, SUNS has made strides in diversifying its loan portfolio, focusing on commercial real estate (CRE) opportunities across several states in the Southern U.S. The company funded approximately $130 million in new loans during the first half of 2025, with a significant portion of its loans now featuring floating interest rates. The current expected credit loss (CECL) reserve increased to $0.6 million, reflecting a proactive approach to managing credit risk as the company expands its lending activities. The company’s management noted that the increase in loans and interest income was driven by a broader borrower base, which expanded from two to thirteen borrowers.

Looking ahead, SUNS aims to continue its growth trajectory by leveraging its recent capital raise of approximately $71.3 million from a public offering in January 2025. The company plans to utilize these funds to further enhance its lending capabilities and diversify its investment portfolio. Management expressed confidence in meeting its operational and financial commitments, projecting that available cash and credit facilities will support its activities for at least the next twelve months. The company is also preparing to elect REIT status for U.S. federal income tax purposes, which could enhance its capital structure and distribution capabilities moving forward.