Sunrise Realty Trust, Inc. Announces Financial Results for the Third Quarter 2026
Sunrise Realty Trust, Inc. (SUNS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Sunrise Realty Trust, Inc. Announces Financial Results for the Third Quarter 2026 Third quarter 2026 GAAP net income of $2.9 million or $0.21 per basic weighted average common share and Distributable Earnings ( 1 ) of $3.2 million or $0.24 per basic weighted average common share
How this was made
The 30-second read
Why it matters
The disclosed earnings and dividend suggest operational stability post‑merger, but the modest profit size limits upside potential.
Market read
Primary earnings release for a niche REIT; relevance mainly to REIT and CRE‑lending investors.
What to watch
One‑time merger‑related expenses and the recent merger with Southern Realty Trust could mask underlying earnings quality.
Sunrise Realty Trust reports Q3 2026 GAAP net income of $2.9 million ($0.21 per basic share) and Distributable Earnings of $3.2 million ($0.24 per basic share), including about 6 cents per share of one-time merger-related expenses; merger with Southern Realty Trust completed November 5, 2026
Q3 2026 GAAP net income ($2,883,952) and Distributable Earnings ($3,214,046) are both below the prior-year quarter as printed ($4,054,959 and $4,121,401). Distributable Earnings per basic share fell to $0.24 from $0.31. The company attributes about 6 cents per share of the quarter's Distributable Earnings to one-time merger-related expenses. The declared Q3 dividend of $0.30 per share exceeds the quarter's $0.24 Distributable Earnings per share. No guidance was given.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026GAAP | $2,883,952 | – | – |
| GAAP net income per basic weighted average common share, Q3 2026GAAP | $0.21 | – | – |
| Distributable Earnings, three months ended September 30, 2026non-GAAP | $3,214,046 | – | – |
| Distributable Earnings per basic weighted average share, Q3 2026non-GAAP | $0.24 | – | – |
| Net income, nine months ended September 30, 2026GAAP | $10,213,327 | – | – |
| Distributable Earnings, nine months ended September 30, 2026non-GAAP | $11,828,398 | – | – |
| Distributable Earnings per basic weighted average share, nine months 2026non-GAAP | $0.89 | – | – |
| Common stock dividend paid October 15, 2026 for Q3 2026, per common shareother | $0.30 | – | – |
| Common stock dividend paid October 15, 2026, total distributedother | $4.1M | – | – |
| Prorated cash dividend for October 1 through November 4, 2026, per common shareother | $0.09 | – | – |
| Dividends declared, nine months ended September 30, 2026, per shareother | $0.90 | – | – |
Capital returns
- On October 15, 2026, the Company paid a cash dividend of $0.30 per common share for Q3 2026, distributing $4.1 million in total.
- The release states the Q3 dividend of $0.30 per share was compared with Distributable Earnings of $0.24 per basic weighted average common share for the period.
- In connection with the Merger, SUNS paid a prorated cash dividend of $0.09 per common share covering October 1 through November 4, 2026, to stockholders of record as of November 2, 2026.
- The Company expects its Board to declare a dividend for November 5, 2026 through December 31, 2026, with the amount and record date to be announced in the ordinary course.
- For the first nine months of 2026, Distributable Earnings totaled $0.89 per basic weighted average share, compared with $0.90 per share of dividends declared over the same period.
What drove it
- The company states that Q3 2026 Distributable Earnings of $0.24 per share include approximately 6 cents per share of one-time merger-related expenses.
- Management states that the merger with Southern Realty Trust is expected to enhance competitiveness through improved access to back leverage and broader transaction sourcing, and to allow larger transactions. These are management's expectations as stated in the release.
Concerns
- Q3 2026 net income of $2,883,952 is below the prior-year quarter's $4,054,959 as printed in the reconciliation table.
- Q3 2026 Distributable Earnings per basic share of $0.24 is below the $0.31 printed for Q3 2025.
- The declared Q3 2026 dividend of $0.30 per share exceeds the quarter's Distributable Earnings of $0.24 per basic share, as the release itself states.
- Nine-month Distributable Earnings per basic share of $0.89 is below the $0.90 per share of dividends declared for the same period, as the release states.
- Nine-month GAAP net income of $10,213,327 is below the prior-year nine-month figure of $10,512,710.
What to watch
- Amount and record date of the dividend for November 5 through December 31, 2026, which the Board is expected to declare.
- Earnings from the merged platform now that the Southern Realty Trust merger closed on November 5, 2026, including the quarter's merger-related expenses trending toward the stated one-time level.
- Balance sheet, cash and debt detail in the Form 10-Q filed November 10, 2026, which was not part of this release.
- Quarterly conference call on November 11, 2026 at 10:00 a.m. Eastern Time, which the company describes as providing an update on the business.
- Whether Distributable Earnings per share returns toward the level of declared dividends, given Q3 2026 Distributable Earnings of $0.24 against a $0.30 dividend.
Balance sheet and cash flow
- The release prints no cash, debt, total assets, equity, operating cash flow or free cash flow figures.
- The Company filed its Form 10-Q for the quarter ended September 30, 2026 on November 10, 2026. That filing was not provided and is the source for balance sheet detail.
- The release states that the Merger with Southern Realty Trust Inc. was completed on November 5, 2026. The release describes the merger as giving the company access to attractive back leverage, which is the company's stated expectation and not a reported figure.
Analysis
Sunrise Realty Trust reported third-quarter 2026 GAAP net income of $2,883,952, or $0.21 per basic weighted average common share, and Distributable Earnings of $3,214,046, or $0.24 per basic share. The reconciliation table prints prior-year third-quarter figures of $4,054,959 for net income and $4,121,401 for Distributable Earnings ($0.31 per share). Both measures are therefore lower year over year on the printed figures. The release says the quarter's Distributable Earnings include approximately 6 cents per share of one-time merger-related expenses. The release does not quantify the effect on net income.
For the first nine months of 2026, GAAP net income was $10,213,327 against $10,512,710 a year earlier, and Distributable Earnings were $11,828,398 against $11,667,980. Distributable Earnings per basic share were $0.89 for the nine months, compared with $0.93 printed for the prior-year period. The release states that the nine-month figure of $0.89 compares with $0.90 per share of dividends declared over the same period.
On capital returns, the company paid a $0.30 per share dividend on October 15, 2026 for the third quarter, distributing $4.1 million. That dividend is above the quarter's $0.24 Distributable Earnings per share, a comparison the release makes explicitly. A prorated dividend of $0.09 per share covered October 1 through November 4, 2026, paid in connection with the merger. The Board is expected to declare a dividend for November 5 through December 31, 2026, with the amount and record date still to be announced.
The merger with Southern Realty Trust Inc. closed on November 5, 2026. Management describes the combined platform as larger and more efficient, with expected benefits in back leverage access and transaction sourcing. These are management's expectations and the release does not report post-merger results or any quantified synergy. The release gives no revenue, interest income, expense, balance sheet, cash flow or forward guidance figures, so the margin and leverage questions cannot be answered from this document. The Form 10-Q filed the same day would be the source for those items.
Overall, the reported figures show lower third-quarter and nine-month earnings than the prior year, a quarter that includes one-time merger expenses, and a declared dividend running ahead of quarterly Distributable Earnings per share. The merger's completion and the expected Q4 dividend are the main near-term items for readers to follow.
Management, verbatim
Completing our merger with Southern Realty Trust gives us a larger, more efficient platform, which we believe will enhance our competitiveness by improving our access to attractive back leverage and broadening our transaction sourcing. Our expanded capital base also allows us to pursue larger transactions while maintaining our focus on portfolio diversification. We head into 2027 with the balance sheet flexibility to be selective at a time when borrowers need structured capital.
Brian Sedrish, Chief Executive Officer of SUNS
Not in the filing
stated, not guessed- Total revenue, net interest income, interest income and interest expense for Q3 2026 and the prior-year comparison periods are not printed.
- Operating expense lines, including management fees, general and administrative expense, and provision lines outside the reconciliation, are not printed.
- Prior-year GAAP net income per basic share for Q3 2025 and nine-month periods is not printed.
- Year-over-year and quarter-over-quarter percentage changes are not printed for any metric.
- Dollar amount of the one-time merger-related expenses is not printed; the release gives only the approximate per-share figure of about 6 cents.
- Cash, total assets, debt, borrowings, shareholders' equity and book value per share are not printed.
- Operating cash flow and any cash flow statement figures are not printed.
- Forward guidance, prior outlook and analyst expectations are not provided; no guidance comparison is possible.
- Segment or geographic revenue breakdown is not printed.
- Amount and record date of the expected Q4 2026 dividend for November 5 through December 31, 2026 are not announced.
- Form 10-Q for the quarter ended September 30, 2026 was filed the same day but was not provided.
- Basic weighted average shares are reported in the reconciliation but are excluded from key metrics as share counts.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sunrise Realty Trust (NASDAQ: SUNS) is a commercial‑mortgage REIT focused on the Southern United States. The 8‑K reports its Q3 2026 results and recent merger completion.
Ticker impact
Q3 2026 GAAP net income of $2.9M and Distributable Earnings of $3.2M were disclosed in the 8‑K filing.
likely modest upside as investors price in earnings beat and dividend continuity
The release provides fresh profitability data and a cash dividend, which typically supports the stock, but the absolute amounts are small for a REIT.
Market effects
CRE lending sector may see slight confidence boost from a peer's earnings beat.
Southern U.S. real‑estate financing market receives a modest positive signal.
Limited to niche REIT investors; no broad market effect.
Counterpoint
The earnings beat may be muted by the small scale; price could stay flat or dip if investors focus on limited growth prospects.
Key entities
- companySunrise Realty Trust, Inc.
NASDAQ‑listed commercial mortgage REIT reporting Q3 2026 results.
- companySouthern Realty Trust, Inc.
Affiliated REIT merged with Sunrise Realty Trust.
