Denison Mines announces $250 million convertible notes offering
On Friday, Keefe, Bruyette & Woods maintained their Outperform rating and a $12.75 price target for Sunrise Realty Trust (NASDAQ:SUNS). The firm’s analysis followed Sunrise Realty Trust’s release of its fourth-quarter earnings, which showed a GAAP EPS of $0.27, slightly below Keefe, Bruyette & Woods’ expectation of $0.28. Distributable earnings (DE) matched the firm’s forecast at $0.30.
Sunrise Realty Trust reported loan originations of $75 million in the fourth quarter, with $35 million funded as of March 1, 2025. The company has continued its lending activities post-quarter-end, with originations totaling $74.8 million and $29.3 million funded as of the same date. Additionally, the company’s book value per share (BVPS) was reported at $13.93 following a first-quarter equity offering that generated $72.6 million in net proceeds, narrowly missing the firm’s projection of $13.96. With a price-to-book ratio of 1.24x, the stock trades at a modest premium to its book value. Get deeper insights into SUNS’s valuation metrics and more with InvestingPro, which offers comprehensive analysis through its Pro Research Reports.
The dividend for Sunrise Realty Trust was set at $0.30 per quarter, which is lower than Keefe, Bruyette & Woods’ estimated $0.35. This adjustment reflects the dilutive impact of the recent equity offering. Despite this, the firm remains optimistic about Sunrise Realty Trust’s investment strategy and credit profile. The analysts anticipate that earnings and dividends will follow an upward trend in alignment with the company’s loan origination activities.
The research firm acknowledged that the stock might show mixed reactions due to the reset dividend. However, they had anticipated a dividend reduction and still foresee a positive path for earnings and dividends in line with loan originations.
In other recent news, Sunrise Realty Trust Inc. reported its fourth-quarter 2024 earnings, exceeding Wall Street expectations with an earnings per share (EPS) of $0.27. The company also reported a revenue of $3.4 million, consistent with its net interest income. Sunrise Realty Trust successfully completed a $77 million equity raise in January 2025, further strengthening its financial position. The company plans to maintain a dividend of $0.30 per share for the first quarter of 2025. Analysts have noted the company’s strategic focus on expanding its commercial real estate lending in the Southern United States, particularly in Florida and Texas, with 85% of loans being floating-rate. Sunrise Realty Trust’s portfolio is heavily concentrated in these regions, and the company remains optimistic about future opportunities in the market. Despite the positive earnings report, the company’s stock experienced a minor decrease of 0.25% in pre-market trading. The company is targeting a capital structure of 40% equity and 60% debt, with potential plans for an unsecured debt raise.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.