Sunrise Realty Trust prices upsized public offering at $12 a share

WEST PALM BEACH, Fla. - Sunrise Realty Trust , Inc. (NASDAQ:SUNS), a commercial real estate lender with a market capitalization of $83.45 million, has announced the pricing of its upsized public offering of common stock. The offering, dated January 27, 2025, includes 5,750,000 shares at $12.00 per share, slightly below its current trading price of $12.05, with potential gross proceeds of roughly $69 million before fees and expenses. The company has also provided underwriters a 30-day option to buy an additional 862,500 shares. According to InvestingPro, SUNS offers a substantial dividend yield of 13.94%, making it an interesting option for income-focused investors.

The net proceeds are intended for funding loans, originating new commercial loans in line with the company's investment strategy, and general corporate purposes, including debt repayment. The offering is expected to close on January 29, 2025, subject to customary closing conditions, with 1,000,000 shares being sold to an affiliated investor. InvestingPro analysis indicates the stock has experienced mixed performance, with a -14.42% YTD return but a positive 14.44% return over the past year. Subscribers can access additional financial health metrics and detailed analysis.

Joint book-running managers for the offering include Raymond (NSE:RYMD) James & Associates, Inc., Keefe, Bruyette & Woods, Inc., and Oppenheimer & Co. Inc., with B. Riley Securities, Inc. and A.G.P./Alliance Global Partners (NYSE:GLP) as co-lead managers. Seaport Global Securities LLC and East West Markets LLC are serving as co-managers.

The offering is made through a prospectus, a part of the company's registration statement filed with the SEC and effective on January 27, 2025. Copies of the final prospectus can be obtained from the SEC's website or directly from the managing firms.

Sunrise Realty Trust focuses on providing financing solutions to commercial real estate projects in the Southern U.S., targeting transitional commercial real estate with near-term value creation potential. With analyst price targets ranging from $16.00 to $17.50 per share and the next earnings report scheduled for February 26, 2025, investors seeking detailed analysis can access comprehensive metrics and additional ProTips through InvestingPro.

The press release includes forward-looking statements regarding the anticipated completion of the offering and the use of proceeds. However, these statements are subject to market conditions and customary closing conditions. The company cautions that actual results could differ due to various factors, including those outlined in the "Risk Factors" section of the registration statement and final prospectus.

This article is based on a press release statement from Sunrise Realty Trust, Inc.

In other recent news, Sunrise Realty Trust, Inc. has been active with significant financial moves. The commercial real estate lender recently announced the launch of a public offering of 5.5 million shares of its common stock, with an option for underwriters to purchase up to an additional 825,000 shares. The company's intention is to use the proceeds from the offering to fund loans for existing unfunded commitments, originate and participate in commercial loans, and for general corporate purposes. The offering is being managed by Raymond James & Associates, Inc., Keefe, Bruyette & Woods, Inc., BTIG, LLC, and Oppenheimer & Co. Inc.

In addition to the stock offering, Sunrise Realty Trust secured a $75 million unsecured revolving credit facility through a new agreement with SRT Finance LLC. This agreement provides the company with flexible capital for their operations, allowing them to borrow, repay, and re-borrow funds at an 8% annual interest rate. The credit line is set to mature on May 31, 2028. From January 1, 2026, the company will be obligated to pay an annual fee of 1% of the aggregate commitments to the lenders.

These recent developments are part of Sunrise Realty Trust's ongoing efforts to manage its capital structure and support its growth initiatives. The company maintains a strong financial health score and a current ratio exceeding 3,000, indicating robust financial health.

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