Earnings call transcript: Sunrise Realty Trust Q1 2025 sees stable earnings

Sunrise Realty Trust reported its Q1 2025 earnings, highlighting stable distributable earnings and a consistent dividend. The company posted distributable earnings of $0.31 per share, with a net interest income of $4.6 million. With an impressive dividend yield of 11.73% and a P/E ratio of 11.1x, the company maintains a strong position in the commercial real estate lending market. InvestingPro analysis reveals the company’s robust liquidity position, with current assets exceeding short-term obligations.

Key Takeaways

• Distributable earnings reached $0.31 per share.
• The company declared a dividend of $0.30 per share.
• Stock price decreased by 1.95% post-earnings.
• Total assets were reported at $234.4 million.

Company Performance

Sunrise Realty Trust demonstrated stable performance in Q1 2025, with distributable earnings of $3.5 million and a GAAP net income of $3.1 million. The company’s focus on transitional commercial real estate, particularly in the southern U.S., remains a key driver of its business strategy. The company has made significant new loan commitments, totaling $168 million in the quarter.

Financial Highlights

• Distributable Earnings: $3.5 million
• Net Interest Income: $4.6 million
• GAAP Net Income: $3.1 million ($0.27 per share)
• Book Value: $13.77 per share
• Dividend: $0.30 per share
• Total Assets: $234.4 million
• Total Shareholder Equity: $184.8 million

Market Reaction

Following the earnings announcement, Sunrise Realty Trust’s stock experienced a 1.95% decline, closing at $10.03. According to InvestingPro data, the stock has seen a significant decline of 28.84% over the past six months, though current analysis suggests the stock is trading above its Fair Value. This movement comes amid a volatile commercial real estate market, influenced by broader economic uncertainties and sector-specific challenges. For comprehensive insights into stock valuations, investors can access detailed Pro Research Reports covering 1,400+ US equities on InvestingPro.

Outlook & Guidance

The company anticipates earnings growth in the latter half of 2025 and into 2026, with expectations for accelerated funding of construction loans over the next 6 to 18 months. InvestingPro analysts support this outlook, forecasting both sales and net income growth for the current year. Additional InvestingPro Tips highlight the company’s consistent profitability over the last twelve months and strong financial health metrics. Sunrise Realty Trust plans to raise unsecured capital in Q4 2025 and aims to expand its bank line to $200 million. The Q2 2025 dividend is expected to remain consistent at $0.30 per share.

Executive Commentary

CEO Brian Cedros stated, "We continue to believe that it is an ideal time to be on offense, selecting high quality assets." Executive Chairman Leonard Tanenbaum added, "We are excited about the potential earnings growth in the second half of twenty twenty five."

Risks and Challenges

• Volatility in commercial real estate lending markets may impact future loan performance.
• Potential market uncertainty due to tariff policies could affect asset valuations.
• Competition from other alternative lenders in the transitional real estate market.
• Economic conditions in key markets like Florida and Texas remain unpredictable.

Q&A

During the earnings call, analysts focused on the evolving loan pipeline and the company’s strategy to capitalize on opportunities arising from other lenders pulling back. Management emphasized their focus on maintaining robust capitalization and interest reserves, while also monitoring residential market absorption rates.

Full transcript - Sunrise Realty Trust Inc (SUNS) Q1 2025:

Kate, Conference Operator: Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sunrise Realty Trust Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer Thank you.

I would now like to turn the call over to Gabriel Katz, Chief Legal Officer. Please go ahead.

Gabriel Katz, Chief Legal Officer, Sunrise Realty Trust: Good morning, and thank you all for joining Sunrise Realty Trust earnings call for the quarter ended 03/31/2025. I’m joined this morning by Leonard Tanenbaum, our Executive Chairman Brian Cedros, our Chief Executive Officer and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information is included in our 04/15/2025 press release and is posted on the Investor Relations portion of our website at sunriserealtytrust.com along with our first quarter twenty twenty five earnings release and investor presentation. Today’s conference call includes forward looking statements and projections that reflect company’s current views with respect to, among other things, market developments, our investment pipeline, anticipated portfolio yield and financial performance and projections in 2025 and beyond.

These statements are subject to inherent uncertainties in predicting future results. Please refer to Sunrise Realty Trust’s most recent periodic filings with the SEC, including our quarterly report on Form 10 Q filed earlier this morning for certain conditions and significant factors that could cause actual results to differ materially from these forward looking statements and projections. During today’s conference call, management will refer to non GAAP financial measures, including distributable earnings. Please see our first quarter earnings release uploaded to our website for reconciliations of the non GAAP financial measures with the most directly comparable GAAP measures. The format for today’s call is as follows: Len will provide a general business and capital markets overview.

Next, Brian will cover our view on the state of the commercial real estate lending markets, discuss our existing portfolio and provide an outlook for our investment pipeline. Then Brandon will provide an update on our financial position. After that, we’ll open the lines for Q and A. With that, I will now turn the call over to our Executive Chairman, Leonard Tanenbaum. Thank you, Gabe.

Good morning and welcome to

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: our first quarter twenty twenty five earnings conference call. As we are getting closer to our one year anniversary of trading on the NASDAQ, I am pleased with all of the progress that SUNS has made. For the quarter ended 03/31/2025 SUNS generated distributable earnings of $0.31 per basic weighted average share of common stock, which was in the middle of the distributable earnings range that we preannounced on 04/22/2025. At the same time, SUNS preannounced that it expected book value per share to be $13.6 to $13.9 per share. As of 03/31/2025, book value per share came in the middle of that range at $13.77 a share.

As discussed last quarter, we provided guidance that our $0.30 dividend for the March would be on or close to our first and second quarter distributable earnings. The guidance we provided last quarter remains unchanged as it pertains to the second quarter. Looking ahead, we are excited for the potential earnings growth in the second half of twenty twenty five and the full year 2026, given that the construction loans in our current portfolio should accelerate funding over the next six to eighteen months. These loans were structured with attractive rates and floors, which should benefit our future earnings as they are funded. Lastly, I’m pleased to announce that we’ve now five analysts covering SUNS, up from one analyst in 2024.

We appreciate the added communication that our analyst community provides for investors in SUNS. I will now turn it over to Brian to discuss the market and our portfolio.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Thank you, Len, and good morning. We continue to remain excited about our current portfolio as well as the opportunity to continue providing credit to sponsors of transitional commercial real estate projects located within the Southern United States. Earlier in the year, banks reentered the market providing an additional supply of capital, yet that has recently changed given the overall market volatility. Banks have again pulled back and are focused on more liquid loans, which has allowed alternative lenders like SUNS to continue meeting borrowers’ transitional capital needs. We continue to believe that it is an ideal time to be on offense, selecting high quality assets located in growing markets and backed by highly qualified sponsors.

While the current administration’s tariff policy has introduced broad uncertainty across the real estate markets and particularly within the commercial real estate sector, after a thorough review of the construction loans within our existing portfolio, the team does not anticipate any material impacts to project budgets or timelines at this time. We will continue to monitor this as the administration’s policies evolve. More generally, the team does expect that new construction activity will be more limited in the near term as sponsors and their potential lenders re underwrite their budgets in order to account for potential cost volatility and supply chain disruptions stemming from the evolving trade environment. We expect that the continued uncertainty will create attractive opportunities to provide near term financing solutions as the financial markets remain volatile and many conventional lenders remain conservative in their approach to providing loans to borrowers of transitional real estate projects. Turning to our portfolio, during the quarter ended 03/31/2025, the TCG real estate platform originated $213,000,000 of loans, of which SUNS committed 148,000,000 and funded $110,000,000 of new and existing loans.

As of 03/31/2025, the SUNS portfolio had $352,000,000 of commitments with $233,000,000 funded. In the first quarter of twenty twenty five, Sun successfully closed on $168,000,000 of loan commitments, which include $20,000,000 additional commitment in an existing senior loan to Panther National in Palm Beach Garden, Florida 40 4 Million Dollars in a senior loan for Shell Plaza in New Orleans, Louisiana Thirty One Million Dollars in a senior loan for a residential asset in Aventura, Florida Dollars 40 7 Million in a senior loan for a residential asset in Dallas, Texas and $26,000,000 in a subordinate loan for a residential asset in Miami, Florida. Currently, the TCG real estate platform has two signed non binding term sheets in documentation totaling $100,000,000 and we expect SUNS to be allocated a portion of these investments. We believe that the Suns portfolio is well positioned from an interest rate perspective as 88% of our current portfolio’s outstanding principal is floating rate with a weighted average floor of 4.1%. Given the floors in place across our loan book, our credit line with an approximate floor of 2.6% presents a potential opportunity to expand SUNS’ net interest margin.

We expect that in the near to medium term, our portfolio composition will remain similar to our current composition, with an emphasis on well located residential and mixed use assets backed by experienced and well capitalized sponsors. Unlike most mortgage REITs, our portfolio consists entirely of new vintage assets. All loans are current and performing. We continue to remain bullish on the opportunity set in front of us and believe we have the team in place to execute on our strategy. TCG Real Estate’s eight person investment team has originators, underwriters as well as in house construction and portfolio management professionals, who all focus on curating and maintaining an attractive loan portfolio and generating strong risk adjusted returns for our investors.

With that, I will now turn the call over to Brandon Hetzel, our Chief Financial Officer. Thank you, Brian.

Brandon Hetzel, Chief Financial Officer, Sunrise Realty Trust: For the quarter ended 03/31/2025, we generated net interest income of $4,600,000 and distributable earnings of $3,500,000 or $0.31 per basic weighted average common share and had GAAP net income of $3,100,000 or $0.27 per basic weighted average common share. We believe that providing distributable earnings is helpful to shareholders in assessing the overall performance of SUNS business. Distributable earnings represents net income computed in accordance with GAAP, excluding non cash items such as stock compensation expense, unrealized gains or losses and the provision for current expected credit losses. For the quarter ended 03/31/2025, the Board of Directors declared a $0.30 dividend per share. The dividend was paid on 04/15/2025, to shareholders of record as of 03/31/2025.

We anticipate that the Board of Directors will declare the second quarter dividend on or about 06/15/2025. We ended the first quarter of twenty twenty five with $352,100,000 of current commitments and $233,400,000 of principal outstanding spread across 12 loans. As of 05/01/2025, our portfolio consisted of $352,100,000 of current commitments and $239,300,000 of principal outstanding across 12 loans, with a weighted average portfolio yield to maturity of 12.1%. I’d also like to note that as of 03/31/2025, our CECL reserve is approximately $158,000 or seven basis points for our loans at carrying value. As of 03/31/2025, we had total assets of $234,400,000 and our total shareholder equity was $184,800,000 or a book value of $13.77 per share.

With that, I will now turn it back over to the operator to start the Q and A.

Kate, Conference Operator: Your first question comes from the line of Gaurav Mehta with Alliance Global Partners. Your line is open.

Gaurav Mehta, Analyst, Alliance Global Partners: Thank you. Good morning. I wanted to ask you on your loan pipeline. I think in your presentation, you highlight $800,000,000 of active pipeline, which is different than $1,400,000,000 that was in the last presentation. Just wanted to get some more color on what changed in the pipeline and what you were seeing in the market?

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Sure. Yes. And thanks for the question. I mean, you know, the pipeline is always evolving. Deals come in and come out.

We’ve seen since then some more interesting deals that we think are more actionable. Other deals move to the sidelines. So it’s constantly evolving. But I think the overarching theme is that we see the pipeline being very strong right now. And the opportunity set for us is primarily as a result of what we are seeing is some lenders pulling back.

And I think that’s having basically a reinforcing effect, a knock on effect of existing owners of real estate seeing that they need to figure out a solution for their incumbent lenders to take them out. There’s just less of an interest to continue to kick the can down the road, if you will. So that’s just that’s created a bunch of opportunities for us. Obviously, as I said, they’re always coming in and out. Did announce, as you heard, we have two deals that are in nonbinding term sheet mode and we continue to pursue several others that we’re excited about.

Gaurav Mehta, Analyst, Alliance Global Partners: Okay. Second question I wanted to ask you was on the Dallas loan that you guys announced in March of twenty five. The rate on that loan seems to be lower than the overall yield for the portfolio. I just wanted to learn more about that project.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Yes, sure. So a couple of comments. One, that loan is in line with sort of how we think about portfolio construction. We’re going to go after some deals that have higher rates of return, some deals that we think, in this case, this particular deal is an existing multifamily asset cash flowing in Dallas, as you point out. We also have taken that deal down from a whole loan perspective and create the opportunity we expect to back lever that at some point in the future, likely, depending upon where the opportunity set as we see it.

So I think it keeps in line with our objective is still the same from a yield perspective overall portfolio wise, as we’ve indicated. But importantly, we’ll constantly throttle up and throttle down based upon certain opportunities that we see that are interesting that present really good risk adjusted returns. One other point I’ll just make is that on these types of deals, what we’re seeing is there’s a lot of lender activity to get attractive financing, deals that are near or at stabilization. So again, it goes back to my comment about the ability to back lever.

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: The other really interesting thing about this one, as Len Tanibom speaking, is that the floor on this loan is substantially higher than the floor on our credit lines. So there is an opportunity if interest rates decline to capture additional yield.

Gaurav Mehta, Analyst, Alliance Global Partners: Okay. And then lastly, are you guys expecting any more management fee waiver this year?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: So the total management fee waiver was $1,000,000 that we promised on the offering to help smooth the earnings and help with the earnings of the company. I think there’s some additional waiver into the second quarter. Brandon? There

Brandon Hetzel, Chief Financial Officer, Sunrise Realty Trust: is. You’ll see in footnote 12 of the Q, we waived 500 approximately $570,000 of base management fee and about $300,000 of incentive fee for the quarter.

Gaurav Mehta, Analyst, Alliance Global Partners: Okay. Thank you. That’s all I had.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Thank you very much.

Kate, Conference Operator: Your next question comes from the line of Randy Binner with B. Riley. Your line is open.

Randy Binner, Analyst, B. Riley: Hey there. Thanks. Yes, actually just a couple of clarification questions on the last set there from Gaurav. Just understood on the waiver of the management fee for the reported quarter here in the first quarter, but it goes back to its standard level for the second quarter and forward, correct?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: So we promised to waive $1,000,000 in fees. So far, we’ve waived 800,000 something?

Brandon Hetzel, Chief Financial Officer, Sunrise Realty Trust: Approximately 8 and $60,000

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: So you can expect us to fulfill our commitment on $1,000,000 We’d probably waive $140,000 the next quarter.

Randy Binner, Analyst, B. Riley: Understood. Thank you. And then on the Dallas, Texas residential loan that was discussed, I apologize if I missed it, but did you quantify what the floor was on that project?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: No, but is it in there?

Brandon Hetzel, Chief Financial Officer, Sunrise Realty Trust: Yes. In footnote three of the Q, you’ll see the floor for that loan is 3.9%.

Randy Binner, Analyst, B. Riley: Okay, thanks. We got a lot of earnings on it. I haven’t gotten through the Q, so I appreciate that.

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: I realize it was in there. Brandon’s pointing it out. The 3.9 is substantially higher than the 2.6 on our credit line. Got

Randy Binner, Analyst, B. Riley: it. Okay. Yeah, that is attractive. Understood. Is there any sounds like construction activity might slow down a little bit, is understandable.

But just geographies, you still liking where you are. Are there other areas that you would see expanding to? Or is there still plenty of opportunity in Florida and Texas? Mean, you have one in Louisiana, but is there kind of an expansion of the aperture on geography? Or are you still very comfortable in these states?

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Randy, it’s Brian. The answer is, we’re definitely still very comfortable within our target states. Clearly, there’s a lot of activity that remains in those states, and we’re seeing a good amount of deal flow from Florida and Texas. That being said, as we have said in past calls and we’re fully focused on is, as you say, opening the aperture and expanding the overall portfolio to some of our other target markets in the South. So as you know, we did a deal in Louisiana.

We are looking at a multitude of deals in Atlanta, in parts of the Carolinas, Virginia. So there’s definitely some other states that we’re spending a good deal of time on. I didn’t mention, but we certainly are spending time in Tennessee as well. Our focus is absolutely to increase that portfolio diversification. But that being said, I think we’ll continue to remain focused in Florida and Texas because that’s really where we’re seeing a tremendous amount of opportunities.

Randy Binner, Analyst, B. Riley: Okay. Thanks for that. That’s all I had. Appreciate it.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Thank you.

Kate, Conference Operator: Your next question comes from the line of Jade Rahmani with KBW. Your line is open.

Jade Rahmani, Analyst, KBW: Thank you very much. In terms of the residential housing market, we are seeing a good amount of softness post the tariff announcements and it’s causing some concerns. And Florida is one of the markets where supply is elevated. So, wanted to get your updated views on the Florida residential market And with respect to the existing construction projects, if there’s any risk you see in terms of the for sale condo projects?

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Sure. Thanks for the question. Hey, it’s Brian. So yes, we’re seeing the same things or reading about the same things. There was obviously just an article recently about the Miami market and the knock on effects potentially of tariffs.

Are right now within our existing book, sales that we’ve seen have been holding up relatively well. We are certainly focused on whether or not absorption is going to slow and monitoring that, of course. I think that any new deals that we’re looking at now, we are naturally extending out the absorption schedules and as a result, creating a more robust overall capitalization, carrying costs, interest reserves, etcetera, as we analyze whether those deals make sense or not. It’s likely going to mean that several deals are not going to make sense. And so we’re just being more cautious.

And again, the book right now and the deals we’re looking at, so far we’re seeing some good activity. That being said, it’s a little bit too early to see the overall effects just yet.

Jade Rahmani, Analyst, KBW: Okay. Thanks for that. So I think it’s wait and see, is what my overall takeaway. You’re not seeing any signs of weakness as yet, but it’s a bit early to make any judgment. In terms of capital, where things stand right now on leverage, which is very low, capital availability with respect to funding existing commitments and making new loans.

Can you touch on how you’re thinking about it? Any plans for the year? Things have become quite choppy in the capital markets, but they still are open. So I wanted to get your thoughts on that. Thank you.

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: Right now, there’s no we have enough capital to definitely execute on our business plan. First, from a relatively undrawn unsecured line of 75,000,000 Second, we fully expect the bank line, which is an accordion to $200,000,000 to fill out over the course of the next couple of quarters. And so and you should see those announcements. So we have plenty of availability to fund the business plan to continue to grow. So that’s the good news.

As I think I’ve telegraphed to the street and maybe I’ll do it again, my full our full intention is to do an unsecured raise in the fourth quarter of the year or September through the fourth quarter of the year through December. So we’ll see where the markets are. We’ll see where interest rates are. My hope is that we get a good one done. We saw FBRCs raise recently.

So we’re monitoring the market with our capital partners.

Jade Rahmani, Analyst, KBW: Thanks very much.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Thank you.

Kate, Conference Operator: Your next question comes from the line of Tyler Batory with Oppenheimer. Your line is open.

Tyler Batory, Analyst, Oppenheimer: Thanks. Good morning, everyone. So my first question, in the prepared remarks and then when you preannounced as well, you highlighted that TCG had signed two term sheets for $100,000,000 So can you just unpack a little bit more what might be allocated to SUNS? What factors go into that allocation decision? And then just the timeline in terms of getting that across the finish line?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: Great question. So TCG allocates it to SUNS to our private REIT SRT and to a side pocket should there be overflow from those two vehicles. And we don’t know yet what allocates to SUNS or SRT yet. We try to make those decisions on capital availability closer to the time the deal closes. Some of the reasons where we are out of control actually, it’s not in our control on one of these deals closing for example, is there conditions precedent for us to close deals.

Like we want certain things to happen before those deals are closed and those things have to happen and it’s not in our control for them to happen. One example could be they’re subject to a certain tax that has to come off the tax rolls so that the debt yield is higher. And that’s the case in one of them, for example. So not to go into super weeds in the details, but sometimes there’s conditions precedent to those loans. Same thing, by the way, with Jade’s former question, which I sort of missed on funding.

These residential loans and multifamily loans are constantly subject to rebalance. And these guys have come into balance with the new absorption schedules should absorption slow. We immediately pick up on it and ask them to fund additional equity to provide us cushion. But by the same token, we have a lot of construction loans and we’re not going to fund the construction loans, even dollar 1, unless we rebalance into whatever the current environment is. So for the unfunded construction loans, we’re going to take a look at them before we fund them and say, hey, where is the world and where is the absorption schedules and does the escrows and all of that account for that.

The other really great thing about real estate, which as a direct lending background, I didn’t fully appreciate, is these are personal guarantees and we make sure they have liquidity and balance sheet for these personal guarantees both on completion guarantees or funding guarantees, bad boy guarantees, etcetera. So this isn’t just the asset itself, guarantees behind the asset, sometimes LCs or letters of credit supporting that. So there’s a lot of cushion in the way Brian and team structures these deals that allows us to adjust depending on the market environment.

Tyler Batory, Analyst, Oppenheimer: Great detail. I appreciate that. Maybe more a housekeeping question on the debt side of things. In terms of the bank line, filling that out to $200,000,000 just talk a little bit more about timeline,

Randy Binner, Analyst, B. Riley: steps

Tyler Batory, Analyst, Oppenheimer: that need to be taken to get there. And then as you start to expand it, any possibility that the terms change as well?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: So the terms, we don’t expect the terms to change, right? We have an accordion up to $200,000,000 We expect the general terms of it to stay the same. There may be additional restrictions in debt leverage or stuff like that. As you add banks to things, they always want a couple more hooks. But the basic economic terms will stay the same, or we expect them to stay the same, I should say.

Look, it is a little bit slower than I would have thought I would have hoped on this call to say, okay, we have the following additional banks in the credit line. I’m not able to say that because that’s not true. But we do expect that to continue to happen. So hopefully, by next quarter’s call, we’re talking about the additional banks into the credit line and the expanded credit line for SUNS. Okay.

Tyler Batory, Analyst, Oppenheimer: Okay. And my last question is just on the dividend. I mean, still expecting Q2 to be pretty much in line with distributable EPS and kind of how you’re thinking about what’s the light payment level, if you will, for the rest of the year?

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: So two comments that we made. So I’ll just point to the two comments. One, we gave guidance similar to Q1 that Q2’s zero ’3 zero dollars dividend will be at or close to that level terms of earnings, at least that’s what our current expectation is. And then the one really interesting thing that I think I said was I’m really excited about the next six to eighteen months of funding these construction loans which will give us some earnings power into the second half of the year and into next year.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Just clarify what I said to Just to

Brandon Hetzel, Chief Financial Officer, Sunrise Realty Trust: clarify that, the Q2 earnings will be at or around the Q1 dividend of $0.30 The Board of Directors will declare the Q2 dividend on or around June 15.

Leonard Tanenbaum, Executive Chairman, Sunrise Realty Trust: That’s correct. Okay.

Tyler Batory, Analyst, Oppenheimer: All right. That makes sense. Okay. That’s all for me. Thank you.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Thank you.

Kate, Conference Operator: This concludes our question and answer session. I would like to turn the conference back over to CEO, Brian Sedrish for closing remarks.

Brian Cedros, Chief Executive Officer, Sunrise Realty Trust: Great. Well, thank you, operator, and thank you all for joining us today. We are excited about the opportunities ahead, and we look forward to sharing our progress with you over the coming quarters. Have a good day. Take care.

Kate, Conference Operator: Ladies and gentlemen, that concludes today’s call. You can now disconnect. Thank you and have a great day.

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