Spin-off - Sunrise Realty Trust, Inc.

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Form Type: 10-Q

Filing Date: 2025-05-07

Corporate Action: Spin-off

Type: Update

Accession Number: 000201270625000020

Filing Summary: This document is the quarterly report for Sunrise Realty Trust, Inc. for the period ending March 31, 2025. It details the company’s financial performance, including a net income of $3,099,437 and earnings per share of $0.27. It also highlights the company's operation as an institutional lender focusing on commercial real estate debt capital solutions. Importantly, the report reflects the aftermath of the spin-off from Advanced Flower Capital Inc., which was completed on July 9, 2024. The spin-off involved the transfer of AFC's CRE portfolio to SUNS and the issuance of common stock to AFC shareholders based on their holdings. The financial statements demonstrate a significant increase in assets and equity as of March 31, 2025, and outline the liabilities recorded, particularly noting the dividends payable of $4,026,448. SUNS is transitioning to operate as a REIT, aiming for compliance with federal tax requirements. The report includes comprehensive financial statements, management’s discussion, and further disclosures regarding market risk, legal proceedings, and business operations.

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Additional details:

Member Units Member: Loans held for investment


Net Income: 3,099,437


Dividends Payable: 4,026,448


Common Stock Outstanding: 13,421,494


Total Assets: 234,442,565


Total Liabilities: 49,634,467


Shareholders Equity: 184,808,098


Form Type: SCHEDULE 13D/A

Filing Date: 2025-03-20

Corporate Action: Spin-off

Type: Update

Accession Number: 000182912625001939

Filing Summary: This is Amendment No. 2 to Schedule 13D, which amends the previous filings relevant to Leonard M. Tannenbaum's holdings in Sunrise Realty Trust, Inc. It reflects an adjustment of shares held, specifically noting the Reporting Person received 1,260,763 shares of Common Stock during the spin-off from Advanced Flower Capital Inc. on July 9, 2024. The document details various transactions involving the purchase of Common Stock by the Reporting Person and the Tannenbaum Family Foundation, stating the vesting conditions of restricted stocks associated with the spin-off. Current holdings for the Reporting Person are clarified, including shares held directly and indirectly through trusts and foundations, along with disclaimers of beneficial ownership for certain shares. It also outlines the number of shares outstanding as of March 1, 2025, reporting a total of 13,421,494 shares.

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Additional details:

Common Stock Shares: 2623803


Restricted Stock Shares: 91238


Spin Off Date: 2024-07-09


Spin Off Company: Advanced Flower Capital Inc.


Total Shares Outstanding: 13421494


Form Type: DRS

Filing Date: 2024-11-20

Corporate Action: Spin-off

Type: New

Accession Number: 000162827924000381

Filing Summary: Sunrise Realty Trust, Inc. has filed a draft registration statement related to a proposed offering of its common stock, following its recent spin-off from Advanced Flower Capital Inc. (formerly AFC Gamma, Inc.). This separation occurred on July 8, 2024, where Sunrise Realty seamlessly transitioned into an independent, publicly-traded entity listed on Nasdaq under the symbol 'SUNS'. The company is focusing on raising capital through this offering to finance transitional commercial real estate projects primarily located in the Southern U.S. With an emphasis on creating a diversified portfolio of commercial real estate loans, Sunrise Realty plans to target investments in senior mortgage loans and other debt securities, as they aim to qualify as a Real Estate Investment Trust (REIT) by the end of the taxable year 2024. Additionally, the firm is externally managed by Sunrise Manager LLC, and its leadership structure is outlined, with significant ownership concentrated in key personnel. The document highlights a robust pipeline of potential deals estimated at $1.2 billion, indicating healthy prospects for the company's strategic investment objectives. Risk factors surrounding their operations are also mentioned, emphasizing the challenges faced due to limited historical operating data and prevailing economic conditions.

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Additional details:

Name Of Registrant: Sunrise Realty Trust, Inc.


Address Of Registrant: 525 Okeechobee Blvd., Suite 1650, West Palm Beach, FL 33401


Agent For Service: Brian Sedrish


Contact Number: (561) 530-3315


External Manager: Sunrise Manager LLC


Expected Reit Status: To qualify as a REIT for taxable year ending December 31, 2024


Target Investment Range: $15 million to $250 million


Outstanding Portfolio: Approximately $97.5 million


Potential Pipeline Commitments: Approximately $1.2 billion


Shares Offered: Common Stock under symbol 'SUNS'


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