B.Riley Starts Sunrise Realty Trust (SUNS) at Buy

B.Riley analyst Randy Binner initiates coverage on Sunrise Realty Trust (NASDAQ: SUNS) with a Buy rating and a price target of $15.00.

The analyst comments: "SUNS is part of a new class of mREITs set up to capitalize on the increasing void being left by banks and other lenders. The current lending environment is helping SUNS achieve attractive spreads on its newer vintage originations. With its focus on Southeastern U.S. multifamily and hospitality properties, SUNS is generating a blended yield of 12%–14%. We estimate that SUNS's portfolio will likely grow to $297M at YE25 and $463M at YE26, leveraging the recent upsized equity offering and available debt capacity. SUNS's $1B+ pipeline and management's long-standing and differentiated partnerships on the origination and financing sides of the business should facilitate capital markets access, enabling the company to scale quickly. SUNS has no legacy assets in the portfolio to hinder performance and tie up capital deployment. Furthermore, we expect adding leverage to the model to enhance distributable EPS as SUNS moves toward a 1.5x debt leverage level by YE26E."

For an analyst ratings summary and ratings history on Sunrise Realty Trust click here. For more ratings news on Sunrise Realty Trust click here.

Shares of Sunrise Realty Trust closed at $11.47 yesterday.

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