Sunrise Realty Trust, Inc. · NASDAQ:SUNS
Sunrise Realty Trust — Investor Presentation (July 2024)
21 slides from Sunrise Realty Trust's investor presentation, Jul 9, 2024
Slide 1: Investor Presentation: Financial Solutions for Commercial Real Estate
Powered by Knowledge and Experience Investor Presentation NASDAQ: SUNS July 2024 Financial Solutions for Commercial Real Estate
Slide 2: Legal Disclaimers
2 A TCG Company Legal Disclaimers Forward Looking Statements Some of the statements contained in this presentation constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and we intend such statements to be covered by the safe harbor provisi
Slide 3: Table of Contents
3 Table of Contents 4Company Overview 5Investment Highlights 6Team 7-9Market Opportunity 10-12Investment Process 13Key Takeaways 15-20Closed Deals
Slide 4: Introducing Sunrise Realty Trust
4 A TCG Company Introducing Sunrise Realty Trust Sunrise Realty Trust (NASDAQ: SUNS) is an institutional lender that originates and funds loans to commercial real estate projects in the Southern United States SUNS seeks to target loans with transaction-level investment gross returns in the mid-t
Slide 5: Investment Highlights
5 A TCG Company Investment Highlights Lenders entering U.S. markets with capital to deploy are well-positioned, as legacy lenders with troubled assets face liquidity constraints with limited capacity to finance transitional business plans Over $2 trillion in CRE loans maturing by end of 2026 cre
Slide 6: Management Team with Demonstrated Track-Record
6 A TCG Company Management Team with Demonstrated Track-Record Founder, CEO of Fifth Street prior to its 2017 sale to Oaktree Co-Founder of AFC Gamma, Inc. (NASDAQ: AFCG) Founded Tannenbaum Capital Group, a sponsor to alternative lenders focused on CRE and direct lending Former portfolio man
Slide 7: Broad Economic Drivers: Right Time, Right Place
7 A TCG Company Broad Economic Drivers Population & Employment Migration Right Time, Right Place Why CRE Debt Today Rising Rates & Inflation Portfolio Issues Growth Across Diverse SectorsRegulatory Forces Low Existing Supply of CRERegional Bank Failures COVID accelerated pre-existing population and
Slide 8: Changes in Capital Stacks Present an Opportunity
8 A TCG Company Changes in Capital Stacks Present an Opportunity(1) Common Capital Structure in 2019 Due to the Fed’s rate increases and regional banks pulling back from the market, pricing for the types of deals that SUNS intends to focus on has gone up, while the attachment and detachment LTCs hav
Slide 9: Demographic Shifts Favor The Southern U.S.
9 A TCG Company Demographic Shifts Favor The Southern U.S. M A R K E T O P P O R T U N I T YS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N Select Southern Cities Outpacing on Employment Growth(1) Strong Population & Employment Growth(1) Migration trends are driving bot
Slide 10: Evolution of a SUNS Investment
10 A TCG Company Evolution of a SUNS Investment Continuous communication across the company from deal sourcing through portfolio management Sourcing & Origination Loan Selection & Underwriting Portfolio Management Structuring & Closing Maintains a direct origination platform, which works to create
Slide 11: Highly-Selective Investment Process
11 A TCG Company Sponsor Market Business Plan Transaction Highly-Selective Investment Process(1) Sunrise Realty Trust takes a patient approach to investing, targeting opportunities with clear potential for value creation that meet a defined set of investment criteria Supply constrained markets with
Slide 12: Robust Direct Origination Platform
12 A TCG Company Robust Direct Origination Platform I N V E S T M E N T P R O C E S S 1. Represents deals from 10/1/2023 to 7/1/2024 sourced by members of SUNS’ investment team on behalf of SUNS or on behalf of an entity managed by a manager affiliated with SUNS’ sponsor as of 7/1/2024. 2. Represent
Slide 13: Strategy Meets Opportunity – Key Approaches
13 A TCG Company Strategy Meets Opportunity – Key Approaches Right Time, Place and Team To Execute SUNS’ Investment Strategy Two Converging Trends Have Created a Unique Market Opportunity Sunrise Realty Trust is Well Suited to Capitalize on Both Trends Seeking Equity-Like Returns for Debt-Like Risk
Slide 14: Appendix
Se Appendix 14
Slide 15: Deal #1: The Allen
15 A TCG Company Deal #1: The Allen C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Actual UPB is less than face value as residential condo closings are actively paying down the loan balances in pari passu arrangement. Current Senior UPB is $29.1
Slide 16: Deal #1: The Allen (Cont.)
16 A TCG Company Deal #1: The Allen (Cont.) C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Actual UPB is less than face value as residential condo closings are actively paying down the loan balances in pari passu arrangement. Current Senior UPB
Slide 17: Deal #2: Aster & Links
17 A TCG Company Deal #2: Aster & Links C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Aggregate subordinate loan size is $56.38 million, of which $28.19 million is funded by SUNS and the remaining by a co-investor affiliate. ASTER & LINKS HIGHL
Slide 18: Deal #2: Aster & Links (Cont.)
18 A TCG Company Deal #2: Aster & Links (Cont.) C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Aggregate subordinate loan size is $56.38 million, of which 50% or $28.19 million has been committed by a co-investor affiliate and 50% or $28.19 mill
Slide 19: Deal #3: Jovie Belterra
19 A TCG Company Deal #3: Jovie Belterra C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Aggregate Note size is $35.2 million, of which $14.1 million is committed by SUNS and the remaining by a co-investor affiliate. 2. Minimum Multiple is not a
Slide 20: Deal #3: Jovie Belterra (Cont.)
20 A TCG Company Deal #3: Jovie Belterra (Cont.) C L O S E D D E A L SS U N R I S E R E A L T Y T R U S T | I N V E S T O R P R E S E N T A T I O N 1. Aggregate Note size is $35.2 million, of which $14.1 million is committed by SUNS and the remaining by a co-investor affiliate. 2. Minimum Multiple i
Slide 21: Contact Us
Contact Us ir@sunriserealtytrust.com www.sunriserealtytrust.com
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