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Seven Hills Realty Trust (SEVN) investor relations material
Seven Hills Realty Trust Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Delivered strong Q3 2025 results with distributable earnings of $4.2 million ($0.29 per share), at the high end of guidance, and net income of $3.4 million ($0.23 per share).
Declared a regular quarterly dividend of $0.28 per share, totaling approximately $4.2 million and equating to an 11% annualized yield.
Portfolio remains fully performing with all loans current on debt service and no non-accrual balances as of September 30, 2025.
Focused on originating and investing in floating rate first mortgage loans secured by middle market transitional commercial real estate, diversified by property type and region.
Five loans, representing 23% of the portfolio, were rated as higher risk, but none were rated as loss likely.
Financial highlights
Net income for Q3 2025 was $3.4 million ($0.23 per share), flat year-over-year and up 28% sequentially; distributable earnings were $4.2 million ($0.29 per share).
Book value per share was $17.68; adjusted book value per share was $18.33 as of September 30, 2025.
Cash on hand was $77.5 million, with $309.6 million in unused financing capacity.
Revenue for Q3 2025 was $7.1 million, down 20% year-over-year and 4% sequentially.
Quarterly distributable earnings payout ratio was 97%.
Outlook and guidance
Management expects continued demand for CRE debt, with potential for increased liquidity and transaction volume into 2026 as investors anticipate further interest rate reductions.
Expect fourth-quarter distributable earnings of $0.29–$0.31 per share.
Regular quarterly distributions are expected to continue, with $0.28 per share declared for Q4 2025.
Anticipate increased transaction activity and borrower engagement as rates decline and further cuts are expected.
SOFR floors becoming active will help offset declining rates.
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