Seven Hills Realty Trust (SEVN) Investor presentation summary

Business overview and strategy

• Focuses on originating and investing in floating-rate first mortgage loans secured by middle market transitional commercial real estate, with a portfolio diversified by geography, sponsor, and property type.

• Emphasizes visible cash flow, moderate LTV, and disciplined credit selection, with a conservative average risk rating of 2.8 and no realized losses.

• Managed by Tremont Realty Capital, integrated with the RMR platform, benefiting from deep industry experience and a nationwide network.

• Maintains strong alignment with shareholders through ~20% management ownership.

Portfolio performance and financial highlights

• As of June 1, 2026, total loan commitments reached $747M across 26 floating-rate loans, with a weighted average all-in yield of 7.8% and LTV of 67%.

• Generated distributable earnings of $0.24 per diluted share in Q1 2026 and declared a $0.28 per share quarterly distribution.

• Portfolio remains fully performing, with no losses and a strong liquidity position: $56.6M cash and $397.5M available capacity.

• Recent loan originations achieved the highest net interest margins in four years, reflecting improved transaction conditions.

Market opportunity and growth drivers

• Targets the underserved middle market, where 85% of CRE asset sales are in the $15M–$100M range, and regional banks are reducing exposure.

• Faces a large near-term opportunity with ~$3T of CRE debt maturing over the next five years, including $1.2T in multifamily.

• Alternative lenders are gaining market share as demand for flexible CRE debt capital remains strong amid banking sector retrenchment.