Seven Hills Realty Trust (SEVN) Q1 2026 earnings summary

Executive summary

• Distributable earnings for Q1 2026 reached $5.3 million or $0.24 per share, at the high end of guidance, with net income of $4.4 million ($0.19 per share), reflecting strong loan portfolio performance and disciplined underwriting.

• Portfolio grew to a record $776 million in commitments, with three new loans totaling $67.5 million originated during the quarter.

• No realized credit losses or nonaccrual loans; all borrowers current on debt service, with a weighted average risk rating of 2.8.

• Quarterly distribution of $0.28 per share declared, totaling $6.3 million.

• Announced Q1 2026 results and scheduled a conference call for April 29, 2026.

Financial highlights

• Net income for Q1 2026 was $4.4 million; distributable earnings were $5.3 million or $0.24 per share.

• Book value per share was $14.47; adjusted book value per share was $14.90 as of March 31, 2026.

• Net interest margin on new originations reached 1.95%, the highest in four years.

• Cash and cash equivalents were $56.6 million, with $397.5 million in unused financing capacity.

• Quarterly distributable earnings payout ratio was 117%.

Outlook and guidance

• Second quarter distributable earnings expected in the range of $0.23–$0.25 per share.

• Portfolio size targeted to reach ~$950 million by year-end, implying ~$200 million in net portfolio growth for 2026.

• Management expects sufficient liquidity to meet obligations and fund distributions for the next 12 months.

• Anticipates $100–$300 million in originations over the next two quarters, with continued selective capital deployment.

• Recent extensions of financing facilities position the company to capitalize on a robust pipeline.