Seven Hills Realty Trust (SEVN) Q2 2026 earnings summary

Executive summary

• Distributable earnings for Q2 2026 were $5.1 million ($0.23 per share), at the low end of guidance due to delayed loan closings.

• Net loss for Q2 2026 was $0.9 million, or $0.04 per diluted share, driven by higher credit loss provisions.

• Three new loans totaling $75 million were originated, with an additional $24.3 million loan closed after quarter-end, growing the portfolio to $790 million.

• Portfolio performance remains strong with no realized losses, all borrowers current on debt service, and a risk rating of 2.9.

• Ended the quarter with $70 million in cash and $393 million to $400 million in unused financing capacity.

Financial highlights

• Distributable earnings of $5.1 million ($0.23/share), impacted by delayed loan closings.

• Net loss of $0.9 million for Q2 2026, compared to net income of $2.7 million in Q2 2025.

• Quarterly dividend declared at $0.28/share, annualized yield of ~14%, payout ratio of 122%.

• Book value per share at $14.15; adjusted book value per share at $14.79.

• Net interest margins on 2026 originations reached 1.86%, the highest in four years.

Outlook and guidance

• Third quarter distributable earnings expected in the range of $0.23-$0.25 per share.

• Portfolio targeted to reach $950-$960 million by year-end, with most growth expected in late Q3 and Q4.

• Dividend level of $0.28/share expected to be maintained through 2026.

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

• Focus remains on deploying capital into new lending opportunities while maintaining disciplined underwriting.