Seven Hills Realty Trust (SEVN) Q4 2025 earnings summary

Executive summary

• Fourth quarter distributable earnings reached $4.6 million ($0.28 per share), fully covering the quarterly distribution, with net income of $4.8 million ($0.29 per share) and a fully performing loan portfolio.

• Rights offering in December raised $61.5 million to $65.2 million, increasing investment capacity by over $200 million and resulting in the issuance of 7.5 million new shares.

• Three new loans totaling $101.3 million were added in Q4, spanning student housing, hotel, and industrial property, with an additional $30.5 million loan originated post quarter-end.

• Entered Q1 2026 with significant available capacity, a robust pipeline, and applications for three loans totaling $59.7 million expected to close.

• Announced Q4 and full-year 2025 results, with a conference call scheduled for February 19, 2026.

Financial highlights

• Distributable earnings for Q4 were $4.6 million ($0.28 per share), with $0.03 dilution from the rights offering; net income was $4.8 million ($0.29 per share).

• Adjusted distributable earnings would have been $0.31 per share, at the high end of guidance.

• Full-year 2025 distributable earnings totaled $1.21 per share.

• Quarterly dividend declared at $0.28 per share, annualized yield of ~14%, with a 100% payout ratio.

• Book value per share at quarter-end was $14.55; adjusted book value per share was $14.96.

Outlook and guidance

• Q1 2026 distributable earnings expected in the range of $0.22–$0.24 per share, reflecting temporary dilution from the rights offering.

• Incremental earnings from new investments and loan repayments expected to offset higher share count by year-end.

• Committed to maintaining the $0.28 per quarter dividend through at least the end of 2026.

• Targeting a total loan portfolio size of close to $1 billion by year-end 2026, driven by new originations and repayments.

• Increased capital from the rights offering positions the company to capitalize on a robust pipeline of attractive, risk-adjusted lending opportunities.