Seven Hills Realty Trust · NASDAQ:SEVN
Seven Hills Realty Trust — Q4 2024 Earnings Presentation
21 slides from Seven Hills Realty Trust's earnings presentation, Feb 18, 2025
Slide 1: Fourth Quarter 2024 Financial Results
Seven Hills Realty Trust Fourth Quarter 2024 Financial Results
Slide 2: Seven Hills Realty Trust Announces Fourth Quarter 2024 Results
Seven Hills Realty Trust Announces Fourth Quarter 2024 Results “For the fourth quarter, Seven Hills Newton, MA (February 18, 2025). Seven Hills Realty Trust (Nasdaq: SEVN) today announced financial results for the quarter and year ended December 31, 2024. reported distributable earnings per share of
Slide 3: Company Snapshot
Company Snapshot (As of December 31, 2024, unless otherwise noted) Strong Loan Portfolio Conservative Leverage Integrated with RMR Real Estate Platform $641 million 1.6x 11% Floating rate Debt to equity ratio Ownership of SEVN first mortgage loan commitments $31 million $740 million ~$40 billion Ave
Slide 4: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights (As of and for the three months ended December 31, 2024, unless otherwise noted) • Generated net income of $4.9 million, or $0.33 per diluted share, and Distributable Earnings of $4.9 million, or $0.33 per diluted Financial share. Results • Quarterly distribution of $0
Slide 5: Fourth Quarter 2024 Financial Summary
Fourth Quarter 2024 Financial Summary (amounts in thousands, except per share data) Income Statement Balance Sheet Three Months Ended December 31, 2024 December 31, 2024 Income from loan investments, net $ 7,112 Loans held for investment, net $ 601,842 Revenue from real estate owned 563 Real estate
Slide 6: Loan Portfolio Summary
Loan Portfolio Summary As of Fourth Quarter December 31, (dollars in thousands) Originations 2024 Number of loans 2 21 Fourth Quarter 2024 Loan Portfolio Activity Average loan commitment $43,500 $30,534 (dollars in millions) Total loan commitments $87,000 $641,213 $5.2 $641.2 (1) Total Loan Commitme
Slide 7: Loan Portfolio Originations and Diversity
Loan Portfolio Originations and Diversity Geographic Region (1) Loan Originations by Quarter (dollars in millions) Midwest 22% South 32% $87.0 Total Loan Commitments $5.2 Unfunded Commitments East 23% West $54.3 23% $- (1) $44.8 Property Type Retail $37.5 $3.2 $41.6 $- $81.8 Principal Balance Retail
Slide 8: Loan Portfolio Credit Quality
Loan Portfolio Credit Quality Loan to Value (1) % of Portfolio Weighted Average LTV: 67% 31% 23% 16% 18% 12% 30% - 60% 61% - 65% 66% - 70% 71% - 75% 76% - 80% Loan Count 5 2 4 7 3 Risk Rating Distribution (1) % of Portfolio Weighted Average Risk Rating: 3.1 58% 24% 18% —% —% Lower Risk (1) Average R
Slide 9: Office Loans
Office Loans (1) • No office loans in urban or CBD markets in our portfolio. • As of December 31, 2024, all of our borrowers had paid their debt service obligations owed and due to us. Total Loan Portfolio Office Risk Rating Distribution Office Risk Rating Risk Rating 3 $23.5 million principal balan
Slide 10: Secured Financing Facilities
Secured Financing Facilities (As of December 31, 2024) Total/Weighted UBS (1) Citibank BMO Wells Fargo (2) Average (dollars in thousands) Maximum facility size $ 250,000 $ 215,000 $ 150,000 $ 125,000 $ 740,000 Principal balance $ 181,989 $ 93,314 $ 103,855 $ 40,464 $ 419,622 Unused capacity $ 68,011
Slide 11: Appendix
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Slide 12: Company Profile, Governance and Research Coverage
Company Profile, Governance and Research Coverage Management Equity Research Coverage Our manager, Tremont, is registered with the Securities and Exchange Commission, or SEC, as an JMP Securities Janney Montgomery Scott investment adviser and is owned by RMR. As of December 31, 2024, RMR had over $4
Slide 13: Loan Investment Details
Loan Investment Details (dollars in thousands) First mortgage loans as of December 31, 2024: Committed Maximum Origination Principal Principal Coupon All in Maturity Maturity Risk # Location Property Type Date Amount Balance Rate Yield Date Date LTV Rating 1 Olmsted Falls, OH (1) Multifamily 01/28/2
Slide 14: Loan Investment Details (Continued)
Loan Investment Details (Continued) (dollars in thousands) First mortgage loans as of December 31, 2024: Committed Maximum Origination Principal Principal Coupon All in Maturity Maturity Risk # Location Property Type Date Amount Balance Rate Yield Date Date LTV Rating 14 Carlsbad, CA Office 10/27/20
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity (As of December 31, 2024) Annualized Impact to Net Interest Income per Share $0.20 $0.15 $0.13 $0.10 $0.10 $0.07 $0.05 $0.04 $— $0.00 $(0.02) $-0.05 $(0.04) $(0.07) $(0.06) $-0.10 $-0.15 $-0.20 -100 bps -75 bps -50 bps -25 bps 0 bps +25 bps +50 bps +75 bps +100 bps Interest
Slide 16: Financial Summary: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands, except per share data) December 31, December 31, 2024 2023 ASSETS Cash and cash equivalents $ 70,750 $ 87,855 Loans held for investment 609,916 626,462 Allowance for credit losses (8,074) (4,376) Loans held for investment, net 601,842 622,086 Real e
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 INCOME FROM INVESTMENTS: Interest and related income $ 13,948 $ 17,523 $ 62,415 $ 66,337 Purchase discount accretion — 821 2,347 4,128 Less:
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures (amounts in thousands, except per share data) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Net income $ 4,879 $ 3,479 $ 4,229 $ 5,233 $ 6,045 Non-cash equity compensation expense 159 367 497 336 151 Non-cash accret
Slide 19: Non-GAAP Financial Measures (Continued)
Non-GAAP Financial Measures (Continued) We present Distributable Earnings, Distributable Earnings per common share and Adjusted Book Value per common share, which are considered “non-GAAP financial measures” within the meaning of the applicable SEC rules. These non-GAAP financial measures do not rep
Slide 20: Other Measures and Definitions
Other Measures and Definitions All In Yield: All In Yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. BMO Facility: Amounts advanced under the facility loan agreement and security agreement w
Slide 21: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These statements include words such as “believe”, "could", “expect”, “a
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