Seven Hills Realty Trust · NASDAQ:SEVN
Seven Hills Realty Trust — Investor Presentation (June 2025)
27 slides from Seven Hills Realty Trust's investor presentation, Jun 2, 2025
Slide 1: June 2025 Investor Presentation
June 2025 INVESTOR PRESENTATION
Slide 2: Forward-looking statements
2 SEVEN HILLS REALTY TRUST 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. Whenever Seven Hills Realty Trust, or SEVN, uses words such as “believe”, “expect”, “antic
Slide 3: Business at a Glance
3 SEVEN HILLS REALTY TRUST BUSINESS AT A GLANCE Seven Hills Realty Trust is a real estate investment trust that originates and invests in floating rate first mortgage loans secured by middle market transitional commercial real estate, or CRE. 3 1.6x Debt to Equity Ratio 11% Manager Ownership in SEVN
Slide 4: Investment highlights
4 SEVEN HILLS REALTY TRUST • 100% invested in floating rate first mortgage loans. • Diversified across geographies, sponsors and property types. • Portfolio construction emphasizes visible cash flow and moderate LTV. High Quality Portfolio • Earnings supported by a fully performing loan portfolio an
Slide 5: Loan Portfolio Overview
5 SEVEN HILLS REALTY TRUST LOAN PORTFOLIO OVERVIEW Portfolio Statistics Number of Loans 23 2 Average Loan Commitment $30M $25M Total Loan Commitments $691M $50M Principal Balance $661M $47M Weighted Average Coupon Rate 8.1% 7.6% Weighted Average All In Yield 8.5% 8.0% Weighted Average LTV 67% 66% We
Slide 6: Loan Portfolio Overview (Continued)
6 SEVEN HILLS REALTY TRUST LOAN PORTFOLIO OVERVIEW (Continued) Property Type1 Geographic Diversity1 Loan to Value1 Risk Rating Distribution1 P tT 1 Multifamily 32% Office 25% Industrial 21% Hotel 13% Retail 9% G hi Di i 1 South 36% West 22% Midwest 21% East 21% 6 21% 19% 17% 32% 11% 30%-60% 61%-65%
Slide 7: Attractive Market Opportunity
7 SEVEN HILLS REALTY TRUST $15 million - $100 million 84% >$100 million 16% ATTRACTIVE MARKET OPPORTUNITY Demand for CRE debt capital in the underserved middle market is expected to remain strong as alternative lenders like SEVN increase their presence in the marketplace. • ~84% of CRE asset sales t
Slide 8: Deep Opportunity Set
8 SEVEN HILLS REALTY TRUST DEEP OPPORTUNITY SET $2.9T of CRE debt, including $1.1T backed by multifamily properties, matures in the next five years. This will create opportunities for lenders providing flexible refinancing solutions. 1. Source: Mortgage Bankers Association, as of 12/31/2024. Middle
Slide 9: Managed by Tremont Realty Capital
9 SEVEN HILLS REALTY TRUST MANAGED BY TREMONT REALTY CAPITAL Impressive track record with deep experience originating and actively managing middle market and transitional CRE loans. • ~$6 billion of loan originations completed since inception in 2000. • Seasoned underwriting, asset management and or
Slide 10: Rigorous Screening Process
10 SEVEN HILLS REALTY TRUST RIGOROUS SCREENING PROCESS Term Sheets Issued 49 Loans $1.8 billion 9 Loans $263 million Tremont employs a rigorous investment screening process with a multidisciplinary review to select the most compelling loan opportunities. • Screened loans with an average size of ~$38
Slide 11: Stable Portfolio
11 SEVEN HILLS REALTY TRUST STABLE PORTFOLIO SEVN is focused on originating new loans in 2025, targeting market segments where traditional lenders have pulled back, capital is constrained, and fundamentals remain strong. $590.6 $610.2 $557.5 $610.8 $661.4 $38.3 $42.0 $36.9 $30.4 $29.5 $628.9 $652.2
Slide 12: Representative Loan Originations
12 SEVEN HILLS REALTY TRUST Loan Waco, TX Lake Mary, FL Los Angeles, CA Type First Mortgage Loan First Mortgage Loan First Mortgage Loan Size $18.5 million $16.0 million $23.8 million Term Three-year initial term; Two 12-month extension options Three-year initial term; Two 12-month extension options
Slide 13: Portfolio Performance
13 SEVEN HILLS REALTY TRUST PORTFOLIO PERFORMANCE • Generated Distributable Earnings of $0.34 per diluted share and paid a quarterly distribution of $0.35 per common share. • Closed two loans with aggregate total commitments of $49.7 million. • Portfolio’s weighted average risk rating improved to 2.
Slide 14: Distributable Earnings Bridge
14 SEVEN HILLS REALTY TRUST Distributable Earnings Bridge (1) 1. See appendix for definitions and reconciliations of non-GAAP measures. 2. Reflects the full quarter impact related to loans originated or repaid during the three months ended December 31, 2024 and loans originated and repaid during the
Slide 15: Income from Loan Investments, Net - Interest Rate Trends
15 SEVEN HILLS REALTY TRUST Income from Loan Investments, Net - Interest Rate Trends Despite a well performing portfolio, recent declines in index rates, paired with continued compression of net interest margins on new loan originations coupled with less overall portfolio leverage, present continued
Slide 16: Loan Origination Trends - Net Interest Margin
16 SEVEN HILLS REALTY TRUST Loan Origination Trends - Net Interest Margin (1) Represents the difference between the interest rate margin for the new loan investment originations and the interest rate margin under the respective Secured Financing Facility for that loan. Loans Originated 17 7 5 5 2
Slide 17: First Quarter Capitalization
17 SEVEN HILLS REALTY TRUST FIRST QUARTER CAPITALIZATION $93 $182 $104 $63 $122 $68 $46 $62 $215 $150 $125 Citibank UBS BMO Wells Fargo Advanced Unused Capacity Secured Financing Facilities (Dollars in millions) Strong relationships with Secured Financing Providers continue to support SEVN’s capacit
Slide 18: Interest Rate Sensitivity
18 SEVEN HILLS REALTY TRUST INTEREST RATE SENSITIVITY Annualized Impact to Net Interest Income per Share1 As of March 31, 2025 Increases in interest rates benefit SEVN's 100% floating rate loan portfolio, while floors in SEVN's loan portfolio help to protect it from interest rate declines. 1. The ab
Slide 19: RMR National Multi-Sector Investment Platform
19 SEVEN HILLS REALTY TRUST 19 RMR’s Operations Include: National Multi-Sector Investment Platform INDUSTRIAL RESIDENTIAL MEDICAL LIFE SCIENCE OFFICE SENIOR LIVING HOTELS RETAIL RMR Managed Companies Over 18,000 Employees Approximately 1,900 Properties More than $5 Billion in Annual Revenues Approxi
Slide 20: Appendix
SEVEN HILLS REALTY TRUST APPENDIX Student Housing Refinancing Auburn, AL
Slide 21: Target Investments
21 SEVEN HILLS REALTY TRUST TARGET INVESTMENTS Selective origination strategy focused on providing borrowers flexible capital solutions for middle market CRE properties nationwide. Loan Size Principal balances typically $20 million to $75 million. Collateral First lien mortgages on middle market tra
Slide 22: Key Underwriting Criteria
22 SEVEN HILLS REALTY TRUST KEY UNDERWRITING CRITERIA Primary investment objective of balancing capital preservation with the generation of attractive risk adjusted returns. SPONSORSHIP 9 Meaningful “skin” in the game 9 History of performance 9 High character 9 Well capitalized COLLATERAL 9 First mo
Slide 23: Loan Investment Details
23 SEVEN HILLS REALTY TRUST LOAN INVESTMENT DETAILS (Dollars in thousands) First mortgage loans as of March 31, 2025: # Location Property Type Origination Date Committed Principal Amount Principal Balance Coupon Rate All in Yield Maturity Date Maximum Maturity Date LTV Risk Rating 1 Olmsted Falls, O
Slide 24: Loan Investment Details (Continued)
24 SEVEN HILLS REALTY TRUST LOAN INVESTMENT DETAILS (Continued) (Dollars in thousands) 1. In April 2025, the maturity date of this loan was extended to May 23, 2025 2. In April 2025, the coupon rate of this loan was reduced from SOFR + 3.85% to SOFR + 2.85% and the maturity date was extended to Apri
Slide 25: Non-GAAP Financial Measures
25 SEVEN HILLS REALTY TRUST Non-GAAP Financial Measures (amounts in thousands, except per share data) 1. Exit fees collected on loans acquired in the Merger represent fees collected upon repayment of loans for which no income has previously been recognized in Distributable Earnings. In accordance wi
Slide 26: Non-GAAP Financial Measures (Continued)
26 SEVEN HILLS REALTY TRUST NON-GAAP FINANCIAL MEASURES (Continued) We present Distributable Earnings and Distributable Earnings 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 represent net
Slide 27: Two Newton Place, Newton, Massachusetts
TWO NEWTON PLACE | 255 WASHINGTON STREET, SUITE 300 | NEWTON, MASSACHUSETTS 02458 SEVNREIT.COM
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