Seven Hills Realty Trust · NASDAQ:SEVN
Seven Hills Realty Trust — Q3 2025 Earnings Presentation
23 slides from Seven Hills Realty Trust's earnings presentation, Oct 28, 2025
Slide 1: Financial Results and Supplemental Information
Financial Results and Supplemental Information THIRD QUARTER 2025 October 27, 2025
Slide 2: Seven Hills Realty Trust Announces Third Quarter 2025 Results
Seven Hills Realty Trust Announces Third Quarter 2025 Results “Seven Hills delivered strong third Newton, MA (October 27, 2025). Seven Hills Realty Trust (Nasdaq: SEVN) today announced financial results for the quarter and nine months ended September 30, 2025. quarter results supported by our fully
Slide 3: Company Snapshot
Company Snapshot (As of September 30, 2025, unless otherwise noted) Strong Loan Portfolio Conservative Leverage Integrated with RMR Real Estate Platform $642 million 1.6x 11% Floating rate Debt to equity ratio Ownership of SEVN first mortgage loan commitments $29 million $740 million ~$39 billion Av
Slide 4: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights (As of and for the three months ended September 30, 2025, unless otherwise noted) Financial • Generated net income of $3.4 million, or $0.23 per diluted share. Results • Generated Distributable Earnings of $4.2 million, or $0.29 per diluted share. • Closed a new loan in
Slide 5: Third Quarter 2025 Financial Summary
Third Quarter 2025 Financial Summary (amounts in thousands, except per share data) Income Statement Balance Sheet Three Months Ended September 30, 2025 September 30, 2025 Income from loan investments, net $ 6,444 Loans held for investment, net $ 603,013 Revenue from real estate owned 648 Real estate
Slide 6: Distributable Earnings Bridge
Distributable Earnings Bridge (1) 6 .3 $0 4 .3 $0 $0.03 2 .3 $0 ($0.06) $0.31 $0.31 0 .3 $0 $0.01 $0.29 8 $0.28 $0.28 .2 $0 6 .2 $0 4 .2 $0 2 .2 Q2 2025 Distributable Earnings Net interest income - Net interest income - Other activity, net Q3 2025 Distributable Earnings $0 loan originations (2) loan
Slide 7: Income from Loan Investments, Net - Interest Rate Trends
Income from Loan Investments, Net - Interest Rate Trends Despite a well performing portfolio, declines in the SOFR index, paired with compression of net interest margins on new loan originations and less overall portfolio leverage, present continued headwinds to SEVN’s earnings. 10.00% $1.75 9.00% 9
Slide 8: Loan Portfolio Summary
Loan Portfolio Summary As of Third Quarter September 30, (dollars in thousands) Originations 2025 Third Quarter 2025 Loan Portfolio Activity (dollars in millions) Number of loans 1 22 $665.4 $0.8 $32.6 $34.5 $641.9 Total Loan Commitments ($53.8) $27.6 Unfunded Commitments (1) Average loan commitment
Slide 9: Loan Portfolio Originations and Diversity
Loan Portfolio Originations and Diversity Geographic Region (1) Loan Originations by Quarter Midwest (dollars in millions) 17% $87.0 South $5.2 39% East 22% $54.3 $- West $49.7 22% $44.8 $3.2 $46.0 $3.2 $41.6 $5.2 Property Type (1) Retail $81.8 $34.5 Total Loan Commitments $5.6 $- Unfunded Commitmen
Slide 10: Loan Portfolio Credit Quality
Loan Portfolio Credit Quality Loan to Value (1) % of Portfolio Weighted Average LTV: 67% 30% 23% 19% 17% 11% 30% - 60% 61% - 65% 66% - 70% 71% - 75% 76% - 80% Loan Count 4 3 5 7 3 Risk Rating Distribution (1) % of Portfolio Weighted Average Risk Rating: 2.9 52% 20% 23% 5% —% Lower Risk (1) Average R
Slide 11: Office Loans
Office Loans (1) • No office loans in urban or CBD markets in our portfolio. • As of September 30, 2025, 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 $23.5 million principal balance / Class B
Slide 12: Secured Financing Facilities
Secured Financing Facilities (As of September 30, 2025) Total/Weighted UBS Citibank BMO Wells Fargo Average (dollars in thousands) Maximum facility size $ 250,000 $ 215,000 $ 150,000 $ 125,000 $ 740,000 Principal balance $ 146,799 $ 135,714 $ 77,258 $ 70,652 $ 430,423 Unused capacity $ 103,201 $ 79,
Slide 13: Appendix
SEVEN HILLS REALTY TRUST Appendix a eo Ph ... ) —— .
Slide 14: 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 September 30, 2025, RMR had approx
Slide 15: Loan Investment Details
Loan Investment Details (dollars in thousands) First mortgage loans as of September 30, 2025: 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 Multifamily 01/28/2021
Slide 16: Loan Investment Details (Continued)
Loan Investment Details (Continued) (dollars in thousands) First mortgage loans as of September 30, 2025: Committed Maximum Origination Principal Principal Coupon All in Maturity Maturity Risk # Location Property Type Date Amount Balance Rate Yield Date Date LTV Rating 14 Fontana, CA Industrial 11/1
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity (As of September 30, 2025) Annualized Impact to Net Interest Income per Share $0.20 $0.16 $0.15 $0.12 $0.10 $0.09 $0.06 $0.05 $0.03 $— $0.00 $-0.05 $(0.03) $(0.04) $(0.04) $(0.05) $(0.05) $-0.10 -125bps -100 bps -75 bps -50 bps -25 bps 0 bps +25 bps +50 bps +75 bps +100 bps
Slide 18: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) September 30, December 31, 2025 2024 ASSETS Cash and cash equivalents $ 77,495 $ 70,750 Loans held for investment 612,424 609,916 Allowance for credit losses (9,411) (8,074) Loans held for investment, net 603,013 601
Slide 19: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 INCOME FROM INVESTMENTS: Interest and related income $ 13,442 $ 15,741 $ 42,123 $ 48,467 Purchase discount accretion — 42
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures (amounts in thousands, except per share data) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2025 2025 2025 2024 2024 Net income $ 3,430 $ 2,678 $ 4,532 $ 4,879 $ 3,479 Non-cash equity compensation expense 487 677 356 159 367 Non-cash accre
Slide 21: Non-GAAP Financial Measures (Continued)
Non-GAAP Financial Measures (Continued) We present Distributable Earnings, Distributable Earnings per common share, Adjusted Book Value 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 financia
Slide 22: 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 23: 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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