Seven Hills Realty Trust · NASDAQ:SEVN
Seven Hills Realty Trust — Q2 2025 Earnings Presentation
22 slides from Seven Hills Realty Trust's earnings presentation, Jul 29, 2025
Slide 1: Financial Results and Supplemental Information
Financial Results and Supplemental Information SECOND QUARTER 2025 July 28, 2025
Slide 2: Seven Hills Realty Trust Announces Second Quarter 2025 Results
Seven Hills Realty Trust Announces Second Quarter 2025 Results “During the second quarter, we Newton, MA (July 28, 2025). Seven Hills Realty Trust (Nasdaq: SEVN) today announced financial results for the quarter and six months ended June 30, 2025. delivered strong results despite Distributions conti
Slide 3: Company Snapshot
Company Snapshot (As of June 30, 2025, unless otherwise noted) Strong Loan Portfolio Conservative Leverage Integrated with RMR Real Estate Platform $665 million 1.6x 11% Floating rate Debt to equity ratio Ownership of SEVN first mortgage loan commitments $29 million $740 million ~$40 billion Average
Slide 4: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights (As of and for the three months ended June 30, 2025, unless otherwise noted) • Generated net income of $2.7 million, or $0.18 per diluted share. Financial Results • Generated Distributable Earnings of $4.5 million, or $0.31 per diluted share. • Closed two new loans dur
Slide 5: Second Quarter 2025 Financial Summary
Second Quarter 2025 Financial Summary (amounts in thousands, except per share data) Income Statement Balance Sheet Three Months Ended June 30, 2025 June 30, 2025 Income from loan investments, net $ 6,835 Loans held for investment, net $ 621,943 Revenue from real estate owned 558 Real estate owned, n
Slide 6: Income from Loan Investments, Net - Interest Rate Trends
Income from Loan Investments, Net - Interest Rate Trends Despite a well performing portfolio, prior 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
Slide 7: Loan Portfolio Summary
Loan Portfolio Summary Second Quarter As of (dollars in thousands) Originations June 30, 2025 Second Quarter 2025 Loan Portfolio Activity (dollars in millions) Number of loans 2 23 $690.9 $5.2 $1.2 $40.8 $665.4 Total Loan Commitments $29.5 ($70.6) Average loan commitment $23,000 $28,931 $32.6 Unfund
Slide 8: Loan Portfolio Originations and Diversity
Loan Portfolio Originations and Diversity Geographic Region (1) Loan Originations by Quarter East (dollars in millions) 16% $87.0 South $5.2 41% Midwest 21% $54.3 $- West $49.7 22% $44.8 $3.2 $46.0 Total Loan Commitments (1) $37.5 $3.2 $41.6 $5.2 Unfunded Commitments Property Type Retail $- $81.8 $5
Slide 9: Loan Portfolio Credit Quality
Loan Portfolio Credit Quality Loan to Value (1) % of Portfolio Weighted Average LTV: 68% 33% 18% 17% 17% 15% 30% - 60% 61% - 65% 66% - 70% 71% - 75% 76% - 80% Loan Count 4 3 4 8 4 Risk Rating Distribution (1) % of Portfolio Weighted Average Risk Rating: 2.9 49% 23% 22% 6% —% Lower Risk (1) Average R
Slide 10: Office Loans
Office Loans (1) • No office loans in urban or CBD markets in our portfolio. • As of June 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 / Dow
Slide 11: Secured Financing Facilities
Secured Financing Facilities (As of June 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 $ 156,929 $ 108,113 $ 72,205 $ 79,968 $ 417,215 Unused capacity $ 93,071 $ 106,887 $
Slide 12: Appendix
SEVEN HILLS REALTY TRUST Appendix a eo Ph ... ) — = 2
Slide 13: 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 June 30, 2025, RMR had approximate
Slide 14: Loan Investment Details
Loan Investment Details (dollars in thousands) First mortgage loans as of June 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 $ 54
Slide 15: Loan Investment Details (Continued)
Loan Investment Details (Continued) (dollars in thousands) First mortgage loans as of June 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 Carlsbad, CA Office 10/27/2021 2
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity (As of June 30, 2025) Annualized Impact to Net Interest Income per Share $0.20 $0.15 $0.13 $0.10 $0.10 $0.06 $0.05 $0.03 $— $0.00 $-0.05 $(0.03) $(0.06) $(0.07) $(0.07) $-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 Rat
Slide 17: Financial Summary
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) June 30, December 31, 2025 2024 ASSETS Cash and cash equivalents $ 45,951 $ 70,750 Loans held for investment 631,318 609,916 Allowance for credit losses (9,375) (8,074) Loans held for investment, net 621,943 601,842
Slide 18: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 INCOME FROM INVESTMENTS: Interest and related income $ 14,359 $ 16,415 $ 28,681 $ 32,726 Purchase discount accretion — 782 — 1,927 L
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures (amounts in thousands, except per share data) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Net income $ 2,678 $ 4,532 $ 4,879 $ 3,479 $ 4,229 Non-cash equity compensation expense 677 356 159 367 497 Non-cash accretion
Slide 20: 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 21: 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 22: 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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