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- **Q3 Earnings Beat Expectations**: $0.29 distributable EPS, meeting high-end guidance. 
- **Strong Portfolio Growth**: $642M portfolio with 8.2% yield, 67% LTV. 
- **Dividend Yield**: 11% annualized on $0.28 quarterly dividend. 
- **2026 Outlook**: $100M+ net portfolio growth, with repayments front-loaded in Q3/Q4. 
- **Competitive Position**: Winning deals via execution track record, selective origination strategy.

**【Management Opening Remarks】**
- Seven Hills Realty Trust reported third-quarter 2025 distributable earnings of $4.2 million ($0.29 per share), meeting the high end of guidance. The Board declared a $0.28 quarterly dividend, yielding 11% annually.

**【CEO (Tom Lorenzini) Commentary】**
- Q3 performance highlighted a $34.5M Manhattan mixed-use loan and a $37.3M student housing loan under application. The portfolio totals $642M with an 8.2% weighted average yield and 67% LTV. Near-term repayments of $53.8M are expected, with $15.3M potentially closing by year-end.

**【CFO (Matt Brown) Commentary】**
- Distributable earnings of $0.29-$0.31 per share are projected for Q4, driven by loan originations and SOFR trends. The CECL reserve remains at 1.5% of loan commitments, unchanged from Q2. The portfolio's all-in yield is SOFR + 397bps, with a borrowing rate of SOFR + 215bps.

**【Q&A Highlights】**
- **Repayment Outlook**: Only $15.3M in potential year-end repayments; bulk of 2026 repayments (~$100M) expected in Q3/Q4. 
- **Competitive Edge**: Wins loans via reputation for execution, higher-yielding deals,80% sourced through brokers, 20% direct. 
- **Market Dynamics**: Multifamily debt demand driven by 2021-22 loan maturities; equity capital also rising. Large banks are active, while smaller regional banks are cautious.


Seven Hills Realty Trust (SEVN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SEVN

SEVN fundamentals

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