Seven Hills Realty Trust Common Stock Stock Earnings Reports

Seven Hills reported solid Q1 2026 results driven by a fully performing, conservatively underwritten floating-rate loan portfolio. Distributable earnings were $5.3 million ($0.24/share), at the high end of guidance. Total outstanding loan commitments reached a new high of ~$776 million after originating $67.5 million across three loans (medical office, grocery-anchored retail, select-service hotel). Originations YTD executed at a net interest margin of ~195 bps (highest in four years); including exit fees, returns are higher. The portfolio (26 loans) has a weighted average risk rating of 2.8, weighted average yield of 7.8%, and average LTV at origination of 66%; all loans are current and CECL reserve is a modest 130 bps of commitments. Recent repayments have increased liquidity to roughly $110 million cash and ~ $400 million available capacity under secured facilities (Wells Fargo facility extended and doubled to $250M; UBS maturity extended to 2028). Pipeline remains active (~$1 billion rolling), with >$125 million of term sheets outstanding and three loans (~$78M) in diligence expected to close imminently. Management remains selective, avoiding auction-like competitive bids and focusing on risk-adjusted returns; they expect continued deployment over the next quarters with net portfolio growth guidance implying several hundred million of incremental originations in 2026 and Q2 distributable earnings guidance of $0.23–$0.25 per share. The board declared a quarterly dividend of $0.28 per share (annualized ~14% yield) and management expects distributable earnings to trend back to cover the dividend by year-end 2026.