Core Viewpoint - Seven Hills Realty Trust has successfully closed two new first mortgage loan investments totaling $37.0 million, indicating a strategic move to enhance its investment portfolio [1] Group 1: Investment Details - The first mortgage loan investment includes a $19.5 million floating rate loan aimed at financing the acquisition of Town Center Plaza, a grocery-anchored retail property located in Palm Desert, California [1] - Town Center Plaza is anchored by nationally recognized retailers and is situated within an established retail corridor in the Coachella Valley, highlighting its strategic location and potential for stable cash flow [1]

Core Viewpoint - The Schall Law Firm is investigating potential breaches of fiduciary duty by the board of directors and management of Seven Hills Realty Trust (NASDAQ: SEVN) on behalf of its investors [1]. Group 1 - The investigation aims to determine if the SEVN board has violated its fiduciary duties to shareholders [1]. - Shareholders are encouraged to participate in the investigation [1]. Group 2 - The Schall Law Firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [2].

Philadelphia, Pennsylvania--(Newsfile Corp. - February 26, 2026) - Kaskela Law LLC announces that it is actively investigating Seven Hills Realty Trust (NASDAQ: SEVN) ("Seven Hills") on behalf of the company's long-term shareholders.The investigation seeks to determine whether Seven Hills and/or the company's officers and directors violated the securities laws or breached their fiduciary duties in connection with recent corporate actions. If you are a Seven Hills shareholder and would like to learn more ab ...

Financial Data and Key Metrics Changes - Distributable Earnings for Q4 2025 were reported at $4.6 million, or $0.28 per share, with an adjusted figure of $0.31 per share when accounting for the rights offering dilution [4][14] - The company raised $61.5 million in net proceeds from a rights offering, increasing investment capacity by over $200 million [4][5] - For the full year of 2025, distributable earnings were $1.21 per share, with a run rate annual dividend of $1.12 per share, representing a 93% payout ratio [14][17] Business Line Data and Key Metrics Changes - The loan portfolio increased by $83 million year-over-year, reaching total commitments of $724.5 million across 24 floating-rate first mortgage loans [7] - The weighted average all-in yield was reported at 7.92%, with a weighted average risk rating improving to 2.8 [7][17] - The company closed one additional loan for $30.5 million in Q1 2026, with two more loans expected to close soon for approximately $37 million combined [6][16] Market Data and Key Metrics Changes - Market conditions improved in Q4 2025, with two 25 basis point rate cuts bringing the target Fed funds rate to 350-375 basis points, leading to increased financing activity [10][11] - Office transaction volume increased by 25% year-over-year, indicating a recovery in the asset class [11] - Demand for short-term floating rate bridge loans remains strong, driven by improving fundamentals and expectations for a more accommodative rate environment [12] Company Strategy and Development Direction - The company aims to capitalize on middle-market lending opportunities with enhanced liquidity following the rights offering [8] - There is a focus on deploying capital selectively into attractive opportunities across various property types, including medical office and necessity-based retail [12][13] - The company remains committed to senior secured positions and is not currently focused on mezzanine or preferred equity investments [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about transaction activity continuing to increase in 2026 as acquisition and refinancing volumes recover [11][12] - The company expects first quarter distributable earnings to be in the range of $0.22 to $0.24 per share, with a temporary drag on earnings due to the rights offering [16][30] - Management anticipates a total loan portfolio size close to $1 billion by year-end 2026, driven by expected repayments and new originations [31][32] Other Important Information - The company ended Q4 2025 with $123 million in cash and extended the maturities of two secured financing facilities, increasing capacity to $377 million [17][18] - Interest rate floors became active for seven loans, providing earnings protection in a declining rate environment [15] Q&A Session Summary Question: How is the company finding inefficiencies in the pipeline given competition? - Management noted that while multifamily contributes significantly to activity, they are focusing on other sectors like storage and medical office for better risk-adjusted returns [21][22] Question: Are there opportunities outside of the first lien space? - Management confirmed that they are currently focused on senior secured positions and not exploring mezzanine or preferred equity options [23] Question: Does the $0.22-$0.24 EPS guidance assume full deployment of the rights offering capital? - Management clarified that the guidance does not assume full deployment by the end of Q1, but they expect earnings to recover by year-end [26][30] Question: What is the expected portfolio growth following the rights offering? - Management anticipates approximately $200 million per quarter in new originations, aiming for a total portfolio size of about $1 billion by year-end [31][32] Question: Were the loans acquired in the quarter purchased from another lender? - Management confirmed that the loans were underwritten and managed by their team, fitting well into their portfolio [33]

Financial Data and Key Metrics Changes - Distributable Earnings for Q4 2025 were reported at $4.6 million, or $0.28 per share, with an adjusted figure of $0.31 per share when accounting for the rights offering dilution [4][16] - The company raised $61.5 million in net proceeds from a rights offering, increasing investment capacity by over $200 million [4][5] - For the full year of 2025, distributable earnings were $1.21 per share, with a run rate annual dividend of $1.12 per share, representing a 93% payout ratio [16][19] Business Line Data and Key Metrics Changes - The loan portfolio increased by $83 million year-over-year, reaching total commitments of $724.5 million across 24 floating-rate first mortgage loans [8] - The weighted average all-in yield was reported at 7.92%, with a weighted average risk rating improving to 2.8 [8] - The company invested in three new loans totaling $101.3 million during Q4 2025, including loans secured by student housing, a hotel, and an industrial property [5][7] Market Data and Key Metrics Changes - Market conditions improved in Q4 2025, with two additional 25 basis point rate cuts, bringing the target Fed funds rate to 350-375 basis points [11] - Office transaction volume increased by 25% year-over-year, indicating a recovery in the market [12] - Demand for short-term floating rate bridge loans remains strong, with a broad range of transactions being evaluated [13][14] Company Strategy and Development Direction - The company aims to capitalize on middle-market lending opportunities with enhanced liquidity following the rights offering [9] - There is a focus on deploying capital selectively into attractive opportunities across various property types and geographies [13] - The strategy remains centered on senior secured positions, avoiding riskier junior tranches for the time being [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about transaction activity continuing to increase in 2026, driven by improving market conditions and increased financing activity [12][13] - The company expects first quarter distributable earnings to be in the range of $0.22 to $0.24 per share, with a temporary drag on earnings due to the rights offering [18] - The expectation is to reach close to $1 billion in total loan portfolio size by year-end 2026, with quarterly new originations targeted at $200 million [34] Other Important Information - The company ended Q4 2025 with $123 million in cash and extended the maturities of two secured financing facilities, increasing capacity to $377 million [19][20] - The CECL reserve remains modest at 130 basis points of total loan commitments, indicating a conservative risk profile [19] Q&A Session Summary Question: How is the company finding pockets of inefficiency in the current competitive environment? - Management noted that while multifamily contributes significantly to activity, they are focusing on sectors like storage, industrial, and medical office for better risk-adjusted returns [24][25] Question: Are there opportunities outside of the first lien space being evaluated? - Management confirmed that the focus remains on senior secured positions, with no current plans to explore mezzanine or preferred equity [26] Question: Does the distributable EPS guidance assume full deployment of the rights offering capital? - Management clarified that the guidance does not assume full deployment by the end of Q1, but expects earnings to recover by year-end [29] Question: Is the current dividend secure through the end of 2026? - Management affirmed commitment to the $0.28 per quarter dividend, despite temporary earnings drag from the rights offering [33] Question: What is the expected portfolio growth following the rights offering? - Management anticipates reaching close to $1 billion in total loan portfolio size by year-end, with significant new originations expected in the coming quarters [34]

Financial Data and Key Metrics Changes - Distributable Earnings for Q4 2025 were reported at $4.6 million, or $0.28 per share, with an adjusted figure of $0.31 per share when accounting for the rights offering dilution [4][16] - The full year 2025 distributable earnings were $1.21 per share, with a run rate annual dividend of $1.12 per share, representing a 93% payout ratio [16][19] - The weighted average all-in yield was 7.92%, and the weighted average risk rating improved to 2.8 [8] Business Line Data and Key Metrics Changes - The company invested in three new loans totaling $101.3 million during Q4 2025, including a $37.3 million loan for student housing, a $37 million hotel loan, and a $27 million industrial property loan [5] - Total commitments as of December 31, 2025, were $724.5 million across 24 floating-rate first mortgage loans, with a year-over-year increase of $83 million, or approximately 13% [8] Market Data and Key Metrics Changes - Market conditions improved in Q4 2025, with two 25 basis point rate cuts bringing the target Fed funds rate to 350-375 basis points, leading to increased financing activity [11] - Office transaction volume increased by 25% year-over-year, indicating a recovery in the market [12] Company Strategy and Development Direction - The company aims to capitalize on middle-market lending opportunities with enhanced liquidity following the rights offering and a focus on disciplined capital deployment [9] - The strategy includes diversifying investments beyond multifamily and industrial sectors to include medical office, necessity-based retail, and hospitality [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about transaction activity continuing to increase in 2026, driven by recovering acquisition and refinancing volumes [12] - The company expects first quarter distributable earnings to be in the range of $0.22 to $0.24 per share, reflecting temporary impacts from the rights offering [18] Other Important Information - The company ended Q4 2025 with $123 million in cash and extended the maturities of two secured financing facilities, increasing the maximum size of one facility by $125 million [19][20] - The CECL reserve remains modest at 130 basis points of total loan commitments, down 20 basis points from the previous quarter [19] Q&A Session Summary Question: How is the company finding pockets of inefficiency in the current competitive environment? - Management noted that while multifamily remains liquid, they are focusing on sectors like storage, industrial, and medical office for better risk-adjusted returns [22][25] Question: Does the $0.22-$0.24 distributable EPS guidance assume full deployment of the raised capital? - Management clarified that the guidance does not assume full deployment by the end of Q1, as some loans are still in the pipeline [31] Question: Is the current dividend secure through the end of 2026? - Management confirmed commitment to the $0.28 per quarter dividend, despite temporary earnings drag from the rights offering [35] Question: What is the expected portfolio size by year-end? - Management anticipates reaching close to $1 billion in total loan portfolio size by year-end, depending on repayments and new originations [36]

Financial Results and Supplemental Information FOURTH QUARTER 2025 February 18, 2026 Seven Hills Realty Trust Announces Fourth Quarter 2025 Results "Seven Hills delivered a strong fourth quarter, reflecting the strength of our fully performing loan portfolio and the quality of our disciplined underwriting. We generated Distributable Earnings of $0.28 per share, fully covering our quarterly distribution, while investing $101.3 million in new loans during the quarter and an additional $30.5 million since year ...

Real Estate Management - As of December 31, 2025, RMR Inc. managed over $37 billion in real estate assets across approximately 1,800 properties[41]. - Tremont's relationship with RMR provides access to a broad network of real estate professionals, enhancing investment opportunities[42]. REIT Compliance and Taxation - The company must distribute at least 90% of its annual REIT taxable income to maintain its REIT status, limiting cash retention for loan originations[33]. - The company has elected to be taxed as a REIT since its 2020 taxable year, ensuring compliance with applicable qualification tests[60]. - The company is organized and qualified for taxation as a REIT under the IRC for the taxable years 2020 through 2025[62]. - The company believes it has satisfied the REIT qualification tests and will continue to do so in the future[66]. - If the company fails to qualify as a REIT, it could face significant tax liabilities, reducing cash available for shareholder distributions[66]. - The company may be subject to a 4% nondeductible excise tax if it fails to distribute at least 85% of its REIT ordinary income and 95% of its REIT capital gain net income[67]. - The company has no outstanding preferred shares, and distributions are allocated first to common shares[61]. - The company may be subject to federal corporate income tax on undistributed REIT taxable income[67]. - The company’s subsidiaries that are C corporations will be required to pay federal corporate income tax on their earnings[68]. - The company believes it has met all conditions required for REIT qualification during the requisite periods[73]. - The company has complied with Treasury regulations regarding share ownership and will continue to do so by annually requesting information from significant shareholders[75]. - The company believes that all its direct and indirect wholly owned subsidiaries will qualify as REIT subsidiaries, treating their assets and liabilities as part of the REIT[78]. - The company is permitted to own up to 20% of its total assets in taxable REIT subsidiaries (TRSs), increasing to 25% after December 31, 2025[80]. Income and Asset Tests - The company must satisfy two gross income tests annually: at least 75% of gross income must derive from real property investments, and at least 95% must consist of qualifying income[85]. - Interest income from loans secured by real property will generally qualify for the 75% gross income test, provided it meets certain conditions[86]. - The company expects that income from CMBS and agency securities will qualify for both the 75% and 95% gross income tests[88]. - Mezzanine loans may be treated as real estate assets for tax purposes if they meet specified safe harbor requirements, allowing interest to qualify for the 75% income test[89]. - The company expects mezzanine loans to generally be treated as debt for federal income tax purposes, while preferred equity investments are expected to be treated as equity[90]. - The company anticipates that interest from participation interests in mortgage loans and mezzanine loans will generally qualify as income for both the 75% and 95% gross income tests[91]. - Fee income from loans originated by the company, including prepayment penalties and late payment charges, is expected to qualify as income for both the 75% and 95% gross income tests[92]. - Rental income from properties acquired through foreclosure is expected to satisfy the 75% and 95% gross income tests if existing or new tenants pay qualifying rents[94]. - The company believes that all or substantially all rents and related service charges received will qualify as "rents from real property" for the 75% and 95% gross income tests[102]. - Gains from the sale of foreclosure property will be qualifying income for the 75% and 95% gross income tests and exempt from the 100% tax on gains from prohibited transactions[96]. - The company must satisfy asset percentage tests, including that at least 75% of total assets consist of "real estate assets" to qualify for taxation as a REIT[105]. - Not more than 25% of total assets may be represented by securities other than those that count favorably toward the 75% asset test[105]. - The company’s investments in the equity or debt of a TRS are expected to be treated as real estate assets for REIT asset tests[106]. - The company intends to structure activities to avoid prohibited transactions and may utilize TRSs to mitigate potential tax implications[103]. - The company believes it has satisfied the REIT asset tests and will continue to do so, beginning with its first taxable year as a REIT[114]. Distribution Requirements - The company is required to make annual distributions equal to at least 90% of its "real estate investment trust taxable income" to qualify for taxation as a REIT[116]. - If the company fails the 5% asset test, the 10% vote test, or the 10% value test, it has a 30-day period to cure the failure, or it may be excused if the failure is de minimis[111]. - The company expects its income to predominantly consist of business interest income, which should exceed its net interest expense, thus not triggering interest deduction limitations[115]. - The company may face timing differences between cash receipts and income recognition, potentially leading to substantial taxable income without sufficient cash for distributions[120]. - The company may pay "deficiency dividends" in later years to rectify any failure to meet distribution requirements, which would incur an interest charge for the delay[121]. - The company may elect to retain some or all of its net capital gain and pay income tax on those retained amounts, affecting shareholders' tax basis[122]. Tax Implications for Shareholders - The maximum federal income tax rate for long-term capital gains and most corporate dividends for noncorporate U.S. shareholders is generally 15% if their total adjusted income does not exceed applicable thresholds, and 20% if it exceeds those thresholds[126]. - Ordinary dividends are generally taxed at higher federal income tax rates applicable to ordinary income, except for qualified REIT dividends which may benefit from lower effective tax rates[126]. - Distributions made out of current or accumulated earnings and profits that are designated as capital gain dividends will be taxed as long-term capital gains, provided they do not exceed the actual net capital gain for the taxable year[127]. - Non-U.S. shareholders will generally be subject to U.S. federal income tax and withholding at a rate of 30% on distributions that are not designated as capital gain dividends[142]. - Non-U.S. shareholders may seek a refund from the IRS for amounts withheld on distributions in excess of their allocable share of current and accumulated earnings and profits[142]. - If a class of shares is not listed on a U.S. national securities exchange, distributions attributable to gain from the sale of U.S. real property interests may be taxed as if they were effectively connected with a U.S. trade or business[146]. - Tax treaties may reduce withholding obligations on distributions, but rates below 30% may not apply to ordinary income dividends from a REIT unless specified conditions are met[145]. - Noncorporate U.S. shareholders who borrow funds to finance their acquisition of shares may be limited in the amount of deductions allowed for interest paid on the indebtedness incurred[135]. - Each U.S. shareholder will be taxed on its designated proportionate share of retained net capital gains as though that amount were distributed and designated as a capital gain dividend[136]. - Tax-exempt shareholders receiving distributions from the company should not have such amounts treated as UBTI, provided certain conditions are met[138]. - The company believes its shares will not constitute USRPIs, as it does not meet the criteria of being a "United States real property holding corporation" based on asset value assessments[149]. - The company expects to maintain its status as a "domestically controlled" REIT, with less than 50% of its shares held by non-U.S. shareholders over the past five years[150]. - Distributions to non-U.S. shareholders will be reported to both the shareholders and the IRS, regardless of withholding status[154]. - Non-U.S. financial institutions must comply with diligence and reporting requirements to avoid a 30% U.S. withholding tax on applicable payments[156]. Shareholder and Securities Regulations - The company is not an investment company registered under the 1940 Act, and its shares must be analyzed to determine if they are publicly offered securities[164]. - The company believes its common shares have been and will remain widely held, which is essential for maintaining their status as publicly offered securities[165]. - The company does not expect to impose restrictions on the transfer of shares that would affect their classification as "freely transferable"[167]. - Tax counsel has opined that the company's shares are publicly offered and will not be deemed "plan assets" of any ERISA Plan or Non-ERISA Plan acquiring shares in a public offering[168].

LS Financial Results and Supplemental Information FOURTH QUARTER 2025 February 18, 2026 Exhibit 99.2 Seven Hills Realty Trust Announces Fourth Quarter 2025 Results "Seven Hills delivered a strong fourth quarter, reflecting the strength of our fully performing loan portfolio and the quality of our disciplined underwriting. We generated Distributable Earnings of $0.28 per share, fully covering our quarterly distribution, while investing $101.3 million in new loans during the quarter and an additional $30.5 mi ...

We recently published an article titled 11 High Growth Micro-cap Stocks to Buy.  On January 7, Ladenburg initiated coverage of Seven Hills Realty Trust (NASDAQ:SEVN) with a Buy rating and a $10 price target, highlighting improving forward visibility following recent balance sheet actions and portfolio growth initiatives. The initiation comes after a volatile period for the stock, during which shares declined sharply despite management executing on previously outlined strategic objectives. A key catalyst ...