[Fourth Quarter 2024 Financial Results](index=1&type=section&id=Fourth%20Quarter%202024%20Financial%20Results) [Q4 2024 Overview](index=2&type=section&id=Q4%202024%20Overview) SEVN reported **$0.33 distributable earnings per share** and **$0.35 quarterly distribution**, closing **$87 million in new loans** and maintaining strong liquidity Q4 2024 Key Metrics | Metric | Value | | :--- | :--- | | Distributable Earnings per Share | $0.33 | | Quarterly Distribution per Share | $0.35 | - Closed two new loans totaling **$87 million** in Q4 2024 and an additional **$31 million** loan in January 2025[3](index=3&type=chunk) - Ended the quarter with **over $70 million in cash** and excess borrowing capacity after receiving **$165 million in repayments** during 2024[3](index=3&type=chunk) [Company Snapshot](index=3&type=section&id=Company%20Snapshot) As of December 31, 2024, Seven Hills Realty Trust holds a **$641 million portfolio** of 100% floating-rate first mortgage loans with a **1.6x debt-to-equity ratio** and **$71 million in cash** Company Snapshot (as of Dec 31, 2024) | Category | Metric | Value | | :--- | :--- | :--- | | **Loan Portfolio** | Total Loan Commitments | $641 million | | | Average Loan Commitment | $31 million | | | Weighted Average LTV | 67% | | | Weighted Average All-In Yield | 8.6% | | **Leverage & Liquidity** | Debt to Equity Ratio | 1.6x | | | Maximum Facility Size | $740 million | | | Unused Financing Capacity | $320 million | | | Cash on Hand | $71 million | - The entire loan portfolio consists of floating-rate first mortgage loans, secured by diverse property types and geographic regions[8](index=8&type=chunk) [Fourth Quarter 2024 Highlights](index=4&type=section&id=Fourth%20Quarter%202024%20Highlights) In Q4 2024, SEVN generated **$4.9 million in net income** and Distributable Earnings, closed **$87.0 million in new loans**, and strengthened its capital structure by extending key financing facility maturities - Generated net income and Distributable Earnings of **$4.9 million**, or **$0.33 per diluted share**[9](index=9&type=chunk) - Closed two new loans with total commitments of **$87.0 million** and received **$37.2 million in repayment proceeds**[9](index=9&type=chunk) - The portfolio had a weighted average risk rating of **3.1** and an allowance for credit losses representing **1.4% of total loan commitments**[9](index=9&type=chunk) - Strengthened liquidity by extending the maturity of the Wells Fargo facility to **March 2026** and the UBS facility to **February 2026**, while also increasing the UBS facility size to **$250.0 million**[9](index=9&type=chunk) [Financial Results](index=5&type=section&id=FINANCIAL%20RESULTS) [Fourth Quarter 2024 Financial Summary](index=5&type=section&id=Fourth%20Quarter%202024%20Financial%20Summary) For Q4 2024, SEVN reported **$4.879 million net income** and **$4.867 million Distributable Earnings**, both **$0.33 per share**, with a book value of **$18.07 per common share** Q4 2024 Income Statement Summary (in thousands, except per share) | Metric | Value | | :--- | :--- | | Income from loan investments, net | $7,112 | | Net income | $4,879 | | Net income per common share | $0.33 | | Distributable Earnings | $4,867 | | Distributable Earnings per common share | $0.33 | | Quarterly Distribution per Share | $0.35 | Balance Sheet Summary (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Total assets | $692,808 (in thousands) | | Total shareholders' equity | $269,278 (in thousands) | | Book value per common share | $18.07 | | Adjusted book value per common share | $18.67 | [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, SEVN's total assets decreased to **$692.8 million** from **$731.5 million** in 2023, primarily due to lower net loans and secured financing liabilities Consolidated Balance Sheet Comparison (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $70,750 | $87,855 | | Loans held for investment, net | $601,842 | $622,086 | | **Total assets** | **$692,808** | **$731,525** | | **Liabilities & Equity** | | | | Secured financing facilities, net | $417,796 | $454,422 | | **Total liabilities** | **$423,530** | **$460,277** | | **Total shareholders' equity** | **$269,278** | **$271,248** | [Consolidated Statements of Operations](index=17&type=section&id=Consolidated%20Statements%20of%20Operations) For the full year 2024, SEVN generated **$17.8 million net income** or **$1.20 per share**, while Q4 2024 net income decreased to **$4.9 million** from **$6.0 million** in Q4 2023 Statement of Operations Comparison (in thousands, except per share) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | Year Ended Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Income from loan investments, net | $7,112 | $9,426 | $32,993 | | Total revenue | $7,675 | $10,000 | $35,274 | | (Reversal of) provision for credit losses | $(450) | $500 | $3,080 | | **Net income** | **$4,879** | **$6,045** | **$17,820** | | **Net income per share** | **$0.33** | **$0.41** | **$1.20** | [Loan Portfolio Analysis](index=6&type=section&id=Loan%20Portfolio%20Analysis) [Loan Portfolio Summary & Activity](index=6&type=section&id=Loan%20Portfolio%20Summary%20%26%20Activity) As of Q4 2024, SEVN's loan portfolio comprised **21 loans** with **$641.2 million in commitments**, a **weighted average All-In Yield of 8.62%**, and a **risk rating of 3.1** Loan Portfolio Summary (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Number of loans | 21 | | Total loan commitments | $641,213 (in thousands) | | Principal balance | $610,811 (in thousands) | | Weighted average All In Yield | 8.62% | | Weighted average LTV | 67% | | Weighted average risk rating | 3.1 | - In Q4 2024, the loan portfolio saw **$81.8 million in originations** and **$37.2 million in repayments**[14](index=14&type=chunk) [Loan Portfolio Originations and Diversity](index=7&type=section&id=Loan%20Portfolio%20Originations%20and%20Diversity) SEVN originated **$87.0 million in new loan commitments** in Q4 2024, with the **$641.2 million portfolio** diversified geographically across East, Midwest, and West, and by property type including Multifamily, Industrial, and Office - Loan originations in Q4 2024 totaled **$87.0 million in commitments** across two loans[18](index=18&type=chunk) Portfolio Diversity by Principal Balance | Category | Type | Percentage | | :--- | :--- | :--- | | **Geography** | East | 23% | | | Midwest | 22% | | | West | 23% | | **Property Type** | Multifamily | 31% | | | Industrial | 23% | | | Office | 23% | | | Hotel | 14% | [Loan Portfolio Credit Quality](index=8&type=section&id=Loan%20Portfolio%20Credit%20Quality) The loan portfolio maintains a **weighted average LTV of 67%** and a **weighted average risk rating of 3.1**, with **58% of the portfolio** rated '3' (Acceptable Risk) Risk Rating Distribution (% of Portfolio) | Rating | Description | % of Portfolio | | :--- | :--- | :--- | | 1 | Lower Risk | 0% | | 2 | Average Risk | 18% | | 3 | Acceptable Risk | 58% | | 4 | Higher Risk | 24% | | 5 | Impaired/Loss Likely | 0% | - The weighted average LTV of the portfolio is **67%**[19](index=19&type=chunk) [Office Loan Portfolio Detail](index=9&type=section&id=Office%20Loans) Office loans represent **23% of SEVN's total portfolio**, with **86% of the office loan balance** rated '4' (Higher Risk), though none are in urban CBD markets and all borrowers are current - Office loans comprise **23% of the total portfolio**[21](index=21&type=chunk) - Within the office segment, **86% of the principal balance** is rated as '4' (Higher Risk) and **14%** is rated '3' (Acceptable Risk)[21](index=21&type=chunk) - No office loans are located in urban or CBD markets, and all borrowers were current on debt service payments as of year-end[22](index=22&type=chunk) [Capital Structure and Liquidity](index=10&type=section&id=Capital%20Structure%20and%20Liquidity) [Secured Financing Facilities](index=10&type=section&id=Secured%20Financing%20Facilities) As of December 31, 2024, SEVN has **four secured financing facilities** totaling **$740 million**, with **$419.6 million outstanding** and **$320.4 million in unused capacity**, and a **weighted average coupon of 6.62%** Secured Financing Facilities Summary (as of Dec 31, 2024, in thousands) | Facility | Maximum Size | Principal Balance | Unused Capacity | | :--- | :--- | :--- | :--- | | UBS | $250,000 | $181,989 | $68,011 | | Citibank | $215,000 | $93,314 | $121,686 | | BMO | $150,000 | $103,855 | $46,145 | | Wells Fargo | $125,000 | $40,464 | $84,536 | | **Total** | **$740,000** | **$419,622** | **$320,438** | - In Q4 2024, the company extended the maturity of its UBS facility to **Feb 2026** and its Wells Fargo facility to **Mar 2026**[23](index=23&type=chunk) [Interest Rate Sensitivity](index=15&type=section&id=Interest%20Rate%20Sensitivity) SEVN's earnings are sensitive to SOFR changes, with a **100 basis point increase** potentially raising annualized net interest income by **$0.15 per share**, influenced by a **2.12% weighted average interest rate floor** on loans Annualized Impact to Net Interest Income per Share | SOFR Change | Impact per Share | | :--- | :--- | | +100 bps | +$0.15 | | +50 bps | +$0.07 | | -50 bps | -$0.04 | | -100 bps | -$0.07 | - The loan portfolio has a weighted average interest rate floor of **2.12%**, with all but one loan having floor provisions[41](index=41&type=chunk) - There are no interest rate floors on the company's borrowings under its Secured Financing Facilities[41](index=41&type=chunk) [Appendix](index=11&type=section&id=Appendix) [Company Profile, Governance and Research Coverage](index=12&type=section&id=Company%20Profile%2C%20Governance%20and%20Research%20Coverage) Seven Hills Realty Trust is managed by Tremont Realty Capital, an affiliate of The RMR Group, leveraging its **over $40 billion real estate platform** for market knowledge and investment opportunities - SEVN is managed by Tremont, an affiliate of The RMR Group, which has **over $40 billion of real estate assets under management**[28](index=28&type=chunk) - The Board of Trustees includes a Lead Independent Trustee and is chaired by Adam D Portnoy[29](index=29&type=chunk) - Key executive officers are Thomas J Lorenzini (President and CIO) and Jared R Lewis (CFO and Treasurer)[29](index=29&type=chunk)[32](index=32&type=chunk) [Loan Investment Details](index=13&type=section&id=Loan%20Investment%20Details) This section details SEVN's **21 first mortgage loans** as of December 31, 2024, with a total committed principal of **$641.2 million**, including location, property type, and financial terms for each investment Top 5 Loan Investments by Committed Amount (in thousands) | Location | Property Type | Committed Amount | Principal Balance | Coupon Rate | | :--- | :--- | :--- | :--- | :--- | | Olmsted Falls, OH | Multifamily | $54,575 | $52,050 | S + 4.00% | | Passaic, NJ | Industrial | $47,000 | $43,808 | S + 3.85% | | Dallas, TX | Office | $46,811 | $43,511 | S + 3.25% | | Boston, MA | Hotel | $45,000 | $39,800 | S + 3.95% | | Brandywine, MD | Retail | $42,500 | $42,200 | S + 3.85% | - The total portfolio consists of **21 loans** with a total committed principal of **$641.2 million** and an outstanding balance of **$610.8 million**[34](index=34&type=chunk) [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures like Distributable Earnings and Adjusted Book Value, with Q4 2024 Distributable Earnings at **$4.9 million** and Adjusted Book Value per share at **$18.67** Reconciliation of Net Income to Distributable Earnings (Q4 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Net income | $4,879 | | Non-cash equity compensation expense | $159 | | (Reversal of) provision for credit losses | $(450) | | Depreciation and amortization of REO | $279 | | **Distributable Earnings** | **$4,867** | Reconciliation to Adjusted Book Value (as of Dec 31, 2024, in thousands) | Line Item | Amount | | :--- | :--- | | Shareholders' equity | $269,278 | | Allowance for credit losses | $8,908 | | **Adjusted Book Value** | **$278,186** | | **Adjusted Book Value per common share** | **$18.67** | - The company defines Distributable Earnings as net income adjusted for non-cash items such as depreciation, non-cash equity compensation, and unrealized gains/losses, to provide a useful indicator of distributions to shareholders[47](index=47&type=chunk)[48](index=48&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 (State of Organization) (IRS Employer Identification No.) Two N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 (State of Organization) (IRS Employer Identification No.) Two Newton ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 (State of Organization) (IRS Employer Identification No.) Two Newton Pla ...

(Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34383 Seven Hills Realty Trust (State of Organization) (IRS Employer Identification No.) Two N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 (State of Organization) (IRS Employer Identification No.) Two Newton ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) Maryland 20-4649929 (State of Organization) (IRS Employer Identification No.) Two Newto ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-34383 Seven Hills Realty Trust (Exact Name of Registrant as Specified in Its Charter) | Maryland | 20-4649929 | | --- | --- | | (State of Organization) | (IRS Employer Identifica ...