Revenue: As of FY2025, the actual value is USD 29.38 M.EPS: As of FY2025, the actual value is USD 1, beating the estimate of USD 0.9333.EBIT: As of FY2025, the actual value is USD -11.41 M.Seven Hills Realty Trust operates in a single business segment focused on originating and investing in floating rate first mortgage loans secured by commercial real estate properties.<h3>Operational Performance (Year Ended December 31, 2025 vs. 2024)</h3><ul><li>Total Revenue: Decreased to $29,383 thousand in 2025 from $35,274 thousand in 2024, a change of - $5,891 thousand (-16.7%).</li><li>Interest and Related Income: Decreased to $56,340 thousand in 2025 from $64,762 thousand in 2024, a change of - $8,422 thousand (-13.0%). The weighted average coupon rate was 7.60% in 2025 compared to 8.77% in 2024.</li><li>Revenue from Real Estate Owned: Increased to $2,528 thousand in 2025 from $2,281 thousand in 2024, a change of $247 thousand (10.8%).</li><li>Interest and Related Expenses: Decreased to - $29,485 thousand in 2025 from - $31,769 thousand in 2024, a change of $2,284 thousand (7.2%). The weighted average coupon rate on secured financing facilities was 6.25% in 2025 compared to 7.24% in 2024.</li><li>Net Income from Loan Investments: Decreased to $26,855 thousand in 2025 from $32,993 thousand in 2024, a change of - $6,138 thousand (-18.6%).</li><li>Base Management Fees: Increased to $4,360 thousand in 2025 from $4,329 thousand in 2024, a change of $31 thousand (0.7%).</li><li>Incentive Fees: Decreased to $625 thousand in 2025 from $974 thousand in 2024, a change of - $349 thousand (-35.8%).</li><li>General and Administrative Expenses: Increased to $4,438 thousand in 2025 from $3,902 thousand in 2024, a change of $536 thousand (13.7%).</li><li>Reimbursement of Shared Services Expenses: Decreased to $2,040 thousand in 2025 from $2,647 thousand in 2024, a change of - $607 thousand (-22.9%).</li><li>Provision for Credit Losses: Decreased to $203 thousand in 2025 from $3,080 thousand in 2024, a change of - $2,877 thousand (-93.4%). The allowance for credit losses increased from $8,908 thousand in 2024 to $9,111 thousand in 2025.</li><li>Expenses from Real Estate Owned: Decreased to $2,269 thousand in 2025 from $2,489 thousand in 2024, a change of - $220 thousand (-8.8%).</li><li>Total Other Expenses: Decreased to $13,935 thousand in 2025 from $17,421 thousand in 2024, a change of - $3,486 thousand (-20.0%).</li><li>Net Income: Decreased to $15,434 thousand in 2025 from $17,820 thousand in 2024, a change of - $2,386 thousand (-13.4%).</li></ul><h3>Loan Portfolio Statistics (As of December 31, 2025 vs. 2024)</h3><ul><li>Number of Loans: Increased to 24 in 2025 from 21 in 2024.</li><li>Total Loan Commitments: Increased to $724,458 thousand in 2025 from $641,213 thousand in 2024.</li><li>Unfunded Loan Commitments: Increased to $36,873 thousand in 2025 from $30,402 thousand in 2024.</li><li>Principal Balance: Increased to $687,585 thousand in 2025 from $610,811 thousand in 2024.</li><li>Carrying Value: Increased to $676,908 thousand in 2025 from $601,842 thousand in 2024.</li><li>Weighted Average Coupon Rate: Decreased to 7.52% in 2025 from 8.24% in 2024.</li><li>Weighted Average All-in Yield: Decreased to 7.92% in 2025 from 8.62% in 2024.</li><li>Weighted Average Floor: Increased to 2.81% in 2025 from 2.12% in 2024.</li><li>Weighted Average Maximum Maturity: Remained 2.6 years in both 2025 and 2024.</li><li>Weighted Average Risk Rating: Improved to 2.8 in 2025 from 3.1 in 2024. As of December 31, 2025, 4 loans (17% of amortized cost) had a risk rating of “4” (higher risk), with no loans rated “5” (impaired/loss likely).</li></ul><h3>Cash Flow (Year Ended December 31, 2025 vs. 2024)</h3><ul><li>Net Cash Provided by Operating Activities: Decreased to $15,038 thousand in 2025 from $20,110 thousand in 2024.</li><li>Net Cash Used in Investing Activities: Was - $72,957 thousand in 2025, compared to $21,261 thousand provided by investing activities in 2024.</li><li>Net Cash Provided by Financing Activities: Was $110,640 thousand in 2025, compared to - $58,476 thousand used in financing activities in 2024.<ul><li>Proceeds from issuance of common shares, net (Rights Offering): $61,530 thousand in 2025.</li><li>Proceeds from secured financing facilities: $178,405 thousand in 2025 vs. $101,335 thousand in 2024.</li><li>Repayments under secured financing facilities: - $109,752 thousand in 2025 vs. - $137,529 thousand in 2024.</li></ul></li></ul><h3>Outlook / Guidance</h3>Seven Hills Realty Trust anticipates increased transaction volume in the commercial real estate sector for 2026, driven by a more stabilized monetary environment, improving property fundamentals, and substantial liquidity in debt capital markets. This optimism follows three interest rate cuts by the FOMC in 2025. Potential risks include persistent inflation, increased geopolitical uncertainty, and a weakening labor market, which could moderate economic growth.

Seven Hills Realty Trust | 10-K: FY2025 Revenue: USD 29.38 M