Seven Hills Realty Trust | 8-K: FY2026 Q2 Revenue: USD 14.36 M

Revenue: As of FY2026 Q2, the actual value is USD 14.36 M.

EPS: As of FY2026 Q2, the actual value is USD 0.34, beating the estimate of USD 0.2245.

EBIT: As of FY2026 Q2, the actual value is USD 4.966 M.

Seven Hills Realty Trust reported a net loss of - $0.9 million, or - $0.04 per diluted share, for the three months ended June 30, 2026, compared to a net income of $2.7 million, or $0.18 per diluted share, for the same period in 2025.

Distributable Earnings

Distributable Earnings for the quarter ended June 30, 2026, were $5.1 million, or $0.23 per diluted share, an increase from $4.5 million, or $0.31 per diluted share, in the second quarter of 2025. The quarterly distribution per common share was $0.28, resulting in a quarterly distributable earnings payout ratio of 122%.

Revenue and Expenses

Income from loan investments, net, increased to $7.5 million for the three months ended June 30, 2026, from $6.8 million in the prior year period. Revenue from real estate owned was $0.6 million for the quarter, consistent with Q2 2025. Total revenue for the quarter was $8.1 million, an increase from $7.4 million in Q2 2025.Total other expenses significantly increased to $9.0 million in Q2 2026 from $4.7 million in Q2 2025, primarily due to a higher provision for credit losses of $4.9 million in Q2 2026 compared to $0.9 million in Q2 2025.

Balance Sheet Highlights (as of June 30, 2026)

Cash and cash equivalents stood at $70.0 million. Loans held for investment, net, were $705.2 million. Total assets were $795.1 million, with total liabilities at $474.5 million. Total shareholders’ equity was $320.7 million. The company reported a book value per common share of $14.15 and an adjusted book value per common share of $14.79.

Loan Portfolio and Operational Metrics

Seven Hills Realty Trust originated three new loans with aggregate total commitments of $75.0 million during the quarter. The company received $85.2 million in repayment proceeds, including the full repayment of a $54.7 million multifamily loan and a $26.5 million office loan. This activity reduced office exposure from 23% to 19% of the portfolio as of June 30, 2026. Subsequent to quarter-end, an additional $24.3 million loan was originated.The loan portfolio remains fully performing, with a weighted average risk rating of 2.9 and no realized losses to date. The weighted average All In Yield for the portfolio was 7.69%, and the weighted average LTV was 67%. The company had $70.0 million of cash on hand and $393.3 million of unused financing capacity under its Secured Financing Facilities as of quarter-end. The allowance for credit losses represented 1.9% of total loan commitments. Six loans currently have active interest rate floors, providing annualized earnings protection of $0.03 per share.

Outlook

Seven Hills Realty Trust continues to deploy capital raised through its December rights offering, with an active pipeline and several transactions in process. The company remains focused on deploying capital into compelling lending opportunities while maintaining its disciplined investment approach. The company is staying on plan to provide dividend coverage by year end.