Seven Hills Realty Trust (SEVN) AI Stock Analysis

• Market Cap: $200.68M
• Dividend Yield: 13.82%
• Average Volume (3M): 48.62K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.64
• Revenue Growth: -18.06%
• EPS Growth: -18.94%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.29
• Shares Outstanding: 22,598,583
• 10 Day Avg. Volume: 53,606
• 30 Day Avg. Volume: 48,617
• PEG Ratio: -0.34
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 6.42
• P/FCF Ratio: 9.57
• Enterprise Value/Market Cap: 2.73
• Enterprise Value/Revenue: 19.81
• Enterprise Value/Gross Profit: 21.99
• Enterprise Value/Ebitda: 25.64
• 1Y Price Target: $10.75
• Price Target Upside: 21.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $9.50 ▲(6.98% Upside)

The score is driven primarily by a decent but not standout financial profile (stable profitability/cash conversion offset by weaker revenue momentum and leverage/reporting uncertainty). Valuation is a clear positive (low P/E and high yield), while technicals remain soft with the stock below key moving averages. Earnings call guidance and portfolio quality are supportive, and the rights offering provides incremental growth capital but introduces potential dilution considerations.

Positive Factors

Strong Portfolio Health

The improvement in loan risk ratings and absence of nonaccrual loans indicate robust portfolio management, enhancing long-term financial stability and reducing credit risk.

Financial Flexibility

Significant cash reserves and financing capacity provide SEVN with the ability to capitalize on new opportunities and manage economic uncertainties effectively.

Improved Office Exposure

Reducing office exposure aligns with a strategic focus on more resilient asset classes, potentially enhancing portfolio resilience against market fluctuations.

Negative Factors

Declining Net Margins

The sharp decline in net margins indicates pressure on profitability, which could affect long-term earnings potential and shareholder returns if not addressed.

Dividend Sustainability Concerns

Concerns about dividend sustainability could impact investor confidence and the attractiveness of SEVN as a dividend stock, affecting long-term investment appeal.

Potential Earnings Pressure

Repayment of higher-spread loans may reduce interest income, leading to earnings pressure that could challenge SEVN's ability to maintain profitability.

Seven Hills Realty Trust Business Overview & Revenue Model

Company Description

Seven Hills Realty Trust, a real estate investment trust, focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as RMR Mortgage Trust. Seven Hills Realty Trust was incorporated in 2008 and is headquartered in Newton, Massachusetts.

How the Company Makes Money

Seven Hills Realty Trust generates revenue primarily through interest income from its portfolio of mortgage loans. The company extends first mortgage loans to commercial real estate properties, earning interest over the life of these loans. SEVN focuses on middle market and transitional properties, often involving repositioning or redevelopment, allowing the company to charge higher interest rates due to the increased risk and complexity. Key revenue streams include interest payments on outstanding loans and fees associated with loan origination. The company may also benefit from strategic partnerships with real estate operators and developers, enhancing its ability to source and manage high-quality loan opportunities. These factors, combined with a focus on underserved markets, contribute to SEVN's earnings.

Seven Hills Realty Trust Financial Statement Overview

Summary

Seven Hills Realty Trust presents a mixed financial picture. The income statement shows stable revenue growth but declining net margins, indicating pressure on profitability. The balance sheet reflects a strong reduction in leverage and a solid equity base, enhancing financial stability. Cash flows remain consistent, with a slight decline in free cash flow growth. Overall, the company is positioned well but faces challenges in improving profitability margins and asset growth.

Income Statement

Seven Hills Realty Trust has shown a steady increase in revenue over recent years, with a revenue growth rate of approximately 1% from 2023 to 2024. The gross profit margin is robust at 100%, indicating efficient management of cost of goods sold. However, the net profit margin has decreased significantly, from 74% in 2023 to 50% in 2024, due to a reduction in net income. EBIT margin remains strong at 89%, suggesting stable operating efficiency. The absence of EBITDA figures limits the analysis of operating cash flows.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0 in 2024, down from a high of 1.68 in 2022, indicating a strong reduction in debt levels. The equity ratio improved to 38.9% in 2024, highlighting a solid capital structure. Return on equity has decreased from 9.49% in 2023 to 6.62% in 2024, reflecting lower profitability. The substantial cash reserves enhance liquidity, while the declining total assets suggest a need for asset reallocation or growth.

Cash Flow

Operating cash flow decreased slightly by 0.8% from 2023 to 2024, indicating stable cash generation. The free cash flow remains positive but fell 0.8% over the same period. The operating cash flow to net income ratio improved to 1.13 in 2024, up from 0.79 in 2023, suggesting more cash is being generated per dollar of net income. However, the free cash flow to net income ratio has remained stable at 1.13, showing consistency in cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.69M	29.97M	34.91M	55.99M	35.71M	-54.31M
Gross Profit	24.95M	27.36M	33.61M	49.50M	30.92M	-54.31M
EBITDA	21.39M	50.91M	0.00	52.33M	27.83M	-54.47M
Net Income	15.34M	17.64M	25.75M	27.45M	24.65M	-55.68M
Balance Sheet
Total Assets	700.84M	692.81M	731.52M	746.85M	599.99M	196.06M
Cash, Cash Equivalents and Short-Term Investments	77.50M	70.75M	87.86M	71.07M	26.20M	103.31M
Total Debt	0.00	417.80M	454.42M	471.52M	339.63M	0.00
Total Liabilities	434.36M	423.53M	460.28M	475.27M	342.30M	3.16M
Stockholders Equity	266.48M	269.28M	271.25M	271.58M	257.69M	192.89M
Cash Flow
Free Cash Flow	15.67M	20.11M	20.27M	12.75M	-4.12M	-86.88M
Operating Cash Flow	15.67M	20.11M	20.27M	12.75M	792.00K	-86.88M
Investing Cash Flow	-52.60M	21.26M	35.84M	-84.07M	-283.86M	292.72M
Financing Cash Flow	32.23M	-58.48M	-39.33M	116.09M	205.80M	-111.43M

Seven Hills Realty Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEVN, the sentiment is Neutral. The current price of 8.88 is below the 20-day moving average (MA) of 9.01, below the 50-day MA of 8.92, and below the 200-day MA of 10.16, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEVN.

Seven Hills Realty Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$200.68M	8.72	5.72%	13.82%	-18.06%	-18.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CHMI	57 Neutral	$95.16M	135.42	4.55%	21.65%	22.14%	―
MITT	55 Neutral	$281.26M	9.48	9.03%	9.61%	20.44%	-59.21%
LFT	53 Neutral	$75.93M	14.99	4.14%	23.03%	-31.69%	-72.10%
ACR	47 Neutral	$148.63M	20.91	6.58%	―	-18.37%	18.80%
GPMT	46 Neutral	$105.24M	-1.51	-9.11%	7.97%	-28.13%	62.49%

Seven Hills Realty Trust Corporate Events

Seven Hills Realty Trust Completes Rights Offering

On December 10, 2025, Seven Hills Realty Trust announced the completion of its transferable rights offering, which began on November 10, 2025, and concluded on December 4, 2025. The offering resulted in subscriptions for approximately 73.2% of the shares offered, with Tremont Realty Capital purchasing the remaining shares, bringing the total gross proceeds to approximately $65.2 million. The proceeds are intended to support the growth of SEVN’s loan portfolio and capitalize on opportunities in the lending market.

The most recent analyst rating on (SEVN) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Seven Hills Realty Trust stock, see the SEVN Stock Forecast page.

Seven Hills Realty Trust Launches Shareholder Rights Offering

On November 10, 2025, Seven Hills Realty Trust initiated a previously announced offering of transferable subscription rights to its shareholders, allowing them to purchase additional common shares. The rights, listed on Nasdaq under the symbol ‘SEVNR’, enable shareholders to subscribe for up to 7,532,861 common shares, impacting the company’s capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (SEVN) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Seven Hills Realty Trust stock, see the SEVN Stock Forecast page.

Seven Hills Realty Trust Announces $65M Rights Offering

On October 30, 2025, Seven Hills Realty Trust announced a fully backstopped rights offering to raise up to $65 million. This initiative aims to provide capital for expanding its lending platform, enhancing portfolio diversification, and increasing share liquidity. The rights offering will allow shareholders to purchase additional common shares at a set price, with Tremont Realty Capital committed to purchasing any unsubscribed shares. The offering is expected to commence on November 10, 2025, and conclude by December 4, 2025, unless extended.

The most recent analyst rating on (SEVN) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Seven Hills Realty Trust stock, see the SEVN Stock Forecast page.

Seven Hills Realty Trust Approves Loan Purchases

On October 29, 2025, Seven Hills Realty Trust authorized the purchase of two loan investments from The RMR Group LLC, valued at $40 million and $27 million, related to properties in Massachusetts and Pennsylvania. The transaction, expected to close by year-end, involves the company and RMR covering their respective costs, with the purchase price being the current unpaid balance of the loans. The acquisition was considered and authorized by the company’s Independent Trustees and Board of Trustees due to existing relationships with RMR.

The most recent analyst rating on (SEVN) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Seven Hills Realty Trust stock, see the SEVN Stock Forecast page.