Seven Hills Realty Trust (SEVN)
NASDAQ:SEVN
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Seven Hills Realty Trust
(NASDAQ:SEVN)
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Rating:66Neutral
Price Target:
$9.00
▲(10.29% Upside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by solid but risk-tinged financials (strong profitability and positive cash flow, offset by leverage and thin coverage) and a constructive earnings update (improving margins, strong credit and liquidity, but near-term dividend under-coverage and dilution). Valuation is attractive (low P/E and high yield), while technicals remain only neutral due to the stock still sitting below longer-term moving averages.
Positive Factors
Improving Origination Margins
Sustained higher origination margins (1.95% NIM) widen the spread between asset yields and funding costs, supporting durable net interest income. If maintained, this structural margin improvement enhances distributable earnings, funds dividend sustainability, and provides buffer versus future funding cost volatility.
Negative Factors
Elevated Leverage Profile
A debt-to-equity ratio near 1.5x–1.7x leaves the balance sheet relatively leveraged for a mortgage REIT, limiting flexibility to absorb credit stress or rising funding costs. Structurally higher leverage amplifies earnings volatility and constrains capacity for opportunistic investments or dividend support.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Origination Margins
Sustained higher origination margins (1.95% NIM) widen the spread between asset yields and funding costs, supporting durable net interest income. If maintained, this structural margin improvement enhances distributable earnings, funds dividend sustainability, and provides buffer versus future funding cost volatility.
Read all positive factors
Seven Hills Realty Trust (SEVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$189.81M
Dividend Yield13.82%
Average Volume (3M)48.62K
Price to Earnings (P/E)10.5
Beta (1Y)0.65
Revenue Growth-7.31%
EPS Growth-22.36%
CountryUS
Employees1,000
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.89
Shares Outstanding22,596,077
10 Day Avg. Volume53,606
30 Day Avg. Volume48,617
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.41
Price to Sales (P/S)2.30
P/FCF Ratio9.02
Enterprise Value/Market Cap2.91
Enterprise Value/Revenue9.32
Enterprise Value/Gross Profit11.61
Enterprise Value/Ebitda12.13
Forecast
1Y Price Target
$9.75Price Target Upside19.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.03
Revenue Forecast (FY)$36.55M
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 ...
How the Company Makes Money
SEVN makes money primarily through income generated from its commercial real estate debt investments. Its core revenue stream is interest income earned on loans and other debt instruments it originates or acquires that are secured by commercial re...
Seven Hills Realty Trust Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: strong distributable earnings (at the high end of guidance), record loan commitments, improved origination margins (1.95%), conservative underwriting (66% LTV), robust liquidity (~$110M cash + ~$400M facility capacity), and a large replenishing pipeline. Offsetting items include a near-term earnings-per-share dilution from the December rights offering ($0.08 impact), a dividend not covered by this quarter's distributable earnings ($0.24 vs $0.28), and heightened macro and market volatility that has moderated transaction activity and placed pressure on multifamily spreads. Overall, management emphasized disciplined deployment, selective underwriting, and expectations that earnings will recover to cover the dividend as proceeds are invested.Positive Updates
Solid First Quarter Distributable Earnings
Distributable earnings of $5.3 million, or $0.24 per share, came in at the high end of guidance for the quarter.
Negative Updates
Dividend Not Covered by Current Distributable Earnings
Quarterly distributable earnings of $0.24 per share did not cover the declared dividend of $0.28 per share (a shortfall of $0.04 per share); management expects earnings to trend back to dividend level by year-end.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid First Quarter Distributable Earnings
Distributable earnings of $5.3 million, or $0.24 per share, came in at the high end of guidance for the quarter.
Read all positive updates
Company Guidance
Management guided that Q1 distributable earnings were $5.3M ($0.24/share, including $0.08/share dilution from the December rights offering), the Board declared a $0.28/share quarterly dividend (≈14% annualized yield) and Q2 distributable earnings are expected to be $0.23–$0.25/share with distributable earnings forecast to trend back to the dividend level by year‑end; originations year‑to‑date carried a 1.95% net interest margin (195 bps, highest in four years) with three near‑term loans expected closer to 180 bps, new loan investments added $0.03/share to Q1 results, seven loans had floors that contributed $0.01/share, CECL reserve is 1.3% (130 bps) of total commitments, total loan commitments were ≈$776M across 26 loans with a 7.8% weighted average all‑in yield, 66% weighted avg LTV at origination and a 2.8 weighted risk rating, cash on hand ≈$110M plus nearly $400M available secured capacity (including a $250M Wells Fargo facility), the pipeline includes >$105M of term sheets and three loans ≈$78M in diligence, and management expects roughly $200M of originations this quarter, net portfolio growth of $50–$75M this quarter, and year‑end portfolio near $950M.Seven Hills Realty Trust Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.36M | 58.87M | 67.04M | 71.75M | 55.99M | 35.71M |
| Gross Profit | 47.66M | 47.36M | 54.02M | 62.00M | 49.50M | 30.92M |
| EBITDA | 45.62M | 46.04M | 50.91M | 60.04M | 45.38M | 27.24M |
| Net Income | 15.29M | 15.43M | 17.82M | 25.96M | 27.64M | 24.65M |
Balance Sheet | ||||||
| Total Assets | 797.40M | 820.86M | 692.81M | 731.52M | 746.85M | 599.99M |
| Cash, Cash Equivalents and Short-Term Investments | 56.61M | 123.47M | 70.75M | 87.86M | 71.07M | 26.30M |
| Total Debt | 465.82M | 487.66M | 417.80M | 454.42M | 471.52M | 339.63M |
| Total Liabilities | 470.42M | 492.20M | 423.53M | 460.28M | 475.27M | 342.30M |
| Stockholders Equity | 326.98M | 328.65M | 269.28M | 271.25M | 271.58M | 257.69M |
Cash Flow | ||||||
| Free Cash Flow | 16.37M | 15.04M | 20.11M | 20.27M | 12.75M | -4.12M |
| Operating Cash Flow | 16.37M | 15.04M | 20.11M | 20.27M | 12.75M | 792.00K |
| Investing Cash Flow | -66.69M | -72.96M | 21.26M | 35.84M | -84.07M | -283.86M |
| Financing Cash Flow | 65.28M | 110.64M | -58.48M | -39.33M | 116.09M | 205.80M |
Seven Hills Realty Trust Technical Analysis
Neutral
8.16
Price Trends
8.48
Positive
8.58
Negative
9.17
Negative
Market Momentum
<0.01
Negative
59.27
Neutral
83.65
Negative
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 8.16 is below the 20-day moving average (MA) of 8.28, below the 50-day MA of 8.48, and below the 200-day MA of 9.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEVN.
Seven Hills Realty Trust Risk Analysis
Seven Hills Realty Trust disclosed 63 risk factors in its most recent earnings report. Seven Hills Realty Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Seven Hills Realty Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $189.81M | 10.50 | 5.14% | 13.82% | -7.31% | -22.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $161.16M | 7.74 | 6.11% | ― | -11.12% | 106.91% | |
60 Neutral | $254.11M | -16.28 | 6.11% | 9.61% | 15.52% | -54.74% | |
58 Neutral | $95.16M | 2.88 | 9.33% | 21.65% | -7.99% | ― | |
46 Neutral | $61.83M | -2.38 | -1.20% | 23.03% | -35.24% | -141.71% | |
45 Neutral | $70.44M | -2.87 | -7.12% | 7.97% | -23.52% | 64.81% |
* Real Estate Sector Average
SEVN
Seven Hills Realty Trust
8.40
-1.84
-18.01%
ACR
ACRES Commercial Realty
22.60
4.02
21.64%
MITT
AG Mortgage
7.99
1.84
29.83%
LFT
Lument Finance Trust
1.18
-1.19
-50.11%
CHMI
Cherry Hill Mortgage
2.59
>-0.01
-0.08%
GPMT
Granite Point Mortgage
1.47
-0.60
-28.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.