Seven Hills Realty Trust (SEVN)
NASDAQ:SEVN
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Seven Hills Realty Trust
(NASDAQ:SEVN)
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Rating:65Neutral
Price Target:
$9.50
▲(14.32% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by fair-to-good financial performance (strong bottom-line and improved cash conversion, but soft/volatile revenue and leverage/consistency concerns). Valuation is supportive (low P/E and high yield), while technicals are weaker with the stock below longer-term averages. Earnings call tone was constructive on liquidity and credit quality, tempered by near-term dilution and softer Q1 earnings guidance.
Positive Factors
Portfolio Credit Quality
Consistently current loans and no nonaccruals indicate disciplined underwriting and active asset management, lowering probability of credit losses and provision volatility. For a mortgage REIT, sustained low delinquency supports predictable interest income and preserves distributable earnings over multiple quarters.
Negative Factors
Elevated Leverage & Reporting Shift
Historically high leverage amplifies sensitivity to credit stress and interest rate moves for a mortgage REIT. The abrupt 2025 reporting shift to zero reported debt creates uncertainty about true funding structure and consistency, complicating assessment of long-term capitalization and downside resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Credit Quality
Consistently current loans and no nonaccruals indicate disciplined underwriting and active asset management, lowering probability of credit losses and provision volatility. For a mortgage REIT, sustained low delinquency supports predictable interest income and preserves distributable earnings over multiple quarters.
Read all positive factors
Seven Hills Realty Trust (SEVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$187.78M
Dividend Yield13.82%
Average Volume (3M)48.62K
Price to Earnings (P/E)8.8
Beta (1Y)0.64
Revenue Growth-18.06%
EPS Growth-18.94%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.28
Shares Outstanding22,596,891
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 Cap2.61
Enterprise Value/Revenue11.42
Enterprise Value/Gross Profit11.79
Enterprise Value/Ebitda13.80
Forecast
1Y Price Target
$10.00Price Target Upside20.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.05
Revenue Forecast (FY)$33.77M
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
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 f...
Seven Hills Realty Trust Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong underwriting and portfolio quality, meaningful liquidity and a successful rights offering that materially expanded investment capacity. Management reported solid Q4 distributable earnings, YoY portfolio growth (~13%), no delinquencies, a broad pipeline (> $1B) and improved risk metrics. Headwinds noted include temporary dilution from the rights offering (pressuring Q1 distributable earnings), notable loan maturities beginning in H2 2026, and competitive spread compression in key sectors. Overall, the positives around capital position, portfolio health and active origination pipeline outweigh the temporary and manageable near-term challenges.Positive Updates
Strong Q4 Distributable Earnings
Distributable earnings for Q4 2025 were $4.6 million, or $0.28 per share (would have been $0.31 per share adjusted for the rights offering), contributing to full-year 2025 distributable earnings of $1.21 per share.
Negative Updates
Temporary Dilution from Rights Offering
Rights offering increased share count causing dilution: Q4 included $0.03 per share dilution and management expects a temporary drag on first-quarter distributable earnings (guidance $0.22–$0.24 per share versus $0.28 in Q4) until proceeds are fully deployed.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Distributable Earnings
Distributable earnings for Q4 2025 were $4.6 million, or $0.28 per share (would have been $0.31 per share adjusted for the rights offering), contributing to full-year 2025 distributable earnings of $1.21 per share.
Read all positive updates
Company Guidance
Management guided first-quarter distributable earnings of $0.22–$0.24 per share and reiterated the regular quarterly dividend of $0.28/share (annualized yield ≈14%; run‑rate dividend $1.12; 93% payout vs. 2025 distributable earnings of $1.21/share), noting the rights offering raised $61.5M net (increasing investment capacity by >$200M and manager ownership to just over 20%); pro forma secured facility capacity is $377M, cash on hand $123M, and total loan commitments stood at $724.5M across 24 floating‑rate first mortgages (including $36.9M unfunded) with a weighted‑average all‑in yield of 7.92%, weighted‑average risk rating of 2.8, weighted‑average LTV at origination of 66% and a CECL reserve of 130 bps (down 20 bps). Management expects ongoing deployment (Q4 originations of $101.3M — $37.3M student housing, $37M hotel, $27M industrial — plus a post‑quarter $30.5M close, ~$37M expected to close shortly and ~$39M in diligence), a pipeline >$1B, almost $300M of loans maturing beginning in H2 2026 that should create additional capacity, and noted 7 SOFR floors provided ~$0.01/share of Q4 earnings protection; all loans were current with no past due or nonaccruals.Seven Hills Realty Trust Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 58.87M | 29.97M | 34.91M | 55.99M | 35.71M |
| Gross Profit | 47.36M | 27.36M | 33.61M | 49.50M | 30.92M |
| EBITDA | 46.04M | 50.91M | 0.00 | 52.33M | 27.83M |
| Net Income | 15.43M | 17.64M | 25.75M | 27.45M | 24.65M |
Balance Sheet | |||||
| Total Assets | 820.86M | 692.81M | 731.52M | 746.85M | 599.99M |
| Cash, Cash Equivalents and Short-Term Investments | 123.47M | 70.75M | 87.86M | 71.07M | 26.20M |
| Total Debt | 487.66M | 417.80M | 454.42M | 471.52M | 339.63M |
| Total Liabilities | 492.20M | 423.53M | 460.28M | 475.27M | 342.30M |
| Stockholders Equity | 328.65M | 269.28M | 271.25M | 271.58M | 257.69M |
Cash Flow | |||||
| Free Cash Flow | 15.04M | 20.11M | 20.27M | 12.75M | -4.12M |
| Operating Cash Flow | 15.04M | 20.11M | 20.27M | 12.75M | 792.00K |
| Investing Cash Flow | -72.96M | 21.26M | 35.84M | -84.07M | -283.86M |
| Financing Cash Flow | 110.64M | -58.48M | -39.33M | 116.09M | 205.80M |
Seven Hills Realty Trust Technical Analysis
Negative
8.31
Price Trends
8.63
Negative
8.64
Negative
9.37
Negative
Market Momentum
-0.11
Positive
42.90
Neutral
39.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEVN, the sentiment is Negative. The current price of 8.31 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 8.63, and below the 200-day MA of 9.37, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $187.78M | 8.79 | 5.46% | 13.82% | -18.06% | -18.94% | |
58 Neutral | $135.78M | 7.14 | 4.99% | ― | -18.37% | 18.80% | |
57 Neutral | $240.55M | 4.98 | 8.85% | 9.61% | 20.44% | -59.21% | |
55 Neutral | $100.67M | -25.12 | 2.95% | 21.65% | 22.14% | ― | |
46 Neutral | $64.98M | -1.48 | -3.28% | 23.03% | -31.69% | -72.10% | |
45 Neutral | $68.97M | -2.79 | -7.12% | 7.97% | -28.13% | 62.49% |
* Real Estate Sector Average
SEVN
Seven Hills Realty Trust
8.31
-3.03
-26.71%
ACR
ACRES Commercial Realty
19.04
-2.15
-10.15%
MITT
AG Mortgage
7.58
0.58
8.27%
LFT
Lument Finance Trust
1.24
-1.33
-51.68%
CHMI
Cherry Hill Mortgage
2.74
-0.37
-11.90%
GPMT
Granite Point Mortgage
1.45
-1.09
-43.00%
Seven Hills Realty Trust Corporate Events
Private Placements and Financing
Seven Hills Realty Trust Completes Rights Offering
Positive
Dec 10, 2025
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...
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.