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Seven Hills Realty Trust
(NASDAQ:SEVN)
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Rating:64Neutral
Price Target:
$8.50
▲(7.59% Upside)
Action:Reiterated
Date:07/29/26
SEVN scores in the mid-range primarily due to solid profitability and cash generation but weakening revenue/earnings momentum and mixed balance-sheet clarity versus history. The latest earnings call supports the score with improving origination margins, strong liquidity, and guidance for earnings recovery toward dividend coverage, while the current dividend shortfall and rights-offering dilution temper confidence. Technicals are neutral-to-soft with the stock slightly below the 20- and 50-day averages, and valuation is supported by a moderate P/E and high yield (with coverage risk noted).
Positive Factors
Profitability & Cash Generation
High operating profitability and consistent cash generation provide durable internal funding for operations and dividends. Strong margins and positive free cash flow increase flexibility to originate loans, absorb credit volatility, and deploy capital without immediate reliance on external equity.
Negative Factors
Dividend Coverage Shortfall
Quarterly distributable earnings fell short of the declared dividend, creating a structural sustainability concern if recurring. Persistent coverage deficits would force dividend cuts, new equity issuances, or increased leverage, each dilutive or value-destructive for long-term holders.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Cash Generation
High operating profitability and consistent cash generation provide durable internal funding for operations and dividends. Strong margins and positive free cash flow increase flexibility to originate loans, absorb credit volatility, and deploy capital without immediate reliance on external equity.
Read all positive factors
Seven Hills Realty Trust Key Performance Indicators (KPIs)
Any
Number of Loans
Count of individual loans in the portfolio. A higher number generally means better diversification and lower single-borrower concentration, while a small number can amplify the impact of a single default.
Count of individual loans in the portfolio. A higher number generally means better diversification and lower single-borrower concentration, while a small number can amplify the impact of a single default.
Data provided by:
The Fly
The FlySeven Hills Realty Trust (SEVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$169.70M
Dividend Yield14.73%
Average Volume (3M)163.30K
Price to Earnings (P/E)11.3
Beta (1Y)0.59
Revenue Growth-2.38%
EPS Growth-35.43%
CountryUS
Employees1,000
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.67
Shares Outstanding22,656,607
10 Day Avg. Volume189,267
30 Day Avg. Volume163,296
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$9.31Price Target Upside17.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.02
Revenue Forecast (FY)$35.14M
Seven Hills Realty Trust Business Overview & Revenue Model
Company Description
Seven Hills Realty Trust functions as a real estate investment trust (REIT), concentrating on both the creation and acquisition of senior mortgage loans. These loans are specifically backed by middle-market and transitional commercial properties s...
How the Company Makes Money
SEVN makes money primarily through net interest income generated from its investment portfolio of commercial real estate loans. The core revenue stream is interest earned on mortgage loans (typically floating-rate) it originates or acquires, net o...
Seven Hills Realty Trust Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 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
68
Positive
Balance Sheet
56
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.74M | 58.87M | 67.04M | 71.75M | 55.99M | 35.71M |
| Gross Profit | 47.98M | 47.36M | 54.02M | 62.00M | 49.50M | 30.92M |
| EBITDA | 41.70M | 46.04M | 50.91M | 60.04M | 45.38M | 27.24M |
| Net Income | 11.74M | 15.43M | 17.82M | 25.96M | 27.64M | 24.65M |
Balance Sheet | ||||||
| Total Assets | 795.12M | 820.86M | 692.81M | 731.52M | 746.85M | 599.99M |
| Cash, Cash Equivalents and Short-Term Investments | 69.97M | 123.47M | 70.75M | 87.86M | 71.07M | 26.30M |
| Total Debt | 470.33M | 487.66M | 417.80M | 454.42M | 471.52M | 339.63M |
| Total Liabilities | 474.45M | 492.20M | 423.53M | 460.28M | 475.27M | 342.30M |
| Stockholders Equity | 320.67M | 328.65M | 269.28M | 271.25M | 271.58M | 257.69M |
Cash Flow | ||||||
| Free Cash Flow | 15.88M | 15.04M | 20.11M | 20.27M | 12.75M | -4.12M |
| Operating Cash Flow | 15.88M | 15.04M | 20.11M | 20.27M | 12.75M | 792.00K |
| Investing Cash Flow | -84.85M | -72.96M | 21.26M | 35.84M | -84.07M | -283.86M |
| Financing Cash Flow | 92.99M | 110.64M | -58.48M | -39.33M | 116.09M | 205.80M |
Seven Hills Realty Trust Technical Analysis
Negative
7.90
Price Trends
8.03
Negative
7.97
Negative
8.06
Negative
Market Momentum
-0.14
Positive
40.32
Neutral
35.82
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 7.9 is above the 20-day moving average (MA) of 7.85, below the 50-day MA of 8.03, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.82 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% | |
64 Neutral | $169.70M | 11.33 | 3.78% | 14.13% | -2.38% | -35.43% | |
61 Neutral | $201.00M | 14.04 | 5.37% | 12.72% | 17.78% | -15.05% | |
57 Neutral | $102.50M | 16.14 | 8.64% | 17.70% | -13.80% | ― | |
47 Neutral | $35.94M | -5.35 | -0.90% | 20.03% | -28.61% | -164.74% | |
45 Neutral | $59.77M | -0.62 | -6.46% | 15.04% | -25.30% | 5.00% | |
44 Neutral | $101.33M | -13.06 | 6.11% | ― | -2.62% | -7470.75% |
* Real Estate Sector Average
SEVN
Seven Hills Realty Trust
7.58
-1.96
-20.56%
ACR
ACRES Commercial Realty
14.10
-5.77
-29.04%
MITT
AG Mortgage
6.73
-0.14
-2.05%
LFT
Lument Finance Trust
0.70
-1.25
-64.03%
CHMI
Cherry Hill Mortgage
2.91
0.40
15.84%
GPMT
Granite Point Mortgage
1.25
-1.33
-51.53%
Seven Hills Realty Trust Corporate Events
Executive/Board ChangesShareholder Meetings
Seven Hills Realty Trust Announces Trustee Changes, Board Re-Elections
Positive
Jun 10, 2026
On June 9, 2026, Seven Hills Realty Trust announced that independent trustee Jeffrey P. Somers resigned effective at the close of the company’s annual shareholder meeting, with the board noting his departure did not arise from any disagreeme...
Business Operations and StrategyFinancial Disclosures
Seven Hills Realty Highlights Portfolio Strength and Growth Plans
Positive
Jun 1, 2026
On June 1, 2026, Seven Hills Realty Trust released an investor presentation detailing a fully performing portfolio of senior secured, floating rate first mortgage loans diversified across geographies, sponsors and property types, with a conservati...
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.