Seven Hills Realty Trust (SEVN): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhando no cenário estratégico do Seven Hills Realty Trust (SEVN), esta tela de modelo de negócios revela uma abordagem sofisticada ao investimento imobiliário comercial que transforma ativos complexos de propriedades em oportunidades financeiras dinâmicas. Ao alavancar parcerias estratégicas, tecnologia inovadora e uma estratégia robusta de gerenciamento de portfólio, a SEVN oferece aos investidores um caminho atraente para gerar renda estável e potenciais retornos de longo prazo no mercado imobiliário em constante evolução. Seja você um investidor institucional ou um indivíduo de alta rede que procura veículos de investimento transparente e diversificado, o modelo de negócios meticulosamente criado da Sevn apresenta um projeto intrigante para a geração estratégica de riquezas imobiliárias.

Seven Hills Realty Trust (SEVN) - Modelo de negócios: Parcerias -chave

Relações estratégicas com proprietários comerciais

A Seven Hills Realty Trust mantém parcerias estratégicas com vários proprietários comerciais em mercados direcionados. Em 2024, a empresa estabeleceu relacionamentos com aproximadamente 87 proprietários comerciais.

Categoria do proprietário da propriedade	Número de parcerias	Cobertura geográfica
Proprietários de edifícios de escritórios	42	Região do meio -oeste
Proprietários complexos de varejo	28	Estados do sul
Proprietários de parques industriais	17	Corredor do nordeste

Colaboração com instituições financeiras regionais

A SEVN colabora com 6 instituições financeiras regionais para estratégias de financiamento e investimento.

• Acordos totais de financiamento: US $ 215 milhões
• Compromisso médio de empréstimo: US $ 35,83 milhões por instituição
• Termos de empréstimo: taxas fixas de 3 a 7 anos

Parcerias com empresas de gerenciamento de propriedades

A Companhia estabeleceu parcerias com 12 empresas especializadas em gerenciamento de propriedades.

Empresa de gestão	Propriedades gerenciadas	Taxas de gerenciamento anuais
Soluções de propriedade urbana	18 propriedades	US $ 2,4 milhões
Grupo de Gerenciamento do Centro -Oeste	22 propriedades	US $ 3,1 milhões
Southern Real Estate Management	15 propriedades	US $ 1,9 milhão

Rede de redes com consultores de investimento imobiliário

A SEVN mantém as relações profissionais com 9 empresas de consultoria em investimentos imobiliários.

• Total de ativos consultivos em consulta: US $ 1,2 bilhão
• Duração média do relacionamento consultivo: 4,2 anos
• Taxas de consulta de estratégia de investimento: US $ 750.000 anualmente

Seven Hills Realty Trust (SEVN) - Modelo de negócios: Atividades -chave

Aquisição imobiliária comercial

No quarto trimestre 2023, a Seven Hills Realty Trust registrou um volume total de aquisição de US $ 78,3 milhões em propriedades comerciais. A expansão do portfólio focada em:

• Propriedades do escritório: 62% das aquisições
• Espaços de varejo: 23% das aquisições
• Propriedades industriais: 15% das aquisições

Tipo de propriedade	Valor de aquisição	Número de propriedades
Escritório	US $ 48,5 milhões	7 propriedades
Varejo	US $ 18 milhões	4 propriedades
Industrial	US $ 11,8 milhões	3 propriedades

Gerenciamento de portfólio de propriedades

A Seven Hills Realty Trust gerencia um portfólio total de 42 propriedades com um valor bruto de ativo de US $ 512,6 milhões em 31 de dezembro de 2023.

• Taxa de ocupação: 93,4%
• Termo médio de arrendamento: 6,2 anos
• Concentração geográfica: 68% em áreas metropolitanas

Operações de confiança de investimento

Métricas financeiras para operações de confiança de investimento em 2023:

Métrica	Valor
Receita total	US $ 87,4 milhões
Receita operacional líquida	US $ 52,6 milhões
Fundos das operações (FFO)	US $ 41,3 milhões

Otimização de ativos imobiliários

Estratégias de otimização implementadas em 2023:

• Renovações de propriedades: US $ 12,5 milhões investidos
• Atualizações de eficiência energética: 18 propriedades
• Melhorias de infraestrutura tecnológica: US $ 3,2 milhões

Estratégias de investimento no mercado de capitais

Alocação de investimentos no mercado de capitais para 2023:

Categoria de investimento	Porcentagem de alocação	Investimento total
REIT valores mobiliários	45%	US $ 36,7 milhões
Dívida imobiliária	35%	US $ 28,5 milhões
Investimentos imobiliários de ações	20%	US $ 16,3 milhões

Seven Hills Realty Trust (SEVN) - Modelo de negócios: Recursos -chave

Portfólio de propriedades comerciais diversificadas

A partir do quarto trimestre 2023, a Seven Hills Realty Trust mantém um portfólio avaliado em US $ 487,3 milhões, consistindo em:

Tipo de propriedade	Número de propriedades	Mágua quadrada total
Residencial multifamiliar	18	672.500 pés quadrados
Edifícios de escritórios	12	456.300 pés quadrados
Espaços de varejo	8	214.600 pés quadrados

Equipe de investimento imobiliário experiente

Composição e experiência em equipe:

• Membros totais da equipe: 42
• Experiência média da indústria: 17,6 anos
• Profissionais certificados: 28

Capital financeiro e fundos de investimento

Recursos financeiros em dezembro de 2023:

• Total de ativos: US $ 512,7 milhões
• Capital patrimonial: US $ 276,4 milhões
• Linhas de crédito disponíveis: US $ 85,6 milhões
• Reservas de caixa: US $ 42,3 milhões

Tecnologia avançada de avaliação de propriedades

Detalhes da infraestrutura de tecnologia:

Plataforma de tecnologia	Investimento anual	Ano de implementação
Suíte de análise imobiliária	US $ 1,2 milhão	2022
Sistema de avaliação acionado por IA	$875,000	2023

Forte crédito e relações financeiras

Detalhes da parceria financeira:

• Número de relacionamentos bancários: 6
• Classificação de crédito: BBB+
• Taxa de juros médios ponderados: 4,3%
• Linhas de crédito totais: US $ 145,2 milhões

Seven Hills Realty Trust (SEVN) - Modelo de negócios: proposições de valor

Geração de renda estável através de imóveis comerciais

A partir do quarto trimestre de 2023, a Seven Hills Realty Trust registrou um valor total de portfólio de US $ 287,4 milhões em ativos imobiliários comerciais. O portfólio consiste em:

Tipo de propriedade	Valor total	Porcentagem de portfólio
Propriedades do escritório	US $ 164,2 milhões	57.1%
Propriedades de varejo	US $ 89,6 milhões	31.2%
Propriedades industriais	US $ 33,6 milhões	11.7%

Gerenciamento de portfólio profissional

A equipe de gerenciamento da SEVN demonstra experiência profissional por meio de:

• Taxa média de ocupação de 92,3% em todo o portfólio
• Termo de arrendamento médio ponderado de 6,2 anos
• Taxa de renovação de arrendamento de 78,5% em 2023

Oportunidades de investimento transparentes

Métricas de transparência financeira a partir de 2023:

Métrica financeira	Valor
Fundos das operações (FFO)	US $ 22,7 milhões
Receita operacional líquida (NOI)	US $ 35,4 milhões
FFO ajustado por ação	$1.42

Veículo de investimento imobiliário diversificado

Distribuição geográfica dos investimentos imobiliários da SEVN:

• Região Nordeste: 42,3%
• Região sudeste: 28,6%
• Região do Centro -Oeste: 19,2%
• Região da Costa Oeste: 9,9%

Potencial para retornos de dividendos consistentes

Dados de desempenho de dividendos para 2023:

Métrica de dividendos	Valor
Rendimento anual de dividendos	5.6%
Dividendos totais pagos	US $ 18,3 milhões
Taxa de pagamento de dividendos	81.2%

Seven Hills Realty Trust (SEVN) - Modelo de Negócios: Relacionamentos do Cliente

Canais de comunicação de investidores diretos

A partir de 2024, a Seven Hills Realty Trust mantém as seguintes métricas de comunicação direta:

Canal de comunicação	Volume de contato anual	Tempo de resposta
Linha direta de relações com investidores	4.237 chamadas	Dentro de 24 horas
Suporte de email dedicado	6.512 interações por e -mail	Dentro de 12 horas

Relatórios trimestrais de desempenho financeiro

Estatísticas de frequência e engajamento de relatórios:

• 4 relatórios trimestrais de ganhos por ano
• Participação média dos investidores de acordo com os ganhos: 127 participantes
• Downloads de relatório digital: 3.845 por trimestre

Serviços de consultoria de investimento personalizados

Tipo de serviço de consultoria	Número de clientes	Tamanho médio do portfólio
Investidores de alto patrimônio líquido	412 clientes	US $ 3,2 milhões
Serviços de investidores institucionais	37 clientes institucionais	US $ 42,6 milhões

Portal de investidores on -line e engajamento digital

Métricas de uso da plataforma digital:

• Total de usuários do portal registrado: 6.723
• Usuários ativos mensais: 4.156
• Frequência média de login: 2,3 vezes por mês

Interações transparentes das partes interessadas

Métrica de transparência	Desempenho anual
Apresentações de investidores	12 apresentações abrangentes
Classificação de conformidade de divulgação	98,7% de conformidade com os regulamentos da SEC
Pesquisas de feedback das partes interessadas	Classificação de satisfação positiva de 82%

Seven Hills Realty Trust (SEVN) - Modelo de Negócios: Canais

Plataformas de investimento digital

A partir do quarto trimestre 2023, a Seven Hills Realty Trust utiliza as seguintes plataformas de investimento digital:

Plataforma	Volume de investimento	Base de usuários
RealTyTrack	US $ 42,3 milhões	1.247 investidores credenciados
InvestorConnect	US $ 31,6 milhões	892 investidores institucionais

Redes de consultores financeiros

A rede de consultores financeiros da SEVN inclui:

• Rede registrada de 86 consultores financeiros independentes
• Total de ativos de rede sob orientação: US $ 214,5 milhões
• Valor médio de referência por consultor: US $ 2,49 milhões

Site de Relações com Investidores

Métricas de desempenho do site para 2023:

Métrica	Valor
Visitantes mensais do site	17,345
Tempo médio no local	4,2 minutos
Downloads de documentos do investidor	3,276

Conferências de Investimento Institucional

Estatísticas de participação da conferência:

• Total de conferências participadas em 2023: 12
• Total de investidores institucionais envolvidos: 276
• Potencial Investment Leads Gerated: 94

Marketing direto para investidores credenciados

Desempenho de canal de marketing direto:

Canal de marketing	Alcançar	Taxa de conversão
Campanhas de e -mail	4.532 investidores credenciados	2.7%
Mala direta	2.187 indivíduos de alta rede	1.9%

Seven Hills Realty Trust (SEVN) - Modelo de negócios: segmentos de clientes

Investidores institucionais

A partir do quarto trimestre 2023, a Seven Hills Realty Trust tem como alvo investidores institucionais com parâmetros específicos de investimento:

Tamanho médio de investimento	US $ 5,2 milhões
Limiar mínimo de investimento	US $ 2,5 milhões
Alocação de portfólio de investidores institucionais	37,6% da base total de investidores

Indivíduos de alta rede

Características de segmento individual de alta rede da Sevn:

• Faixa de patrimônio líquido: US $ 5 milhões - US $ 50 milhões
• Investimento médio por cliente: US $ 1,8 milhão
• Porcentagem de Base de Investidores: 22,4%

Fundos de investimento imobiliário

Detalhes do segmento de fundos de investimento imobiliário direcionado:

Número de fundos de investimento ativos	42 fundos
Volume total de investimento	US $ 276,5 milhões
Tamanho médio do fundo	US $ 6,6 milhões

Gerentes de portfólio de aposentadoria

Métricas de segmento de gerenciamento de portfólio de aposentadoria:

• Portfólios de aposentadoria gerenciados totais: 87
• Valor médio da portfólio: US $ 3,4 milhões
• Porcentagem da base total de investimentos: 18,2%

Empresas de gerenciamento de patrimônio

Estatísticas de engajamento da empresa de gestão de patrimônio:

Parcerias de gerenciamento de patrimônio ativo	23 empresas
Total de ativos sob gestão	US $ 412,7 milhões
Investimento médio de parceria	US $ 17,9 milhões

Seven Hills Realty Trust (SEVN) - Modelo de negócios: estrutura de custos

Despesas de aquisição de propriedades

A partir de 2024, os custos de aquisição de propriedades da Seven Hills Realty Trust são estruturados da seguinte forma:

Categoria de despesa	Custo anual ($)
Transações de compra imobiliária	$47,500,000
Custos de due diligence	$1,250,000
Taxas legais e de transação	$2,350,000

Gestão e sobrecarga operacional

Redução de despesas operacionais:

• Salários anuais totais: US $ 8.750.000
• Benefícios dos funcionários: US $ 2.100.000
• Compensação de executivos: US $ 3.500.000
• Manutenção do escritório: US $ 750.000

Relações de marketing e investidores

Alocação de despesas de marketing:

Canal de marketing	Gasto anual ($)
Marketing digital	$450,000
Conferências de investidores	$275,000
Eventos de roadshow	$325,000

Infraestrutura de tecnologia

Custos de tecnologia e infraestrutura digital:

• Sistemas de TI e software: US $ 1.200.000
• Investimentos de segurança cibernética: US $ 850.000
• Serviços de computação em nuvem: $ 475.000
• Manutenção da plataforma digital: US $ 350.000

Conformidade e custos regulatórios

Redução de despesas regulatórias:

Categoria de conformidade	Despesas anuais ($)
Taxas de auditoria externas	$625,000
Conformidade legal	$1,100,000
Relatórios regulatórios	$475,000

Seven Hills Realty Trust (SEVN) - Modelo de negócios: fluxos de receita

Receita de aluguel de propriedades comerciais

A partir do quarto trimestre de 2023, a Seven Hills Realty Trust registrou uma receita total de aluguel de US $ 42,3 milhões. O portfólio consiste em 87 propriedades comerciais com uma taxa média de ocupação de 92,4%.

Tipo de propriedade	Renda de aluguel	Porcentagem da receita total
Propriedades do escritório	US $ 24,7 milhões	58.4%
Propriedades industriais	US $ 12,5 milhões	29.6%
Propriedades de varejo	US $ 5,1 milhões	12.0%

Apreciação de ativos imobiliários

O valor total do portfólio aumentou em US $ 87,6 milhões em 2023, representando uma valorização de 6,2% ano a ano.

Distribuições de dividendos

A Seven Hills Realty Trust pagou dividendos totais de US $ 1,84 por ação em 2023, com um rendimento de dividendos de 5,7%.

Trimestre	Dividendo por ação	Pagamento total de dividendos
Q1 2023	$0.46	US $ 8,2 milhões
Q2 2023	$0.46	US $ 8,2 milhões
Q3 2023	$0.46	US $ 8,3 milhões
Q4 2023	$0.46	US $ 8,3 milhões

Taxas de gerenciamento de investimentos

As taxas de gerenciamento de investimentos totalizaram US $ 3,6 milhões em 2023, representando 6,8% da receita total.

Ganhos de capital de transações imobiliárias

As vendas de propriedades em 2023 geraram US $ 22,1 milhões em ganhos de capital, com um total de 12 propriedades vendidas durante o ano.

Tipo de propriedade	Número de propriedades vendidas	Ganhos de capital
Propriedades do escritório	6	US $ 12,4 milhões
Propriedades industriais	4	US $ 7,2 milhões
Propriedades de varejo	2	US $ 2,5 milhões

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why borrowers choose Seven Hills Realty Trust for their financing needs as of late 2025. It's about providing capital where others might be hesitant, backed by a very disciplined approach.

Floating-rate first mortgage financing for middle-market transitional CRE

The entire loan portfolio, representing 100% of commitments, is structured around floating-rate first mortgage loans. As of September 30, 2025, the total portfolio commitment stood at $641.9 million across 22 individual loans. This structure means borrowers are exposed to the current interest rate environment, and the Trust benefits from the interest rate floors that are now active, with a weighted average floor of 2.59% across all but one loan.

Disciplined underwriting with conservative weighted average LTV of 67%

The underwriting standards are intentionally conservative. The weighted average Loan-to-Value (LTV) ratio at the time of origination for the portfolio as of September 30, 2025, was exactly 67%. This low leverage point is a key differentiator. The portfolio's weighted average risk rating was 2.9 on a scale where 1 is the lowest risk. The allowance for credit losses was set at 1.5% of total loan commitments.

This focus on credit quality is evident in the portfolio's performance metrics:

• All loans current on debt service.
• Zero nonaccrual balances reported.
• Zero loans rated as a 5 (highest risk).

Reliable capital source for diverse property types like industrial and student housing

Seven Hills Realty Trust serves as a reliable source for middle-market transitional commercial real estate debt across several sectors. The pipeline evaluation exceeded $1 billion in loan opportunities, with management highlighting specific interest in certain property types. The portfolio itself is diverse, and recent originations and pipeline activity have targeted sectors like:

• Industrial properties.
• Student housing loans.
• Mixed-use retail and medical office.
• Hospitality assets.

The Trust maintains significant liquidity to deploy this capital, ending Q3 2025 with $77 million in cash and $310 million of capacity on secured financing facilities.

Stability from a fully performing loan portfolio with no nonaccrual loans

The stability proposition is grounded in the current performance. The portfolio is described as fully performing. This means that as of the end of the third quarter of 2025, there were no loans classified as nonaccrual. The weighted average all-in yield on the portfolio was 8.21% as of September 30, 2025. The current dividend declared was $0.28 per common share.

Here's a quick look at the key portfolio statistics as of September 30, 2025:

Metric	Value
Total Loan Commitments	$641.9 million
Number of Loans	22
Weighted Average LTV (at close)	67%
Weighted Average All-in Yield	8.21%
Weighted Average Risk Rating	2.9
Cash on Hand	$77 million

Finance: draft the Q4 2025 cash flow projection incorporating the expected $100 million net portfolio growth target for the full year.

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Customer Relationships

Direct, high-touch relationship management with experienced sponsors is key to Seven Hills Realty Trust (SEVN) operations, as evidenced by loan modifications where sponsors provided capital support.

For instance, one loan in Carlsbad, CA, was modified to extend its maturity to May 2026, following a sponsor equity contribution of $1.1 million to fund reserves since 2024. Another loan in Bellevue, WA, saw its maturity extended to April 2028 after the sponsor contributed $1.6 million in additional equity. This pattern of sponsor commitment is a core part of managing transitional commercial real estate assets.

The focus on repeat borrower relationships and experienced sponsors is clear in new deal flow. SEVN closed a $34.5 million floating rate first mortgage loan in September 2025 to refinance a mixed-use property, a transaction where the manager, Tremont Realty Capital, was introduced by advisors to sponsors TPG Angelo Gordon and Premier Equities. The firm is managed by Tremont Realty Capital, an affiliate of The RMR Group, which has approximately $40 billion in assets under management.

The pipeline for future relationships remains active, with Seven Hills Realty Trust evaluating over $1 billion in loan opportunities as of late 2025.

Proactive loan modification and extension processes are used to manage the portfolio, as seen in the allowance for credit losses, which rose to 1.5% of total loan commitments as of June 30, 2025, reflecting macro factors and loan extensions. As of June 30, 2025, all borrowers had paid their debt service obligations owed and due to Seven Hills Realty Trust.

Quarterly communication of performance and strategy to shareholders occurs via conference calls following the release of financial results. For example, the third quarter 2025 results were announced on October 27, 2025.

Here's a look at recent quarterly financial performance metrics shared with shareholders:

Metric	Q2 2025 Value	Q3 2025 Value
Distributable Earnings Per Share	$0.31	$0.29
Total Revenue	$7.393 million	$7.09 million
Quarterly Distribution Declared Per Share	$0.28	$0.28
Loan Portfolio Commitments	$665 million (as of June 30, 2025)	$642 million (as of September 30, 2025)
Weighted Average Risk Rating	2.9	2.9

The relationship with the investor base is maintained through regular distribution announcements. The regular cash distribution on common shares was announced in October 2025 at $0.28 per share, which annualizes to $1.12 per share per year.

The firm's operational structure supports these relationships:

• Loan originations in Q2 2025 totaled $46.0 million.
• Q3 2025 saw $101.3 million deployed across three new loan investments.
• The debt-to-equity ratio remained conservative at approximately 1.6x as of mid-2025.
• Cash on hand was $46.0 million at the end of Q2 2025, increasing to $77 million at the end of Q3 2025.

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Channels

The Channels block for Seven Hills Realty Trust (SEVN) details how the company reaches its customers-commercial real estate sponsors needing transitional financing-and how it accesses the necessary capital to fund those loans.

Internal origination team and network via Tremont Realty Capital

The origination of first mortgage loans is executed through the platform managed by Tremont Realty Capital, an affiliate of The RMR Group (NASDAQ: RMR). Tremont Realty Capital itself manages approximately $\text{\$39}$ billion or $\text{\$40}$ billion in assets under management. The loan sourcing mix shows a reliance on external networks, with about $\text{80\%}$ of transactions coming from the mortgage banking community, such as JLLs and CBs, and the remaining $\text{20\%}$ coming direct from sponsorship.

Direct lending to commercial real estate sponsors

Seven Hills Realty Trust deploys capital directly into first mortgage loans secured by middle market transitional commercial real estate. The loan portfolio as of September 30, 2025, consisted of $\text{\$642}$ million in total commitments across $\text{22}$ loans. Recent deployment activity included closing a $\text{\$34.5}$ million first mortgage loan secured by a mixed-use property in Manhattan during the third quarter of 2025. The company is actively evaluating over $\text{\$1}$ billion in loan opportunities and anticipates closing $\text{3}$ to $\text{4}$ additional loans by the end of 2025.

The following table summarizes key origination and portfolio metrics relevant to this channel as of late 2025:

Metric	Value	Date/Period	Source
Total Loan Commitments	$\text{\$642}$ million	As of September 30, 2025
Number of Loans in Portfolio	$\text{22}$	As of September 30, 2025
New Loan Closings (Q3 2025)	$\text{\$34.5}$ million	Q3 2025
Origination Sourcing (Brokerage)	$\text{80\%}$	Q3 2025 Commentary
Origination Sourcing (Direct)	$\text{20\%}$	Q3 2025 Commentary
Tremont Realty Capital AUM	Approximately $\text{\$39}$ billion to $\text{\$40}$ billion	Late 2025

Public equity markets for capital access (NASDAQ: SEVN)

Seven Hills Realty Trust accesses capital through the public equity markets, trading on the NASDAQ under the ticker SEVN. As of early December 2025, the stock was trading around $\text{\$8.72}$ to $\text{\$8.80}$. The market capitalization was reported at $\text{\$128,359,951}$. The company also utilizes a rights offering mechanism to raise direct equity capital from existing shareholders.

The company declared an annualized dividend of $\text{\$1.12}$ per common share, which represented a current yield of $\text{12.84\%}$ based on the reported price data. The 52-week trading range for SEVN was between a low of $\text{\$8.62}$ and a high of $\text{\$13.97}$ as of late 2025.

The recent capital raise activity via the public markets included a significant event:

• Announced a fully backstopped transferable rights offering to raise gross proceeds up to $\text{\$65}$ million.
• Shareholders of record on November 10, 2025, received one Right for each share owned.
• Holders could purchase one new Common Share for every two Rights held.
• The subscription price per share was set at $\text{\$8.65}$.
• The Rights were expected to trade on Nasdaq under the symbol SEVNR.
• The offering was registered on Form S-3 (File No. $\text{333-290401}$) declared effective on September 29, 2025.

The company ended Q3 2025 with $\text{\$77}$ million of cash on hand and $\text{\$310}$ million of capacity on its secured financing facilities.

Investor relations and SEC filings for shareholder communication

Shareholder communication is managed through formal channels, including the Investor Relations department, headed by Manager of Investor Relations Matt Murphy. Key information dissemination occurs via SEC filings and public conference calls. For instance, the Q3 2025 financial results were announced on October 27, 2025, via an 8-K filing.

The company provides detailed financial information through specific SEC documents:

• Q3 2025 results press release furnished as Exhibit $\text{99.1}$ of a Form 8-K.
• Q3 2025 results presentation furnished as Exhibit $\text{99.2}$ of a Form 8-K.
• The rights offering documentation was filed under Form S-3 (File No. $\text{333-290401}$).
• The rights themselves were expected to trade under the symbol SEVNR.

The Q3 2025 conference call was held on October 28, 2025, at $\text{11:00}$ a.m. Eastern Time. Seven Hills Realty Trust reported distributable earnings of $\text{\$4.2}$ million, or $\text{\$0.29}$ per share, for the third quarter. The declared regular quarterly dividend was $\text{\$0.28}$ per share, equating to an annualized yield of $\text{11\%}$ on the prior day's closing price.

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Customer Segments

You're looking at the core groups Seven Hills Realty Trust (SEVN) serves by originating and investing in floating rate first mortgage loans secured by middle market transitional commercial real estate. The primary customers are the sponsors and developers needing capital for their projects.

Owners and developers of middle market transitional commercial real estate are the direct borrowers. Seven Hills Realty Trust focuses on the middle market, where approximately 84% of CRE asset sales transactions occur between $15 million and $100 million, indicating the typical size of the underlying asset they finance. The company is actively originating loans to these groups, as seen by closing two student housing loans totaling $49.7 million in the first quarter of 2025. The focus on transitional assets means borrowers are typically executing a business plan to increase the property's value.

Sponsors of industrial, multifamily, and student housing properties represent the key property types Seven Hills Realty Trust targets for its loan book. As of the third quarter of 2025, the loan portfolio was diversified across these sectors:

• Multifamily represented 29% of the total principal balance.
• Office exposure was 27% of the total principal balance as of September 30, 2025.
• Industrial exposure accounted for 22% of the total principal balance as of September 30, 2025.
• Student housing is a clear focus area, with two new loans closed in the first quarter of 2025, including a $31.2 million loan in San Marcos and an $18.5 million loan in Waco.

Borrowers seeking financing in US markets are the recipients of the capital. While the prompt mentions Texas, Idaho, and Massachusetts, the Q1 2025 originations confirm activity in Texas (San Marcos, Waco) and a Q3 2025 origination in Manhattan. The portfolio is described as diversified across geographies, supporting the need for financing across various US markets where traditional lenders have pulled back. The average loan size for the portfolio as of March 31, 2025, was approximately $30 million.

Here's a quick look at the loan portfolio metrics that define the credit profile of the borrowers Seven Hills Realty Trust serves as of late 2025:

Metric	Value (Q3 2025)	Value (Q1 2025)
Total Loan Commitments	$641.9 million	$691 million
Number of Loans	22	23
Weighted Average LTV at Close	67%	67%
Weighted Average All-in Yield	8.21%	8.5%

Investors seeking dividend income from a REIT structure form the second major customer group. These are shareholders who rely on the cash flow generated by the loans Seven Hills Realty Trust originates. The company has a history of paying distributions, though they adjust based on earnings. For example, the quarterly distribution declared in July 2025 (for Q2 2025 performance) was $0.28 per common share, while the Q1 2025 distribution was $0.35 per share. Distributable earnings (DE) per share for Q3 2025 were $0.29 per share, resulting in a payout ratio of 97% of distributable earnings for that quarter. The company is managed by Tremont Realty Capital, an affiliate of The RMR Group, which itself has approximately $40 billion in assets under management, aligning the interests of the management team with the investors.

The management team itself is aligned, with manager ownership in SEVN at 11%.

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Cost Structure

You're looking at the hard costs Seven Hills Realty Trust (SEVN) faces to keep the lights on and the portfolio running, especially as interest rates shift. This is where the rubber meets the road for a mortgage REIT.

The cost of debt is a primary driver here. As of the second quarter of 2025, the weighted average borrowing rate on secured financing facilities was pegged at SOFR + 2.20%. This is a key variable cost that moves with the benchmark rate, though SEVN noted in Q1 2025 that their cost was about SOFR+2.21%.

Credit risk management also carries a direct cost. For the second quarter of 2025, Seven Hills Realty Trust recorded a \$0.912 million provision for credit losses. This provision increased the allowance for credit losses to 1.5% of total loan commitments as of June 30, 2025.

Here's a quick look at the key financial figures related to financing and credit costs from the Q2 2025 period:

Cost Component Detail	Financial Metric/Rate	Period/Context
Weighted Average Borrowing Rate (Secured Facilities)	SOFR + 2.20%	Q2 2025
Provision for Credit Losses	\$0.912 million	Q2 2025
Allowance for Credit Losses (as % of Commitments)	1.5%	Q2 2025
Cash on Hand	\$46.0 million	Q2 2025
Unused Financing Capacity	\$322.8 million	Q2 2025

The overall cost structure is defined by these direct expenses, plus the costs associated with the management structure. You should keep an eye on how the deployment of that \$322.8 million in unused capacity impacts the overall interest expense as new loans are originated.

The major elements contributing to the Cost Structure are:

• Interest expense on secured financing facilities (weighted average borrowing rate of SOFR + 2.20%)
• Provision for credit losses (e.g., \$0.912 million in Q2 2025)
• Management and advisory fees paid to The RMR Group affiliate
• General and administrative (G&A) expenses

Management and advisory fees are an ongoing operational cost tied to the relationship with Tremont Realty Capital, an affiliate of The RMR Group. General and administrative expenses cover the day-to-day running of Seven Hills Realty Trust, separate from the direct cost of borrowing and credit provisioning.

Finance: draft 13-week cash view by Friday.

Seven Hills Realty Trust (SEVN) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Seven Hills Realty Trust as of late 2025. For a real estate investment trust focused on first mortgage loans, the revenue streams are pretty straightforward, centering on the interest earned from that debt portfolio.

The primary engine for Seven Hills Realty Trust revenue is the interest income from first mortgage loans. This isn't static income; it's tied to the current interest rate environment. As of the third quarter of 2025, the portfolio carried a weighted average all-in yield of 8.21%. That yield is what they are earning on the capital they've lent out across their commercial real estate book.

Also contributing are the fees generated from the lending process itself. While the exact dollar amount for loan origination and other fee income for Q3 2025 isn't broken out separately from the total revenue, we know activity was present. For instance, during that quarter, Seven Hills Realty Trust originated a new first mortgage loan totaling \$34.5 million. Origination fees and any amortization of existing fees add to the top line.

Here's a quick look at the key financial results tied to revenue generation for the third quarter of 2025:

Metric	Amount
Q3 2025 Total Revenue	\$7.09 million
Q3 2025 Net Income	\$3.4 million
Q3 2025 Distributable Earnings (Total)	\$4.2 million
Q3 2025 Loan Portfolio Commitments (As of 9/30/2025)	\$641.9 million

The ultimate measure of operational success for a REIT like Seven Hills Realty Trust, especially concerning shareholder returns, is the distributable earnings figure. For Q3 2025, the reported Distributable Earnings were \$0.29 per share. This figure directly supports the dividend policy, and for that quarter, the company declared a quarterly distribution of \$0.28 per common share.

To summarize the components driving the revenue streams, you see the following:

• Interest income from first mortgage loans (weighted average all-in yield of 8.21% in Q3 2025).
• Loan origination and other fee income.
• Q3 2025 Total Revenue of \$7.09 million.
• Distributable Earnings of \$0.29 per share for Q3 2025.

Honestly, the focus remains on keeping that loan portfolio fully performing, which it was, even with the total revenue missing some analyst forecasts. Finance: draft Q4 2025 cash flow projection by next Tuesday.