Seven Hills Realty Trust

Seven Hills Realty Trust is a Maryland REIT that primarily originates and invests in floating rate first mortgage loans. These loans range from $15.0 million to $75.0 million and are secured by middle market transitional commercial real estate (CRE) properties with values up to $100.0 million. Transitional CRE refers to commercial properties undergoing redevelopment or repositioning activities intended to increase their value. As of December 31, 2025, the company held a portfolio of 24 floating rate first mortgage loans with total loan commitments of $724.5 million. These loans had a weighted average maximum maturity of 2.6 years, a weighted average coupon rate of 7.52%, a weighted average all-in yield of 7.92%, and a weighted average interest rate floor of 2.81%. The company operates to qualify for taxation as a REIT under the Internal Revenue Code of 1986, which generally exempts it from U.S. federal income tax if certain distribution and other requirements are met. It also operates to maintain its exemption from registration under the 1940 Act. The company's main investment strategy focuses on balancing capital preservation with generating attractive, risk-adjusted returns by creating customized loan structures for borrowers' business plans related to the collateral properties.