SEVN Q3: $0.24 Distributable EPS Ex-Loss, Record $122.3M Originations, Office Cut to 13%
SEVN is trading near its 52-week low of $5.98 (5.3% above the low).
Summary
Seven Hills posted $0.24 per share of Distributable Earnings excluding a $1.5 million Dallas office loss, its best origination quarter since 2021 at $122.3 million, and cut office exposure to 13% of the portfolio.
Key Events · Earnings and Guidance · SEVN
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Q3 Earnings Beat Prior Quarter
Net income came in at $8.1 million, or $0.36 per diluted share, versus a Q2 2026 net loss; Distributable Earnings were $3.8 million, or $0.17 per share, and $5.3 million, or $0.24 per share, excluding a $1.5 million realized loss.
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Dallas Office Loan Resolved Near Par
The $44.2 million principal Dallas office loan was repaid at 97% of par, producing a $1.5 million realized loss versus a $6.3 million CECL reserve and a $4.8 million reversal of credit losses; lending capacity rose by about $46.1 million.
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Record Origination Quarter
Three loans with $122.3 million of aggregate commitments marked the highest quarterly origination activity since Q4 2021, and another $121.7 million in diligence is expected to close in Q4 2026.
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Office Exposure Cut to 13%
Office fell from 19% to 13% of the portfolio at September 30, 2026, and to 10% after the October 2026 Carlsbad, CA loan resolution.
Analysis · SEVN · Real Estate & Construction
This quarter reverses the credit narrative behind Q2's $0.04 net loss per share. The Dallas office loan, which drove last quarter's $4.9 million provision, was repaid at 97% of par, producing only a $1.5 million realized loss against a $6.3 million reserve and a $4.8 million credit-loss reversal. That swung GAAP net income to $8.1 million, or $0.36 per share, and Distributable Earnings to $0.24 per share excluding the loss. Originations of $122.3 million were the highest in more than four years, with another $121.7 million in diligence expected to close in Q4, while office exposure fell from 19% to 13% (10% after the October Carlsbad resolution). At a $6.30 share price against $14.55 adjusted book value per share, the stock trades at a steep discount to book; the key question is whether the improved credit trend and origination pace narrow that gap.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.5% of the 1494 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.03%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SEVN was trading at $6.30 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $141.6M. The 52-week trading range was $5.98 to $10.61. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.