New Rate Reflects Expected Lower Net Interest Margins on New Investments and a Declining SOFR Curve

NEWTON, Mass.--(BUSINESS WIRE)--Jul. 10, 2025-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced that its Board of Trustees has reduced its quarterly cash distribution on its common shares to $0.28 per share ($1.12 per share per year). The distribution will be paid on or about August 14, 2025, to SEVN’s shareholders of record as of the close of business on July 21, 2025.

Tom Lorenzini , President and Chief Investment Officer of SEVN, made the following statement:

“The Board’s decision to reduce the dividend rate at this time reflects management’s expectation that loan repayment proceeds will be redeployed at lower net interest margins and a declining SOFR curve, which would reduce our distributable earnings over the balance of the year. We believe the reduced rate better aligns with our anticipated earnings while continuing to deliver an attractive yield for our shareholders. This decision does not reflect any deterioration in our loan portfolio. All loans remain fully performing, and we continue to actively originate new investments supported by a robust pipeline.”

SEVN’s management plans to discuss today’s announcement further during its second quarter 2025 conference call scheduled for Tuesday, July 29, 2025.

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust, or REIT, that originates and invests in first mortgage loans secured by middle market transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $40 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon SEVN’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SEVN’s control.

These forward-looking statements include, among others, statements regarding SEVN’s new quarterly cash distribution rate, which may imply that SEVN will continue to pay quarterly distributions at that rate in the future, and statements regarding the quality of SEVN’s loan portfolio and its origination of new investments. SEVN’s distribution rate may be set and reset from time to time by SEVN’s Board of Trustees. SEVN’s Board of Trustees considers many factors when setting or resetting SEVN’s distribution rate, including SEVN’s Distributable Earnings, Distributable Earnings per share, the then current and expected needs and availability of cash to pay SEVN's obligations and fund its investments, distributions which may be required to be paid by SEVN to maintain SEVN’s qualification for taxation as a real estate investment trust and other factors deemed relevant by SEVN's Board of Trustees in its discretion. Accordingly, any future distributions to SEVN’s shareholders may be increased, decreased, suspended or discontinued, and SEVN cannot be sure as to the rate at which future distributions, if any, will be paid. Further, the quality of SEVN’s loan portfolio could decline and SEVN may not be able to originate new investments on attractive terms or at all.

The information contained in SEVN’s filings with the Securities and Exchange Commission, or SEC, including under the caption “Risk Factors” in SEVN’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from SEVN’s forward-looking statements. SEVN’s filings with the SEC are available on the SEC’s website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, SEVN does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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Matt Murphy, Manager, Investor Relations
(617) 796-8253

Source: Seven Hills Realty Trust