Seven Hills Realty Trust Files Q2 2024 10-Q

TL;DR

**SEVN Q2 10-Q filed. Financials look steady, watch for real estate asset details.**

AI Summary

Seven Hills Realty Trust (SEVN) filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its real estate assets and liabilities. Specific financial figures and operational details for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors with a detailed look at Seven Hills Realty Trust's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations, interest rate changes, and property-specific risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240729 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Seven Hills Realty Trust (company) — Filer of the 10-Q
• SEVN (company) — Ticker symbol for Seven Hills Realty Trust
• 20240630 (date) — End of the reporting period
• 20240729 (date) — Filing date of the 10-Q
• Newton, MA (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — s common shares of beneficial interest, $0.001 par value per share, outstanding as of

Filing Documents

• sevn-20240630.htm (10-Q) — 1228KB
• sevn_063024xexhibitx311.htm (EX-31.1) — 10KB
• sevn_063024xexhibitx312.htm (EX-31.2) — 10KB
• sevn_063024xexhibitx313.htm (EX-31.3) — 10KB
• sevn_063024xexhibitx314.htm (EX-31.4) — 10KB
• sevn_063024xexhibitx321.htm (EX-32.1) — 8KB
• 0001452477-24-000029.txt ( ) — 5604KB
• sevn-20240630.xsd (EX-101.SCH) — 39KB
• sevn-20240630_cal.xml (EX-101.CAL) — 59KB
• sevn-20240630_def.xml (EX-101.DEF) — 100KB
• sevn-20240630_lab.xml (EX-101.LAB) — 380KB
• sevn-20240630_pre.xml (EX-101.PRE) — 244KB
• sevn-20240630_htm.xml (XML) — 970KB

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets — June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations — Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Shareholders' Equity — Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows — Six Months Ended June 30, 2024 and 2023 4 Notes to Unaudited Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29 Warning Concerning Forward-Looking Statements 30 PART II Other Information 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 6. Exhibits 32

Signatures

Signatures 33 References in this Quarterly Report on Form 10-Q to "SEVN", "we", "us" or "our" mean Seven Hills Realty Trust and its consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise. Table of Contents

Financial Information

PART I. Financial Information

Financial Statements

Item 1. Financial Statements SEVEN HILLS REALTY TRUST CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) (unaudited) June 30, December 31, 2024 2023 ASSETS Cash and cash equivalents $ 69,603 $ 87,855 Loans held for investment 609,250 626,462 Allowance for credit losses ( 5,723 ) ( 4,376 ) Loans held for investment, net 603,527 622,086 Real estate owned, net 11,194 11,278 Acquired real estate leases, net 3,737 4,137 Accrued interest receivable 3,237 3,632 Prepaid expenses and other assets, net 3,565 2,537 Total assets $ 694,863 $ 731,525 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable, accrued liabilities and other liabilities $ 4,350 $ 3,808 Secured financing facilities, net 417,939 454,422 Due to related persons 1,485 2,047 Total liabilities 423,774 460,277 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $ 0.001 par value per share; 25,000,000 shares authorized; 14,832,982 and 14,811,410 shares issued and outstanding, respectively 15 15 Additional paid in capital 240,188 239,443 Cumulative net income 81,122 71,660 Cumulative distributions ( 50,236 ) ( 39,870 ) Total shareholders' equity 271,089 271,248 Total liabilities and shareholders' equity $ 694,863 $ 731,525 See accompanying notes. 1 Table of Contents SEVEN HILLS REALTY TRUST CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 INCOME FROM INVESTMENTS: Interest and related income $ 16,415 $ 15,821 $ 32,726 $ 31,677 Purchase discount accretion 782 1,047 1,927 2,232 Less: interest and related expenses ( 8,385 ) ( 7,927 ) ( 17,058 ) ( 15,621 ) Income from loan investments, net 8,812 8,941 17,595 18,288 Revenue from real estate owned 568 149 1,147 149 Total revenue 9,380 9,090 18,742 18,437 OTHER EXPENSES: Base management fees 1,082 1,074 2,162 2,146 I

View Full Filing

View this 10-Q filing on SEC EDGAR