Here are 1-3 brief analogies to describe Seven Hills Realty Trust (SEVN):

• Rocket Mortgage for commercial properties.
• Simon Property Group, but for commercial real estate loans instead of owning shopping malls.

• First Mortgage Loan Origination: The creation and provision of new first mortgage loans secured by middle market and transitional commercial real estate in the United States.
• First Mortgage Loan Investment: The acquisition and holding of existing first mortgage loans secured by middle market and transitional commercial real estate in the United States.

Seven Hills Realty Trust (SEVN) is a real estate investment trust that focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate. Given the nature of its business, SEVN's "customers" are the borrowers who take out these commercial real estate loans.

Due to the proprietary nature of loan agreements and the company's strategy to maintain a diversified portfolio of loans to numerous borrowers, Seven Hills Realty Trust does not publicly disclose the specific names of its individual customer companies or major borrowers. As a commercial real estate lender, its customer base consists of a broad range of entities within the commercial real estate sector. The primary categories of companies that Seven Hills Realty Trust serves are:

• Commercial Real Estate Owners and Investors: These are companies, partnerships, and limited liability companies (LLCs) that own various types of commercial properties (e.g., office buildings, retail centers, industrial facilities, multifamily residential complexes) and seek financing for acquisitions, refinancing, or repositioning of their assets.
• Real Estate Developers: Entities involved in the construction, redevelopment, or renovation of commercial properties, requiring financing such as bridge loans or construction loans.
• Real Estate Investment Firms and Funds: Professional investment groups, including private equity real estate funds and other institutional investors, that acquire and manage portfolios of commercial real estate and utilize debt financing to support their investment strategies.

The RMR Group Inc. (RMR)

Thomas Lorenzini

President and Chief Investment Officer

Thomas Lorenzini has served as President of Seven Hills Realty Trust since 2021 and as Chief Investment Officer since 2023. He also holds positions as Senior Vice President of Tremont Realty Capital and Senior Vice President of The RMR Group, the latter being the alternative asset manager that manages Seven Hills Realty Trust. Mr. Lorenzini brings over 25 years of experience in the real estate industry. Before 2000, he was the Midwest Regional Director for Finova Realty Capital, where he was responsible for underwriting and loan generation across multiple offices. He also served as a Senior Director for Belgravia Realty Capital, where he established and grew their Midwestern business by opening the Chicago office.

Matthew Brown

Chief Financial Officer and Treasurer

Matthew Brown was appointed Chief Financial Officer and Treasurer of Seven Hills Realty Trust, effective March 10, 2025. He is also a Senior Vice President of The RMR Group, where he oversees the accounting, finance, and tax departments. Mr. Brown joined RMR in 2007 and has since held various leadership roles in accounting and finance. His extensive experience includes reporting and compliance, mergers and acquisitions, capital market transactions, and technical accounting matters. A certified public accountant, Mr. Brown also serves as the Chief Financial Officer of Diversified Healthcare Trust (Nasdaq: DHC). His involvement with The RMR Group, an alternative asset manager, indicates a pattern of managing companies within structures often associated with private equity backing.

Adam Portnoy

Managing Trustee and CEO of The RMR Group

Adam Portnoy has been a Managing Trustee of Seven Hills Realty Trust (Nasdaq: SEVN) since 2007. He is the President and Chief Executive Officer of The RMR Group (Nasdaq: RMR), which serves as the manager for Seven Hills Realty Trust, and also chairs RMR's Management Committee. Mr. Portnoy is a Managing Director of RMR and serves on the Boards of several RMR-managed companies, including Service Properties Trust (Nasdaq: SVC), Diversified Healthcare Trust (Nasdaq: DHC), Office Properties Income Trust (Nasdaq: OPI), Industrial Logistics Properties Trust (Nasdaq: ILPT), AlerisLife Inc. (Private), and Sonesta International Hotels Corporation (Private). He is also a Director of Tremont Realty Capital LLC, an SEC registered investment adviser and a wholly owned subsidiary of The RMR Group LLC. Prior to joining RMR in 2003, Mr. Portnoy held various positions in the finance industry and public sector. These roles included working as a banker at Donaldson, Lufkin & Jenrette and ABN AMRO, working in private equity at the International Finance Corporation (a member of The World Bank Group) and DLJ Merchant Banking Partners, and serving as Chief Executive Officer of a telecommunications company. His background demonstrates a pattern of managing companies, including those with private equity backing due to his experience in the private equity sector.

Jared Lewis

Vice President

Jared Lewis serves as a Vice President for Seven Hills Realty Trust.

Lindsey Getz

Secretary

Lindsey Getz serves as the Secretary for Seven Hills Realty Trust.

The key risks to Seven Hills Realty Trust (SEVN) are primarily centered around interest rate fluctuations, credit quality of its loan portfolio, and competitive pressures within the commercial real estate lending market.

1. Interest Rate Risk and Net Interest Margin Compression: Seven Hills Realty Trust's profitability is significantly affected by changes in interest rates. As a real estate investment trust that originates and invests in first mortgage loans, its net interest income—the difference between interest earned on its investments and interest paid on its borrowings—is highly sensitive to interest rate movements. A period of decreasing interest rates can lead to a reduction in interest income on its loan investments, compressing net interest margins, even with benchmark interest rate floors in place for some loans. Conversely, rising interest rates can increase the company's borrowing costs, while also potentially increasing the risk of borrower defaults. The company has already experienced margin compression from Federal Reserve easing, which contributed to a dividend cut.

2. Credit Risk and Loan Defaults, particularly in the Office Sector: The company faces inherent credit risk from its loan portfolio. If the net operating income of properties securing its loans falls below expectations, borrowers' ability to repay may be impaired, increasing the risk of default and foreclosure. A notable concern is its exposure to higher-risk office loans, with five out of six of its office properties rated as "higher risk" as of September 30, 2025. Office delinquencies are identified as a significant risk to the business.

3. Competition and Challenges in Capital Redeployment: The commercial real estate lending market is competitive, which can lead to tightening spreads and potentially suppress long-term earnings growth and capital generation. Seven Hills Realty Trust may also face difficulties or delays in redeploying the proceeds from repayments of its existing loan investments into new, attractive opportunities. Such challenges could negatively impact its financial performance and returns to shareholders.

Seven Hills Realty Trust (SEVN) operates in the U.S. commercial real estate (CRE) debt market, focusing on originating and investing in first mortgage loans secured by middle-market and transitional commercial real estate.

The total U.S. commercial real estate debt market was estimated at $5.9 trillion as of the fourth quarter of 2023. More recently, total outstanding commercial real estate debt stood at $4.80 trillion through Q2 2025. The U.S. commercial real estate mortgage market was estimated at $4.8 trillion in August 2025. Another source reported the U.S. commercial mortgage market at $5.5 trillion as of May 2023.

For 2024, total commercial real estate mortgage borrowing and lending in the U.S. was estimated at $498 billion. The Mortgage Bankers Association (MBA) forecasts an increase in total commercial mortgage origination volume to $633.7 billion in 2025 and $805.5 billion in 2026.

The "middle market" for commercial real estate loans in the U.S. comprises roughly 70 percent of the wider U.S. commercial real estate finance universe, with individual loans typically ranging from about $10 million to $100 million. The transitional lending market in the U.S. was estimated to be approximately a $50 billion market and growing as of July 2017. Transitional assets are fundamentally sound properties that require value-added re-leasing, capital repositioning, or repurposing.

Seven Hills Realty Trust (SEVN) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Increased Loan Originations and Portfolio Expansion: Seven Hills Realty Trust is actively focused on expanding its loan portfolio by originating new first mortgage loans. The company aims to grow its portfolio by approximately $100 million in 2025. Furthermore, management has set an ambitious target to reach a $1 billion loan portfolio by the end of 2026, with forecasts of $100 million in Q1 2026 loan originations and $200 million quarterly thereafter. This consistent focus on new loan investments directly contributes to an increase in interest income, which is the primary driver of the company's revenue.

2. Capitalizing on Middle-Market Lending Opportunities: The company strategically targets the underserved middle-market commercial real estate sector. Demand for debt capital in this segment is anticipated to remain strong, especially as traditional lenders scale back their activity, creating opportunities for alternative lenders like Seven Hills Realty Trust to gain market share and originate new loans. The company actively seeks market segments where traditional lenders have retreated and capital is constrained.

3. Enhanced Investment Capacity and Liquidity: Seven Hills Realty Trust has improved its investment capacity through recent capital-raising activities, such as a rights offering in Q4 2025 that generated $61.5 million in net proceeds, increasing its investment capacity by over $200 million. Coupled with ample cash on hand and available borrowing capacity, this enhanced liquidity allows the company to accretively deploy capital into compelling lending opportunities and accelerate its origination activity.

4. Strategic Diversification of Loan Portfolio: To mitigate competitive pressures and enhance risk-adjusted returns, Seven Hills Realty Trust is strategically diversifying its loan portfolio beyond the multifamily segment. The company is actively investing in sectors such as industrial, hospitality, retail, medical office spaces, and student housing. This diversification allows the company to pursue a broader range of lending opportunities and potentially capture higher yields in various commercial real estate segments.

5. Benefit from Interest Rate Floors: A significant portion of Seven Hills Realty Trust's floating-rate loans are protected by SOFR (Secured Overnight Financing Rate) floors. These floors provide a buffer against declining interest rates, limiting the impact of potential rate cuts on earnings and helping to stabilize and support the company's interest income in a fluctuating interest rate environment. In Q4 2025, interest rate floors became active for several loans, providing earnings protection.

Share Repurchases

• Seven Hills Realty Trust had a negative buyback yield of -31.8% as of March 5, 2026, and -3.59% as of a separate undated report, indicating no significant net share repurchases over the period.

Share Issuance

• In December 2025, Seven Hills Realty Trust completed a rights offering that resulted in the subscription of approximately 5,517,113 common shares at a price of $8.65 per share, generating gross proceeds of approximately $65.2 million before expenses.
• As part of the December 2025 rights offering, Tremont Realty Capital LLC, as the backstop provider, purchased 2,015,748 common shares for approximately $17.4 million.
• The company's shares outstanding increased by 42.19% in 2021, indicating a significant issuance of shares during that year.

Inbound Investments

• Seven Hills Realty Trust's business model focuses on originating and investing in first mortgage loans, and there are no reported significant inbound investments made in the company by third parties such as strategic partners or private equity firms.

Outbound Investments

• In March 2026, Seven Hills Realty Trust invested $37.0 million in two new first mortgage loans.
• In February 2026, the company closed a $30.5 million loan to refinance a medical office property in Atlanta, Georgia.
• As of the second quarter of 2025, SEVN had $665 million in total commitments across 23 first mortgage loans, and it intends to use proceeds from recent offerings to fund the continued growth and expansion of its loan portfolio.

Capital Expenditures

• As a mortgage real estate investment trust with no employees, Seven Hills Realty Trust's capital expenditures on property and equipment are understood to be minimal.