Seven Hills SEVN Q4 2025 Earnings Call Transcript | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 19, 2026
AI-Generated Deep Dive Summary
Seven Hills SEVN reported strong financial results for Q4 2025, with distributable earnings of $0.28 per share, reflecting resilience despite temporary dilution from a recent rights offering. The company raised $61.5 million in net proceeds through the offering, which expanded its investment capacity by over $200 million and increased manager ownership to just over 20%. This capital boost allowed Seven Hills to add three new loans totaling $101.3 million across student housing, hospitality, and industrial properties, driving a 13% year-over-year increase in total loan commitments to $724.5 million.
The company's loan portfolio demonstrated strong performance, with all loans current on debt service and a weighted average yield of 7.92%. Floating-rate loans with SOFR floors provided stability, averaging 2.81% and protecting earnings against recent rate declines. Seven Hills also maintained its regular quarterly dividend of $0.28 per share, yielding approximately 14%, and reiterated its commitment to this payout level for the foreseeable future.
Looking ahead, management projected Q1 distributable earnings of $0.22 to $0.24 per share due to temporary dilution from the rights offering, with expectations of returning to the Q4 run-rate as capital is fully deployed. The loan pipeline remains robust, with $30.5 million in closed loans and an additional $76 million expected by quarter end. Seven Hills aims to reach a $1 billion total loan portfolio by year-end 2026, supported by increased capacity from extended secured financing facilities.
The company's CECL reserve improved sequentially, reducing by 20 basis points to 130 basis points of total loan commitments, with no specific reserves for high-risk loans. This reflects strong asset quality and risk management.
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Originally published on The Motley Fool on 2/19/2026