The following is a summary of the Seven Hills Realty Trust (SEVN) Q4 2023 Earnings Call Transcript:
Financial Performance:
Seven Hills Realty Trust reported a strong Q4 with the highest level of distributable earnings since becoming a commercial mortgage REIT.
Distributable earnings per share increased 13% on a sequential quarter basis to $0.43.
A total shareholder return of over 50% has happened since 2021, significantly outperforming a -6% return from their benchmark, the NAREIT commercial mortgage financing index.
Increased loan production resulted in $54 million in new loan commitments.
The company generated over $100 million in loan payoffs.
Business Progress:
Seven Hills maintained a healthy loan portfolio with an average risk rating of three and no loans in default.
The company closed two loans with aggregate commitments of $54 million, involving self-storage and hospitality properties.
Their portfolio remained 100% invested in floating rate loans, consisting of 24 mortgages with a total commitment of $670 million.
Projections indicate $750 million in lending opportunities for the following year.
The company pledges to continue delivering attractive, risk-adjusted returns for shareholders as real estate market conditions are expected to stabilize in 2024.
More details: Seven Hills IR
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