Seven Hills Realty Trust Plans $65M Fully Backstopped Rights Offering

Seven Hills Realty Trust (NASDAQ: SEVN) announced a fully backstopped rights offering aiming to raise up to $65 million to expand its lending platform, capitalize on investment opportunities, and increase share liquidity. The rights offering allows shareholders to purchase new shares at a specified price, with the offering commencing in November 2025 and expiring in December unless extended. The company reported solid third-quarter earnings with distributable earnings of $4.2 million ($0.29 per share), enabling a quarterly dividend of $0.28 per share, yielding an annualized 11%. Its portfolio consists of $642 million in floating-rate first mortgage commitments with a weighted average yield of 8.2%, and all loans are current with no nonaccrual balances. Seven Hills is actively engaged in a dynamic lending environment, evaluating over $1 billion in loan opportunities with a strategic focus shifting towards acquisition financing. Despite some margin compression, the company expects stabilization and remains optimistic about future growth prospects.