Seven Hills Realty Trust (SEVN) AI Stock Analysis

Seven Hills Realty Trust operates as a specialized real estate investment trust originating and investing in first mortgage loans secured by middle market and transitional commercial real estate properties across the United States. Established in 2008, headquartered in Newton, Massachusetts, and formerly known as RMR Mortgage Trust, the company maintains a focus on secured lending against tangible assets to support capital preservation and stable returns. As a REIT, it passes through a significant portion of its income to shareholders, exempting it from corporate income tax on distributed earnings while generating returns for investors.

Revenue rose from $35.7M in FY2021 to $71.8M in FY2023 before contracting to $67.0M in FY2024 and $58.9M in FY2025. Operating margin was 76.3% in FY2025 with net income of $15.4M and EPS of $1.22. For the trailing twelve months, revenue was $25.9M with a profit margin of 45.4% and an operating margin of -27.4%. In the latest quarter ended June 30, 2026, quarterly revenue fell 50.6% year-over-year while quarterly earnings declined 36.3%.

As of June 30, 2026, the company held $70.0M in cash and short-term investments against total debt of $470.3M, yielding net debt of $400.4M. Shareholders' equity stood at $320.7M, resulting in a debt-to-equity ratio of 1.47 and a current ratio of 0.29. In FY2025, operating cash flow and free cash flow both reached $15.0M. During that fiscal year, capital allocation included $383,000 for share buybacks and $18.8M paid in dividends.

SEVN trades at a trailing P/E of 10.0x and a forward P/E of 9.3x, compared to medians of 21.6x and 23.5x for its US-listed Real Estate peers. Its price-to-book ratio is 0.5x, and price-to-sales is 5.9x versus the peer median of 3.7x. Over the past year, SEVN shares fell 24.6% against a 16.8% gain for the S&P 500 (SPY). Over five years, the stock returned 11.1% compared to 83.0% for the S&P 500.

SEVN pays a quarterly dividend totaling an annual forward dividend of $1.12 per share, representing a dividend yield of 16.47%. The trust has paid dividends for 18 consecutive years and generated a 5-year annualized dividend growth rate of 14.9%. The current payout ratio is 107.7%, and the last ex-dividend date was October 19, 2026.

Wall Street coverage includes 3 Strong Buy, 1 Buy, and 1 Hold rating, with no Sell or Strong Sell recommendations. The mean price target is $9.55, representing 40.6% upside from the last close of $6.79. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.01 on revenue of $34.6M. The company beat EPS estimates in 2 of the last 4 quarters, and the next earnings date is October 27, 2026.

This page is an AI-written research summary of Seven Hills Realty Trust (SEVN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SEVN income statement, SEVN balance sheet, SEVN key metrics, SEVN analyst forecast, SEVN chart. See the SEVN stock overview for the latest quote and news.