Seven Hills Realty (SEVN) - Hoya Hotseat

Hoya Capital

Seven Hills Realty (SEVN) - Hoya Hotseat In the News All SEVN Mar 5 Written By Alex Pettee, CFA Hoya Capital Seven Hills Realty (Nasdaq: SEVN) is a small-cap commercial mortgage REIT ($190M market cap) that invests in floating-rate first mortgage loans secured by middle-market and transitional commercial real estate. Among the best-performing commercial mREITs over the past three years, SEVN’s book is comprised of 22 loans totaling $610M in principal with a weighted average coupon rate of 9.1%.

Roughly 37% of SEVN’s loan book is secured by apartments, 27% in office, 22% in industrial, and the balance in hotels and retail properties. SEVN is externally managed by Tremont Realty Capital - an affiliate of The RMR Group. President Thomas Lorenzini joins the Hoya Hotseat to discuss the founding of SEVN through its merger with Tremont Realty in 2021, its strategy of focusing on the “underserved” middle-market, the lingering headwinds on CRE office loans, and its belief that the worst is over for overall CRE loan performance.

Continue reading ▶︎ Interviews Press All Hoya Hotseat SEVN Alex Pettee, CFA Transcript Seven Hills realy trust uh we are a commercial mortgager we're based here in Suburban Boston and we are part of the broader RMR group um which is an alternative asset management firm solely based on Commercial Real Estate U approximately 40 billion dollar of uh assets under management and Seven Hills itself um currently about $700 million of AUM current market cap about $200 million and we are uh traded on the NASDAQ exchange um so Seven Hills uh we make commercial property loans generally in the range of 20 to $75 million generally loan to value in that 65 to 75% range we lend in what we call the Middle Market and this really is the most liquid segment of the real estate market Loosely defined as asset values under about $100 million um all of our loans ...