Seven Hills Realty Trust Gets Buy Rating, $10 Target After $65.2M Rights Offering
Ladenburg initiated coverage of Seven Hills Realty Trust with Buy rating and $10 target after a $65.2M rights offering funding $101.3M in floating-rate loans. Q3 distributable income was $0.29/share on $7.1M revenue and Q4 distributable income is forecast at $0.30/share versus $0.28 distribution.
1. Coverage Initiation and Price Target
Ladenburg initiated coverage of Seven Hills Realty Trust with a Buy rating and $10 price target, citing enhanced forward visibility following recent balance sheet actions and targeted portfolio growth initiatives.
2. Rights Offering and Capital Deployment
On December 11, 2025, Seven Hills completed a fully backstopped transferable rights offering that raised $65.2 million at $8.65 per share, immediately deploying the proceeds into three floating-rate first mortgage loans totaling $101.3 million.
3. Recent Financial Results and Guidance
In third-quarter 2025, the REIT generated distributable income of $0.29 per share on $7.1 million of revenue. Management forecasts fourth-quarter distributable income of approximately $0.30 per share, sufficient to cover the $0.28 quarterly distribution.
4. Strategic Outlook
Focusing on floating-rate first mortgage loans secured by middle-market transitional commercial real estate, Seven Hills aims to leverage stabilized rate dynamics and recent capital deployment to rebuild earnings momentum after shares hit multi-year lows.