Seven Hills Realty Trust

Good day, and welcome to the Seven Hills Realty Trust's fourth quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Matt Murphy, Manager of Investor Relations. Please go ahead.

Good morning. Joining me on today's call are Tom Lorenzini, President and Chief Investment Officer, Matt Brown, Chief Financial Officer and Treasurer, and Jared Lewis, Vice President. Today's call includes a presentation by management, followed by a question and answer session with analysts. Please note that the recording, retransmission, and transcription of today's conference call is prohibited without the prior written consent of the company. Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on Seven Hills' beliefs and expectations as of today, February 19, 2026, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, or SEC, which can be accessed from the SEC's website. Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we will be discussing non-GAAP financial numbers during this call, including distributable earnings and distributable earnings per share. A reconciliation of GAAP to non-GAAP financial measures can be found in our earnings release presentation, which can be found on our website at 7REIT.com. With that, I will now turn the call over to Tom.

Thank you, Matt, and good morning, everyone. On our call today, I will start by providing an update on our fourth quarter performance and an overview of our loan portfolio before turning it over to Jared to discuss current market conditions in our pipeline. Then Matt will discuss our financial results and guidance before we open the call for Q&A. Yesterday, we reported strong fourth quarter results driven by a fully performing loan portfolio and ongoing capital deployment. Distributable earnings for the fourth quarter came in at $4.6 million, or 28 cents per share. As previously announced, we successfully completed our rights offering in December, raising $61.5 million in net proceeds. This transaction, meaningful, increased our investment capacity by over $200 million, allowing us to accretively deploy capital into compelling opportunities while maintaining a conservative balance sheet. In addition, as part of the rights offering, our manager increased their ownership percentage to just over 20%, further aligning their interest with Seven Hills shareholders. Our increased capacity allowed us to accelerate our activity during the fourth quarter, investing in three new loans with total commitments of $101.3 million. These included a $37.3 million loan secured by a student housing property in College Park, Maryland, the acquisition of a $37 million loan secured by a hotel in Boston, and the acquisition of a $27 million loan secured by an industrial property in Wayne, Pennsylvania. Following these transactions, we entered the first quarter of 2026 with significant available capacity as a result of the rights offering positioning us to continue executing on our strategy and selectively deploying capital into attractive opportunities. So far in the first quarter, we have closed one additional loan for $30.5 million on a medical office property in Atlanta have two loans scheduled to close within the next week or so for another $37 million combined, and two additional loans and diligence for approximately $39 million scheduled to close at the end of Q1 or shortly thereafter. Collectively, these investments reflect the breadth of opportunities in our pipeline with new originations spanning multiple property types and geographies. We also received the full repayment of a $15.3 million loan during the fourth quarter secured by a retail property in Sandy Springs, Georgia, which we were able to redeploy into new originations consistent with our underwriting and return objectives. Turning to our loan portfolio, as of December 31, 2025, we had total commitments of $724.5 million across 24 floating-rate first mortgage loans, including $36.9 million of unfunded commitments. Year over year, we were able to increase our portfolio by $83 million, or approximately 13%. Our weighted average all-in yield was 7.92%, our weighted average risk rating improved to 2.8, and our weighted average loan-to-value at origination was 66%. Importantly, all loans were current on debt service, and we had no past due or non-accrual loans at year end. In addition, all but one of our loans are covered by SOPR floors, which provide support to earnings in a declining rate environment and help to partially offset the impact of lower base interest rates. Later, Matt will provide additional details on how active SOPR floors are currently providing earnings protection across our portfolio. We expect limited repayments beyond perhaps one or two loans over the next several months, followed by almost $300 million of maturing loans beginning in the second half of 2026. Many of these loans, particularly those secured by office properties with conservative leverage, will allow for increased investment capacity and further portfolio growth as they roll off. In summary, we believe Seven Hills is well positioned to capitalize on attractive middle market lending opportunities With enhanced liquidity following the rights offering and improving visibility into near-term repayments and originations, we remain focused on disciplined execution and capital deployment as transaction activity continues to improve. We look forward to providing further updates on our portfolio growth throughout the year. With that, I'll turn the call over to Jared to discuss current market conditions and the opportunities set in our pipeline.