Seven Hills Realty Trust

Good morning and welcome to the Seven Hills Realty Trust Second Quarter 2026 Financial Results Conference 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 your telephone keypad. To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the call over to Matt Murphy, Manager of Investor Relations. Please go ahead, Matt.

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 security laws. These forward-looking statements are based on Seven Hills' beliefs and expectations. As of today, July 29, 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'll begin with an overview of our second quarter activity and portfolio performance. Jared will then discuss market conditions in our investment pipeline before Matt reviews our financial results and outlook. The second quarter reflected continued progress for Seven Hills as we deployed capital raised through our rights offering while also strengthening our overall portfolio composition. During the quarter, we generated distributable earnings of $5.1 million for 23 cents per share. Distributable earnings came in at the lower end of our guidance range primarily due to several loans closing later in the quarter than initially expected. Despite these delays, we continue to make meaningful progress deploying our available capital, growing the portfolio, and remaining on pace to have a covered dividend by year end. Our second quarter investment activity reflects the strength of our origination platform and the flexibility provided by our balance sheet. We closed three new loans totaling $75 million, including a $36.3 million loan secured by a multifamily property in Roswell, Georgia, a $22.7 million loan secured by a medical office property in Sugar Land, Texas, and a $16 million loan secured by a self-storage facility in Philadelphia. Subsequent to quarter end, we also closed a $24.3 million loan secured by a retail property in Park City, Utah. Together, these four investments reflect our ability to source attractive opportunities across varying property types and geographies. As a result, we have grown our portfolio by approximately $65 million year-to-date to roughly $790 million today. The portfolio continues to perform well with no realized losses, all borrowers current on debt service, and a weighted average all-in yield of approximately 7.7% at quarter end. Credit performance also remains stable during the quarter with a weighted average risk rating of 2.9. More than 80% of our current portfolio has been originated since 2022, meaning the vast majority of our investments were underwritten in the post-pandemic environment and reflect current market conditions. Turning to Yardley, our sole REO property, the asset services team here at RMR has done a terrific job positioning the asset for an eventual sale. In addition to various lease renewals over the past 24 months, we recently signed one new lease and have another lease under LOI. As a result, the property is expected to achieve occupancy over 90% well ahead of comparable properties in the market. Repayment activity during the quarter also enhanced the overall composition of our portfolio while providing flexibility to pursue new originations. We received over $85 million of repayments, including a full repayment of a $54.7 million loan secured by a multifamily property in suburban Cleveland, a full repayment of a $26.5 million loan secured by an office building in suburban Chicago, and a $4 million partial repayment in conjunction with a one-year extension of a $37 million loan secured by a hotel in Boston. Following this repayment activity, we ended June with approximately $70 million of cash on hand and nearly $400 million of available capacity across our financing facilities. Importantly, our legacy office exposure continues to trend downward from 24% at year-end to 19% today, and we expect this number to decrease even further with three office loans scheduled to mature later this year. The repayment of these relatively under-leveraged loans should also increase our capacity to grow the portfolio through new originations later in the year. Overall, Seven Hills enters the second half of the year from a position of strength with reduced office exposure, a largely post-pandemic loan portfolio, and ample liquidity. Looking ahead, we remain focused on thoughtfully growing the portfolio and increasing earnings throughout the remainder of the year. With that, I'll turn the call over to Jared to discuss current market conditions in our pipeline.