Seven Hills Realty Trust (SEVN) announced a rights offering that could raise up to $65 million in gross proceeds. The offering will allow existing shareholders to purchase new shares at $8.65 each, with one right per existing share and a right to buy one new share for every two rights held. Rights are transferable and will expire on December 4, 2025, unless the offering is extended.
The offering is fully backstopped by Tremont Realty Capital, SEVN’s manager and a wholly‑owned subsidiary of The RMR Group. Tremont has committed to exercise its pro‑rata primary subscription right in full and to purchase 100 % of any remaining shares not subscribed for in the offering. The rights will be listed under the symbol SEVNR on the Nasdaq Stock Market.
The proceeds will be used to expand SEVN’s lending platform, capitalize on attractive investment opportunities, broaden portfolio diversification, and increase liquidity of the company’s common shares. Management highlighted that the current lending environment is more active, with decreasing short‑term rates and increased borrower engagement, creating opportunities for growth.
SEVN recently reported its Q3 2025 earnings, with distributable earnings of $0.29 per share, missing analyst expectations of $0.31. Revenue also fell short of forecasts, but the company emphasized that all loans remain performing and no credit issues have been reported. SEVN declared a quarterly distribution of $0.28 per common share.
The rights offering will commence on November 10, 2025, and the rights will expire on December 4, 2025, unless the offering is extended. The fully backstopped nature of the offering provides certainty for the capital raised and supports SEVN’s strategy to strengthen its position in the middle‑market transitional commercial real estate lending space.
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