Seven Hills Realty Trust Closes $30.5 Million Loan to Refinance a Medical Office Property in Atlanta, Georgia

Key Terms

first mortgage loan financial

A first mortgage loan is the primary loan secured by a property, meaning the lender has the first claim on that property if the borrower fails to repay. Think of it as the lead lien in a queue: it gets paid before any other debts tied to the same property. Investors care because first mortgages typically carry lower risk and stronger recovery prospects, influencing loan values, interest rates and the stability of mortgage-backed investments.

weighted average remaining lease term financial

Weighted average remaining lease term is the average length of time until current leases expire, where each lease’s remaining time is counted in proportion to its contribution to the property’s income (usually rent). Investors use it as a measure of how long rental income is likely to be stable and how soon properties will need new tenants or rent resets; think of it as the average remaining commitment in a group of contracts, weighted by their economic importance.

risk-adjusted return financial

Risk-adjusted return measures how much profit an investment earns relative to the amount of uncertainty or potential loss taken to get that profit. Think of it like fuel efficiency for investments: two cars may go the same distance, but the one that used less gas is more efficient — similarly, an investment with a higher risk-adjusted return delivered more reward for each unit of risk. Investors use it to compare strategies, avoid being misled by high returns that came from taking excessive risk, and to make more balanced choices.

NEWTON, Mass.--(BUSINESS WIRE)-- Seven Hills Realty Trust (Nasdaq: SEVN) today announced the closing of a $30.5 million first mortgage loan to refinance Glenridge Medical Center in Atlanta, Georgia.

The 95% leased property has a weighted average remaining lease term of approximately seven years and is located within Atlanta’s medical district, commonly known as “Pill Hill”. The loan has a three-year initial term with two one-year extension options, subject to the borrower satisfying certain conditions. The transaction was brought to our manager, Tremont Realty Capital, by JLL on behalf of the sponsor, EBS Properties Investments, LLC.

Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:

“This investment underscores our continued focus on originating first mortgage loans secured by high-quality real estate in established markets. Glenridge Medical Center benefits from durable healthcare demand within one of the nation’s most prominent medical corridors. We believe the property’s strong occupancy and long weighted average lease term support an attractive risk-adjusted return and reflect SEVN’s disciplined approach to capital deployment.”

About Seven Hills Realty Trust

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust that originates and invests in first mortgage loans secured by middle market transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These statements may include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about the performance of certain properties, as well as SEVN’s investment focus and continued growth. Forward-looking statements reflect SEVN’s current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause SEVN’s actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: the ability of SEVN to make additional investments; the success of SEVN’s investments; SEVN’s available liquidity, access to capital and cost of capital; and various other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in SEVN’s periodic filings with the Securities and Exchange Commission, or SEC. The information contained in SEVN’s filings with the SEC, including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies important factors that could cause SEVN’s actual results to differ materially from those stated in or implied by SEVN’s forward-looking statements. SEVN’s filings with the SEC are available on the SEC’s website at www.sec.gov. You should not place undue reliance upon forward-looking statements. Except as required by law, SEVN does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.

No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260212993582/en/

Matt Murphy, Manager, Investor Relations

(617) 796-8253

www.sevnreit.com

Source: Seven Hills Realty Trust