# EDGAR Filing Document

**Accession Number:** 0001452477
**File Stem:** 0001452477-23-000009
**Filing Date:** 2023-2
**Character Count:** 63454
**Document Hash:** 4cb3747bbfb70f38c7d502c111681753
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001452477-23-000009.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0001452477-23-000009

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 37

**CONFORMED PERIOD OF REPORT**: 20230213

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Seven Hills Realty Trust
- **CENTRAL INDEX KEY:** 0001452477
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34383
- **FILM NUMBER:** 23619766

**BUSINESS ADDRESS:**
- **STREET 1:** TWO NEWTON PLACE
- **STREET 2:** 255 WASHINGTON STREET, SUITE 300
- **CITY:** NEWTON
- **STATE:** MA
- **ZIP:** 02458
- **BUSINESS PHONE:** 617-332-9530

**MAIL ADDRESS:**
- **STREET 1:** TWO NEWTON PLACE
- **STREET 2:** 255 WASHINGTON STREET, SUITE 300
- **CITY:** NEWTON
- **STATE:** MA
- **ZIP:** 02458

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RMR Mortgage Trust
- **DATE OF NAME CHANGE:** 20200730

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RMR Real Estate Income Fund
- **DATE OF NAME CHANGE:** 20120123

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RMR Asia Pacific Real Estate Fund
- **DATE OF NAME CHANGE:** 20090616

?xml version="1.0" ? sevn-20230213

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM 8-K** 

**CURRENT REPORT PURSUANT**

 **TO SECTION 13 or 15(d) OF THE**

 **SECURITIES EXCHANGE ACT of 1934**

Date of report (Date of earliest event reported): **February 13, 2023** 

**Seven Hills Realty Trust** 

(Exact Name of Registrant as Specified in Its Charter)

**Maryland** 

(State or other Jurisdiction of Incorporation)

---

| | |
|:---|:---|
| **001-34383** | **20-4649929** |
| (Commission File Number) | (IRS Employer Identification Number) |

---

**Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts&nbsp;&nbsp;&nbsp;&nbsp;02458-1634** 

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Address of Principal Executive Offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Shares of Beneficial Interest | SEVN | The Nasdaq Stock Market LLC |

---

**(617) 332-9530** 

(Registrant's Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. Results of Operations and Financial Condition.**

On February 13, 2023, Seven Hills Realty Trust, or the Company, issued a press release regarding the Company's results of operations and financial condition for the quarter and year ended December 31, 2022 and also provided certain supplemental operating and financial data for the quarter and year ended December 31, 2022. Copies of the Company's press release and supplemental operating and financial data are furnished as Exhibits 99.1 and 99.2 hereto, respectively.

**Item 9.01. Financial Statements and Exhibits.**

*(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[99.1 Press release dated February 13, 2023](sevn_123122xearningsrelease.htm)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>[99.2 Fourth Quarter 2022 Supplemental Operating and Financial Data](exhibit992.htm)</u>

104 Cover Page Interactive Data File. (Embedded within the inline XBRL document.)

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **SEVEN HILLS REALTY TRUST** | **SEVEN HILLS REALTY TRUST** |
| Date: | February 13, 2023 | By: | /s/ Tiffany R. Sy |
|  |  | Name: | Tiffany R. Sy |
|  |  | Title: | Chief Financial Officer and Treasurer |

---

## Exhibit 99.1

**Exhibit 99.1**

![sevnletterheadtop_2016x243a.jpg](sevnletterheadtop_2016x243a.jpg)

**<u>FOR IMMEDIATE RELEASE</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Seven Hills Realty Trust Announces Fourth Quarter 2022 Results**

***Net Income Per Share of $0.46, a 31% Sequential Quarter Increase***

***Adjusted Distributable Earnings Per Share of $0.37, a 37% Sequential Quarter Increase***

***Aggregate Loan Commitments of $728 Million***

____________________________________________________________________________________________________

<u>Newton, MA</u> (February 13, 2023): Seven Hills Realty Trust (Nasdaq: SEVN) today announced financial results for the quarter and year ended December 31, 2022.

Tom Lorenzini, President of SEVN, made the following statement:

*"We ended the year with substantial earnings growth driven by the favorable impact of rising interest rates on our floating rate loan portfolio. Based on our strong earnings momentum and the credit quality of our loan portfolio, in January we announced a 40% increase in SEVN's quarterly distribution to $0.35 per common share. Given our balance sheet capacity and our expectation that interest rates may continue to rise, we believe that we are well positioned to further grow distributable earnings and continue to deliver attractive returns for our shareholders while at the same time taking a disciplined approach to identifying new investments."*

**Quarterly Results**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| *<u>(dollars in thousands, except per share data)</u>* | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** |
| Income from investments, net | $9288 | $7799 | $24568 |
| Net income | $6760 | $5176 | $20656 |
| Net income per common share | $0.46 | $0.35 | $1.42 |
| Adjusted Distributable Earnings | $5367 | $3943 | $3041 |
| Adjusted Distributable Earnings per common share | $0.37 | $0.27 | $0.21 |
| Book value per common share <sup>(1)</sup> | $18.46 | $18.24 | $17.65 |
| Adjusted Book Value per common share <sup>(1)</sup> | $18.92 | $18.80 | $18.85 |

---

(1)Book value per common share is calculated by dividing end of period total shareholders' equity by end of period common shares outstanding. Adjusted Book Value per common share is a non-GAAP financial measure that excludes the impact of the unaccreted purchase discount resulting from the excess of the fair value of the loans Tremont Mortgage Trust, or TRMT, then held for investment and which SEVN acquired as a result of its merger with TRMT on September 30, 2021, or the Merger, over the consideration SEVN paid in the Merger. The purchase discount of $36.4 million was allocated to each acquired loan and is being accreted into income over the remaining term of the respective loan. As of December 31, 2022, September 30, 2022 and December 31, 2021, Adjusted Book Value per common share excludes $6.7 million, or $0.46 per common share, $8.2 million, or $0.56 per common share and $17.4 million, or $1.20 per common share, respectively, of unaccreted purchase discount.

![sevnletterheadbottom_2400xa.jpg](sevnletterheadbottom_2400xa.jpg)

------

**Portfolio Summary** 

---

| | | | |
|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** |
| *<u>(dollars in thousands)</u>* | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** |
| Number of loans | 27 | 28 | 26 |
| Total loan commitments | $727562 | $763076 | $648266 |
| Weighted average maximum maturity (years) | 3.3 | 3.5 | 3.8 |
| Weighted average coupon rate | 8.07% | 6.59% | 4.54% |
| Weighted average all in yield  | 8.57% | 7.10% | 5.08% |
| Weighted average floor | 0.62% | 0.55% | 0.68% |
| Weighted average risk rating | 2.9 | 2.9 | 2.9 |
| Weighted average loan to value | 68% | 68% | 68% |

---

**Recent Investment Activities**

SEVN originated the following first mortgage loan during the three months ended December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Location** | **Property Type** | **Origination Date** | **Committed Principal** | **Principal as of December 31, 2022** | **Coupon Rate** | **All in Yield** | **Maximum <br>Maturity <br>(date)** | **Loan to Value** |
| *<u>(dollars in thousands)</u>* | *<u>(dollars in thousands)</u>* | *<u>(dollars in thousands)</u>* |  |  |  |  |  |  |
| Fontana, CA | Industrial | 11/18/2022 | $24355 | $22000 | S + 3.75% | S + 4.28% | 11/18/2026 | 72% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During the quarter ended December 31, 2022, SEVN received $53.7 million of loan repayment proceeds, which included early repayments of $22.1 million on a loan secured by a retail property in Los Angeles, CA and $31.0 million on a loan secured by an office/industrial property in Colorado Springs, CO, in addition to $0.6 million of principal payments received on certain other loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2023, SEVN received $16.4 million of early repayment proceeds on a loan secured by an office/industrial property in Aurora, IL.

**Recent Financing Activities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The aggregate outstanding principal balance under SEVN's secured financing facilities was $473.6 million and $462.3 million as of December 31, 2022 and February 9, 2023, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2022, SEVN was in compliance with all covenants and other terms under its secured financing facilities.

**Distributions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On November 17, 2022, SEVN paid a quarterly distribution of $0.25 per common share, or approximately $3.7 million, to shareholders of record as of October 24, 2022.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 12, 2023, SEVN declared a quarterly distribution of $0.35 per common share, or approximately $5.1 million, to shareholders of record on January 23, 2023. SEVN expects to pay this distribution on February 16, 2023.

**Conference Call**

At 11:00 a.m. Eastern Time on Tuesday, February 14, 2023, President, Tom Lorenzini, and Chief Financial Officer and Treasurer, Tiffany Sy, will host a conference call to discuss SEVN's fourth quarter 2022 financial results. The conference call telephone number is (866) 739-7850. Participants calling from outside the United States and Canada should dial (412) 317-6592. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on Tuesday, February 21, 2023. To access the replay, dial (412) 317-0088. The replay pass code is 5461657.

A live audio webcast of the conference call will also be available in a listen-only mode on SEVN's website, which is located at www.sevnreit.com. Participants wanting to access the webcast should visit SEVN's website about five minutes before the call. The archived webcast will be available for replay on SEVN's website after the call. **The transcription, recording and retransmission in any way of SEVN's fourth quarter conference call are strictly prohibited without the prior written consent of SEVN.**

**Supplemental Data**

A copy of SEVN's Fourth Quarter 2022 Supplemental Operating and Financial Data is available for download at SEVN's website, www.sevnreit.com. SEVN's website is not incorporated as part of this press release.

**About Seven Hills Realty Trust**

Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate investment trust, or REIT, that originates and invests in first mortgage loans secured by middle market and 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 more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about SEVN, please visit www.sevnreit.com.

**Non-GAAP Financial Measures**

SEVN presents Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings, Adjusted Distributable Earnings per common share and Adjusted Book Value per common share, which are considered "non-GAAP financial measures" within the meaning of the applicable rules of the Securities and Exchange Commission, or SEC.

These non-GAAP financial measures do not represent net income, net income per common share or cash generated from operating activities and should not be considered as alternatives to net income or net income per common share determined in accordance with GAAP or as an indication of SEVN's cash flows from operations determined in accordance with GAAP, a measure of SEVN's liquidity or operating performance or an indication of funds available for SEVN's cash needs. In addition, SEVN's methodologies for calculating these non-GAAP financial measures may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures; therefore, SEVN's reported Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common

------

share may not be comparable to distributable earnings, distributable earnings per common share, adjusted distributable earnings and adjusted distributable earnings per common share, as reported by other companies.

SEVN calculates Distributable Earnings and Distributable Earnings per common share as net income and net income per common share, respectively, computed in accordance with GAAP, including realized losses not otherwise included in net income determined in accordance with GAAP, and excluding: (a) the management incentive fees earned by SEVN's manager, if any; (b) depreciation and amortization, if any; (c) non-cash equity compensation expense; (d) unrealized gains, losses and other similar non-cash items that are included in net income for the period of the calculation (regardless of whether such items are included in or deducted from net income or in other comprehensive income under GAAP), if any; and (e) one-time events pursuant to changes in GAAP and certain non-cash items, if any. Distributable Earnings are reduced for realized losses on loan investments when amounts are deemed uncollectable.

SEVN defines Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share as Distributable Earnings and Distributable Earnings per common share, respectively, excluding the effects of certain non-recurring transactions.

Management believes that Adjusted Book Value per common share is a meaningful measure of SEVN's capital adequacy because it excludes the unaccreted purchase discount resulting from the excess of the fair value of the loans TRMT then held for investment and that SEVN acquired as a result of the Merger over the consideration SEVN paid in the Merger. Adjusted Book Value per common share does not represent book value per common share or alternative measures determined in accordance with GAAP. SEVN's methodology for calculating Adjusted Book Value per common share may differ from the methodologies employed by other companies to calculate the same or similar supplemental capital adequacy measures; therefore, SEVN's Adjusted Book Value per common share may not be comparable to the adjusted book value per common share reported by other companies.

In order to maintain its qualification for taxation as a REIT, SEVN is generally required to distribute substantially all of its taxable income, subject to certain adjustments, to its shareholders. SEVN believes that one of the factors that investors consider important in deciding whether to buy or sell securities of a REIT is its distribution rate. Over time, Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share may be useful indicators of distributions to SEVN's shareholders and are measures that are considered by SEVN's Board of Trustees when determining the amount of distributions. SEVN believes that Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share provide meaningful information to consider in addition to net income, net income per common share and cash flows from operating activities determined in accordance with GAAP. These measures help SEVN evaluate its performance excluding the effects of certain transactions, the variability of any management incentive fees that may be paid or payable and GAAP adjustments that SEVN believes are not necessarily indicative of SEVN's current loan portfolio and operations. In addition, Distributable Earnings is used in determining the amount of base management and management incentive fees payable by SEVN to its manager under SEVN's management agreement.

Please see the pages attached hereto for a more detailed statement of SEVN's operating results and financial condition and for a reconciliation of net income and net income per common share determined in accordance with GAAP to SEVN's calculation of Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share.

------

**SEVEN HILLS REALTY TRUST**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(amounts in thousands, except per share data)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months <br>Ended December 31,** | **Three Months <br>Ended December 31,** | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| INCOME FROM INVESTMENTS: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income from investments | $15205 | $7209 | $45303 | $16775 |
| &nbsp;&nbsp;&nbsp;Purchase discount accretion | 1522 | 18932 | 10689 | 18932 |
| &nbsp;&nbsp;&nbsp;Less: interest and related expenses | (7439) | (1573) | (17630) | (2253) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from investments, net | 9288 | 24568 | 38362 | 33454 |
| OTHER EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;Base management fees  | 1070 | 1054 | 4260 | 3221 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 740 | 1352 | 4080 | 3091 |
| &nbsp;&nbsp;&nbsp;Reimbursement of shared services expenses | 712 | 615 | 2232 | 1565 |
| &nbsp;&nbsp;&nbsp;Other transaction related costs |  | 589 | 37 | 589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 2522 | 3610 | 10609 | 8466 |
| Income before income taxes | 6766 | 20958 | 27753 | 24988 |
| Income tax expense | (6) | (302) | (113) | (338) |
| Net income | $6760 | $20656 | $27640 | $24650 |
| Weighted average common shares outstanding - basic | 14579 | 14506 | 14540 | 11304 |
| Weighted average common shares outstanding - diluted | 14579 | 14507 | 14540 | 11304 |
| Net income per common share - basic and diluted | $0.46 | $1.42 | $1.89 | $2.18 |

---

------

**SEVEN HILLS REALTY TRUST**

**RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS AND** 

**ADJUSTED DISTRIBUTABLE EARNINGS**

**(amounts in thousands, except per share data)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months <br>Ended December 31,** | **Three Months <br>Ended December 31,** | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Reconciliation of net income to Distributable Earnings and Adjusted Distributable Earnings: |  |  |  |  |
| Net income | $6760 | $20656 | $27640 | $24650 |
| &nbsp;&nbsp;Non-cash equity compensation expense | 129 | 446 | 1018 | 627 |
| &nbsp;&nbsp;Non-cash accretion of purchase discount | (1522) | (18932) | (10689) | (18932) |
| &nbsp;&nbsp;Exit fees collected on loans acquired in Merger <sup>(1)</sup> |  |  | 104 |  |
| Distributable Earnings | 5367 | 2170 | 18073 | 6345 |
| &nbsp;&nbsp;Other transaction related costs <sup>(2)</sup> |  | 589 | 37 | 589 |
| &nbsp;&nbsp;Income tax expense <sup>(3)</sup> |  | 282 |  | 282 |
| Adjusted Distributable Earnings | $5367 | $3041 | $18110 | $7216 |
| Weighted average common shares outstanding - basic | 14579 | 14506 | 14540 | 11304 |
| Weighted average common shares outstanding - diluted | 14579 | 14507 | 14540 | 11304 |
| Distributable Earnings per common share - basic and diluted | $0.37 | $0.15 | $1.24 | $0.56 |
| Adjusted Distributable Earnings per common share - basic and diluted | $0.37 | $0.21 | $1.25 | $0.64 |

---

(1)Exit fees collected for loans acquired in the Merger represent fees collected upon repayment of loans for which no income relating to those exit fees has previously been recognized in Distributable Earnings. In accordance with GAAP, exit fees payable with respect to loans acquired in the Merger were accreted as a component of the purchase discount and were excluded from Distributable Earnings as a non-cash item. Accordingly, these exit fees have been recognized in Distributable Earnings upon collection.

(2)Other transaction related costs include expenses related to the Merger.

(3)Income tax expense for the three months and year ended December 31, 2021 represents the portion of income tax expense incurred on realized gains on the disposition of SEVN's securities portfolio in connection with SEVN's conversion from a registered investment company to a mortgage REIT in January 2021.

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**SEVEN HILLS REALTY TRUST**

**CONSOLIDATED BALANCE SHEETS**

**(dollars in thousands, except per share data)**

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| <u>ASSETS</u> |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $71057 | $26197 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 10 | 98 |
| &nbsp;&nbsp;&nbsp;Loans held for investment, net | 669929 | 570780 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 5851 | 2918 |
| &nbsp;&nbsp;&nbsp;Total assets | $746847 | $599993 |
| <u>LIABILITIES AND SHAREHOLDERS' EQUITY</u> |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable, accrued liabilities and deposits | $1903 | $1561 |
| &nbsp;&nbsp;&nbsp;Secured financing facilities, net | 471521 | 339627 |
| &nbsp;&nbsp;&nbsp;Due to related persons | 1844 | 1111 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 475268 | 342299 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies |  |  |
| &nbsp;&nbsp;&nbsp;Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares of beneficial interest, $0.001 par value, 25,000,000 shares authorized; 14,709,165 and 14,597,079 shares issued and outstanding, respectively | 15 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 238505 | 237624 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cumulative net income | 52290 | 24650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cumulative distributions | (19231) | (4595) |
| &nbsp;&nbsp;&nbsp;Total shareholders' equity | 271579 | 257694 |
| &nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $746847 | $599993 |

---

------

**<u>Warning Concerning Forward-Looking Statements</u>**

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. Also, whenever SEVN uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, SEVN is making forward-looking statements. These forward-looking statements are based upon SEVN's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SEVN's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SEVN's control. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Lorenzini states that SEVN ended the year with substantial earnings growth driven by the favorable impact of rising interest rates on SEVN's floating rate loan portfolio and that, given SEVN's balance sheet capacity and its expectation that interest rates may continue to rise, SEVN believes it is well positioned to further grow distributable earnings and continue to deliver attractive returns for its shareholders. These statements may imply that SEVN will experience continued growth in future periods, including in its loan originations and investment income, and generate attractive returns for its shareholders. However, SEVN operates in a highly competitive industry and its business is subject to various risks, many of which are outside its control, including the potential negative impact on the CRE industry and lending market as a result of inflation, high interest rates, geopolitical risks and economic recession or downturn. Further, these adverse conditions may negatively impact SEVN's borrowers and their ability to fund their obligations to SEVN. In addition, interest rates may not continue to rise.These risks and other factors may prevent SEVN from successfully closing additional loans, executing its business plans and realizing its investment objectives, increasing or maintaining its current earnings and delivering shareholder returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Lorenzini states that based on strong earnings momentum and the credit quality of SEVN's loan portfolio, in January 2023 SEVN announced a 40% increase in its quarterly distribution to $0.35 per common share.This statement may imply that SEVN will experience continued growth in future periods, that the credit quality of SEVN's loan portfolio will remain strong and that SEVN will maintain its increased distribution rate, or make additional increases to its distribution rate in the future. However, as discussed above, SEVN operates in a highly competitive industry and its business is subject to various risks, which may prevent SEVN from successfully closing additional loans, executing its business plans and realizing its investment objectives, increasing or maintaining its current earnings and delivering shareholder returns. In addition, SEVN's borrowers and their tenants are subject to similar risks, including risks related to current economic conditions, including inflation, high interest rates, geopolitical risks and economic recession or downturn. As a result of these or other factors, SEVN's loans may not remain current and the credit quality of its loan portfolio could decline. Additionally, the timing, amount and form of any future distributions will be determined at the discretion of SEVN's Board of Trustees and will depend on various factors that its Board of Trustees deems relevant, including SEVN's historical and projected income, its Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share, the then current and expected needs and availability of cash to pay its obligations and fund its investments, distributions which may be required to be paid to maintain SEVN's qualification for taxation as a REIT, limitations on distributions contained in SEVN's financing arrangements and other factors deemed relevant by SEVN's Board of Trustees. Accordingly, any future distributions may be increased, decreased,

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suspended or discontinued, and there is no assurance as to the rate at which future dividends, if any, will be paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Lorenzini states SEVN's intention to continue to take a disciplined approach to identifying new investments. This may result in SEVN pursuing and completing fewer loan originations. Further, SEVN may not identify loan investments and any loans it may complete may not perform up to SEVN's expectations. Additionally, once SEVN invests or commits its remaining capital, its ability to continue to grow and fund loans will be subject to its ability to obtain additional cost-effective capital or to redeploy proceeds from repayments of its loan investments. .

The information contained in SEVN's filings with the SEC, including under "Risk Factors" in SEVN's periodic reports, or incorporated therein, identifies other 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.

Contact:

Kevin Barry

Director, Investor Relations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(617) 796-7651

(END)

## Exhibit 99.2

![](exhibit992001.jpg)

1 FOURTH QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2

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![](exhibit992002.jpg)

2 Supplemental Q4 2022 2 **Table of Contents** CORPORATE INFORMATION Company Profile ...................................................................................................................................................................... 3 Investor Information and Research Coverage ................................................................................................................... 4 Company Highlights ............................................................................................................................................................... 5 PORTFOLIO OVERVIEW Fourth Quarter 2022 Highlights ........................................................................................................................................... 6 Loan Portfolio Summary ......................................................................................................................................................... 7 Portfolio Growth and Diversification ................................................................................................................................... 8 Portfolio Credit Quality .......................................................................................................................................................... 9 Capital Structure Overview .................................................................................................................................................... 10 Interest Rate Sensitivity ........................................................................................................................................................... 11 APPENDIX Loan Investment Details ......................................................................................................................................................... 13 Purchase Discount Details ..................................................................................................................................................... 15 Consolidated Balance Sheets ............................................................................................................................................... 16 Consolidated Statements of Operations ............................................................................................................................ 17 Reconciliation of Net Income to Distributable Earnings and Adjusted Distributable Earnings ............................... 18 NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Non-GAAP Financial Measures ............................................................................................................................................. 19 Other Measures and Definitions .......................................................................................................................................... 20 WARNING CONCERNING FORWARD-LOOKING STATEMENTS ................................................................................................ 21 Please refer to Non-GAAP Financial Measures and Other Measures and Definitions for terms used throughout this document.

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![](exhibit992003.jpg)

3 Supplemental Q4 2022 3 Management: Our manager, Tremont Realty Capital LLC, or Tremont, is registered with the Securities and Exchange Commission, or SEC, as an investment adviser. Tremont is owned by The RMR Group (Nasdaq: RMR). RMR is an alternative asset management company that is focused on CRE and related businesses. RMR primarily provides management services to publicly traded real estate companies, privately held real estate funds and real estate related operating businesses. As of December 31, 2022, RMR had over $37 billion of real estate assets under management and the combined RMR managed companies had more than $16 billion of annual revenues, nearly 2,100 properties and over 38,000 employees. We believe Tremont's relationship with RMR provides us with a depth of market knowledge that may allow us to identify high quality investment opportunities and to evaluate them more thoroughly than many of our competitors, including other commercial mortgage REITs. We also believe RMR's broad platform provides us with access to RMR's extensive network of real estate owners, operators, intermediaries, sponsors, financial institutions and other real estate related professionals and businesses with which RMR has historical relationships. We also believe that Tremont provides us with significant experience and expertise in investing in middle market and transitional CRE. The Company: Seven Hills Realty Trust, or SEVN, we, our or us, is a real estate investment trust, or REIT, that focuses on originating and investing in floating rate first mortgage loans secured by middle market and transitional commercial real estate, or CRE. We define middle market CRE as commercial properties that have values up to $100.0 million and transitional CRE as commercial properties subject to redevelopment or repositioning activities that are expected to increase the value of the properties. Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (617) 332-9530 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: SEVN Company Profile RETURN TO TABLE OF CONTENTSCORPORATE INFORMATION

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![](exhibit992004.jpg)

4 Supplemental Q4 2022 4 Investor Information and Research Coverage Board of Trustees Equity Research Coverage Barbara D. Gilmore Phyllis M. Hollis William A. Lamkin JMP Securities Independent Trustee Independent Trustee Independent Trustee Chris Muller, CFA (212) 906-3559 Joseph L. Morea Jeffrey P. Somers cmuller@jmpsecurities.com Lead Independent Trustee Independent Trustee Matthew P. Jordan Adam D. Portnoy Jones Trading Institutional Services, LLC Managing Trustee Chair of the Board & Managing Trustee Jason M. Stewart (646) 465-9932 Executive Officers jstewart@jonestrading.com Thomas J. Lorenzini Tiffany R. Sy President Chief Financial Officer and Treasurer Contact Information Investor Relations Inquiries SEVN is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding SEVN's performance made by these analysts do not represent opinions, estimates or forecasts of SEVN or its management. SEVN does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts. Seven Hills Realty Trust Financial, investor and media inquiries should be directed to: Two Newton Place Kevin Barry, Director, Investor Relations 255 Washington Street, Suite 300 at (617) 332-9530 or ir@sevnreit.com (617) 796-8253 ir@sevnreit.com www.sevnreit.com CORPORATE INFORMATION RETURN TO **TABLE OF CONTENTS**

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![](exhibit992005.jpg)

5 Supplemental Q4 2022 5 Company Highlights CORPORATE INFORMATION 27 Floating Rate First Mortgage Loans SEVN Nasdaq Listed $728M Total Loan Commitments 100% Loans Current on Debt Service $682M Total Debt Capacity 68% Weighted Average Loan to Value 1.7x Debt to Equity Ratio 2.9 Weighted Average Portfolio Risk Rating 0.5x Price to Adjusted Book Value RETURN TO **TABLE OF CONTENTS** Student Housing Acquisition Financing Starkville, MS (As of December 31, 2022)

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![](exhibit992006.jpg)

6 Supplemental Q4 2022 6 Financial Results Investment Activity Portfolio Update Capitalization • Generated net income of $6.8 million, or $0.46 per diluted share, and Adjusted Distributable Earnings of $5.4 million, or $0.37 per diluted share. • Book value per common share of $18.46 and Adjusted Book Value per common share of $18.92. • Raised quarterly dividend by 40% to $0.35 per common share from $0.25 per common share. • Portfolio of 27 first mortgage loans with an aggregate total loan commitment of $728 million. • Portfolio remains diversified by property type and geographic location. • All loans current on debt service and credit quality remains strong at a weighted average risk rating of 2.9. • Closed one new loan secured by an industrial property with a total commitment of $24.4 million and a coupon rate of 8.03%. • Two loans with an aggregate principal of $53.1 million were fully repaid during the quarter. • Outstanding principal balance of $473.6 million under our Secured Financing Facilities. • Debt to equity ratio of 1.7x as of December 31, 2022. Fourth Quarter 2022 Highlights PORTFOLIO OVERVIEW RETURN TO **TABLE OF CONTENTS** (As of and for the three months ended December 31, 2022, unless otherwise noted)

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![](exhibit992007.jpg)

7 Supplemental Q4 2022 7 $705.5 $705.5 $727.5 $678.6 $678.6 $22.0 $4.8 $53.7 $57.7 $49.0 Q3 2022 Portfolio Originations Fundings Repayments Q4 2022 Portfolio Fourth Quarter 2022 Portfolio Activity (dollars in millions) Total Loan Commitments (dollars in thousands) Fourth Quarter Originations Total Portfolio As of December 31, 2022 Number of loans 1 27 Average loan commitment $24,355 $26,947 Total loan commitments $24,355 $727,562 Unfunded loan commitments $2,355 $49,007 Principal balance $22,000 $678,555 Weighted average coupon rate 8.03% 8.07% Weighted average All In Yield 8.56% 8.57% Weighted average Maximum Maturity 3.9 3.3 Weighted average LTV 72% 68% Weighted average floor 3.87% 0.62% Loans with active floors (1) 0% 0% Weighted average risk rating 3.0 2.9 Principal Balance Loan Portfolio Summary PORTFOLIO OVERVIEW RETURN TO **TABLE OF CONTENTS** $763.1 $727.6 Unfunded Commitments (1) Represents percentage of principal balance of loans held for investment with active floors as of December 31, 2022.

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![](exhibit992008.jpg)

8 Supplemental Q4 2022 8 Retail East 16% South 25% West 22% Midwest 37% Office 38% Multifamily 29% Retail 16% Industrial 17% Geographic Region (2) Property Type (2) (dollars in millions) Portfolio Growth and Diversification (1) Includes loans originated by TRMT and acquired by SEVN as a result of the Merger. (2) Based on principal balance of loans held for investment as of December 31, 2022. $55.5 $77.0 $128.4 $157.3 $91.2 $51.6 $38.4 $22.0 $10.0 $11.8 $11.1 $7.4 $4.6 $8.9 $8.6 $2.4 $65.5 $88.8 $139.5 $164.7 $95.8 $60.5 $47.0 $24.4 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Total Loan Commitments Unfunded Commitments Principal Balance Loan Originations by Quarter (1) PORTFOLIO OVERVIEW Loan Count 6 6 3 2 RETURN TO **TABLE OF CONTENTS** 32 1 1

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![](exhibit992009.jpg)

9 Supplemental Q4 2022 9 Loan Count 15% 13% 29% 36% 7% 30% - 60% 61% - 65% 66% - 70% 71% - 75% 76% - 80% Loan to Value (1) % of Portfolio Portfolio Credit Quality Loan Count 4 2 8 11 2 1 6 17 3 0 1% 20% 65% 14% —% Lower Risk (1) Average Risk (2) Acceptable Risk (3) Higher Risk (4) Impaired/Loss Likely (5) Risk Rating Distribution (1) % of Portfolio Weighted Average LTV: 68% Weighted Average Risk Rating: 2.9 (1) Percentage of portfolio based on principal balance of loans held for investment as of December 31, 2022. PORTFOLIO OVERVIEW RETURN TO **TABLE OF CONTENTS**

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![](exhibit992010.jpg)

10 Supplemental Q4 2022 10 CA PI TA L ST RU CT UR E OV ER VI EW Secured Financing Facilities Maximum Facility Size Principal Balance Unused Capacity Weighted Average Advance Rate Weighted Average Coupon Rate Weighted Average Remaining Maturity (1) (dollars in thousands) Master Repurchase Facilities $532,000 $362,510 $169,490 73.6% 6.38% 1.3 Asset Specific Financing 150,000 111,105 38,895 74.8% 6.22% 2.2 Total/Weighted Average $682,000 $473,615 $208,385 73.9% 6.34% 1.5 Capital Structure Detail (1) The weighted average remaining maturity of our Master Repurchase Facilities is determined using the earlier of the underlying loan maturity date and the respective repurchase agreement maturity date. The weighted average remaining maturity of Asset Specific Financing is determined using the underlying loan investment maturity date. (2) Adjusted Book Value per common share excludes the impact of the unaccreted purchase discount resulting from the excess fair value over the purchase price of the loans held for investment acquired in the Merger. The purchase discount of $36.4 million was allocated to each acquired loan held for investment and is accreted into income over the remaining term of the respective loan held for investment. As of December 31, 2022, the unaccreted purchase discount was $6.7 million. Secured Financing Facilities 63% Equity 37% Capital Structure Overview Capital Structure Composition RETURN TO **TABLE OF CONTENTS** PORTFOLIO OVERVIEW RETURN TO **TABLE OF CONTENTS** (As of December 31, 2022) Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share (amounts in thousands, except per share data) Shareholders' equity $271,579 Total outstanding common shares 14,709 Book value per common share 18.46 Unaccreted purchase discount per common share 0.46 Adjusted Book Value per common share (2) $18.92

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![](exhibit992011.jpg)

11 Supplemental Q4 2022 11 The above table illustrates the incremental impact on our annual income from investments, net, from hypothetical immediate changes in LIBOR and SOFR, taking into consideration our borrowers' interest rate floors as of December 31, 2022. The results in the table above are based on our loan portfolio and debt outstanding as of December 31, 2022. Any changes to the mix of our investments or debt outstanding could impact the interest rate sensitivity analysis. This illustration is not meant to forecast future results. Interest Rate Changes $-0.07 $-0.03 $0.00 $0.04 $0.07 $0.11 $0.14 $0.18 -50 bps -25 bps 0 bps +25 bps +50 bps +75 bps +100 bps +125 bps $-0.10 $-0.05 $0.00 $0.05 $0.10 $0.15 $0.20 Interest Rate Sensitivity Annualized Impact to Net Interest Income per Share PORTFOLIO OVERVIEW RETURN TO **TABLE OF CONTENTS** • Weighted average interest rate floor of total portfolio of 0.62%. • None of our loans have active interest rate floors. • No interest rate floors on advances under our Secured Financing Facilities. (As of December 31, 2022)

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![](exhibit992012.jpg)

12 Supplemental Q4 2022 12APPENDIX Appendix

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![](exhibit992013.jpg)

13 Supplemental Q4 2022 13 First mortgage loans as of December 31, 2022: # Location Property Type Origination Date Committed Principal Amount Principal Balance (1) Coupon Rate All in Yield Maturity Date Maximum Maturity Date LTV Risk Rating 1 Olmsted Falls, OH Multifamily 01/28/2021 $54,575 $46,083 L + 4.00% L + 4.64% 01/28/2024 01/28/2026 63% 3 2 Dallas, TX Office 08/25/2021 50,000 43,450 L + 3.25% L + 3.61% 08/25/2024 08/25/2026 72% 4 3 Passaic, NJ Industrial 09/08/2022 47,000 38,440 S + 3.85% S + 4.22% 09/08/2025 09/08/2027 69% 3 4 Brandywine, MD Retail 03/29/2022 42,500 42,200 S + 3.85% S + 4.25% 03/29/2025 03/29/2027 62% 3 5 West Bloomfield, MI Retail 12/16/2021 42,500 37,453 L + 3.85% L + 4.66% 12/16/2023 12/16/2024 59% 3 6 Starkville, MS Multifamily 03/22/2022 37,250 36,787 S + 4.00% S + 4.32% 03/22/2025 03/22/2027 70% 4 7 Summerville, SC Industrial 12/20/2021 35,000 35,000 L + 3.50% L + 3.82% 12/20/2024 12/20/2026 70% 2 8 Farmington Hills, MI Multifamily 05/24/2022 31,520 28,691 S + 3.15% S + 3.50% 05/24/2025 05/24/2027 75% 3 9 Downers Grove, IL Office 09/25/2020 30,000 29,500 L + 4.25% L + 4.69% 11/25/2023 11/25/2024 67% 2 10 Las Vegas, NV Multifamily 06/10/2022 28,950 24,223 S + 3.30% S + 4.05% 06/10/2025 06/10/2027 60% 3 11 St. Louis, MO Office 12/19/2018 28,866 28,866 L + 3.25% L + 3.74% 03/20/2023 06/20/2023 72% 3 12 Plano, TX Office 07/01/2021 27,385 26,152 L + 4.75% L + 5.16% 07/01/2024 07/01/2026 78% 3 13 Carlsbad, CA Office 10/27/2021 24,750 23,825 L + 3.25% L + 3.58% 10/27/2024 10/27/2026 78% 3 14 Fontana, CA Industrial 11/18/2022 24,355 22,000 S + 3.75% S + 4.28% 11/18/2024 11/18/2026 72% 3 Loan Investment Details APPENDIX RETURN TO **TABLE OF CONTENTS** (dollars in thousands)

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![](exhibit992014.jpg)

14 Supplemental Q4 2022 14 First mortgage loans as of December 31, 2022: # Location Property Type Origination Date Committed Principal Amount Principal Balance (1) Coupon Rate All in Yield Maturity Date Maximum Maturity Date LTV Risk Rating 15 Downers Grove, IL Office 12/09/2021 23,530 23,530 L + 4.25% L + 4.57% 12/09/2024 12/09/2026 72% 3 16 Dublin, OH Office 02/18/2020 22,820 22,507 S + 3.75% S + 4.95% 02/18/2023 02/18/2023 33% 2 17 Bellevue, WA Office 11/05/2021 21,000 20,000 L + 3.85% L + 4.19% 11/05/2024 11/05/2026 68% 3 18 Portland, OR Multifamily 07/09/2021 19,687 19,687 L + 3.57% L + 3.97% 07/09/2024 07/09/2026 75% 3 19 Ames, IA Multifamily 11/15/2021 18,000 17,820 L + 3.80% L + 4.13% 11/15/2024 11/15/2026 71% 2 20 Aurora, IL Office / Industrial 12/18/2020 17,460 16,429 L + 4.35% L + 5.01% 12/18/2023 12/18/2024 73% 2 21 Yardley, PA Office 12/19/2019 16,500 15,583 L + 4.58% L + 5.97% 12/19/2023 12/19/2024 75% 4 22 Sandy Springs, GA Retail 09/23/2021 16,489 15,017 L + 3.75% L + 4.11% 09/23/2024 09/23/2026 72% 3 23 Delray Beach, FL Retail 03/18/2022 16,000 15,149 S + 4.25% S + 4.91% 03/18/2024 03/18/2026 56% 3 24 Westminster, CO Office 05/25/2021 15,750 14,634 L + 3.75% L + 4.25% 05/25/2024 05/25/2026 66% 2 25 Portland, OR Multifamily 07/30/2021 13,400 13,400 L + 3.57% L + 3.98% 07/30/2024 07/30/2026 71% 3 26 Seattle, WA Multifamily 08/16/2021 12,500 12,354 L + 3.55% L + 3.89% 08/16/2024 08/16/2026 70% 3 27 Allentown, PA Industrial 01/24/2020 9,775 9,775 S + 3.50% S + 4.03% 01/24/2024 01/24/2025 67% 1 Total/weighted average $727,562 $678,555 + 3.78% + 4.28% 68% 2.9 Loan Investment Details (Continued) (dollars in thousands) APPENDIX RETURN TO **TABLE OF CONTENTS** (1) The principal balance excludes the impact of the $6,703 unaccreted purchase discount related to the Merger.

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![](exhibit992015.jpg)

15 Supplemental Q4 2022 15 (1) The estimate of purchase discount accretion is based on information as of December 31, 2022 and is subject to change as a result of early repayments or modifications of loans accounted for as extinguishments. Purchase Discount Details (dollars in millions) The fair value of the loans acquired in the Merger exceeded the purchase price of the loans. In accordance with U.S. generally accepted accounting principles, or GAAP, a purchase discount was recorded for the difference between the then fair value and purchase price of the loans acquired. The purchase discount is accreted into income over the remaining terms of the acquired loans. Purchase Discount Fair value of TRMT loans acquired in the Merger $205.6 Less: Purchase price of TRMT loans acquired in the Merger 169.2 Purchase discount as of September 30, 2021 36.4 Less: Accumulated accretion of purchase discount as of December 31, 2022 (29.7) Remaining purchase discount to be accreted as of December 31, 2022 $6.7 Estimate of Purchase Discount Accretion $18.9 $10.6 $1.1 $1.1 $1.1 $1.1 $2.3 2021 (Actual) 2022 (Actual) Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 (1) APPENDIX RETURN TO **TABLE OF CONTENTS**

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![](exhibit992016.jpg)

16 Supplemental Q4 2022 16 Financial Summary December 31, 2022 2021 ASSETS Cash and cash equivalents $71,057 $26,197 Restricted cash 10 98 Loans held for investment, net 669,929 570,780 Prepaid expenses and other assets 5,851 2,918 Total assets $746,847 $599,993 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable, accrued liabilities and deposits $1,903 $1,561 Secured financing facilities, net 471,521 339,627 Due to related persons 1,844 1,111 Total liabilities 475,268 342,299 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $0.001 par value, 25,000,000 shares authorized; 14,709,165 and 14,597,079 shares issued and outstanding, respectively 15 15 Additional paid in capital 238,505 237,624 Cumulative net income 52,290 24,650 Cumulative distributions (19,231) (4,595) Total shareholders' equity 271,579 257,694 Total liabilities and shareholders' equity $746,847 $599,993 Consolidated Balance Sheets (dollars in thousands, except per share data) APPENDIX RETURN TO **TABLE OF CONTENTS**

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![](exhibit992017.jpg)

17 Supplemental Q4 2022 17 Consolidated Statements of Operations Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 INCOME FROM INVESTMENTS: Interest income from investments $15,205 $7,209 $45,303 $16,775 Purchase discount accretion 1,522 18,932 10,689 18,932 Less: interest and related expenses (7,439) (1,573) (17,630) (2,253) Income from investments, net 9,288 24,568 38,362 33,454 OTHER EXPENSES: Base management fees 1,070 1,054 4,260 3,221 General and administrative expenses 740 1,352 4,080 3,091 Reimbursement of shared services expenses 712 615 2,232 1,565 Other transaction related costs — 589 37 589 Total other expenses 2,522 3,610 10,609 8,466 Income before income taxes 6,766 20,958 27,753 24,988 Income tax expense (6) (302) (113) (338) Net income $6,760 $20,656 $27,640 $24,650 Weighted average common shares outstanding - basic 14,579 14,506 14,540 11,304 Weighted average common shares outstanding - diluted 14,579 14,507 14,540 11,304 Net income per common share - basic and diluted $0.46 $1.42 $1.89 $2.18 (amounts in thousands, except per share data) APPENDIX RETURN TO **TABLE OF CONTENTS**

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![](exhibit992018.jpg)

18 Supplemental Q4 2022 18 Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Reconciliation of net income to Distributable Earnings and Adjusted Distributable Earnings: Net income $6,760 $20,656 $27,640 $24,650 Non-cash equity compensation expense 129 446 1,018 627 Non-cash accretion of purchase discount (1,522) (18,932) (10,689) (18,932) Exit fees collected on loans acquired in Merger (1) — — 104 — Distributable Earnings 5,367 2,170 18,073 6,345 Other transaction related costs (2) — 589 37 589 Income tax expense (3) — 282 — 282 Adjusted Distributable Earnings $5,367 $3,041 $18,110 $7,216 Weighted average common shares outstanding - basic 14,579 14,506 14,540 11,304 Weighted average common shares outstanding - diluted 14,579 14,507 14,540 11,304 Net income per common share - basic and diluted $0.46 $1.42 $1.89 $2.18 Distributable Earnings per common share - basic and diluted $0.37 $0.15 $1.24 $0.56 Adjusted Distributable Earnings per common share - basic and diluted $0.37 $0.21 $1.25 $0.64 Reconciliation of Net Income to Distributable Earnings and Adjusted Distributable Earnings (amounts in thousands, except per share data) APPENDIX RETURN TO **TABLE OF CONTENTS** (1) Exit fees collected for loans acquired in the Merger represent fees collected upon repayment of loans for which no income relating to those exit fees has previously been recognized in Distributable Earnings. In accordance with GAAP, exit fees payable with respect to loans acquired in the Merger were accreted as a component of the purchase discount and were excluded from Distributable Earnings as a non-cash item. Accordingly, these exit fees have been recognized in Distributable Earnings upon collection. (2) Other transaction related costs include expenses related to the Merger. (3) Income tax expense for the three months and year ended December 31, 2021 represents the portion of income tax expense incurred on realized gains on the disposition of our securities portfolio in connection with SEVN's conversion from a registered investment company to a mortgage REIT in January 2021.

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![](exhibit992019.jpg)

19 Supplemental Q4 2022 19 ON -G AA P FI NA NC IA L ME AS UR ES A ND C ER TA IN D EF IN IT IO NS We present Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings, Adjusted Distributable Earnings per common share and Adjusted Book Value per common share, which are considered "non-GAAP financial measures" within the meaning of the applicable SEC rules. These non-GAAP financial measures do not represent net income, net income per common share or cash generated from operating activities and should not be considered as alternatives to net income or net income per common share determined in accordance with GAAP or as an indication of our cash flows from operations determined in accordance with GAAP, a measure of our liquidity or operating performance or an indication of funds available for our cash needs. In addition, our methodologies for calculating these non- GAAP financial measures may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures; therefore, our reported Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings, and Adjusted Distributable Earnings per common share may not be comparable to distributable earnings, distributable earnings per common share, adjusted distributable earnings and adjusted distributable earnings per common share, as reported by other companies. We believe that Adjusted Book Value per common share is a meaningful measure of our capital adequacy because it excludes the unaccreted purchase discount resulting from the excess of the fair value of the loans TRMT then held for investment and that we acquired as a result of the Merger over the consideration we paid in the Merger. Adjusted Book Value per common share does not represent book value per common share or alternative measures determined in accordance with GAAP. Our methodology for calculating Adjusted Book Value per common share may differ from the methodologies employed by other companies to calculate the same or similar supplemental capital adequacy measures; therefore, our Adjusted Book Value per common share may not be comparable to the adjusted book value per common share reported by other companies. In order to maintain our qualification for taxation as a REIT, we are generally required to distribute substantially all of our taxable income, subject to certain adjustments, to our shareholders. We believe that one of the factors that investors consider important in deciding whether to buy or sell securities of a REIT is its distribution rate. Over time, Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share may be useful indicators of distributions to our shareholders and are measures that are considered by our Board of Trustees when determining the amount of distributions. We believe that Distributable Earnings, Distributable Earnings per common share, Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share provide meaningful information to consider in addition to net income, net income per common share and cash flows from operating activities determined in accordance with GAAP. These measures help us to evaluate our performance excluding the effects of certain transactions, the variability of any management incentive fees that may be paid or payable and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. In addition, Distributable Earnings is used in determining the amount of base management and management incentive fees payable by us to Tremont under our management agreement. Distributable Earnings: We calculate Distributable Earnings and Distributable Earnings per common share as net income and net income per common share, respectively, computed in accordance with GAAP, including realized losses not otherwise included in net income determined in accordance with GAAP, and excluding: (a) the management incentive fees earned by our Manager, if any; (b) depreciation and amortization, if any; (c) non-cash equity compensation expense; (d) unrealized gains, losses and other similar non-cash items that are included in net income for the period of the calculation (regardless of whether such items are included in or deducted from net income or in other comprehensive income under GAAP), if any; and (e) one-time events pursuant to changes in GAAP and certain non-cash items, if any. Distributable Earnings are reduced for realized losses on loan investments when amounts are deemed uncollectable. Adjusted Distributable Earnings: We define Adjusted Distributable Earnings and Adjusted Distributable Earnings per common share as Distributable Earnings and Distributable Earnings per common share, respectively, excluding the effects of certain non-recurring transactions. Adjusted Book Value: Adjusted Book Value per common share is a non-GAAP measure that excludes the impact of the unaccreted purchase discount resulting from the excess of the fair value of the loans TRMT then held for investment which we acquired as a result of the Merger over the consideration we paid. Non-GAAP Financial Measures NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS RETURN TO **TABLE OF CONTENTS**

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![](exhibit992020.jpg)

20 Supplemental Q4 2022 20 ON -G AA P FI NA NC IA L ME AS UR ES A ND C ER TA IN D EF IN IT IO NS All In Yield: All In Yield represents the yield on a loan, including amortization of deferred fees over the initial term of the loan and excluding any purchase discount accretion. Asset Specific Financing: Amounts advanced under the facility loan agreement and security agreement with BMO Harris Bank N.A. are pursuant to separate facility loan agreements that we refer to as Asset Specific Financing. LIBOR: LIBOR refers to the London Interbank Offered Rate. LTV: Loan to value ratio, or LTV, represents the initial loan amount divided by the underwritten in-place value of the underlying collateral at closing. Master Repurchase Facilities: Collectively, we refer to the master repurchase facilities with UBS AG, Citibank, N.A. and Wells Fargo, National Association as our Master Repurchase Facilities. Maximum Maturity: Maximum Maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions. Merger: On September 30, 2021, TRMT merged with and into us. We refer to this transaction as the Merger. Secured Financing Facilities: Collectively, we refer to the Master Repurchase Facilities and our Asset Specific Financing as our Secured Financing Facilities. SOFR: SOFR refers to the Secured Overnight Financing Rate. TRMT: TRMT refers to Tremont Mortgage Trust. Other Measures and Definitions NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS RETURN TO **TABLE OF CONTENTS**

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![](exhibit992021.jpg)

21 Supplemental Q4 2022 21 This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever we use words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, we are making forward-looking statements. These forward-looking statements are based upon our present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by our forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. The information contained in our filings with the SEC, including under "Risk Factors" in our periodic reports, or incorporated therein, identifies important factors that could cause our actual results to differ materially from those stated in or implied by our forward-looking statements. Our 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, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise. Warning Concerning Forward-Looking Statements WARNING CONCERNING FORWARD-LOOKING STATEMENTS RETURN TO **TABLE OF CONTENTS**

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