Shares of Seven Hills Realty Trust (NASDAQ:SEVN) dropped 2.9% in pre-market trading Thursday after the company announced a reduction to its quarterly dividend payout.
The real estate investment trust based in Newton, Massachusetts, lowered its quarterly distribution from $0.35 to $0.28 per share, marking a 20% decline. This adjustment sets the annualized dividend to $1.12 per share, down from the previous $1.40.
The company attributed the dividend decrease to expectations that proceeds from loan repayments will be reinvested at lower net interest margins, due to a declining SOFR curve, which is likely to reduce distributable earnings for the remainder of the year.
“We believe the reduced rate better aligns with our anticipated earnings while continuing to deliver an attractive yield for our shareholders,” said Tom Lorenzini, President and Chief Investment Officer of SEVN. “This decision does not reflect any deterioration in our loan portfolio. All loans remain fully performing, and we continue to actively originate new investments supported by a robust pipeline.”
The new dividend will be paid on August 14, 2025, to shareholders recorded by July 21, 2025.
Further information regarding the dividend adjustment will be discussed during the company’s second-quarter 2025 earnings call on July 29, 2025.
Seven Hills Realty Trust stock price
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