School loan

Seven Hills Realty Trust completes $100 million financing facility with BMO Harris Bank

NEWTON, Mass.–()–Seven Hills Realty Trust (Nasdaq:SEVN) announced today that it has entered into an agreement for a $100 million note financing facility with BMO Harris Bank, which it could use to leverage its commercial mortgage investments. Loans issued under the funding facility will coincide with pledged mortgage investments, will not be subject to margin calls and will allow for an advance rate of up to 80%, subject to certain lending limits at the cost and loan to value. Interest on advances under the facility will be calculated at SOFR plus an applicable margin.

Doug Lanois, Chief Financial Officer and Treasurer, made the following statement:

“This new financing agreement with BMO Harris is an important step in executing our strategy to diversify SEVN’s capital sources. SEVN has a substantial portfolio of lending opportunities and this note-on-note facility provides us with capital that matches the term of the underlying loans and will not subject us to mark-to-market provisions. It presents an attractive way to improve our funding mix and increase investment returns for our shareholders as we continue to evolve SEVN’s loan portfolio.

Seven Hills Realty Trust (Nasdaq:SEVN) is a real estate finance company that originates and invests in first mortgage loans secured by middle and transitional market commercial real estate. SEVN is managed by Tremont Realty Capital, a wholly owned subsidiary of The RMR Group LLC. The RMR Group LLC is an alternative asset management company, majority owned by The RMR Group Inc. (Nasdaq: RMR), with over $32 billion in assets under management and 35 years of institutional experience buying, selling, financing and operating commercial real estate. For more information on SEVN, please visit www.sevnreit.com.

CAUTION REGARDING 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. 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 makes forward-looking statements. These forward-looking statements are based on SEVN’s current intention, beliefs or expectations, but the realization of the forward-looking statements is not guaranteed and may not occur. Actual results may differ materially from those contained or implied by SEVN’s forward-looking statements due to a variety of factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SEVN’s control. For example:

  • Advances under this facility are subject to SEVN’s compliance with certain financial covenants and other conditions of the facility which SEVN may not be able to meet, including review and approval by BMO Harris Bank. of the underlying note. In addition, actual costs under the Funding Facility will be greater than SOFR plus an applicable margin due to fees and expenses associated with the Facility.

  • Statements about SEVN’s continued growth of its loan portfolio may imply that SEVN will successfully grow its loan portfolio and benefit from it. However, SEVN’s ability to make additional loans is subject to various risks, including competition, demand for loans of the type provided by SEVN, SEVN’s ability to successfully negotiate and enter into loan agreements and other Questions. In addition, any growth in its loan portfolio may not benefit SEVN if, for example, SEVN fails to realize the returns it expects from such growth.

Information contained in SEVN’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in or incorporated into SEVN’s periodic reports, identifies other important factors that could that SEVN’s actual results will differ materially from those indicated 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 on 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.