Liquidity remains supported by $123.5 million in cash reserves, though dividend coverage remains inconsistent with payout ratios reaching as high as 2.49 in 2025Q2.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 16.37M | 15.04M | 20.11M | 20.27M | 12.75M | 792K | -86.88M | 5.02M | 14.04M | -61.81M | 10.43M | 10.38M | 10.36M | 140.61K | -31.53M | 4.11M |
| Operating CF Growth % | -19.58% | -25.22% | -0.79% | 58.97% | 1509.97% | 100.91% | -1831.49% | -64.25% | 122.71% | -692.57% | 0.52% | 0.18% | 7266.34% | 100.45% | -866.93% | - |
| Operating CF / Revenue % | 37.43% | 25.55% | 67.1% | 58.07% | 22.77% | 2.22% | 159.97% | 6.96% | -59.34% | -628.63% | 38.8% | -825.03% | 19.66% | 5.45% | -95.67% | 63.69% |
| Net Income | 15.29M | 15.43M | 17.82M | 25.96M | 27.64M | 24.65M | -55.68M | 70.93M | -24.92M | 8.22M | 25.81M | -2.17M | 51.8M | 1.64M | 32.34M | 5.36M |
| Depreciation & Amortization | -2.08M | -2.05M | -2.7M | 604K | -3.78M | -1.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 1.59M | 1.74M | 1.36M | 0 | 1.02M | 627K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.18M | 1.68M | 3M | -6.38M | -9.66M | -19.77M | -35.81M | -66.04M | 39.9M | -70.11M | -15.45M | 12.44M | -41.29M | -1.69M | -62.74M | -1.66M |
| Working Capital Changes | -594K | -1.76M | 628K | 82K | -2.47M | -4.08M | 4.61M | 121.29K | -945.04K | 78.95K | 64.73K | 111.72K | -148.98K | 192.28K | -1.13M | 416.97K |
| Cash from Investing | -66.69M | -72.96M | 21.26M | 35.84M | -84.07M | -283.86M | 292.72M | 12.66M | 7.3M | -66.16M | 3.63M | 0 | 0 | 0 | 0 | 0 |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 4.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -217.63M | -347.81M | -10.08M | -31.17M | -70.82M | -111.75M | -28.9M | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 133.57M | 59.04M | 302.8M | 43.83M | 78.13M | 45.59M | 32.53M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -66.69M | -72.96M | 21.26M | 35.84M | 0 | 4.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 65.28M | 110.64M | -58.48M | -39.33M | 116.09M | 205.8M | -111.43M | -14.11M | -14.04M | 61.81M | -10.43M | -10.4M | -10.34M | -192.61K | 31.58M | -4.11M |
| Dividends Paid | -13.62M | -18.84M | -20.77M | -20.64M | -14.64M | -4.59M | -6.75M | -14.11M | -14.04M | -11.37M | -10.43M | -10.4M | -10.34M | -10.19M | -8.42M | -4.11M |
| Common Dividends | -13.62M | 0 | -20.77M | -20.64M | -14.64M | -4.59M | 0 | 0 | -14.04M | -11.37M | -10.43M | -10.4M | -10.34M | -10.19M | -8.42M | -3.99M |
| Debt Issuance (Net) | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 0 | 0 | 1000K | 0 | 0 | 0 | 1000K | 1000K | 0 |
| Share Repurchases | -385K | -383K | -377K | -183K | -137K | -57K | -16.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 40.16M | 0 | -1.13M | -703K | -1.89M | -1.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 14.97M | 52.72M | -17.11M | 16.79M | 44.77M | -77.27M | 103.56M | 6.59K | 7.3M | -66.16M | 3.63M | -19.06K | 19.06K | -52K | 51.32K | 455 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 456 | 9.14M | -3.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 123.47M | 70.75M | 87.86M | 71.07M | 26.3M | 103.56M | 6.59K | 0 | 0 | 0 | 0 | 19.06K | 0 | 52K | 683 | 228 |
| Cash at End | 56.61M | 123.47M | 70.75M | 87.86M | 71.07M | 26.3M | 103.56M | 6.59K | 7.3M | -66.16M | 3.63M | 0 | 19.06K | 0 | 52K | 683 |
| Free Cash Flow | 16.37M | 15.04M | 20.11M | 20.27M | 12.75M | -4.12M | -86.88M | 5.02M | 14.04M | -61.81M | 10.43M | 10.38M | 10.36M | 140.61K | -31.53M | 4.11M |
| FCF Growth % | -14.15% | -25.22% | -0.79% | 58.97% | 409.64% | 95.26% | -1831.49% | -64.25% | 122.71% | -692.57% | 0.52% | 0.18% | 7266.34% | 100.45% | -866.93% | - |
| FCF / Revenue % | 37.43% | 25.55% | 67.1% | 58.07% | 22.77% | -11.53% | 159.97% | 6.96% | -59.34% | -628.63% | 38.8% | -825.03% | 19.66% | 5.45% | -95.67% | 63.69% |
Dividend coverage and payout sustainability
As reported in quarterly financial filings, SEVN's dividend payout ratio relative to AFFO has fluctuated significantly, reaching a peak of 2.49 in 2025Q2, which suggests that the company has frequently struggled to cover its distribution obligations through recurring cash earnings alone during recent periods.
The inconsistency in dividend coverage ratios indicates that shareholders should monitor the sustainability of current payout levels, as the company has often relied on capital reserves rather than operational cash flow to fund distributions. This volatility suggests that the REIT's ability to maintain its dividend is highly sensitive to the timing of loan exits and interest collections.
Based on the provided financial data, the relationship between FFO and GAAP operating cash flow is inconsistent, with FFO/NI ratios swinging from 0.67 to 2.10, indicating that non-cash adjustments and credit provisions are creating significant noise in the company's reported earnings quality.
The wide variance between FFO and GAAP operating cash flow suggests that investors should be cautious when relying on headline earnings to gauge performance. This divergence may imply that the company's cash-based earnings are being heavily influenced by accounting treatments rather than pure interest income generation.
According to historical financial statements, the persistent gap between GAAP net income and FFO suggests that non-cash items, such as CECL provisions, are materially distorting the perceived profitability of the REIT's mortgage portfolio, making it difficult to assess the true underlying cash-generating capacity of the business.
The frequent disconnect between net income and FFO warrants further investigation into the specific nature of these non-cash charges. It appears that the company's reported GAAP figures may be understating the actual cash flow available to the firm, necessitating a focus on adjusted metrics to understand the true economic performance.
As indicated by the provided data, the absence of consistent AFFO reporting and the reliance on volatile FFO metrics suggest that the company's cash flow statement may be masking underlying credit risks or potential straight-line defaults within its transitional loan portfolio.
The lack of transparency regarding recurring capital expenditures and leasing-related costs makes it challenging to determine the true free cash flow available for distribution. Investors should monitor whether the company is capitalizing maintenance costs or deferring interest recognition in ways that could impact future liquidity.
Quick answers to the most common questions about buying SEVN stock.
Seven Hills Realty Trust (SEVN) generated $15.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Seven Hills Realty Trust (SEVN) generated $15.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Seven Hills Realty Trust (SEVN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Seven Hills Realty Trust (SEVN) returned $18.8M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.