Operator: Good morning, and welcome to the 7 Hills Realty Trust Second Quarter 26 Financial Results Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the call over to Matt Murphy, Manager of Investor Relations. Please go ahead, Matthew.

Matt Murphy: Good morning. Joining me on today's call are Tom Lorenzini, President and Chief Investment Officer Matt Brown, Chief Financial Officer and Treasurer and Jared Lewis, Vice President. Today's call includes a presentation by management followed by a question-and-answer session with analysts. Please note that the recording retransmission, and transcription of today's conference call is prohibited without the prior written consent of the company. Also note that today's conference call contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2 thousand and other securities laws. These forward looking statements are based on 7 Hills beliefs and expectations As of today, 07/29/2026, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission or SEC, which can be accessed from the SEC's website. Investors are cautioned not to place undue reliance upon any forward looking statements. In addition, we will be discussing non GAAP financial numbers during this call. Including distributable earnings and distributable earnings per share. A reconciliation of GAAP to non GAAP financial measures can be found in our earnings release presentation which can be found on our website at 7reit.com. With that, I will now turn the call over to Tom.

Thomas J. Lorenzini: Thank you, Matthew, and good morning, everyone. On our call today, I will begin with an overview of our second quarter activity and portfolio performance. Jared will then discuss market conditions and our investment pipeline. Before Matt reviews our financial results and outlook. The second quarter reflected continued progress for 7 Hills as we deployed capital raised through our rights offering while also strengthening our overall portfolio composition. During the quarter, we generated distributable earnings of $5.1 million or $0.23 per share, Distributable earnings came in at the lower end of our guidance range primarily due to several loan closing later in the quarter than initially expected. Despite these delays, we continue to make meaningful progress to deploying our available capital growing the portfolio and remaining on pace to have a covered dividend by year end. Our second quarter investment activity reflects the strength of our origination platform and the flexibility provided by our balance sheet. We closed 3 new loans totaling $75 million including a $36.3 million loan secured by a multifamily property in Roswell, Georgia a $22.7 million loan secured by a medical office property in Sugarland, Texas, and a $16 million loan secured by a self storage facility in Philadelphia. Subsequent to quarter end, we also closed a $24.3 million loan secured by a retail property in Park City, Utah. Together, these 4 investments reflect our ability to source attractive opportunities across varying property types and geographies. As a result, we have grown our portfolio by approximately $6.065 billion year to date to roughly $790 million today. The portfolio continues to perform well. With no realized losses all borrowers current on debt service and a weighted average all-in yield of approximately 7.7% at quarter end. Credit performance also remained stable during the quarter. With a weighted average risk rating of 2.9. More than 80% of our current portfolio has been originated since 2022, meaning the vast majority of our investments were underwritten in the post pandemic environment and reflect current market conditions. Turning to Yardley, our sole REO property, The asset services team here at RMR has done a terrific job positioning the asset for an eventual sale. In addition to various lease renewals over the past 24 months, we recently signed 1 new lease and have another lease under LOI. As a result, the property is expected to achieve occupancy over 90% well ahead of comparable properties in the market. Repayment activity during the quarter also enhanced the overall composition of our portfolio while providing flexibility to pursue new originations. We received over $85 million of repayments including a full repayment of a $54.7 million loan secured by a multifamily property in suburban Cleveland a full repayment of a $26.5 million loan secured by an office building in Suburban Chicago, a $4 million partial repayment in conjunction with a 1-year extension of a $37 million loan secured by a hotel in Boston. Following this repayment activity, we ended June with approximately $70 million of cash on hand and nearly $400 million of available capacity across our financing facilities. Importantly, our legacy office exposure has continued to trend downward from 24% at year-end to 19% today, and we expect this number to decrease even further with 3 office loans scheduled to mature later this year. The repayment of these relatively under levered loans should also increase our capacity to grow the portfolio through new originations later in the year. Overall, 7 Hills enters the second half of the year from a position of strength. With reduced office exposure a largely post pandemic loan portfolio and ample liquidity. Looking ahead, we remain focused on thoughtfully growing the portfolio and increasing earnings throughout the remainder of the year. With that, I will turn the call over to Jared to discuss current market conditions and our pipeline.

Jared Lewis: Thanks, Tom. Since our last earnings call, market activity has been influenced by a combination of geopolitical uncertainty and interest rate volatility. During the quarter, concerns surrounding the conflict with Iran the potential impact of higher energy prices and renewed inflationary pressures contributed to a meaningful increase in treasury volatility. With interest rates ranging from between 4% and 4.7%. As we have discussed previously, periods of treasury rate volatility often create hesitation among commercial real estate investors as they contemplate buy and sell decisions. We saw evidence of that during April when transaction activity slowed noticeably as market participants took a cautious approach. However, activity accelerated as the quarter progressed through May and June. Against that backdrop, transaction activity today continues to be driven more by refinancings and acquisitions as lenders are increasingly requiring borrowers to repay maturing debt rather than extending. Additionally, many of these properties have not yet reached the level of stabilization needed to secure permanent financing or achieve optimal sale proceeds. Therefore, floating rate financing remains an attractive option due to its lower borrowing costs and flexibility relative to longer term fixed rate debt. From a capital markets perspective, liquidity remains abundant. The banks have meaningfully re-entered the market as lenders debt funds continue to compete aggressively for new lending opportunities, and the securitization market continues to be extremely active. These competitive dynamics have led to credit spreads tightening across many property types. Multifamily continues to be the most competitive segment of the market despite the fact that many of these assets and submarkets are still contending with elevated supply slower absorption and persistent rent concessions. While we continue to evaluate a large volume of multifamily opportunities, remain selective at current pricing levels and instead found some recent success in sectors such as retail, medical office, self storage, industrial, and student housing, where we believe our returns are more compelling relative to the underlying risk profile. From a pipeline perspective, activity remains healthy. We continue to see a steady flow of financing requests across multiple property types. We currently have 7 outstanding term sheets representing approximately $300 million of potential lending opportunities. This provides a strong foundation for continued portfolio growth as we move through the third quarter. While competition has increased, we remain focused on opportunities where pricing, structure and sponsorship align with our underwriting standards. Borrowers continue to value financing partners that can provide certainty of execution, structural flexibility, and customized solutions as they navigate upcoming maturities and an uncertain macroeconomic backdrop. We believe this environment will continue to benefit floating rate lenders like 7 Hills that can provide bespoke financing solutions for its borrowers. I will now turn the call over to Matthew to review our financial results and guidance.

Matthew C. Brown: Thank you, Jared, and good morning, everyone. Yesterday, we reported second quarter distributable earnings of $5.1 million or $0.23 per share. Which was at the low end of our guidance. As Tom mentioned, this was largely driven by delays in forecasted loan closings in the quarter, While deployment in the quarter was delayed from our assumptions, it is important to note that originations so far in 2026 have been executed at net interest margins of 1.86% the highest level over the past 4 years. Earlier this month, our Board declared a regular quarterly dividend of $0.28 per share. Which equates to an annualized yield of approximately 14% based on yesterday's closing price. While the rights offering has continued to impact distributable earnings, resulting in our dividend not being covered over the past 2 quarters, we remain committed to this dividend level through 2026 at a minimum and expect to cover our quarterly dividend level by the end of this year. Overall, we expect third quarter distributable earnings to be in the range of $0.23 to $0.25 per share. As we deploy our available capital toward third and fourth quarter targets, we expect the incremental earnings to offset the impact of the higher share count by year end Credit quality remains strong at 7 Hills. Our CECL reserve stands at 190 basis points of total loan commitments, a 60-basis-point increase from last quarter. While all office loans are performing, and our exposure has declined to 19%, with the full office loan repayment in the quarter, The increase is largely driven by increased reserves on 2 of our office loans with 2026 maturities. Our full loan portfolio is supported by a conservative portfolio risk rating of 2.9. The portfolio is well diversified by property type and geography, and all loans are current on debt service. This reflects a disciplined underwriting and asset management process that we believe creates durable long term value for our shareholders. That concludes our prepared remarks. Operator, please open the line for questions.

Operator: We will now begin the question-and-answer session. The first question comes from Marissa Lobo with UBS.

Marissa Lobo: Good morning. Thank you for taking my question. First, if you could speak to just the competition commentary points to increased competition from banks, slice companies, securitized lenders. Are you seeing that direct in your deal process?

Jared Lewis: Sure, Marissa. This is Jared. Yes, we are absolutely seeing more competition. Where we play in the middle market, borrowers have a lot of options. They can go to local banks, regional banks. for their financing needs. The life companies are active as well as the securitization market, particularly for CMBS-- excuse me, for multifamily loans. So what we play in that our average loan size now is about $30 million. Borrowers have a lot of options. More so from the banks than they have in the past because they are getting-- you know, they are becoming more active. But what I will say is, that competition and the activity that we are seeing with the banks returning to the market is also healthy for our business. Because what it is allowing our existing borrowers to do and providing more liquidity to refinance our assets as well. So loans that are on our balance sheet have a lot more options to be repaid or refinanced out at their maturity as well. So overall, it is healthy. But the competition certainly is having an impact on pricing spreads.

Marissa Lobo: Okay, great. And just shifting, thanks for the color on Yardley, but is there any update on anticipated disposition time line for that asset?

Thomas J. Lorenzini: I think pending the lease negotiations that are happening now that we are that we believe will finalize in the very near term. Then we can consider bringing it to market towards the end of the year.

Marissa Lobo: Got it. Okay. Thank you for taking my questions.

Thomas J. Lorenzini: Sure.

Operator: Our next question comes from Jason Weaver with Jones Trading.

Jason Weaver: Hey, good morning guys. Just a question on the $4.9 million provision with still no non current, non accrual or realized losses I have to think this is a specific reserve against an asset. And would that pertain to the Dallas multifamily property And what sort of if so, what sort of factor drove that decision?

Matthew C. Brown: Sure. Thanks for the question. So we have 3 office loans that are maturing. Between August and the end of this year. And the increase in reserve of about $4.9 million in the quarter was really driven off of 2 of those office loans. Just given the near term maturity thinking about collateral values, etcetera. it is important to note that all of our office loans are performing and generating positive cash flow. We have a slide in our earnings presentation showing the details of those office properties. But it is really just a function of the near term risk with the maturity.

Jason Weaver: Got it. Okay. Thanks for that. And then can you give any detail I did not see anything in the deck regarding the Plano loan extension, are there any rate changes, or is there equity injection by the sponsor?

Thomas J. Lorenzini: We did a 2-year extension on that asset. That property is performing terrific, far outperforming their budget actually. So they paid an extension fee. They acquired a new interest rate cap, so they invested some capital in that regard. But that is a covered loan with a debt yield that is, I think, approaching 12% and coverage, it is probably-- I think it is almost approaching 1.4x. So it is a very healthy loan. So there was no need to have a pay down on the principal balance for that loan.

Jason Weaver: Got it. Alright. Thanks for the color, guys. Thank you.

Operator: Our next question comes from Craig Kucera with Lucid Capital Markets.

Craig Kucera: Hey, good morning guys. I see the coupon on the Park City, Utah assets. But can we get the all-in SOFR spreads for that 1?

Matthew C. Brown: So the spread on that loan was 3.25% over. And then that also has an exit fee as part of the as part of the financing terms on that.

Craig Kucera: So is that roughly 40 basis points above the coupon? Or how should we think about that?

Matthew C. Brown: Yes. The exit fee just amortized over 3 years, so 33 basis points is a way to think about a 1% exit fee. Right? So you can just tack that on to the tack that on to the spread.

Craig Kucera: Okay. That makes sense. And I am just curious, your comments about competition and a little bit of spread compression. I mean, when you look at what you originated here in the second quarter versus the fourth quarter and first quarter, sulfur spreads are a little bit down. How much of that would you attribute to mix versus just the overall market?

Thomas J. Lorenzini: Well, I think a big part of it is mix. You know, the assets that we originated were because they were largely commercial assets, we had a different additional pricing power, I think, with those. So that gave us you know, that resulted in the higher returns for those loans that we originated. I think we have banked a pretty meaningful amount of net interest margin over the last 2 quarters. And so we have been selectively thinking about expanding originations in this quarter to do a little bit more of the multifamily where available. And so, again, the pricing there you know, market pricing for a full loan on a multifamily deal today is probably SOFR it can range anywhere from SOFR $2.35 to 75 depending on who is providing the financing and the and the cash flow of the asset. We are generally looking at those multifamily deals in the SOFR plus $2.65 to $2.95 range where we can achieve that type of pricing. Again, round numbers. But I think we will, in the next quarter or 2, we will be able to originate a few of those loans at maybe a little bit tighter net interest margin continue to grow the portfolio and balance the mix?

Craig Kucera: Got it. And I feel like earlier in the year, you thought you were gonna grow your loan portfolio to maybe $950 million. Is that still the target for the year? And can you kind of talk about what is your anticipated pacing? Is that front loaded? Is that back loaded? Just any thoughts would be helpful.

Thomas J. Lorenzini: Yeah. I think they are still on target in the 950, 960 number, which would put us about $200 million net of where we ended the quarter at. About $170 million net of from where we are today. And a significant part of that will be end of end of Q3 and then and then in the Q4. I mean, that is the pipeline to what we are looking at right now for Q3 closings, would all be towards the end of the quarter.

Craig Kucera: Got it. Okay. that is helpful. Just 1 more for me. You were inside of a month from the maturation of the $44 million Dallas office loan. Jared on your conversations with the borrower, can you handicap whether or not you think it will be paid or extended?

Thomas J. Lorenzini: We believe that loan will be paid off. We have been in negotiations. Now, what happens with these extensions and these loan mods and payoffs when we get to this situation, it oftentimes, it does not really come to a head until just prior to it needs to. So we are actively in discussions with the sponsorship, but we do believe that will be a payoff. Okay, that is helpful. Thank you. Sure.

Operator: Our next question comes from Christopher Nolan with Ladenburg Thalmann.

Christopher Nolan: Hey, guys. On the office question, is the reserve reflecting some sort of anticipation of a restructuring if these guys are short? No.

Matthew C. Brown: it is it is really more just, you know, a function of the overall CECL model and looking at you know, kind of the current collateral value, you know, as part of negotiations on this 1, we did get an appraisal. And I would say that the stabilized value of that appraisal would show that we have a covered loan. So it is really just a function of where we are today in the maturity window of that loan.

Christopher Nolan: Great. And it is going to be taken theoretically, out by a bank. Correct?

Thomas J. Lorenzini: Most likely. Right. We are not 100% sure on how they are going to recapitalize it, but that is our belief.

Christopher Nolan: In that case, what is the current LTVs that banks are making for office loans these days?

Jared Lewis: You know what, Christopher, we see it all over the map. Or over the board I should say. I do not know my guess is maybe that is a 65% number something along those lines.

Thomas J. Lorenzini: And Chris, you have got great sponsorship here too that is been supportive of the asset. So we are not clear exactly on how they are going to recapitalize it, but they have been able to step up and support the asset when needed. So I am sure that will happen come the refinance.

Christopher Nolan: Great. And follow-up is on the paid in capital. So quarter over quarter increase of $3.40 from $3.04. What was that related to, please?

Matthew C. Brown: I am not sure I follow your question.

Christopher Nolan: Oh, I am looking on the balance sheet at paid-in capital. Maybe I missed it. I confused it. I will take it offline. it is no big deal. Okay, thank you.

Operator: Our next question comes from Christopher Mueller with Citizens Capital Markets.

Christopher Muller: Hey, guys, thanks for taking the questions. I see the comment in the deck on deploying the rights offering still ongoing. I guess question is how much of a drag on earnings in the second quarter was that capital not being fully deployed? I am just trying to get a sense of run rate earnings ex that drag.

Matthew C. Brown: Yes. Thanks for the question, Christopher. You know, I would say it is a little bit of a drag. Right? For the quarter, we were a net reduction of $10 million when you take the $75 million of production offset by the $85 million of repayments. So, you know, we are we are probably lagging a little bit behind our overall production forecast, but we still remain confident in hitting our numbers by the end of this year. And that is consistent with the messaging we have been providing. Tom mentioned about a net portfolio growth of about $200 million, and a lot of that is going to come, you know, September through Q4. So, you know, we still feel really good. Jared commented we have about $300 million of term sheets outstanding currently. So we remain very committed and supportive of our year-end forecast.

Christopher Muller: Got it. And then maybe shifting gears a little bit. So on repayments, what was the timing of repayments in the quarter? And I am just looking at the $70 million of cash and wondering if there were late repayments that elevated that number at all?

Matthew C. Brown: Yeah. So a lot of it was really the $55 million loan was repaid in early April, I think it was. So from an earnings perspective, we did not replace a lot of that until later in the quarter. So that is why we saw a penny decline from Q1. We are just sitting on that excess cash. We also had proactively repaid the repo associated with that loan in Q1 just because of the surety of closing. So we received more cash. As part of that repay. Got it.

Christopher Muller: It makes a lot of sense. Appreciate you guys taking the questions today. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Lorenzini, President and Chief Investment Officer, for any closing remarks.

Thomas J. Lorenzini: Thank you everyone for joining today's call. Please reach out to Investor Relations if you are interested in scheduling a meeting with 7 Hills. Operator, that concludes our call.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.