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Seven Hills Realty Trust (Seven Hills Realty Trust) ROE % : 8.61% (As of Dec. 2023)


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What is Seven Hills Realty Trust ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Seven Hills Realty Trust's annualized net income for the quarter that ended in Dec. 2023 was $23.30 Mil. Seven Hills Realty Trust's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $270.76 Mil. Therefore, Seven Hills Realty Trust's annualized ROE % for the quarter that ended in Dec. 2023 was 8.61%.

The historical rank and industry rank for Seven Hills Realty Trust's ROE % or its related term are showing as below:

SEVN' s ROE % Range Over the Past 10 Years
Min: -23.95   Med: 9.93   Max: 29.12
Current: 9.55

During the past 13 years, Seven Hills Realty Trust's highest ROE % was 29.12%. The lowest was -23.95%. And the median was 9.93%.

SEVN's ROE % is ranked better than
77.74% of 795 companies
in the REITs industry
Industry Median: 4.22 vs SEVN: 9.55

Seven Hills Realty Trust ROE % Historical Data

The historical data trend for Seven Hills Realty Trust's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Seven Hills Realty Trust ROE % Chart

Seven Hills Realty Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.12 -23.95 10.94 10.37 9.49

Seven Hills Realty Trust Quarterly Data
Dec17 Jun18 Dec18 Jun19 Dec19 Mar20 Jun20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.73 11.57 6.94 11.11 8.61

Competitive Comparison of Seven Hills Realty Trust's ROE %

For the REIT - Mortgage subindustry, Seven Hills Realty Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Seven Hills Realty Trust's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Seven Hills Realty Trust's ROE % distribution charts can be found below:

* The bar in red indicates where Seven Hills Realty Trust's ROE % falls into.



Seven Hills Realty Trust ROE % Calculation

Seven Hills Realty Trust's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=25.746/( (271.579+271.248)/ 2 )
=25.746/271.4135
=9.49 %

Seven Hills Realty Trust's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=23.304/( (270.281+271.248)/ 2 )
=23.304/270.7645
=8.61 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Seven Hills Realty Trust  (NAS:SEVN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=23.304/270.7645
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(23.304 / 34.452)*(34.452 / 740.7555)*(740.7555 / 270.7645)
=Net Margin %*Asset Turnover*Equity Multiplier
=67.64 %*0.0465*2.7358
=ROA %*Equity Multiplier
=3.15 %*2.7358
=8.61 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=23.304/270.7645
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (23.304 / 23.768) * (23.768 / 34.452) * (34.452 / 740.7555) * (740.7555 / 270.7645)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.9805 * 68.99 % * 0.0465 * 2.7358
=8.61 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Seven Hills Realty Trust ROE % Related Terms

Thank you for viewing the detailed overview of Seven Hills Realty Trust's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Seven Hills Realty Trust (Seven Hills Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
255 Washington Street, Two Newton Place, Suite 300, Newton, MA, USA, 02458
Seven Hills Realty Trust, formerly RMR Mortgage Trust is a real estate investment trust. The company is engaged in the business of originating and investing in first mortgage whole loans secured by the middle market and transitional commercial real estate. Its non-fundamental primary objective is to balance capital preservation by generating risk-adjusted returns.
Executives
Barbara D Gilmore director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Tiffany R Sy officer: CFO and Treasurer TWO NEWTON PLACE, 225 WASHINGTON STREET SUITE 300, NEWTON MA 02458
Thomas J. Lorenzini officer: President TREMONT MORTGAGE TRUST, TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Adam D. Portnoy director, 10 percent owner, officer: President of Fund, other: Dir.,Pres.,Owner of Advisor C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Tremont Realty Capital Llc 10 percent owner TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Rmr Group Inc. 10 percent owner TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Rmr Group Llc 10 percent owner TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Abp Trust 10 percent owner TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Phyllis M. Hollis director TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Matthew P. Jordan director C/O THE RMR GROUP INC., TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Joseph Morea director C/O REIT MANAGEMENT & RESEARCH LLC, TWO NEWTON PLACE, 255 WASHINGTON STREET, NEWTON MA 02458
William A. Lamkin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Gerald Douglas Lanois officer: CFO and Treasurer C/O THE RMR GROUP LLC, TWO NEWTON PLACE, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458-1634
Brian E. Donley officer: CFO, Treasurer and Asst. Sect. C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Barry M. Portnoy director, 10 percent owner, other: Director,VP & Owner of Advisor C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458