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Seven Hills Realty Trust (NAS:SEVN) Financial Strength

: 3 (As of Sep. 2022)
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Seven Hills Realty Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Seven Hills Realty Trust displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Seven Hills Realty Trust's interest coverage with the available data. Seven Hills Realty Trust's debt to revenue ratio for the quarter that ended in Sep. 2022 was 18.69. Altman Z-Score does not apply to banks and insurance companies.


Seven Hills Realty Trust Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Seven Hills Realty Trust's Interest Expense for the months ended in Sep. 2022 was $-5.45 Mil. Its Operating Income for the months ended in Sep. 2022 was $0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $503.51 Mil.

Seven Hills Realty Trust's Interest Coverage for the quarter that ended in Sep. 2022 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Seven Hills Realty Trust's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 503.514) / 26.94
=18.69

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* 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.


Seven Hills Realty Trust  (NAS:SEVN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Seven Hills Realty Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Seven Hills Realty Trust Financial Strength Related Terms

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


Seven Hills Realty Trust (NAS:SEVN) Business Description

Seven Hills Realty Trust logo
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
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
Hollis Phyllis M. director TWO NEWTON PLACE 255 WASHINGTON STREET, SUITE 300 NEWTON MA 02458-1634
Morea Joseph director C/O REIT MANAGEMENT & RESEARCH LLC TWO NEWTON PLACE, 255 WASHINGTON STREET NEWTON MA 02458
Lamkin William A. director C/O THE RMR GROUP LLC TWO NEWTON PL., 255 WASH. ST., STE. 300 NEWTON MA 02458
Lorenzini Thomas J. officer: President TREMONT MORTGAGE TRUST, TWO NEWTON PLACE 255 WASHINGTON STREET, SUITE 300 NEWTON MA 02458-1634
Lanois Gerald Douglas officer: CFO and Treasurer C/O THE RMR GROUP LLC, TWO NEWTON PLACE 255 WASHINGTON STREET, SUITE 300 NEWTON MA 02458-1634
Jordan Matthew P. director C/O THE RMR GROUP INC., TWO NEWTON PLACE 255 WASHINGTON STREET, SUITE 300 NEWTON MA 02458-1634
Gilmore Barbara D director C/O THE RMR GROUP LLC TWO NEWTON PL., 255 WASH. ST., STE. 300 NEWTON MA 02458
Donley Brian E. officer: CFO, Treasurer and Asst. Sect. C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASHINGTON ST. NEWTON MA 02458
Larkin Vern D officer: CCO & Dir. of Internal Audit, other: CCO of Advisor C/O REIT MANAGEMENT & RESEARCH LLC TWO NEWTON PL., 255 WASH. ST., STE. 300 NEWTON MA 02458
Jiang Grace Bin other: Lgal/Compl Officer of Sub-Adv C1-16, 323 CASTLEREAGH STREET SYDNEY C3 2000
Love John Robert other: Director of Sub-Advisor C/O LEVEL 16 323 CASTLEREAGH ST. SYDNEY, NEW SOUTH WALES C3 3000
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