NasdaqCM:SEVNMortgage REITs
Seven Hills Realty Trust (SEVN) Stock Faces Dividend Coverage Squeeze
The market did not wait to pass judgment on Seven Hills Realty Trust. The stock closed down about 4.7% to US$7.66, a sharp move for a mortgage REIT that just reaffirmed a US$0.28 quarterly dividend yielding roughly 14% on that price. The emotional hit is the headline earnings miss, with Q2 distributable earnings landing at US$0.23 per share.
For income focused investors, this is a sentiment clash. The sell off reflects worry about dividend coverage and timing of loan closings, while the core...