Seven Hills Realty Trust (NASDAQ:SEVN) Q1 2023 Earnings Call Transcript

Chris Muller: Got it. Yes. Hopefully, we don’t end up in that situation. And you don’t have to work out any fibery loans. I guess just the last one, Tom. I guess what, what would make you guys comfortable to start stepping on the gas again? Is it more of the Fed giving a little more clarity on the path of interest rates? Or I guess what type of things are you looking for out there?

Thomas Lorenzini: Certainly clarity, right. We’re seeing transaction. I mean, there’s just the number of trades is down quite a bit. And this is one of the few times that I can remember where we’re quoting transactions, and we have a buyer in many cases that wants to transact. But ultimately, the deal seems to just kind of evaporate, if you will, because there’s generally a disconnect between the buyer and the seller. The buyers are often going back looking for a little bit more of a price reduction. And we’re seeing the sellers unless you have to transact today, they’re just not. So from that perspective, we believe that the Fed come May if they stop or they provide some clarity that maybe we’re reached the peak terminal rate, that the markets will adjust and we’re going to begin to see more trades.

And that will be beneficial for everyone. But we do have capital. We are actively lending. We’re actively underwriting. We have a couple of transactions in process right now. So we’re optimistic that the back half of the year, we’re going to be quite active.

Chris Muller: Got it. Thanks for taking the questions. Very helpful.

Tiffany Sy: Thank you.

Operator: And this concludes our question-and-answer session. I would like now to turn the conference back over to Tom Lorenzini for any closing remarks.

Thomas Lorenzini: Thank you everyone for joining us today. We look forward to seeing many of you at the Nareit’s Conference in June.

Operator: This concludes the conference. Thank you for attending today’s presentation. You may now disconnect.