Seven Hills Realty Trust (NASDAQ:SEVN) Q1 2024 Earnings Call Transcript

And they’re willing to do it much cheaper than we feel appropriate. So there is flow out there. It’s just a little more difficult to get it across the goal line right now.

Chris Muller: Got it. That’s very helpful. And then changing gears a little bit here, so it looks like the purchase accretion discount should run out in the next maybe quarter or two. It looks like that added about $0.08 to revenues in the first quarter here. So I guess, my question is do you expect GAAP earnings to run below the dividend level in the near term and we’ll see some book value decline as a result of that?

Fernando Diaz: Chris, this is Fernando, I’ll take that. We are expecting this accretion to run off by the third quarter. So it will be progressive. Second quarter and third quarter will be down, like I said. So we don’t believe that’s going to be impacting that much in terms of the earnings. Obviously, as we ramp up our production, as Tom alluded, that’s going to help us balance that as well.

Chris Muller: That’s helpful. Thanks for taking the question.

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

Tom Lorenzini: Thanks, everyone, for joining us today. We look forward to seeing many of you at the NAREIT Conference in New York City in June. Operator, this concludes our call today.

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