What changed in this filing

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Item 1. Financial Statements

2024-10-28 compared with 2024-07-29 · 106 added, 88 removed, 405 unchanged (32% of the section changed)

3 unchanged sentences

(dollars in thousands, except per share data)

June 30, December 31,

September 30, December 31,

Cash and cash equivalents $ 82,197 $ 87,855

26 unchanged sentences

(amounts in thousands, except per share data)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

11 unchanged sentences

Reimbursement of shared services expenses 635 642 2,017 1,913

Provision for credit losses 1,315 1,026 2,012 39

Provision for (reversal of) credit losses 1,518 ( 1,338 ) 3,530 ( 1,299 )

Expenses from real estate owned 634 516 1,878 734

21 unchanged sentences

Balance at June 30, 2024 14,833 15 240,188 81,122 ( 50,236 ) 271,089

Share grants 91 — 367 — — 367

Share repurchases ( 18 ) — ( 239 ) — — ( 239 )

Net income — — — 3,479 — 3,479

Distributions — — — — ( 5,190 ) ( 5,190 )

Balance at September 30, 2024 14,906 $ 15 $ 240,316 $ 84,601 $ ( 55,426 ) $ 269,506

Balance at December 31, 2022 14,709 $ 15 $ 238,505 $ 52,290 $ ( 19,231 ) $ 271,579

12 unchanged sentences

Balance at June 30, 2023 14,745 15 239,167 58,142 ( 29,526 ) 267,798

Share grants 80 — 273 — — 273

Share repurchases ( 8 ) — ( 101 ) — — ( 101 )

Share forfeitures ( 1 ) — ( 2 ) — — ( 2 )

Net income — — — 7,473 — 7,473

Distributions — — — — ( 5,160 ) ( 5,160 )

Balance at September 30, 2023 14,816 $ 15 $ 239,337 $ 65,615 $ ( 34,686 ) $ 270,281

See accompanying notes.

2 unchanged sentences

(dollars in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Accretion of purchase discount ( 2,347 ) ( 3,307 )

Provision for credit losses 2,012 39

Provision for (reversal of) credit losses 3,530 ( 1,299 )

Amortization of loan origination and exit fees ( 2,177 ) ( 2,529 )

15 unchanged sentences

Real estate owned improvements ( 220 ) ( 1,339 )

Net cash provided by investing activities 20,415 29,177

Net cash provided by (used in) investing activities 73,540 ( 10,702 )

CASH FLOWS FROM FINANCING ACTIVITIES:

30 unchanged sentences

Recent Accounting Pronouncements

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , or ASU No.

2023-07, which requires public entities to:

In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires public entities, including those with a single reportable segment to:

(i) provide disclosures of significant segment expenses and other segment items if they are regularly provided to the chief operating decision maker, or the CODM, and included in each reported measure of segment profit or loss;

ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC 280, Segment Reporting , or ASC 280, in interim periods;

(ii) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Accounting Standards Codification, or ASC, 280, Segment Reporting , in interim periods;

and (iii) disclose the CODM’s title and position, as well as an explanation of how the CODM uses the reported measures and other disclosures.

Public entities with a single reportable segment must apply all the disclosure requirements of ASU No.

2023-07, as well as all the existing segment disclosures under ASC 280.

The amendments in ASU No.

2023-07 are incremental to the requirements in ASC 280 and do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

2023-07 should be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

We are currently evaluating the impact ASU No.

2023-07 will have on our consolidated financial statements and disclosures.

ASU 2023-07 does not change how a public entity identifies its operating segments, aggregates those operating segments or applies the quantitative thresholds to determine its reportable segments.

ASU 2023-07 is required to be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

We expect to include additional disclosures as a result of the implementation ASU 2023-07, however, these changes are not expected to have a material effect on our consolidated financial statements .

SEVEN HILLS REALTY TRUST

5 unchanged sentences

See Note 5 for further information regarding our secured financing agreements.

The table below provides overall statistics for our loan portfolio as of June 30, 2024 and December 31, 2023:

As of June 30, 2024 As of December 31, 2023

The table below provides overall statistics for our loan portfolio as of September 30, 2024 and December 31, 2023:

As of September 30, 2024 As of December 31, 2023

Number of loans 20 24

13 unchanged sentences

(3) Maximum maturity assumes all borrower loan extension options have been exercised, which options are subject to the borrower meeting certain conditions.

The tables below represent our loan activities during the three months ended June 30, 2024 and 2023:

The tables below represent our loan activities during the three months ended September 30, 2024 and 2023:

Principal Balance Deferred Fees and Other Items Amortized Cost

Balance at March 31, 2024 $ 590,632 $ ( 1,997 ) $ 588,635

Balance at June 30, 2024 $ 610,210 $ ( 960 ) $ 609,250

Additional funding 1,922 — 1,922

3 unchanged sentences

Purchase discount accretion — 420 420

Balance at June 30, 2024 $ 610,210 $ ( 960 ) $ 609,250

Balance at September 30, 2024 $ 557,545 $ ( 319 ) $ 557,226

Principal Balance Deferred Fees and Other Items Amortized Cost

Balance at March 31, 2023 $ 628,696 $ ( 6,626 ) $ 622,070

Balance at June 30, 2023 $ 634,920 $ ( 5,395 ) $ 629,525

Additional funding 919 — 919

1 unchanged sentence

Repayments ( 2,174 ) — ( 2,174 )

Transfer to real estate owned ( 15,865 ) ( 95 ) ( 15,960 )

Net amortization of deferred fees — 762 762

Purchase discount accretion — 1,075 1,075

Balance at June 30, 2023 $ 634,920 $ ( 5,395 ) $ 629,525

Balance at September 30, 2023 $ 675,215 $ ( 4,086 ) $ 671,129

SEVEN HILLS REALTY TRUST

1 unchanged sentence

(dollars in thousands, except per share data)

The tables below represent our loan activities during the six months ended June 30, 2024 and 2023:

The tables below represent our loan activities during the nine months ended September 30, 2024 and 2023:

Principal Balance Deferred Fees and Other Items Amortized Cost

5 unchanged sentences

Purchase discount accretion — 2,347 2,347

Balance at June 30, 2024 $ 610,210 $ ( 960 ) $ 609,250

Balance at September 30, 2024 $ 557,545 $ ( 319 ) $ 557,226

Principal Balance Deferred Fees and Other Items Amortized Cost

6 unchanged sentences

Purchase discount accretion — 3,307 3,307

Balance at June 30, 2023 $ 634,920 $ ( 5,395 ) $ 629,525

The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Balance at September 30, 2023 $ 675,215 $ ( 4,086 ) $ 671,129

The tables below detail the property type and geographic location of the properties securing the loans in our portfolio as of September 30, 2024 and December 31, 2023:

September 30, 2024 December 31, 2023

Property Type Number of Loans

3 unchanged sentences

Percentage of Value

Multifamily 8 $ 223,500 37 % 7 $ 207,734 33 %

Office 6 $ 167,798 30 % 7 $ 181,268 29 %

Multifamily 5 153,160 28 % 7 207,734 33 %

Industrial 5 134,172 24 % 5 118,707 19 %

2 unchanged sentences

20 $ 557,226 100 % 24 $ 626,462 100 %

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Geographic Location Number of Loans

13 unchanged sentences

See our 2023 Annual Report for more information regarding our loan risk ratings.

As of June 30, 2024 and December 31, 2023, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:

June 30, 2024

Risk Rating Number of Loans Percentage of Portfolio 2024 2023 2022 2021 2020 Total

As of September 30, 2024 and December 31, 2023, the amortized cost of our loan portfolio within each internal risk rating by year of origination was as follows:

September 30, 2024

Risk Rating Number of Loans Percentage of Portfolio 2024 2023 2022 2021 Prior Total

1 — — % $ — $ — $ — $ — $ — $ —

5 unchanged sentences

December 31, 2023

Risk Rating Number of Loans Percentage of Portfolio 2023 2022 2021 2020 Total

Risk Rating Number of Loans Percentage of Portfolio 2023 2022 2021 Prior Total

1 — — % $ — $ — $ — $ — $ —

25 unchanged sentences

See Note 2 to our Consolidated Financial Statements included in Part IV, Item 15 of our 2023 Annual Report for further information regarding our measurement of our allowance for credit losses.

The tables below represent the changes to the allowance for credit losses during the three months ended June 30, 2024 and 2023.

The tables below represent the changes to the allowance for credit losses during the three months ended September 30, 2024 and 2023.

Loans Held for Investment, net Unfunded Loan Commitments Total

Balance at March 31, 2024 $ 5,149 $ 1,376 $ 6,525

Provision for credit losses 574 741 1,315

Balance at June 30, 2024 $ 5,723 $ 2,117 $ 7,840

Provision for (reversal of) credit losses 1,559 ( 41 ) 1,518

Balance at September 30, 2024 $ 7,282 $ 2,076 $ 9,358

Loans Held for Investment, net Unfunded Loan Commitments Total

Balance at March 31, 2023 $ 4,135 $ 1,473 $ 5,608

Provision for credit losses 774 252 1,026

Write offs ( 708 ) — ( 708 )

Balance at June 30, 2023 $ 4,201 $ 1,725 $ 5,926

The tables below represent the changes to the allowance for credit losses during the six months ended June 30, 2024 and 2023:

(Reversal of) provision for credit losses ( 1,660 ) 322 ( 1,338 )

Recoveries 740 — 740

Balance at September 30, 2023 $ 3,281 $ 2,047 $ 5,328

The tables below represent the changes to the allowance for credit losses during the nine months ended September 30, 2024 and 2023:

Loans Held for Investment, net Unfunded Loan Commitments Total

1 unchanged sentence

Provision for credit losses 2,906 624 3,530

Balance at June 30, 2024 $ 5,723 $ 2,117 $ 7,840

Balance at September 30, 2024 $ 7,282 $ 2,076 $ 9,358

Loans Held for Investment, net Unfunded Loan Commitments Total

Balance at December 31, 2022 $ — $ — $ —

Cumulative effect adjustment upon adoption of the CECL model 4,893 1,702 6,595

Provision for credit losses 16 23 39

Cumulative effect adjustment upon adoption of ASU No.

2016-13 4,893 1,702 6,595

(Reversal of) provision for credit losses ( 1,644 ) 345 ( 1,299 )

Write offs ( 708 ) — ( 708 )

Balance at June 30, 2023 $ 4,201 $ 1,725 $ 5,926

Recoveries 740 — 740

Balance at September 30, 2023 $ 3,281 $ 2,047 $ 5,328

The increase in the allowance for credit losses during the three and nine months ended September 30, 2024 is primarily attributable to declining values for CRE and unfavorable CRE pricing forecasts used in our CECL model and increased provisions for our office loans.

SEVEN HILLS REALTY TRUST

1 unchanged sentence

(dollars in thousands, except per share data)

The increase in the allowance for credit losses during the three and six months ended June 30, 2024 is primarily attributable to declining values for CRE and unfavorable CRE pricing forecasts used in our CECL model and increased provisions for certain of our office loans.

The increase in the allowance for credit losses during the three months ended June 30, 2023 is primarily attributable to unfavorable changes in the macroeconomic outlook, most notably in CRE pricing forecasts, partially offset by a write off related to the loan transferred to real estate owned in June 2023.

The decrease in the allowance for credit losses during the six months ended June 30, 2023, compared to the January 1, 2023 cumulative-effect adjustment upon adoption of the CECL model, is primarily attributable to a write off related to the loan transferred to real estate owned in June 2023 and loan repayments, partially offset by the unfavorable changes in CRE pricing forecasts.

We may enter into loan modifications that include, among other changes, extensions of maturity dates, repurposing or required replenishment of reserves, increases or decreases in loan commitments and required pay downs of principal amounts outstanding.

Loan modifications are evaluated to determine whether a modification results in a new loan or a continuation of an existing loan under ASC 310.

There were no modifications to our loan portfolio for borrowers experiencing financial difficulties during the six months ended June 30, 2024.

We did not have any outstanding past due loans or nonaccrual loans as of June 30, 2024 or December 31, 2023.

As of June 30, 2024 and July 25, 2024, all of our borrowers had paid their debt service obligations owed and due to us.

In August 2024, we amended the agreement governing our loan secured by an office property in Dallas, TX.

As part of this amendment, the loan commitment was reduced by $ 3,189 , the borrower was required to contribute $ 2,900 to cash reserves and the maturity date was extended by two years to August 25, 2026.

As of September 30, 2024, this loan had an amortized cost of $ 43,511 and a risk rating of 4.

In August 2024, we amended the agreement governing our loan secured by an office property in Plano, TX.

As part of this amendment, the coupon rate was reduced from SOFR + 4.75 % to SOFR + 3.75 % and the maturity date was extended by two years to July 1, 2026.

As of September 30, 2024, this loan had an amortized cost of $ 26,634 and a risk rating of 4.

There were no other modifications to our loan portfolio for borrowers experiencing financial difficulties during the nine months ended September 30, 2024.

We did not have any outstanding past due loans or nonaccrual loans as of September 30, 2024 or December 31, 2023.

As of September 30, 2024 and October 24, 2024, all of our borrowers had paid their debt service obligations owed and due to us.

See our 2023 Annual Report for more information regarding our nonaccrual policy.

3 unchanged sentences

Subsequent to acquisition, costs incurred related to improvements to the property are capitalized and depreciated over their estimated useful lives and costs related to the operation of the property are expensed as incurred.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

In June 2023, we assumed legal title to an office property located in Yardley, PA through a deed in lieu of foreclosure.

The table below presents the assets and liabilities of real estate owned in our condensed consolidated balance sheets:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Land, building and improvements

8 unchanged sentences

Total liabilities

(1) As of June 30, 2024, the weighted average amortization period of acquired real estate leases was 7.1 years.

(2) Includes $ 1,032 and $ 647 of straight line rent receivables as of June 30, 2024 and December 31, 2023, respectively.

(1) As of September 30, 2024, the weighted average amortization period of acquired real estate leases was 7.0 years.

(2) Includes $ 1,077 and $ 647 of straight line rent receivables as of September 30, 2024 and December 31, 2023, respectively.

Revenue from real estate owned represents rental income from operating leases with tenants and is recognized on a straight line basis over the lease term.

We increased revenue from real estate owned to record revenue on a straight line basis by $ 107 and $ 385 for the three and six months ended June 30, 2024.

We increased revenue from real estate owned to record revenue on a straight line basis by $ 45 and $ 430 for the three and nine months ended September 30, 2024.

Expenses from real estate owned represents costs related to the acquisition of the property, costs to operate the property and depreciation and amortization expense.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

We regularly evaluate real estate owned for indicators of impairment.

5 unchanged sentences

Secured Financing Agreements

Our secured financing agreements at June 30, 2024 consisted of agreements that govern:

Our secured financing agreements at September 30, 2024 consisted of agreements that govern:

our master repurchase facility with Wells Fargo, National Association, or Wells Fargo, or the Wells Fargo Master Repurchase Facility;

4 unchanged sentences

See our 2023 Annual Report for more information regarding our Secured Financing Facilities.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

The table below summarizes our Secured Financing Facilities as of June 30, 2024 and December 31, 2023:

The table below summarizes our Secured Financing Facilities as of September 30, 2024 and December 31, 2023:

Debt Obligation

4 unchanged sentences

Principal Balance

June 30, 2024:

September 30, 2024:

Citibank Master Repurchase Facility $ 215,000 $ 59,714 $ 59,017 7.43 % 1.6 9/27/2026 $ 103,390

12 unchanged sentences

The weighted average remaining maturity of the BMO Facility is determined using the underlying loan investment maturity date.

As of June 30, 2024, we were in compliance with the covenants and other terms of the agreements that govern our Secured Financing Facilities.

As of June 30, 2024, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities:

As of September 30, 2024, we were in compliance with the covenants and other terms of the agreements that govern our Secured Financing Facilities.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

As of September 30, 2024, our outstanding borrowings under our Secured Financing Facilities had the following remaining maturities:

Year Principal Payments on

2 unchanged sentences

2027 and thereafter 16,088

In September 2024, we amended our amended and restated master repurchase agreement with Citibank, or the Citibank Master Repurchase Agreement.

The amendment to the amended and restated Citibank Master Repurchase Agreement made certain changes to the agreement and related fee letter, including extending the stated maturity date to September 27, 2026.

In October 2024, we amended our master repurchase and securities contract with Wells Fargo, or the Wells Fargo Master Repurchase Agreement.

The amendment to the Wells Fargo Master Repurchase Agreement made certain changes to the agreement and related fee letter, including extending the stated maturity date to March 11, 2026.

Based upon the performance and payment history of our commercial mortgage loans, along with our ability to obtain financing under repurchase agreements and success in extending certain of our existing Master Repurchase Agreements, we believe it is probable that we will extend our Master Repurchase Facilities prior to their maturities.

3 unchanged sentences

See our 2023 Annual Report for further information regarding the fair value of financial instruments.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

The table below provides information regarding financial assets and liabilities not carried at fair value in our condensed consolidated balance sheets:

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Carrying Value Fair Value Carrying Value Fair Value

3 unchanged sentences

Secured Financing Facilities $ 375,928 $ 376,621 $ 454,422 $ 454,620

There were no transfers of financial assets or liabilities within the fair value hierarchy during the six months ended June 30, 2024.

There were no transfers of financial assets or liabilities within the fair value hierarchy during the nine months ended September 30, 2024.

Shareholders' Equity

2 unchanged sentences

The aggregate value of common shares awarded was $ 360 .

On September 11, 2024, we awarded an aggregate of 91,118 of our common shares to our officers and certain other employees of Tremont Realty Capital LLC, or Tremont, and of The RMR Group LLC, or RMR, valued at the closing price of our common shares on Nasdaq that day.

The aggregate value of common shares awarded was $ 1,236 .

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

Common Share Purchases

During the six months ended June 30, 2024, we purchased 6,838 of our common shares from certain current and former officers of The RMR Group LLC, or RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on Nasdaq on the applicable purchase date.

During the nine months ended September 30, 2024, we purchased 24,485 of our common shares from certain current and former officers of RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares, valued at the closing price of our common shares on Nasdaq on the applicable purchase date.

The aggregate value of common shares purchased was $ 327 .

Distributions

For the six months ended June 30, 2024, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows:

For the nine months ended September 30, 2024, we declared and paid regular quarterly distributions to common shareholders, using cash on hand, as follows:

Record Date Payment Date Distribution per Share Total Distribution

3 unchanged sentences

April 22, 2024 May 16, 2024 0.35 5,182

July 22, 2024 August 15, 2024 0.35 5,190

$ 1.05 $ 15,556

On July 11, 2024, we declared a quarterly distribution of $ 0.35 per common share, or $ 5,190 , to shareholders of record on July 22, 2024.

We expect to pay this distribution on or about August 15, 2024, using cash on hand.

On October 16, 2024, we declared a quarterly distribution of $ 0.35 per common share, or $ 5,216 , to shareholders of record on October 28, 2024.

We expect to pay this distribution on or about November 14, 2024, using cash on hand.

Management Agreement with Tremont

We have no employees.

The personnel and various services we require to operate our business are provided to us, pursuant to a management agreement with Tremont Realty Capital LLC, or Tremont, which provides for the day to day management of our operations by Tremont, subject to the oversight and direction of our Board of Trustees.

The personnel and various services we require to operate our business are provided to us, pursuant to a management agreement with Tremont, which provides for the day to day management of our operations by Tremont, subject to the oversight and direction of our Board of Trustees.

We pay Tremont an annual base management fee payable quarterly ( 0.375 % per quarter) in arrears equal to 1.5 % of our “Equity,” as defined under our management agreement.

2 unchanged sentences

We include these amounts in incentive fees in our condensed consolidated statements of operations.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

Tremont, and not us, is responsible for the costs of its employees who provide services to us, unless any such payment or reimbursement is specifically approved by a majority of our Independent Trustees, is a shared services cost or relates to awards made under any equity compensation plan adopted by us.

15 unchanged sentences

and an officer and employee of RMR, and our other officers are officers and employees of Tremont and/or RMR.

SEVEN HILLS REALTY TRUST

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, except per share data)

See Note 7 for information relating to the awards of our common shares we made in September 2024 to our officers and certain other employees of Tremont and/or RMR and common shares we purchased from certain of our current and former officers and current and former officers and employees of Tremont and/or RMR in satisfaction of tax withholding and payment obligations in connection with the vesting of awards of our common shares.

We include amounts recognized as expense for awards of our common shares to our officers and employees of Tremont and/or RMR in general and administrative expenses in our condensed consolidated statements of operations.

Our Independent Trustees also serve as independent trustees of other public companies to which RMR or its subsidiaries provide management services.

4 unchanged sentences

See Note 8 for further information regarding our management agreement.

As of June 30, 2024, Tremont owned 1,708,058 of our common shares, and Mr.

As of September 30, 2024, Tremont owned 1,708,058 of our common shares, and Mr.

Portnoy beneficially owned (including through Tremont and ABP Trust) 13.5 % of our outstanding common shares.

5 unchanged sentences

No termination fee would be payable as a result of terminating the agreement.

We recognized property management and construction supervision fees of $ 22 and $ 31 for the three and six months ended June 30, 2024, respectively, related to real estate owned.

We recognized property management and construction supervision fees of $ 20 and $ 51 for the three and nine months ended September 30, 2024, respectively, related to real estate owned.

For further information about these and other such relationships and certain other related person transactions, refer to our 2023 Annual Report.

11 unchanged sentences

The calculation of net income per common share - basic and diluted is as follows (amounts in thousands, except per share data):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

6 unchanged sentences

Commitments and Contingencies

As of June 30, 2024, we had unfunded loan commitments of $ 41,988 related to our loans held for investment that are not reflected in our condensed consolidated balance sheets.

These unfunded loan commitments had a weighted average initial maturity of 0.9 years as of June 30, 2024.

As of September 30, 2024, we had unfunded loan commitments of $ 36,876 related to our loans held for investment that are not reflected in our condensed consolidated balance sheets.

These unfunded loan commitments had a weighted average initial maturity of 1.0 years as of September 30, 2024.

See Note 3 for further information related to our loans held for investment.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements