Seven Hills Realty Trust (NASDAQ:SEVN) Q3 2023 Earnings Call Transcript

So that’s what we’re seeing in the marketplace, and we hope that we’ll continue to pick a few of those off. I think for 2024, I think the lending goal, part of it’s going to be spent on repayments, but probably $175 million to $250 million, somewhere in that range from a production standpoint.

Chris Muller: Got it. That’s very helpful. And hopefully, you can get some repeat borrowers coming from these new relationships you guys are building. So I guess the other one I have here, so it’s nice to see the extended maturity on the UBS facility. I guess, what has been the stance generally from the banks on credit lines to the commercial mortgage rates? It seems like they’ve been more willing to offer credit lines and pulling back on their direct lending side. So I guess what are you guys seeing from where you sit?

Tom Lorenzini: Well, I can speak to our relationships. Our relationships, the four different capital providers that we have been extremely supportive of our business plan. And in the second half of the year here, I would tell you that they’ve taken a more positive approach on writing new loans and providing us capital. And we’ve also seen spreads in certain instances actually tighten up than where they were earlier in the year — the beginning of the year. So that tells me that the lenders are becoming more comfortable, not only with us and how we underwrite, but also adjusting with the business in general. I mean there’s still plenty of — our competitors are still — plenty of them are still kind of hamstrung with the CLO market, but that’s not really — hasn’t been our business plan. So we remain active, and our lending partners remain fully supportive of our business.

Chris Muller: Great. Thanks for taking the questions. Very helpful.

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: Great. Thank you, Dave, and thank you, everyone, for joining our call today and your continued interest in Seven Hills Realty Trust.

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