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What is The RMR Group's gross profit margin?

What is the revenue and EPS growth rate for The RMR Group year over year?

Did The RMR Group beat or miss consensus estimates last quarter?

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What factors drove the changes in The RMR Group's revenue and profit?

What guidance did The RMR Group's management provide for the next earnings period?

What does The RMR Group do and what are its main business segments?

- **Q1 Financial Excellence**: Exceeded expectations with $19.5M EBITDA, $0.47 distributable earnings, and $0.20 net income.
- **Strategic Rewards**: $23.6M incentive fees from DHC and ILPT, reflecting client performance leadership.
- **Operational Strength**: DHC deleveraging, SVC hotel sales, and ILPT refinancing highlight asset optimization.
- **Multifamily Momentum**: 70% retention, 5% rent growth, and $250M fund launch in 2026.
- **Global Expansion**: Peter Welch's hiring to drive Asian and Middle Eastern private capital growth.
- **Q2 Outlook**: EBITDA $17-19M, distributable $0.41-0.43, with tax rate rising to 17%.

**【CEO Summary Section】**
- **Q1 2026 Financial Highlights**: Distributable earnings of $0.47 per share, net income of $0.20 per share, and adjusted EBITDA of $19.5 million, all exceeding expectations.
- **Strategic Incentive Fees**: Collected $23.6 million in incentive fees for 2025, driven by DHC and ILPT's outperformance.
- **DHC Progress**: Sold 69 properties for $605 million, repaid $250 million in debt, and transitioned 116 SHOP communities to new operators, expecting NOI improvements.
- **SVC Developments**: Sold 112 hotels for $859 million, redeemed $300 million in debt, and appointed new Sonesta Co-CEOs to enhance hotel EBITDA.
- **ILPT Growth**: Completed $1.2 billion in debt refinancing, increased dividend, and exploring further refinancing of $1.4 billion floating-rate debt.
- **Seven Hills Expansion**: Raised $65.2 million via rights offering, with RMR acquiring 20.3% stake, enabling $200 million in new loans.
- **OPI Bankruptcy Update**: Ongoing Chapter 11 process, with hopes for resolution by summer 2026.

**【COO Commentary】**
- **Leasing Success**: Arranged 10 million sq ft of leases at 13% higher rates, showcasing tenant demand.
- **Private Capital Expansion**: Hired Peter Welch to lead global capital formation, targeting Asia and Middle East markets.
- **Residential Performance**: RMR Residential portfolio at 93% occupancy, 70% resident retention, and nominal delinquencies.
- **Multifamily Strategy**: Launched $250 million fund, with early investments in five Sunbelt communities on track for mid-teen returns.
- **Retail Investment**: Chicago shopping center ahead of plan, demonstrating retail team's leasing prowess.
- **Cost Efficiency**: Reduced headcount and implemented AI, lowering recurring cash compensation by $1 million.

**【CFO Financial Commentary】**
- **Q1 Financials**: Adjusted EBITDA $19.5 million, distributable earnings $0.47, and adjusted net income $0.20, all at high end of guidance.
- **Recurring Revenues**: $43 million, down $2.5 million due to AlerisLife wind down and SVC debt repayments.
- **Expense Management**: Recurring cash compensation $37.4 million, G&A $10.5 million, with plans to maintain levels.
- **Liquidity**: $150 million, including $23.6 million from incentive fees, supporting strategic initiatives.
- **Q2 Guidance**: Adjusted EBITDA $17-19 million, distributable earnings $0.41-0.43, driven by lower construction fees and tax rate increase to 17%.

**【Q&A Highlights】**
- **Global Capital Strategy**: Peter Welch's role to accelerate fundraising in Asia and Middle East, complementing U.S. efforts.
- **Multifamily Fund Focus**: 70% resident retention and 5% rent growth, with 2026 launch target for $250 million fund.
- **Financial Impact of AlerisLife**: $400,000 fee in Q1, with no further contributions in Q2, affecting recurring revenues.
- **Credit Strategy**: Seven Hills to deploy $200 million in new loans, with no additional RMR balance sheet exposure.
- **Time Line for Fundraising**: Multifamily fund expected to launch in 2026, with assets transferred from RMR balance sheet ASAP.

The RMR Group Inc. (RMR) Q1 2026 Earnings Call Transcript

- **Q4 Financials Stable**: Distributable earnings $0.44, EBITDA $20.5M, in line with expectations despite AlerisLife sale headwinds.
- **Managed REITs Perform**: DHC SHOP NOI +8%, SVC on track for $959M hotel sales, Seven Hills rights offering to deploy $200M loans.
- **Strategic Initiatives**: RMR Residential targeting $250M, OPI restructuring with $14M annual fee, Seven Hills backstop potential.
- **Q1 Outlook Caution**: $1M fee loss from AlerisLife, but cost savings offsetting to maintain margin stability.

**【CEO Summary Section】**
- Reported Q4 distributable earnings of $0.44 per share, adjusted net income of $0.22 per share, and adjusted EBITDA of $20.5 million, all in line with expectations.
- Managed equity REITs achieved $2 billion in accretive debt financings and $300 million in asset sales, driving share price improvements at DHC and ILPT, with potential 2025 incentive fees of $22 million.
- DHC's SHOP NOI increased 8% YoY to $29.6 million, driven by 210-basis-point occupancy growth and 5.3% rate increases. Transition of 116 AlerisLife communities to new operators is expected by year-end 2025.
- SVC completed $292 million in hotel sales, on track for $959 million in 2025, and executed a 0-coupon bond offering to deleverage.
- Seven Hills announced a $6 million rights offering to raise $200 million in new loans, with RMR backstopping unexercised rights.
- OPI entered a restructuring support agreement for Chapter 11 bankruptcy, with RMR to manage for 5 years at $14 million annual fee for the first 2 years.

**【CFO Commentary】**
- Recurring service revenues of $45.5 million, up $1.5 million QoQ, driven by higher enterprise values at DHC, ILPT, and SVC.
- Q1 2026 guidance: adjusted EBITDA $18-20 million (down $2.5 million YoY), distributable earnings $0.42-0.44, and adjusted net income $0.16-0.18, due to $1 million loss from AlerisLife sale.
- Recurring cash compensation expected to decline to $37 million QoQ, with G&A stable at $10.1 million.
- Interest expense to rise to $2.6 million QoQ due to new residential mortgages.
- Tax rate expected to decline to 15% in Q1, reflecting potential 2025 incentive fees.

**【Q&A Highlights】**
- OPI restructuring: $14 million annual fee for first 2 years, with potential promote for RMR post-bankruptcy emergence.
- Private capital strategy: $250 million target for RMR Residential enhanced growth venture, with $143.4 million in Q4 acquisitions near Raleigh and Orlando.
- Seven Hills rights offering: RMR may backstop up to 50% of unexercised rights, with $65 million equity to deploy $200 million in loans.
- Cash flow: $162 million liquidity, with no revolver draw expected despite $3.2 million NOI from owned residential assets.
- Risk: Uncertainty in OPI restructuring timeline and Seven Hills rights offering participation.

The RMR Group Inc. (RMR) Q4 2025 Earnings Call Transcript

- **Adjusted EBITDA Growth**: $20.1 million for Q3, with Q4 outlook of $20.5 million.
- **Strategic Ventures**: $300 million residential equity target and $100 million retail portfolio development.
- **Client Success**: DHC's 18.5% YoY growth in SHOP segment; ILPT dividend increased to $0.05 per share.
- **Dividend Sustainability**: $0.45 dividend well-covered by RMR LLC (74% coverage) and $22M RMR Inc. cash reserves.
- **Risks**: Economic uncertainty and OPI debt challenges.

**【CEO Summary Section】**
- **Revenue Performance**: Adjusted net income of $0.28 per share, distributable earnings of $0.43 per share, and adjusted EBITDA of $20.1 million for the quarter. Managed REITs (e.g., DHC, ILPT) saw share price increases, with potential incentive fees of $17 million at year-end.
- **Strategic Initiatives**: Private capital AUM exceeds $12 billion, with focus on retail, residential, and credit. A $100 million retail portfolio is being developed, targeting mid-teen returns. Residential acquisitions (e.g., Raleigh and Orlando properties) are part of a $300 million equity target for the RMR Residential Enhanced Growth venture.
- **Client Updates**: DHC's SHOP segment grew 18.5% YoY; ILPT refinanced $1.2 billion debt, increasing dividend to $0.05 per share. SVC's hotel portfolio outperformed the industry, with 114 hotels under sale agreement.

**【CFO Financial Commentary】**
- **Financial Metrics**: Recurring service revenues $44 million (sequential decline of $1.5M due to RMR Residential asset sales). Adjusted EBITDA $20.1 million, distributable earnings $0.43 per share. Q4 2025 outlook: adjusted EBITDA $20.5 million, distributable earnings $0.44-$0.46 per share.
- **Expense Management**: Recurring cash compensation $38.6 million (down $3.5M sequentially); G&A $9.5 million (down $1.2M). Interest expense expected to rise to $1.7 million in Q4 due to residential acquisitions.
- **Liquidity**: $60 million cash at year-end, no borrowings on $100M line of credit.

**【Q&A Key Highlights】**
- **Fundraising Environment**: Challenging but improving; $300M equity target for residential venture, seeded with $100M in assets. Credit and retail strategies also being developed.
- **Residential Strategy**: 2025 acquisitions (e.g., Raleigh, Orlando) will generate $900K EBITDA in Q4. Focus on joint ventures to deploy capital while fundraising.
- **Dividend Coverage**: $0.45 dividend funded by RMR LLC ($0.32) and RMR Inc. ($0.13). LLC coverage at 74%; RMR Inc. has $22M cash, sufficient for 3+ years.
- **Risks**: Economic uncertainty, fundraising challenges, and OPI's debt obligations remain risks.


The RMR Group Inc. (RMR) Q3 2025 Earnings Call Transcript

- **Q2 Results**: Adjusted net income $0.28/share (slightly below expectations) due to REIT capital constraints.
- **Strategic Acquisitions**: 
  - $196M South Florida residential JVs (15% RMR stake).
  - $21M Chicago retail center (target mid-teens IRR).
- **Private Capital Growth**: AUM from $0 to $12B in 5 years; aiming for >50% of total AUM in 5 years.
- **Public Clients Outperformance**: 
  - DHC SHOP NOI +49% YoY.
  - ILPT rental roll-up +19%.
- **Financial Stability**: 79% dividend coverage; $137M cash on hand with no debt.
- **Retail Strategy Expansion**: $100M+ pipeline for value-add retail with 15+ years of sector expertise.


**【CEO Opening Remarks】**
- Q2 2025 adjusted net income: $0.28 per share (slightly below expectations) due to lower-than-expected capital expenditures and REIT deleveraging.
- Key investments:
  - $196M joint venture acquisitions of South Florida residential communities (RMR contributed $11M, 15% stake).
  - $21M value-add retail center in Chicago (77% occupied, 20% below-market rents; target mid-to-high-teens IRR over 5 years).
- Private capital AUM growth: From $0 to $12B in 5 years; aiming for >50% of total AUM within 5 years.
- Public capital clients performance:
  - DHC: SHOP segment NOI +49% YoY.
  - SVC: RevPAR +2.6% YoY vs. industry by 40bps.
  - ILPT: 19% rental roll-up on 2.3M sq.ft. leasing.
  - OPI: Facing office portfolio headwinds.

**【CFO Financial Highlights】**
- Q2 2025 financials:
  - Adjusted net income: $0.28/share; distributable earnings: $0.40/share.
  - Recurring service revenue: $45.5M (-$1.8M QoQ due to lower capital spend and REIT valuations).
  - Recurring cash compensation: $42.1M (-$0.5M QoQ); G&A: $10.7M (excluding $0.6M director grants).
- Q3 2025 guidance:
  - Adjusted EPS: $0.28-$0.30/share.
  - Distributable earnings: $0.42-$0.44/share.
  - Dividend coverage: 79% (well-covered with $137M cash).

**【Q&A Key Takeaways】**
1. **Retail Strategy**: 
   - $100M+ pipeline for value-add retail (Chicago center is first of several planned acquisitions).
   - Rationale: Low retail supply, high demand, and RMR's 15+ years of retail expertise ($5B AUM in retail assets).
2. **Capital Spend Volatility**: 
   - Seasonal Q1 lows persist due to REIT budget constraints; expect muted capital spend for 2+ quarters.
3. **Dividend Policy**: 
   - 79% payout ratio (low point due to seasonal factors); no plans to change dividend given strong cash position.
4. **Private Capital Outlook**: 
   - LPs seeking mid-to-high-teens returns; $1B+ in 2025 private capital investments (JV + balance sheet).
   - Balance sheet usage for early-stage strategies (e.g., retail) to build track record for future fundraising.


The RMR Group Inc. (RMR)-7 May 25-2025 Q2 Earnings call transcript

- **Resilient Q1 Results**: $0.35 adj. net income, $0.46 distributable earnings; $21M EBITDA on $150M cash.
- **Residential Growth Engine**: $60M raised for $200M South Florida deals; targeting $500M+ in 2025 with high-teens IRRs.
- **Credit & Development Momentum**: Exploring mixed-use redevelopments; $100M credit facility for growth flexibility.
- **Margin Recovery Path**: EBITDA margin at 42% (vs. 52% prior year); expects gradual improvement as residential scale grows.
- **Client Progress**: SVC, OPI, DHC making progress on deleveraging; Seven Hills outperformed peers in 2024.

**【CEO Opening Remarks】**
- Q1 FY2025 adjusted net income: $0.35 per share; distributable earnings: $0.46 per share.
- $150M cash on hand; $21M adjusted EBITDA; $100M credit facility established for growth initiatives.
- Optimistic on commercial real estate recovery; targeting residential, credit, and development sectors.
- Residential platform raised $60M from 3 partners to acquire $200M South Florida assets; RMR invested $10M with high-teens IRR target.
- SVC, OPI, DHC making progress on deleveraging; Seven Hills Realty Trust outperformed peers in 2024.

**【CFO Financial Update】**
- Recurring service revenues: $47.3M (down $0.7M QoQ due to lower REIT enterprise values).
- Q2 2025 adjusted net income guidance: $0.29-$0.30 per share; distributable earnings: $0.42-$0.43 per share.
- Recurring cash compensation: $42.6M (down $1.5M QoQ due to cost control).
- G&A expenses: $11.1M; expecting stable levels in Q2.
- Construction management fees expected to halve in Q2 due to client capital discipline.

**【Q&A Highlights】**
- **Residential Strategy**: $500M-$1B+ investments in 2025; mid-teens IRR target; RMR as GP with promote upside. 
- **Development Pipeline**: Exploring mixed-use redevelopment opportunities (e.g., Nashville truck stop, Boston tower).
- **Margins**: EBITDA margin at 42% vs. 52% prior year; expects gradual improvement as residential platform scales.
- **Liquidity**: $150M cash; no immediate need to draw on $100M credit facility, but optionality retained for growth.
- **Funding Strategy**: Balancing JV deals (GP + LP) with on-balance-sheet seed investments to seed future funds.


Actual												0.39	0.41	0.38	0.51	0.3	0.5	0.82	0.49	0.39	0.46	0.73	0.37	1.11	1.48	0.46	0.41	0.34	0.29	0.32	0.38	0.28	0.28	0.22	0.2
Forecast												0.4747	0.401	0.3994	0.3314	0.4005	0.4691	0.4939	0.5275	0.4833	0.5767	0.5633	0.5267	0.49	0.46	0.35	0.4267	0.36	0.39	0.3367	0.37	0.3467	0.28	0.22	0.185
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-17.84%	+2.24%	-4.86%	+53.89%	-25.09%	+6.59%	+66.03%	-7.11%	-19.30%	-20.24%	+29.59%	-29.75%	+126.53%	+221.74%	+31.43%	-3.91%	-5.56%	-25.64%	-4.96%	+2.70%	-19.24%	0.00%	0.00%	+8.11%

Actual	--	--	--	--	--	--	--	--	--	--	--	140.86M	138.65M	150.10M	156.95M	131.56M	145.24M	173.48M	181.57M	197.65M	211.09M	242.19M	250.74M	208.42M	280.23M	222.93M	261.67M	217.75M	205.48M	212.30M	219.48M	166.67M	154.73M	159.41M	180.42M
Forecast	--	--	--	--	--	--	--	--	--	--	--	150.53M	132.10M	137.52M	146.12M	149.86M	146.98M	149.77M	162.23M	174.17M	183.30M	207.19M	217.92M	240.22M	227.52M	236.35M	225.26M	245.92M	230.40M	220.35M	268.50M	214.31M	201.80M	213.70M	190.55M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-6.42%	+4.96%	+9.15%	+7.41%	-12.21%	-1.18%	+15.83%	+11.92%	+13.48%	+15.16%	+16.90%	+15.06%	-13.24%	+23.17%	-5.68%	+16.16%	-11.46%	-10.82%	-3.66%	-18.26%	-22.23%	-23.33%	-25.40%	-5.31%

RMR

RMR fundamentals

RMR Q1 2026 Earnings

Earnings Call

You can ask Aime

RMR

RMR fundamentals

RMR Q1 2026 Earnings

Earnings Call

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RMR Earnings Call Summary for Q3/20251:00 PM on Aug 6, 2025

RMR Earnings Call Summary for Q2/20251:00 PM on May 7, 2025

RMR Earnings Call Summary for Q1/202510:00 AM on Feb 6, 2025

You can ask Aime