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

What is the market's earnings forecast for The RMR Group next quarter?

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

What were the key takeaways from The RMR Group's earnings call?

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

What were the key takeaways from The RMR Group’s earnings call?

What is The RMR Group's gross profit margin?

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

- **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.

RMR

RMR fundamentals

You can ask Aime