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The RMR Group Inc. Announces Changes to the Benchmark Indices for Its Business Management Agreements With Its Managed Equity REITs
MSCI U.S. REIT Indices to Replace Discontinued SNL U.S. REIT Indices NEWTON, Mass.--(BUSINESS WIRE)-- The RMR Group Inc. (Nasdaq: RMR) today announced that
About this update from The Rmr Group Inc.
[{"type":"text","content":"\nMSCI U.S. REIT Indices to Replace Discontinued SNL U.S. REIT Indices\n\n NEWTON, Mass.--(BUSINESS WIRE)--\nThe RMR Group Inc. (Nasdaq: RMR) today announced that its majority-owned subsidiary, The RMR Group LLC, and each of Diversified Healthcare Trust (Nasdaq: DHC), Industrial Logistics Properties Trust (Nasdaq: ILPT), Office Properties Income Trust (Nasdaq: OPI) and Service Properties Trust (Nasdaq: SVC) amended their respective management agreements to replace the respective benchmark indices used in the calculation of incentive management fees because publication of the existing SNL benchmark indices was discontinued on August 7, 2021. Pursuant to the amendments, for periods beginning on and after August 1, 2021, each Managed Equity REIT’s respective subsector index of the MSCI U.S. REIT indices will replace the discontinued SNL U.S. REIT indices used to calculate benchmark returns per share for purposes of determining any incentive management fee payable to RMR. The replacement indices are MSCI U.S. REIT/Health Care REIT Index for DHC, MSCI U.S. REIT/Industrial REIT Index for ILPT, MSCI U.S. REIT/Office REIT Index for OPI and MSCI U.S. REIT/Hotel REIT Index for SVC.\n\nFor purposes of calculating any incentive fees, the following lists the historical returns used to calculate incentive fees under the applicable SNL indices for the two years and stub period ending July 31, 2021:\n\n\n\n \n\n\n\n \n\n\n\nTotal Return for the Period\n\n\n\n\n\nBenchmark Return (cumulative % return of SNL Index) at 7/31/2021(1)\n\n\n\n \n\n\n\n12/31/2018 to\n7/31/2021\n\n\n\n \n\n\n\n12/31/2019 to\n7/31/2021\n\n\n\n \n\n\n\n12/31/2020 to\n7/31/2021\n\n\n\n\n\nSNL U.S. REIT Healthcare Index\n\n\n\n \n\n\n\n34.97%\n\n\n\n \n\n\n\n11.10%\n\n\n\n \n\n\n\n18.78%\n\n\n\n\n\nSNL U.S. REIT Industrial Index\n\n\n\n \n\n\n\n115.73%\n\n\n\n \n\n\n\n44.47%\n\n\n\n \n\n\n\n26.87%\n\n\n\n\n\nSNL U.S. REIT Office Index\n\n\n\n \n\n\n\n19.70%\n\n\n\n \n\n\n\n-6.06%\n\n\n\n \n\n\n\n18.27%\n\n\n\n\n\nSNL U.S. REIT Hotel Index\n\n\n\n \n\n\n\n-6.56%\n\n\n\n \n\n\n\n-19.07%\n\n\n\n \n\n\n\n10.06%\n\n\n\n\n\n(1) Adjusted for common share issuances during the measurement period.\n\n\n\n\nMatt Jordan, Executive Vice President, Chief Financial Officer and Treasurer, made the following statement:\n\n“Following the announcement that the SNL U.S. REIT indices would be d...