The Rmr Group Inc. · NASDAQ:RMR
The Rmr — RMR Group — IPO Roadshow (December 2015)
18 slides from The Rmr's IPO roadshow presentation, Dec 11, 2015
Slide 1: Warning Regarding Forward Looking Statements and Disclaimers
WARNI NGREG ARDI NG FO RWARDLO O KI NG STATEM ENTS AND DI SCLAI M ERS THIS PRESENTATION INCLUDES FORWARD LOOKING STATEMENTS THAT ARE SUBJECT TO VARIOUS RISKS AND UNCERTAINTIES. FORWARD LOOKING STATEMENTS ARE GENERALLY IDENTIFIABLE BY USE OF FORWARD LOOKING TERMINOLOGY, SUCH AS “MAY,” “WILL,” “SHOULD
Slide 2: Stock Listing Summary
Stock Listing Summary Company Name: The RMR Group Inc. Exchange & Ticker: NASDAQ: RMR Shares Distributed: 7.1 million shares of Class A Common Stock(1) Economic Interest: 44% (23% indirect economic interest in The RMR Group LLC)(2) Record Date Friday, November 27, 2015 Distribution Ratios: 0.0166 /
Slide 3: Company Overview
Company Overview RMR is an alternative asset management company with $22.1 billion of assets under management, including more than 1,300 real estate properties. RMR’s business primarily consists of providing management services to: Four publicly traded REITs. Three real estate operating companies. O
Slide 4: Managed REITs
Managed REITs The managed REITs have no employees; RMR is responsible for all their day to day operations. Government Properties Income Trust NYSE: GOV Total Mkt. Cap.: $2.3 billion(1) Investment Grade Rated: Baa3 (Moody’s) / BBB- (S&P) GOV owns more than 70 office properties that are majority lease
Slide 5: Other Managed Companies
Other Managed Companies Revenues earned from TA, FVE and Sonesta consist of annual fees based on 60 bps multiplied by revenues (as defined). Revenues earned from RIF consist of annual fees based on 85 bps multiplied by average assets under management. Five Star Quality Care, Inc. NYSE: FVE FVE opera
Slide 6: Stable Revenue Base
Stable Revenue Base RMR’s revenues are primarily from recurring fees earned under long term agreements with high credit quality companies. 79.5% of RMR’s management services revenues are from the managed REITs.(1) RMR’s agreements with the managed REITs extend for 20 year terms. The businesses of th
Slide 7: Diverse Sources of Revenues
Diverse Sources of Revenues As of June 30, 2015, RMR managed 1,300 properties located throughout the U.S., including 48 states, Washington, D.C. and Puerto Rico, as well as Canada. (1) Based on historical cost of real estate at managed REITs and total assets under management at RIF as of June 30, 20
Slide 8: Well Positioned for Growth
Well Positioned for Growth Since RMR’s founding in 1986, assets under management have grown to $22.1 billion as of June 30, 2015. RMR has grown by working with its clients to expand their businesses and by creating new clients. Since 1986, RMR has assisted its clients in completing over $30.0 billio
Slide 9: Attractive Cash Flow and Dividend Coverage
Attractive Cash Flow and Dividend Cover age Selected Estimated Financial Data (amounts in thousands, except per share data) As of and for Three Months Ended June 30, 2015(1) Adjusted revenues(2) $ 40,193 Adjusted EBITDA(1) As a % of adjusted revenues $ 22,480 55.9% Adjusted net income(3) $ 13,153 Ad
Slide 10: Strong Alignment of Interests
Strong Alignment of Interests The RMR Group LLC The RMR Group Inc. Public Shareholders (7.1 million shares of Class A Common Stock) Managed REITs (HPT, SNH, SIR & GOV) RMR Trust (Barry Portnoy & Adam Portnoy) 51.6% 48.4% 49.6% 6.3% 44.1% The RMR Group Inc. Summary Corporate Structure (1) Indirect ec
Slide 11: Quality and Depth of Management
Quality and Depth of Management Adam D. Portnoy, Managing Director, President and Chief Executive Officer Since joining RMR in 2003, has held numerous executive officer positions at RMR and its client companies; currently serves on the Boards of HPT, SNH, SIR, GOV and RIF; co-owner of RMR Trust and
Slide 12: Investment Highlights
Investment Highlights Stable revenue base from recurring management fees, anchored by 20 year agreements with the managed REITs. Diverse sources of revenues from multiple businesses and a wide range of real estate properties located throughout the U.S. Proven ability to grow fee revenues historicall
Slide 13: Investment Highlights
Investment Highlights 1) Stable revenue base from recurring management fees, anchored by 20 year agreements with the managed REITs. 2 Diverse sources of revenues from multiple businesses and a wide range of real estate properties located throughout the U.S. 3 Proven ability to grow fee revenues hist
Slide 14: Reconciliation of Estimated Financial Data for Three Months Ended June 30, 2015
Reconciliation of Estimated Financial Data for the Three Months Ended June 30, 2015 and Reconciliation of Net Income to Adjusted EBITDA Pro forma to give effect to the Up-C transaction as if it occurred on October 1, 2014. Estimated financial data for the three months ended June 30, 2015 represents
Slide 15: Definition of EBITDA and Adjusted EBITDA
Definition of EBITDA and Adjusted EBITDA Earnings before interest, taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA are calculated as presented in the table on slide 15. We consider EBITDA and Adjusted EBITDA to be appropriate measures of our operating performance, along with net
Slide 16: Reconciliations of Total Revenues to Adjusted Revenues and Net Income to Adjusted Net Income
Reconciliations of Total Revenues to Adjusted Revenues and Net Income to Adjusted Net Income Total Revenues to Adjusted Revenues Estimated data 3 Months Ended June 30, 2015 Total revenues 46,620 Less: reimbursable payroll and related costs (6,427) Total adjusted revenues 40,193 Net Income to Adjuste
Slide 17: December 2015 The RMR Group contact
December 2015 The RMR Group Two Newton Place 255 Washington Street, Suite 300 Newton, Massachusetts 02458 Phone: (617) 796-8390 Investor Relations Phone: (617) 796-8230 Email: ir@rmrgroup.com
Slide 18: The RMR Group Investor Relations
December 2015 The RMR Group Investor Relations Two Newton Place Phone: (617) 796-8230 255 Washington Street, Suite 300 Email: ir@rmrgroup.com Newton, Massachusetts 02458 Phone: (617) 796-8390