The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q1 2024 Earnings Presentation
27 slides from The Rmr's earnings presentation, Feb 8, 2024
Slide 1: The RMR Group Inc. Announces First Quarter Fiscal 2024 Financial Results
The RMR Group Inc. Announces First Quarter Fiscal 2024 Financial Results February 7, 2024
Slide 2: The RMR Group Inc. Announces First Quarter Fiscal 2024 Financial Results
THE RMR GROUP INC. ANNOUNCES FIRST QUARTER FISCAL 2024 FINANCIAL RESULTS Newton, MA (February 7, 2024). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended December 31, 2023. Dividend "RMR's first quarter results exceeded the high end RMR has declared
Slide 3: Warning Regarding Forward-Looking Statements
WARNING REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”, “
Slide 4: First Quarter Fiscal 2024 Financial Results
First Quarter Fiscal 2024 Financial Results
Slide 5: The RMR Group Inc.'s First Quarter Fiscal 2024 Highlights
THE RMR GROUP INC.'S FIRST QUARTER FISCAL 2024 HIGHLIGHTS • Net Income of $15.5 Million, Net Income Attributable to The RMR Group Inc. of $7.0 Million, or $0.41 Per Diluted Share, and Net Income Margin of 33.4% • Adjusted Net Income Attributable to The RMR Group Inc. of $8.3 Million, or $0.49 Per Di
Slide 6: RMR Residential
RMR Residential • On December 19, 2023, RMR completed its acquisition of CARROLL (now referred to as RMR Residential), a vertically integrated platform focused on multifamily residential properties across the Sunbelt. • The following represents key measures for RMR Residential as of December 31, 202
Slide 7: AUM by Source
AUM BY SOURCE ($ in thousands) AUM Fee-Earning AUM $13,159,271 32% $9,902,101 34% 1Q'24 $19,234,479 $28,226,306 68% 66% $41,385,577 $29,136,580 Perpetual ManagedCapital Public Real Estate Capital Private Managed Capital Private Real Estate Capital $7,634,372 $4,386,902 20% 18% 1Q'23 $29,759,795 $20,
Slide 8: Perpetual Capital AUM
PERPETUAL CAPITAL AUM ($ in thousands) Commercial Real Estate Fee-Earning Sector AUM AUM Service Properties Trust (NASDAQ: SVC) Hotels / Retail $ 11,329,283 $ 7,049,245 Medical Office & Life Science / Diversified Healthcare Trust (NASDAQ: DHC) Senior Living 7,592,879 3,952,740 Office Properties Inco
Slide 9: Private Capital AUM
PRIVATE CAPITAL AUM ($ in thousands) Fee-Earning Strategy AUM AUM Residential Real Estate Funds * Value Add / Core Plus $ 5,462,242 $ 5,462,242 Industrial Real Estate Funds ** Core Plus 3,946,996 892,996 Medical Office & Life Science Real Estate Funds Core Plus 2,411,252 2,411,252 Hotel Real Estate
Slide 10: AUM by Commercial Real Estate Sector
AUM BY COMMERCIAL REAL ESTATE SECTOR Senior Living Office 10% 16% Retail 13% 16% Industrial Residential 14% 16% 15% Hotels Medical Office & Life Science 10
Slide 11: Management and Advisory Services Revenues by Source
MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE ($ in thousands) Base Business Management & Advisory Revenues Base Property Management & Other Revenues $33,042 $29,357 $29,878 $6,387 $11,591 $11,160 $10,911 6,682 $7,020 $2,742 $2,103 $2,077 $26,655 $22,675 $22,858 $8,849 $9,057 $8,834 1Q'24 4Q'2
Slide 12: GAAP Results: Condensed Consolidated Statements of Income
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME ($ in thousands) (unaudited) 1Q'24 4Q'23 1Q'23 Revenues: Management services (1) $ 45,094 $ 44,212 $ 48,548 Incentive fees 299 468 — Advisory services 1,125 1,149 1,091 Total management, incentive and advisory services revenues 46,518 45,829
Slide 13: GAAP Results: Earnings Per Common Share
GAAP RESULTS: EARNINGS PER COMMON SHARE (amounts in thousands, except per share amounts) (unaudited) 1Q'24 4Q'23 1Q'23 Numerators: Net income attributable to The RMR Group Inc. $ 6,997 $ 7,696 $ 6,337 Less: income attributable to unvested participating securities (85) (78) (81) Net income attributab
Slide 14: GAAP Results: Condensed Consolidated Balance Sheets
GAAP RESULTS: CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (unaudited) December 31, 2023 September 30, 2023 Assets Cash and cash equivalents $ 202,428 $ 267,989 Due from related parties 114,006 111,323 Prepaid and other current assets 9,271 6,997 Total current assets 325,705 386,309 Proper
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures 15
Slide 16: Reconciliation of Adjusted Net Income and Adjusted Net Income Per Diluted Share
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE The following table presents the impact of certain individually significant items on the financial results for the three months ended December 31, 2023 assuming the redemption of the noncontrolling interest in The RMR Gr
Slide 17: Reconciliation of Adjusted Net Income and Adjusted Net Income Per Diluted Share (Continued)
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (CONTINUED) The following table presents the impact of certain individually significant items on the financial results for the three months ended September 30, 2023, excluding the assumed redemption of the noncontrolling
Slide 18: Reconciliation of Adjusted Net Income and Adjusted Net Income Per Diluted Share (Continued)
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (CONTINUED) The following table presents the impact of certain individually significant items on the financial results for the three months ended December 31, 2022 assuming the redemption of the noncontrolling interest i
Slide 19: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FROM NET INCOME ($ in thousands) (unaudited) 1Q'24 4Q'23 1Q'23 Net income $ 15,526 $ 17,058 $ 14,240 Income tax expense 2,638 3,187 2,484 Depreciation and amortization 423 281 268 Interest expense 11 — — EBITDA 18,598 20,526 16,992 Other asset amortizatio
Slide 20: Calculation of Net Income Margin, Adjusted EBITDA Margin, Distributable Earnings
CALCULATION OF NET INCOME MARGIN, ADJUSTED EBITDA MARGIN, DISTRIBUTABLE EARNINGS AND DISTRIBUTABLE EARNINGS PER SHARE (amounts in thousands, except per share amounts) (unaudited) 1Q'24 4Q'23 1Q'23 Calculation of Net Income Margin: Total management and advisory services revenues $ 46,518 $ 45,829 $ 4
Slide 21: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES RMR presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the SEC, including Adjusted Net Income Attributable to The RMR Group Inc., Adjusted Net Income Attributable to The RMR Group Inc. per diluted share, EBITDA, Adjusted EBITDA, A
Slide 22: Notes & Definitions
Notes & Definitions 22
Slide 23: Notes
NOTES Notes to page 11 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE The following tables present revenues by client and exclude incentive business management fees earned from SEVN of $299 and $468 during the three months ended December 31, 2023 and September 30, 2023, respectively: ($ in th
Slide 24: Notes (Continued)
NOTES (CONTINUED) Notes to page 11 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE (CONTINUED) ($ in thousands) 1Q'24 4Q'23 1Q'23 CONSTRUCTION SUPERVISION REVENUES DHC $ 1,056 $ 805 $ 1,300 ILPT 124 171 170 OPI 1,712 1,908 3,165 SVC 2,182 1,109 610 Total Perpetual Capital 5,074 3,993 5,245 Son
Slide 25: Notes (Continued)
NOTES (CONTINUED) Notes to page 12 – GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME (1) Management services revenues include base business management fees earned from the Managed Equity REITs that are calculated monthly based upon the lower of (i) the average historical cost of each REIT’
Slide 26: Notes (Continued)
NOTES (CONTINUED) Notes to page 13 – GAAP RESULTS: EARNINGS PER COMMON SHARE RMR calculates earnings per share (EPS) using the two-class method. As such, earnings attributable to unvested participating shares are excluded from earnings before calculating per share amounts. In addition, diluted EPS i
Slide 27: Definitions
DEFINITIONS • Assets Under Management (AUM) All references in this presentation to AUM on, or as of, a date are calculated at a point in time. ▪ AUM is calculated as: (i) the historical cost of real estate and related assets, excluding depreciation, amortization, impairment charges or other non-cash