The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q1 2025 Earnings Presentation
31 slides from The Rmr's earnings presentation, Feb 5, 2025
Slide 1: The RMR Group Inc. Announces First Quarter Fiscal 2025 Financial Results
The RMR Group Inc. Announces First Quarter Fiscal 2025 Financial Results February 5, 2025
Slide 2: The RMR Group Inc. Announces First Quarter Fiscal 2025 Financial Results
THE RMR GROUP INC. ANNOUNCES FIRST QUARTER FISCAL 2025 FINANCIAL RESULTS Newton, MA (February 5, 2025). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended December 31, "RMR’s fiscal first quarter results were in- 2024. line with our expectations, whic
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 2025 Financial Results
First Quarter Fiscal 2025 Financial Results
Slide 5: The RMR Group Inc.'s First Quarter Fiscal 2025 Highlights
THE RMR GROUP INC.'S FIRST QUARTER FISCAL 2025 HIGHLIGHTS • Assets Under Management of $40.3 Billion • Net income of $14.1 million and net income attributable to The RMR Group Inc. of $6.4 million, Financial or $0.38 per diluted share Highlights • Adjusted Net Income Attributable to The RMR Group In
Slide 6: First Quarter Fiscal 2025 Financial Highlights
THE RMR GROUP INC.'S FIRST QUARTER FISCAL 2025 FINANCIAL HIGHLIGHTS Per ($ in thousands, except per share amounts) 1Q'25 Share 4Q'24 Per Share 1Q'24 Per Share GAAP Financial Measures Net Income $ 14,108 $ 12,486 $ 15,526 Net Income Margin 29.8% 25.7% 33.4% Net Income Attributable to The RMR Group In
Slide 7: AUM by Source
AUM BY SOURCE ($ in thousands) AUM Fee-Earning AUM $12,481,808 31% $9,305,509 34% 1Q'25 $17,732,878 $27,780,038 69% 66% $40,261,846 $27,038,387 Perpetual ManagedCapital Public Real Estate Capital Managed Private Private Real Estate Capital Capital $13,159,271 $9,902,101 32% 34% 1Q'24 $28,226,306 $19
Slide 8: Perpetual Capital AUM
PERPETUAL CAPITAL AUM ($ in thousands) Commercial Real Estate Fee-Earning Sector AUM AUM Hotels & Net Leased Service- Service Properties Trust (NASDAQ: SVC) Focused Retail $ 11,381,133 $ 6,254,869 Medical Office, Life Science & Diversified Healthcare Trust (NASDAQ: DHC) Senior Living 7,671,448 3,605
Slide 9: Private Capital AUM
PRIVATE CAPITAL AUM ($ in thousands) Fee-Earning Strategy AUM AUM Residential Real Estate Funds * Value Add / Core Plus $ 4,782,061 $ 4,782,061 Industrial Real Estate Funds ** Core Plus 3,954,291 896,600 Medical Office & Life Science Real Estate Funds Core Plus 2,422,796 2,422,796 Hotel Real Estate
Slide 10: AUM by Commercial Real Estate Sector
AUM BY COMMERCIAL REAL ESTATE SECTOR Medical Office & Life Science Hotel 12% 17% Residential 12% 17% Industrial Retail 13% 15% 14% Office Senior Living 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 $28,964 $29,357 $28,347 $15,850 $15,148 $7,054 $6,682 $6,807 $6,660 $11,591 $6,150 $2,742 $21,540 $21,910 $22,675 $8,998 $9,190 $8,849 1Q'25 4Q'
Slide 12: Wholly Owned Real Estate and Loans Held for Investment
WHOLLY OWNED REAL ESTATE AND LOANS HELD FOR INVESTMENT Real Estate Loans Real Estate Owned Location / Property Revere, MA / Hotel Wayne, PA / Industrial Location / Type Denver, CO / Multifamily Property Type Principal Balance $40.0 million $18.6 million Purchase $70.0 million (2) Maximum Maturity Pr
Slide 13: GAAP Results: Condensed Consolidated Statements of Income
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME ($ in thousands) 1Q'25 4Q'24 1Q'24 Revenues: Management services (1) $ 46,183 $ 46,878 $ 45,094 Incentive fees 68 484 299 Advisory services 1,141 1,128 1,125 Total management, incentive and advisory services revenues 47,392 48,490 46,518 Inco
Slide 14: GAAP Results: Condensed Consolidated Statements of Income (Continued)
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) ($ in thousands) 1Q'25 4Q'24 1Q'24 Operating income 13,388 9,983 10,618 (2) Change in fair value of Earnout liability 3,410 1,825 — Interest income 1,556 1,734 3,508 Interest expense (699) (612) (11) (Loss) gain on investments (1,
Slide 15: GAAP Results: Earnings Per Common Share
GAAP RESULTS: EARNINGS PER COMMON SHARE (amounts in thousands, except per share amounts) 1Q'25 4Q'24 1Q'24 Numerators: Net income attributable to The RMR Group Inc. $ 6,380 $ 5,336 $ 6,997 Less: income attributable to unvested participating securities (105) (79) (85) Net income attributable to The R
Slide 16: GAAP Results: Condensed Consolidated Balance Sheets
GAAP RESULTS: CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) December 31, 2024 September 30, 2024 Assets Cash and cash equivalents held by The RMR Group Inc. $ 24,398 $ 23,189 Cash and cash equivalents held by The RMR Group LLC 123,182 118,410 Due from related parties 121,440 134,030 Prepaid
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 17
Slide 18: 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, 2024, excluding the assumed redemption of the noncontrolling interest in
Slide 19: 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 September 30, 2024, excluding the assumed redemption of the noncontrolling interest in
Slide 20: 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 21: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FROM NET INCOME ($ in thousands) 1Q'25 4Q'24 1Q'24 Net income $ 14,108 $ 12,486 $ 15,526 Income tax expense 2,476 2,904 2,638 Depreciation and amortization 2,347 1,833 423 Interest expense (1) 43 81 11 EBITDA 18,974 17,304 18,598 Other asset amortization
Slide 22: 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) 1Q'25 4Q'24 1Q'24 Calculation of Net Income Margin: Total management and advisory services revenues $ 47,392 $ 48,490 $ 46,518 Net in
Slide 23: Distribution Payout Ratio for The RMR Group LLC
DISTRIBUTION PAYOUT RATIO FOR THE RMR GROUP LLC (amounts in thousands, except per share amounts) 1Q'25 4Q'24 1Q'24 The RMR Group LLC Shareholders (ownership percentage): The RMR Group Inc. 52.9% 52.9% 52.7% ABP Trust 47.1% 47.1% 47.3% Total 100.0% 100.0% 100.0% Calculation of Distribution Payout Rat
Slide 24: 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 25: Notes & Definitions
Notes & Definitions 25
Slide 26: Notes
NOTES Notes to page 11 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE The following tables present revenues by client and exclude incentive fees earned from SEVN of $68, $484 and $299 during the three months ended December 31, 2024, September 30, 2024 and December 31, 2023. ($ in thousands) 1
Slide 27: Notes (Continued)
NOTES (CONTINUED) Notes to page 11 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE (CONTINUED) ($ in thousands) 1Q'25 4Q'24 1Q'24 CONSTRUCTION SUPERVISION REVENUES DHC $ 964 $ 450 $ 1,056 ILPT 170 119 124 OPI 652 519 1,712 SVC 1,389 1,540 2,182 SEVN 5 — — Total Perpetual Capital 3,180 2,628 5,
Slide 28: Notes (Continued)
NOTES (CONTINUED) Notes to page 13 and 14 – 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 eac
Slide 29: Notes (Continued)
NOTES (CONTINUED) Notes to page 15 – 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 30: Notes (Continued)
NOTES (CONTINUED) Notes to page 23 – DISTRIBUTION PAYOUT RATIO FOR THE RMR GROUP LLC The following illustrative diagram presents certain tax and distribution information pertaining to The RMR Group LLC and The RMR Group Inc. Annual Tax Distributions Annual Dividends Taxing Authorities The RMR Group
Slide 31: Definitions
DEFINITIONS • Annualized NOI refers to annualized income from rental property revenues less annualized rental property expenses. Annualized NOI excludes interest expense and depreciation and amortization expense of the rental property. • Assets Under Management (AUM) All references in this presentat