The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q1 2023 Earnings Presentation
24 slides from The Rmr's earnings presentation, Feb 3, 2023
Slide 1: The RMR Group Inc. Announces First Quarter Fiscal 2023 Financial Results
Exhibit 99.2 The RMR Group Inc. Announces First Quarter Fiscal 2023 Financial Results February 2, 2023
Slide 2: The RMR Group Inc. Announces First Quarter Fiscal 2023 Financial Results
THE RMR GROUP INC. ANNOUNCES FIRST QUARTER FISCAL 2023 FINANCIAL RESULTS Newton, MA (February 2, 2023). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended December 31, 2022. Dividend "Despite a challenging economic RMR has declared a quarterly dividen
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 “anticipate,
Slide 4: First Quarter Fiscal 2023 Financial Results
First Quarter Fiscal 2023 Financial Results
Slide 5: The RMR Group Inc.'s First Quarter Fiscal 2023 Highlights
THE RMR GROUP INC.'S FIRST QUARTER FISCAL 2023 HIGHLIGHTS • Assets Under Management of $37.4 Billion • Net Income of $14.2 Million and Net Income Attributable to The RMR Group Inc. of $6.3 Million, or $0.37 Per Diluted Share • Adjusted Net Income of $8.7 Million, or $0.51 Per Diluted Share • Adjuste
Slide 6: AUM by Source
AUM BY SOURCE ($ in thousands) AUM Fee-Earning AUM $7,354,919 $4,107,449 20% 15% 1Q'23 $30,039,248 $22,788,677 80% 85% $37,394,167 $26,896,126 Perpetual CapitalReal Estate Capital Managed Public Private Managed Capital Private Real Estate Capital $3,318,261 $3,127,521 10% 13% 1Q'22 $30,121,349 $21,3
Slide 7: AUM by Commercial Real Estate Sector
AUM BY COMMERCIAL REAL ESTATE SECTOR Medical Office & Life Science 9% Office 23% Residential 14% 17% Industrial Retail 19% 18% Hotels 7
Slide 8: Management and Advisory Services Revenues by Source
MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE ($ in thousands) Base Business Management & Advisory Fees Base Property Management Fees $33,042 $32,796 $5,123 $3,268 $10,911 $9,986 $2,077 $903 $27,919 $29,528 $8,834 $9,083 1Q'23 1Q'22 1Q'23 1Q'22 Perpetual Capital Managed Public Real Estate Capi
Slide 9: Perpetual Capital AUM
PERPETUAL CAPITAL AUM ($ in thousands) Commercial Real Estate Fee-Earning Sector AUM AUM Service Properties Trust (NASDAQ: SVC) Hotels / Retail $ 11,273,106 $ 9,093,152 Medical Office & Life Science / Diversified Healthcare Trust (NASDAQ: DHC) Residential 7,364,926 3,235,870 Office Properties Income
Slide 10: Private Capital AUM and Investment Performance
PRIVATE CAPITAL AUM AND INVESTMENT PERFORMANCE ($ in thousands) Inception to 1Q'23 Date Fee-Earning Net Internal Net Internal AUM AUM Rate of Return (1) Rate of Return (1) Industrial Real Estate Funds ("Core Plus") * $ 3,941,824 $ 891,595 —% 8% Medical Office & Life Science Real Estate Funds ("Core
Slide 11: GAAP Results: Condensed Consolidated Statements of Income
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME ($ in thousands) (unaudited) 1Q'23 1Q'22 Revenues: Management services (1) $ 48,548 $ 44,897 Advisory services 1,091 1,118 Total management and advisory services revenues 49,639 46,015 Reimbursable compensation and benefits 14,323 14,397 Reim
Slide 12: GAAP Results: Earnings Per Common Share
GAAP RESULTS: EARNINGS PER COMMON SHARE (amounts in thousands, except per share amounts) (unaudited) 1Q'23 1Q'22 Numerators: Net income attributable to The RMR Group Inc. $ 6,337 $ 8,042 Less: income attributable to unvested participating securities (81) (78) Net income attributable to The RMR Group
Slide 13: GAAP Results: Condensed Consolidated Balance Sheets
GAAP RESULTS: CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (unaudited) 1Q'23 4Q'22 Assets Cash and cash equivalents $ 200,965 $ 189,088 Due from related parties 120,069 108,821 Prepaid and other current assets 5,750 5,372 Total current assets 326,784 303,281 Property and equipment, net 3,7
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures 14
Slide 15: 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 tables present the impact of certain individually significant items on the financial results for the three months ended December 31, 2022 and 2021, assuming the redemption of the noncontrolling interest’s 1
Slide 16: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FROM NET INCOME ($ in thousands) (unaudited) 1Q'23 1Q'22 Net income $ 14,240 $ 18,292 Income tax expense 2,484 3,054 Depreciation and amortization 268 236 EBITDA 16,992 21,582 Other asset amortization 2,354 2,354 Operating expenses paid in the form of The
Slide 17: Calculation of Margins, Distributable Earnings and Distributable Earnings per Share
CALCULATION OF NET INCOME MARGIN, ADJUSTED EBITDA MARGIN, DISTRIBUTABLE EARNINGS AND DISTRIBUTABLE EARNINGS PER SHARE (amounts in thousands, except per share amounts) (unaudited) 1Q'23 1Q'22 Calculation of Net Income Margin: Total management and advisory services revenues $ 49,639 $ 46,015 Net incom
Slide 18: 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 19: Notes & Definitions
Notes & Definitions 19
Slide 20: Notes
NOTES Notes to page 8 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE The following tables present revenues by client: BASE BUSINESS MANAGEMENT & ADVISORY FEES ($ in thousands) 1Q'23 1Q'22 DHC $ 3,664 $ 5,866 ILPT 5,902 2,768 OPI 3,639 4,574 SVC 8,168 10,446 SEVN 1,091 1,118 ALR 1,264 1,145 TA
Slide 21: Notes (Continued)
NOTES (CONTINUED) Notes to page 8 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE (CONTINUED) CONSTRUCTION SUPERVISION FEES ($ in thousands) 1Q'23 1Q'22 DHC $ 1,300 $ 914 ILPT 170 114 OPI 3,165 1,878 SVC 610 231 Total Perpetual Capital 5,245 3,137 Sonesta 15 — Other private entities 426 96 Tot
Slide 22: Notes (Continued)
NOTES (CONTINUED) Notes to page 10 – PRIVATE CAPITAL AUM AND INVESTMENT PERFORMANCE (1) Net Internal Rate of Return (Net IRR), for the quarter represents a time-weighted return, which is calculated by determining the percentage change in net asset value based on contributions, distributions and unre
Slide 23: Notes (Continued)
NOTES (CONTINUED) Notes to page 12 – 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
Slide 24: 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 primarily includes: (i) the historical cost of real estate and related assets, excluding depreciation, amortization, impairment charges or other non-ca