The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q4 2023 Earnings Presentation
26 slides from The Rmr's earnings presentation, Nov 15, 2023
Slide 1: The RMR Group Inc. Announces Fourth Quarter Fiscal 2023 Financial Results
Exhibit 99.2 The RMR Group Inc. Announces Fourth Quarter Fiscal 2023 Financial Results November 15, 2023
Slide 2: The RMR Group Inc. Announces Fourth Quarter Fiscal 2023 Financial Results
THE RMR GROUP INC. ANNOUNCES FOURTH QUARTER FISCAL 2023 FINANCIAL RESULTS Newton, MA (November 15, 2023). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended September 30, 2023. “Despite the current unsettled commercial real Dividend estate markets, ou
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: Fourth Quarter Fiscal 2023 Financial Results
Fourth Quarter Fiscal 2023 Financial Results
Slide 5: The RMR Group Inc.'s Fourth Quarter Fiscal 2023 Highlights
THE RMR GROUP INC.'S FOURTH QUARTER FISCAL 2023 HIGHLIGHTS • Net Income of $17.1 Million, Net Income Attributable to The RMR Group Inc. of $7.7 Million, or $0.46 Per Diluted Share, and Net Income Margin of 37.2% • Adjusted Net Income Attributable to The RMR Group Inc. of $8.0 Million, or $0.48 Per D
Slide 6: AUM by Source
AUM BY SOURCE ($ in thousands) AUM Fee-Earning AUM $7,683,344 $4,428,658 21% 19% 4Q'23 $28,191,144 $18,364,655 79% 81% $35,874,488 $22,793,313 Perpetual ManagedCapital Public Real Estate Capital Private Managed Capital Private Real Estate Capital $4,388,657 $7,632,753 18% 20% 4Q'22 $29,678,586 $20,2
Slide 7: Perpetual Capital AUM
PERPETUAL CAPITAL AUM ($ in thousands) Commercial Real Estate Fee-Earning Sector AUM AUM Service Properties Trust (NASDAQ: SVC) Hotels / Retail $ 11,260,528 $ 7,083,845 Medical Office & Life Science / Diversified Healthcare Trust (NASDAQ: DHC) Residential 7,569,714 3,280,149 Office Properties Income
Slide 8: Private Capital AUM and Investment Performance
PRIVATE CAPITAL AUM AND INVESTMENT PERFORMANCE ($ in thousands) Inception to 4Q'23 Date Fee-Earning Net Internal Net Internal AUM AUM Rate of Return (1) Rate of Return (1) Industrial Real Estate Funds ("Core Plus") * $ 3,945,990 $ 892,925 (9)% —% Medical Office & Life Science Real Estate Funds ("Cor
Slide 9: AUM by Commercial Real Estate Sector
AUM BY COMMERCIAL REAL ESTATE SECTOR Medical Office & Life Science 14% 19% Office Residential 16% 14% Industrial Retail 19% 18% Hotels 9
Slide 10: 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 $35,441 $11,160 $11,231 $11,160 $31,364 $29,878 $6,930 $2,103 $2,087 $2,024 $7,230 $7,020 $28,511 $9,057 $9,144 $9,136 $22,858 $24,134 4Q'23 3Q'23 4Q'22 4Q'23 3
Slide 11: GAAP Results: Condensed Consolidated Statements of Income
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME ($ in thousands) (unaudited) 4Q'23 3Q'23 4Q'22 Revenues: Management services (1) $ 44,212 $ 45,872 $ 50,583 (2) Termination and incentive business management fees 468 45,474 — Advisory services 1,149 1,141 1,138 Total management and advisory
Slide 12: GAAP Results: Earnings per Common Share
GAAP RESULTS: EARNINGS PER COMMON SHARE (amounts in thousands, except per share amounts) (unaudited) 4Q'23 3Q'23 4Q'22 Numerators: Net income attributable to The RMR Group Inc. $ 7,696 $ 24,641 $ 12,000 Less: income attributable to unvested participating securities (78) (273) (118) Net income used i
Slide 13: GAAP Results: Condensed Consolidated Balance Sheets
GAAP RESULTS: CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (unaudited) September 30, 2023 June 30, 2023 September 30, 2022 Assets Current assets: Cash and cash equivalents $ 267,989 $ 295,423 $ 189,088 Due from related parties 111,323 102,101 108,821 Prepaid and other current assets 6,997
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 Less: Weighted Net Income Net Income Income Attributable Net Income Average Common Attributable to Attributable to to Unvested Used in Shares The RMR Group Three Months Ended September 30, 2023: The RMR Group Participati
Slide 16: Reconciliation of Adjusted Net Income per Diluted Share (Continued)
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (CONTINUED) Less: Weighted Net Income Net Income Income Attributable Net Income Average Common Attributable to Three Months Ended June 30, 2023: Attributable to to Unvested Used in Shares The RMR Group The RMR Group Part
Slide 17: Reconciliation of Adjusted Net Income per Diluted Share (Continued)
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (CONTINUED) Less: Weighted Net Income Net Income Income Attributable Net Income Average Common Attributable to Three Months Ended September 30, 2022: Attributable to to Unvested Used in Shares The RMR Group The RMR Group
Slide 18: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FROM NET INCOME ($ in thousands) (unaudited) 4Q'23 3Q'23 4Q'22 Net income $ 17,058 $ 55,171 $ 27,322 Income tax expense 3,187 9,214 4,785 Depreciation and amortization 281 281 262 EBITDA 20,526 64,666 32,369 Other asset amortization 2,354 2,354 2,354 Oper
Slide 19: 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) 4Q'23 3Q'23 4Q'22 Calculation of Net Income Margin: Total management and advisory services revenues $ 45,829 $ 92,487 $ 5
Slide 20: 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 21: Notes & Definitions
Notes & Definitions 21
Slide 22: Notes
NOTES Notes to page 8 – 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 unrealized fair va
Slide 23: Notes (Continued)
NOTES (CONTINUED) Notes to page 10 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE (CONTINUED) ($ in thousands) 4Q'23 3Q'23 4Q'22 BASE PROPERTY MANAGEMENT FEES DHC $ 1,435 $ 1,504 $ 1,349 ILPT 3,295 3,132 2,977 OPI 3,396 3,572 3,836 SVC 923 936 974 SEVN 8 — — Total Perpetual Capital 9,057 9,14
Slide 24: Notes (Continued)
NOTES (CONTINUED) Notes to page 11 – GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME (1) Management services revenues includes base business management fees earned from the Managed Equity REITs monthly based upon the lower of (i) the average historical cost of each REIT’s properties, and (
Slide 25: 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 i
Slide 26: 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