The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q2 2025 Earnings Presentation
30 slides from The Rmr's earnings presentation, May 6, 2025
Slide 1: Financial Results and Supplemental Information
Financial Results and Supplemental Information SECOND QUARTER FISCAL 2025 May 6, 2025
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS The RMR Group Inc. Announces Second Quarter Fiscal 2025 Financial Results ......................................................................................... 4 Second Quarter Fiscal 2025 Highlights ............................................................
Slide 3: Quarterly Results
Quarterly Results
Slide 4: The RMR Group Inc. Announces Second Quarter Fiscal 2025 Financial Results
The RMR Group Inc. Announces Second Quarter Fiscal 2025 Financial Results Newton, MA (May 6, 2025). The RMR Group Inc. (Nasdaq: RMR) today announced its financial "RMR’s second quarter results were slightly below results for the fiscal quarter ended March 31, 2025. our expectations as a result of re
Slide 5: Second Quarter Fiscal 2025 Highlights
Second Quarter Fiscal 2025 Highlights • Assets Under Management of $39.8 billion. • Net income of $7.7 million and net income attributable to The RMR Group Inc. of $3.6 million, or $0.21 per Financial diluted share. Highlights • Adjusted Net Income Attributable to The RMR Group Inc. of $4.7 million,
Slide 6: Financials
Financials
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share amounts) As of and for the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 GAAP Financial Measures Net Income $ 7,694 $ 14,108 $ 12,713 Net Income Margin 16.9% 29.8% 25.6% Net Income Attributable to The RMR Group Inc. $ 3,
Slide 8: Adjusted Net Income Attributable to The RMR Group Inc. Bridge
Adjusted Net Income Attributable to The RMR Group Inc. Bridge $0.36 $0.35 $0.32 $(0.05) $0.01 $0.28 $0.28 $0.01 $0.01 $(0.03) Per Share $0.24 $(0.02) $0.20 $0.16 $0.12 $0.08 Adjusted net Lower Lower business Annual director Acquisition fees Recurring Other, net Adjusted net income Q1 2025 constructi
Slide 9: AUM by Source
AUM by Source (dollars in thousands) As of March 31, 2025 As of March 31, 2024 $12,385,889 $13,111,701 31% 32% AUM $27,456,405 $28,295,844 69% 68% $39,842,294 $41,407,545 Perpetual Capital Managed Public Real Estate Capital Private ManagedCapital Private Real Estate Capital $9,208,876 $9,853,514 35%
Slide 10: AUM by Source (Continued)
AUM by Source (Continued) (dollars in thousands) As of March 31, 2025 Commercial Real Estate Sector / Strategy AUM Fee-Earning AUM Perpetual Capital Service Properties Trust (NASDAQ: SVC) Hotels & Net Leased Service-Focused Retail $ 11,363,702 $ 6,211,123 Diversified Healthcare Trust (NASDAQ: DHC) M
Slide 11: Management and Advisory Services Revenues by Source
Management and Advisory Services Revenues by Source For the Three Months Ended (dollars in thousands) Base Business Management & Advisory Revenues Base Property Management & Other Revenues $28,985 $16,430 $16,990 $27,261 $28,347 $15,148 $6,807 $6,613 $6,579 $7,111 $7,112 $6,150 $20,682 $21,540 $22,3
Slide 12: Well-Covered Dividend
Well-Covered Dividend (dollars in thousands, except per share amounts) Dividends paid by The RMR Group Inc. are funded through a combination of distributable earnings generated by The RMR Group LLC and cash and cash equivalents held by The RMR Group Inc., as illustrated below: Calculation of Distrib
Slide 13: GAAP Results: Condensed Consolidated Statements of Income
GAAP Results: Condensed Consolidated Statements of Income (dollars in thousands) For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Revenues: Management services (1) $ 44,382 $ 46,183 $ 48,460 Incentive fees 19 68 60 Advisory services 1,104 1,141 1,126 Total management, incen
Slide 14: GAAP Results: Condensed Consolidated Statements of Income (Continued)
GAAP Results: Condensed Consolidated Statements of Income (Continued) (dollars in thousands) For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Operating income $ 7,560 $ 13,388 $ 12,127 (2) The purchase price for RMR's acquisition of MPC Partnership Interest income 1,377 1,5
Slide 15: GAAP Results: Earnings Per Common Share
GAAP Results: Earnings Per Common Share (amounts in thousands, except per share amounts) As of and for the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Numerators: Net income attributable to The RMR Group Inc. $ 3,616 $ 6,380 $ 5,862 Less: income attributable to unvested partic
Slide 16: GAAP Results: Condensed Consolidated Balance Sheets
GAAP Results: Condensed Consolidated Balance Sheets (dollars in thousands) March 31, 2025 September 30, 2024 Assets Cash and cash equivalents held by The RMR Group Inc. $ 21,317 $ 23,189 Cash and cash equivalents held by The RMR Group LLC 115,869 118,410 Due from related parties 90,022 134,030 Prepa
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures
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 (amounts in thousands, except per share amounts) The following table presents the impact of certain individually significant items on the financial results for the three months ended March 31, 2025, excluding the assumed
Slide 19: 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) (amounts in thousands, except per share amounts) The following table presents the impact of certain individually significant items on the financial results for the three months ended December 31, 2024, exclud
Slide 20: 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) (amounts in thousands, except per share amounts) The following table presents the impact of certain individually significant items on the financial results for the three months ended March 31, 2024 assuming t
Slide 21: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
Reconciliation of EBITDA and Adjusted EBITDA from Net Income (dollars in thousands) For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net income $ 7,694 $ 14,108 $ 12,713 Income tax expense 1,378 2,476 2,120 Depreciation and amortization 2,457 2,347 1,223 Interest expense 87
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) As of and for the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Calculation of Net Income Margin: Total manageme
Slide 23: Appendix
Appendix
Slide 24: Notes
Notes (dollars in thousands) 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 $19, $68 and $60 during the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, resp
Slide 25: Notes (Continued)
Notes (Continued) (dollars in thousands) Notes to Page 11 – Management and Advisory Services Revenues by Source (Continued) For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 CONSTRUCTION SUPERVISION REVENUES DHC $ 233 $ 964 $ 520 ILPT 41 170 73 OPI 350 652 771 SVC 657 1,389
Slide 26: Notes (Continued)
Notes (Continued) (dollars in thousands) Notes to Page 13 – 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 histor
Slide 27: Notes (Continued)
Notes (Continued) (dollars in thousands) Notes to Page 12 – Well-Covered Dividend Notes to Page 22 – Calculation of Net Income Margin, Adjusted EBITDA Margin, Distributable Earnings and Distributable Earnings Per Share The following illustrative diagram presents certain tax information pertaining to
Slide 28: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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, EB
Slide 29: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) • 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
Slide 30: Warning Concerning Forward-Looking Statements
Warning Concerning 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”,