The Rmr Group Inc. · NASDAQ:RMR
The Rmr — RMR Group — Investor Presentation (March 2024)
29 slides from The Rmr's investor presentation, Mar 19, 2024
Slide 1: Investor Presentation March 2024
1 Investor Presentation March 2024
Slide 2: Forward-looking statements and REIT information disclaimer
2 This presentation contains information about Service Properties Trust, Diversified Healthcare Trust, Office Properties Income Trust, Industrial Logistics Properties Trust and Seven Hills Realty Trust (together, the REITs). The information regarding each REIT (each, a company) has been provided sol
Slide 3: Introduction to The RMR Group
3 Introduction to The RMR Group (Nasdaq: RMR)
Slide 4: Compelling Investment Opportunity
4 Diversified revenue sources from perpetual capital and private capital clients spanning all major commercial real estate sectors. Substantial earnings stability resulting from over 75% of services revenues derived from 20-year evergreen contracts with significant termination provisions. Attractive
Slide 5: A Dynamic Alternative Asset Manager Focused Solely on Real Estate
5 Private Clients A Dynamic Alternative Asset Manager Focused Solely on Real Estate Over $41 Billion in AUM RMR Platform More than $5 Billion in Annual Revenues Over 20,000 Employees Over 2,000 Properties National Multi-Sector Investment Platform Industrial Residential Senior Living Medical Office L
Slide 6: Diverse Mix of AUM and Capital Sources
6 Diverse Mix of AUM and Capital Sources Office 16% Industrial 16% Hotels 16% Medical Office & Life Science 15% Residential 14% Retail 13% Senior Living 10% AUM by Sector Fee-Earnings AUM by Type Diversified across all major CRE sectors. Perpetual Capital 66% Private Capital 34% Long term institutio
Slide 7: Vertically Integrated Real Estate Operating Platform is a Competitive Advantage
7 National Vertically Integrated Real Estate Operating Platform is a Differentiator and Competitive Advantage RMR Shared Services Accounting Marketing Human Resources Investor Relations Property Management Development Finance Legal Information Technology Project Management Tax Portfolio Management T
Slide 8: Track Record of Strong Growth and Attractive Cash Flows
8 $165M $167M $179M $196M $181M $172M $175M $200M $190M 2015 2016 2017 2018 2019 2020 2021 2022 2023 Track Record of Strong Growth and Attractive Cash Flows Assets Under Management Management & Advisory Services Revenues $21B $27B $28B $30B $33B $32B $33B $37B $36B $41B 2015 2016 2017 2018 2019 2020
Slide 9: Strong Balance Sheet and Well Covered Dividend
9 Strong Balance Sheet and Well Covered Dividend Financial Highlights 50–55% Adjusted EBITDA Margin $200M+ Cash on Hand $0 Corporate Debt Annual Dividends Per Share $1.00 $1.00 $1.40 $1.52 $1.52 $1.56 $1.60 2017 2018 2019 2020 2021 2022 2023 Paid an additional $7.00/share Special Dividend in 2021 1K
Slide 10: Client Information
10 Client Information 10
Slide 11: Perpetual Capital as of December 31, 2023
11 Perpetual Capital as of December 31, 2023 Service Properties Trust Owns 220+ hotels and ~750 net lease service and necessity-based retail properties nationwide. $11.3B $7.0B Diversified Healthcare Trust Owns 370+ medical office and life science properties, senior living communities and wellness c
Slide 12: Private Capital as of December 31, 2023
12 Private Capital as of December 31, 2023 Vertically integrated platform focused on multifamily properties across the Sunbelt. $5.5B $5.5B Industrial Real Estate Funds1 Portfolio of “Core Plus” industrial real estate. $3.9B $0.9B Medical Office & Life Science Real Estate Funds Portfolio of “Core Pl
Slide 13: RMR's Significant Contractual Relationships
13 At the Managed Equity REITs, RMR earns fees pursuant to Business Management and Property Management Agreements that renew each year for successive 20-year terms. • Business management revenues principally consist of monthly fees generally based on 50 bps per annum multiplied by the lower of: (1)
Slide 14: Positioned for Growth
14 Positioned for Growth 14
Slide 15: Multiple Levers to Drive Growth
15 Multiple Levers to Drive Growth • Diverse client platform allows RMR to capitalize on strategic opportunities across sectors and navigate real estate cycles. • Significant opportunity to grow base business management fee (~$60 million) and incentive fees (2016 – 2019 annual average of ~$100 milli
Slide 16: Significant Upside Potential as Managed Equity REIT Share Prices Recover
16 Significant Upside Potential as Managed Equity REIT Share Prices Recover 1. Illustrates the approximate incremental impact on RMR’s annualized revenue resulting from a $1 increase in share price. $0.2M $0.3M $0.8M $1.2M OPI ILPT SVC DHC Opportunity by closing the gap between enterprise value and
Slide 17: RMR's Recent Multifamily Platform Acquisition (RMR Residential)
17 Florida 52% Georgia 25% North Carolina 14% Nevada 4% Colorado Other 2% 3% Platform Highlights ~$5.5 Billion Assets Under Management ~500 Real Estate Professionals 66 Managed Properties ~21,300 Multifamily Units Investor Partnerships Units by State RMR’s Recent Multifamily Platform Acquisition (“R
Slide 18: Key Takeaways
18 • Long term financial and operational alignment with clients. • Durable cash flows with attractive operating leverage as platform continues to scale. • Opportunity to cross sell private capital relationships. • Well-positioned to expand across equity and debt vehicles. Key Takeaways • $41 billion
Slide 19: Appendix
19 Appendix
Slide 20: Governed by a Highly Skilled Board of Directors
20 Governed by a Highly Skilled Board of Directors Ann Logan Independent Director Rosen Plevneliev Lead Independent Director Walter C. Watkins, Jr. Independent Director Jonathan Veitch Independent Director Adam Portnoy Managing Director Jennifer Clark Managing Director 50% Female and Members of Unde
Slide 21: Demonstrated Commitment to Sustainability
21 Demonstrated Commitment to Sustainability 1. Certifications as of December 31, 2023. • Zero Emissions Promise by 2050 for all RMR managed properties. – Reduce GHG emissions 50% by 2029 from 2019 baseline. – Achieve net zero emissions from operations by 2050. • Water and Waste Goals compared to 20
Slide 22: Annual Sustainability Report 2023
22 Annual Sustainability Report 2023 Annual Sustainability Report expected in April. To access sustainability reports, visit RMR’s website at www.rmrgroup.com/corporate-sustainability
Slide 23: THE
THE Wikis RMR ~ Scar i vs ERGUP Financials
Slide 24: GAAP Results: Condensed Consolidated Statements of Income
24 GAAP Results: Condensed Consolidated Statements of Income Substantially all revenues are earned from related parties.
Slide 25: Condensed Consolidated Balance Sheets
25 Condensed Consolidated Balance Sheets
Slide 26: Definitions
26 Definitions
Slide 27: Definitions
27 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-c
Slide 28: Definitions (Continued)
28 Definitions (Continued) Non-GAAP Measures: RMR presents certain “non-GAAP financial measures” within the meaning of the applicable rules of the SEC, including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBI
Slide 29: Two Newton Place, Newton, MA
29 Investor Presentation March 2024 Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 RMRGROUP.COM