The Rmr Group Inc. · NASDAQ:RMR
The Rmr — Q2 2023 Earnings Presentation
26 slides from The Rmr's earnings presentation, May 4, 2023
Slide 1: The RMR Group Inc. Announces Second Quarter Fiscal 2023 Financial Results
The RMR Group Inc. Announces Second Quarter Fiscal 2023 Financial Results May 3, 2023
Slide 2: The RMR Group Inc. Announces Second Quarter Fiscal 2023 Financial Results
THE RMR GROUP INC. ANNOUNCES SECOND QUARTER FISCAL 2023 FINANCIAL RESULTS Newton, MA (May 3, 2023). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended March 31, 2023. Dividend "We are pleased with our second quarter RMR has declared a quarterly divide
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: Second Quarter Fiscal 2023 Financial Results
Second Quarter Fiscal 2023 Financial Results
Slide 5: The RMR Group Inc.'s Second Quarter Fiscal 2023 Highlights
THE RMR GROUP INC.'S SECOND QUARTER FISCAL 2023 HIGHLIGHTS • Assets Under Management of $37.3 Billion • Net Income of $41.3 Million, Net Income Attributable to The RMR Group Inc. of $18.5 Million, or $1.11 Per Diluted Share and Net Income Margin of 85.7 % Financial • Adjusted Net Income of $8.1 Mill
Slide 6: Second Quarter Fiscal 2023 Highlights (Continued)
THE RMR GROUP INC.'S SECOND QUARTER FISCAL 2023 HIGHLIGHTS (CONTINUED) ($ in thousands, except per share amounts) 2Q'23 Per Share 2Q'22 Per Share GAAP Financial Measures Net Income $ 41,302 $ 14,589 Net Income Margin 85.7 % 29.6 % Net Income Attributable to The RMR Group Inc. $ 18,473 $ 1.11 $ 6,392
Slide 7: AUM by Source
AUM BY SOURCE ($ in thousands) AUM Fee-Earning AUM $7,640,481 $4,391,904 21% 17% 2Q'23 $29,628,801 $20,741,282 79% 83% $37,269,282 $25,133,186 Perpetual Managed Capital Public Real Estate Capital Private Managed Capital Private Real Estate Capital $4,068,933 $7,262,361 14% 19% 2Q'22 $30,403,703 $24,
Slide 8: Perpetual Capital AUM
PERPETUAL CAPITAL AUM ($ in thousands) Commercial Real Estate Fee-Earning Sector AUM AUM Service Properties Trust (NASDAQ: SVC) Hotels / Retail $ 11,010,990 $ 7,457,879 Medical Office & Life Science / Diversified Healthcare Trust (NASDAQ: DHC) Residential 7,472,011 3,153,102 Office Properties Income
Slide 9: Private Capital AUM and Investment Performance
PRIVATE CAPITAL AUM AND INVESTMENT PERFORMANCE ($ in thousands) Inception to 2Q'23 Date Fee-Earning Net Internal Net Internal AUM AUM Rate of Return (1) Rate of Return (1) Industrial Real Estate Funds ("Core Plus") * $ 3,941,093 $ 891,595 (2)% 6% Medical Office & Life Science Real Estate Funds ("Cor
Slide 10: AUM by Commercial Real Estate Sector
AUM BY COMMERCIAL REAL ESTATE SECTOR Medical Office & Life Science 13% 18% Office Residential 15% 18% Industrial Retail 19% 17% Hotels 10
Slide 11: 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 $34,340 $32,785 $11,408 $11,154 $5,771 $6,377 $2,121 $1,929 $28,569 $9,287 $9,225 $26,408 2Q'23 2Q'22 2Q'23 2Q'22 Perpetual CapitalReal Estate Capital Managed P
Slide 12: Managed Capital Spend & Construction Supervision Fees Revenue
MANAGED CAPITAL SPEND & CONSTRUCTION SUPERVISION FEES REVENUE ($ in thousands) Managed Capital Spend Construction Supervision Fees $89,218 $83,302 $4,016 $3,794 QTD 2Q'23 2Q'22 2Q'23 2Q'22 $218,236 $9,702 $151,252 $7,027 YTD 2Q'23 YTD 2Q'22 YTD 2Q'23 YTD 2Q'22 YTD 12
Slide 13: GAAP Results: Condensed Consolidated Statements of Income
GAAP RESULTS: CONDENSED CONSOLIDATED STATEMENTS OF INCOME ($ in thousands) (unaudited) 2Q'23 2Q'22 Revenues: Management services (1) $ 47,070 $ 48,151 Advisory services 1,139 1,137 Total management and advisory services revenues 48,209 49,288 Reimbursable compensation and benefits 14,883 13,506 Reim
Slide 14: GAAP Results: Earnings Per Common Share
GAAP RESULTS: EARNINGS PER COMMON SHARE (amounts in thousands, except per share amounts) (unaudited) 2Q'23 2Q'22 Numerators: Net income attributable to The RMR Group Inc. $ 18,473 $ 6,392 Less: income attributable to unvested participating securities (219) (62) Net income attributable to The RMR Gro
Slide 15: GAAP Results: Condensed Consolidated Balance Sheets
GAAP RESULTS: CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (unaudited) March 31, 2023 September 30, 2022 Assets Cash and cash equivalents $ 197,979 $ 189,088 Due from related parties 118,849 108,821 Prepaid and other current assets 5,530 5,372 Total current assets 322,358 303,281 Property
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Adjusted Net Income and Adjusted Net Income per Diluted Share
RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE Net Income Weighted Attributable Add: Income Less: Net Income Average to The RMR Net Income Net Income Add: Before Estimated Used in Common Group Inc. Attributable Attributable to Income Income Income Calculating Shares
Slide 18: Reconciliation of EBITDA and Adjusted EBITDA from Net Income
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FROM NET INCOME ($ in thousands) (unaudited) 2Q'23 2Q'22 Net income $ 41,302 $ 14,589 Income tax expense 6,883 2,451 Depreciation and amortization 272 242 EBITDA 48,457 17,282 Other asset amortization 2,354 2,354 Operating expenses paid in the form of The
Slide 19: Calculation of Margins, Distributable Earnings and 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) 2Q'23 2Q'22 Calculation of Net Income Margin: Total management and advisory services revenues $ 48,209 $ 49,288 Net incom
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 9 – 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 11 – MANAGEMENT AND ADVISORY SERVICES REVENUES BY SOURCE (CONTINUED) ($ in thousands) 2Q'23 2Q'22 BASE PROPERTY MANAGEMENT FEES DHC $ 1,490 $ 1,389 ILPT 3,315 2,724 OPI 3,537 4,094 SVC 945 1,018 Total Perpetual Capital 9,287 9,225 Other private entities 2,121 1,929 To
Slide 24: Notes (Continued)
NOTES (CONTINUED) Notes to page 13 – 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 (i
Slide 25: Notes (Continued)
NOTES (CONTINUED) Notes to page 14 – 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