The RMR Group(RMR)

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The RMR Group(RMR) - 2025 Q1 - Quarterly Results
2025-02-05 21:17
Financial Performance - RMR Group reported net income of $14.1 million for Q1 FY2025, with net income attributable to the company at $6.4 million or $0.38 per diluted share[15]. - Adjusted net income attributable to RMR Group was $5.8 million, or $0.35 per share, while distributable earnings were $14.7 million, or $0.46 per diluted share[15]. - Total revenues for the quarter reached $219.476 million, representing a 21% increase compared to the previous period[30]. - Operating income was reported at $13.388 million, with a net income attributable to The RMR Group Inc. of $6.380 million[31]. - Basic earnings per share (EPS) was $0.38, with diluted EPS also at $0.38[34]. - Net income attributable to The RMR Group Inc. for the three months ended December 31, 2023, was $6,997,000, with adjusted net income of $8,279,000[52]. - Adjusted EBITDA for the same period was $20,923,000, resulting in an adjusted EBITDA margin of 42.1%[55]. - The distribution payout ratio for the quarter was 69.8%, compared to 63.3% in the previous quarter[16]. - The distribution payout ratio for The RMR Group LLC was 69.8%[57]. - The estimated income tax expense for the quarter was approximately 28.5%[53]. Assets and Management - Assets under management (AUM) increased to $40.3 billion, with fee-earning AUM at $27.0 billion[15]. - The principal balance of real estate loans held for investment totaled $58.6 million, with secured financing of $69.3 million[29]. - Total current assets amounted to $291.045 million, while total liabilities were reported at $270.988 million[35]. - Cash and cash equivalents held by The RMR Group Inc. were $24.4 million as of December 31, 2024[77]. - The company holds cash and cash equivalents totaling $147.580 million, indicating strong liquidity[35]. Investments and Acquisitions - RMR entered into a $100 million senior secured revolving credit facility, maturing on January 22, 2028, with an interest rate of SOFR plus a margin[15]. - The company closed a joint venture acquisition of a residential community in Pompano Beach, FL, and is under contract for another acquisition in Sunrise, FL, with a total transaction value of $19 million[15]. - RMR expects to raise $63.1 million in equity to capitalize these joint ventures and secure $122.4 million in financing[15]. - The acquisition of MPC Partnership Holdings LLC included an earnout of up to $1 million, contingent on capital commitments[68]. Revenue and Earnings Breakdown - The company generated $46.5 million in run rate net operating income (NOI) from its real estate investments[29]. - Total management and advisory services revenues amounted to $47,392,000, with a net income margin of 29.8%[55]. - The company reported a total of $28,347,000 in base business management and advisory revenues[62]. - The total distributions from The RMR Group LLC were $12,381,000[55]. - The company experienced a gain on investments of $1,071,000 during the quarter[54]. Operational Efficiency - Adjusted EBITDA for the quarter was $20.9 million, with an adjusted EBITDA margin of 42.1%[15]. - The company incurred total expenses of $206.088 million, leading to an operating margin of approximately 6.1%[30]. - Technology transformation investments accounted for $273,000 in the adjusted EBITDA calculation[54]. - Annualized net operating income (NOI) excludes interest expense and depreciation, reflecting the company's focus on core rental income[79]. Market Strategy and Future Outlook - The company continues to explore market expansion and new strategies, including the management of private capital vehicles[79]. - RMR's financial results were supported by continued cost containment efforts to offset challenges in managed equity REITs[8]. - The net income margin for the three months ended December 31, 2024, was impacted by a net loss attributable to noncontrolling interest in consolidated entities[73]. - The RMR Group LLC's tax distributions are based on estimated tax liabilities and ownership percentages, leading to fluctuations in quarterly distributions[73].
Earnings Preview: RMR Group (RMR) Q1 Earnings Expected to Decline
ZACKSยท 2025-01-29 16:06
Core Viewpoint - RMR Group is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.35 per share, reflecting a year-over-year decrease of 28.6%, while revenues are projected to be $263.5 million, a slight increase of 0.7% from the previous year [3]. - The consensus EPS estimate has been revised down by 8.97% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for RMR Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.45%, which complicates the prediction of an earnings beat [10][11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank, but RMR Group currently holds a Zacks Rank of 3, making it challenging to predict a positive outcome [8][11]. Historical Performance - In the last reported quarter, RMR Group was expected to post earnings of $0.38 per share but only achieved $0.34, resulting in a surprise of -10.53% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once, indicating a pattern of underperformance [13]. Conclusion - RMR Group does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [16].
The RMR Group(RMR) - 2024 Q4 - Earnings Call Transcript
2024-11-12 19:51
Financial Data and Key Metrics Changes - The company reported adjusted net income per share of $0.34, distributable earnings per share of $0.51, and adjusted EBITDA of $21.8 million for Q4 2024, which were generally in line with expectations [6][18] - Recurring service revenues decreased to $48 million, down approximately $900,000 sequentially, primarily due to declines in Managed Equity REIT share prices and construction supervision fees [19] - The company expects adjusted earnings per share to range from $0.34 to $0.36, adjusted EBITDA to range from $21 million to $22 million, and distributable earnings to range from $0.46 to $0.48 for the next quarter [25] Business Line Data and Key Metrics Changes - The real estate lending platform, Tremont Realty Capital, has originated $67 million in aggregate commitments for a private debt vehicle, expected to generate mid-teen returns [9] - The Denver multifamily investment generated approximately $900,000 of net operating income this quarter, with expectations to contribute approximately $1.1 million going forward [22] - Recurring cash compensation was $44 million, reflecting a decline of approximately $1 million sequentially due to headcount actions [23] Market Data and Key Metrics Changes - The company is seeing increased transaction activity and a more energized fundraising environment, particularly from legacy institutional partners and potential new capital partners [7][8] - The U.S. multifamily market is positioned for significant long-term growth due to a housing shortage and high homeownership costs [11] Company Strategy and Development Direction - The company is focused on expanding its private capital business while supporting public clients through a challenging commercial real estate environment [7] - Strategic initiatives include progressing the fundraising process for a private debt vehicle and expanding the RMR Residential platform [9][10] - The company aims to assist managed equity REITs with operational and financial strategies, including significant actions to improve liquidity and reduce leverage [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering a more favorable market environment, with a robust and growing pipeline of opportunities [8][17] - The fundraising cycle remains elongated, but the company is confident in its ability to capture opportunities as the commercial real estate market improves [8] - Management highlighted the importance of deleveraging and rightsizing the balance sheets of public vehicles to enhance stock price performance over time [30][31] Other Important Information - The company arranged 5.2 million square feet of leasing on behalf of clients during the quarter, including significant renewals with Vertex Pharmaceuticals and FedEx [12] - DHC is conducting a comprehensive portfolio analysis to transform its asset mix, with agreements to sell 28 properties for estimated proceeds of $348 million [16] Q&A Session Summary Question: Cash position and deployment in RMR Residential - Management indicated that a good amount of cash is open for investment in various initiatives, with $5 million to $10 million needed for general operations [26][27] Question: Syndicating equity stakes in RMR Residential - Management noted increased receptivity in the market for syndicating equity, with expectations to retain less than 20% equity stake in investments [28] Question: Impact of asset sales on management fees - Management discussed the balance between base management fees and potential incentive management fees, focusing on the long-term benefits of deleveraging public vehicles [29][30] Question: Pipeline for RMR Residential and private lending vehicle - Management indicated that both the lending vehicle and residential investments are likely more of a 2025 story, with increasing momentum observed [33][34] Question: Expected cash balance at year-end - Management expects cash to increase to approximately $150 million by December 31, with strategic investments anticipated to accelerate in 2025 [35][36] Question: Additional loan and multifamily investments - Management confirmed the potential for more investments in both credit and residential sectors, with significant interest from investors [39]
RMR Group (RMR) Q4 Earnings and Revenues Miss Estimates
ZACKSยท 2024-11-11 23:31
RMR Group (RMR) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.53%. A quarter ago, it was expected that this real estate management services provider would post earnings of $0.39 per share when it actually produced earnings of $0.37, delivering a surprise of -5.13%.Over the last ...
Ahead of RMR Group (RMR) Q4 Earnings: Get Ready With Wall Street Estimates for Key Metrics
ZACKSยท 2024-11-08 15:16
Wall Street analysts expect RMR Group (RMR) to post quarterly earnings of $0.38 per share in its upcoming report, which indicates a year-over-year decline of 20.8%. Revenues are expected to be $220.15 million, down 1.3% from the year-ago quarter.The current level reflects a downward revision of 2.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Prior to a comp ...
The RMR Group(RMR) - 2024 Q2 - Earnings Call Presentation
2024-08-02 16:53
The RMR Group Inc. Announces Third Quarter Fiscal 2024 Financial Results August 1, 2024 THE RMR GROUP INC. ANNOUNCES THIRD QUARTER FISCAL 2024 FINANCIAL RESULTS Newton, MA (August 1, 2024). The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended June 30, 2024. Dividend RMR has declared a quarterly dividend on its Class A Common Stock and Class B-1 Common Stock of $0.45 per share to shareholders of record as of the close of business on July 22, 2024. This dividend ...
The RMR Group(RMR) - 2024 Q3 - Earnings Call Transcript
2024-08-02 16:53
The RMR Group Inc. (NASDAQ:RMR) Q3 2024 Earnings Conference Call August 2, 2024 10:00 AM ET Company Participants Kevin Barry - Senior Director, IR Adam Portnoy - President and CEO Matt Jordan - CFO Conference Call Participants Bryan Maher - B. Riley Securities Ronald Kamdem - Morgan Stanley Operator Good morning. And welcome to the RMR Group Fiscal Third Quarter 2024 Earnings Conference Call. All participants will be in listen only mode [Operator Instructions]. Please note that this event is being recorded. ...
RMR Group (RMR) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKSยท 2024-08-02 00:36
For the quarter ended June 2024, RMR Group (RMR) reported revenue of $205.48 million, down 26.7% over the same period last year. EPS came in at $0.37, compared to $0.48 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $227.68 million, representing a surprise of -9.75%. The company delivered an EPS surprise of -5.13%, with the consensus EPS estimate being $0.39. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...
RMR Group (RMR) Misses Q3 Earnings and Revenue Estimates
ZACKSยท 2024-08-01 23:40
RMR Group (RMR) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.13%. A quarter ago, it was expected that this real estate management services provider would post earnings of $0.40 per share when it actually produced earnings of $0.39, delivering a surprise of -2.50%. Over the last ...
The RMR Group: A Strong Buy With Low Risk
Seeking Alphaยท 2024-07-15 14:20
and advisory services revenues, i.e. about 11% of the total. The company hasar't broken out profitability by division/segment, but given that the purchase price of CARROLL was only $100M, it's likely that the acquisition has been accretive from day 1. Ended March 30, 2025 10Q The biggest new future catalyst is likely to be an improving real estate market, assuming current predictions of rate cuts in the September to December to December 2024 tim prove prophetic. And while one of the strengths of RMR is that ...