Financial Data and Key Metrics Changes - The company reported Distributable Earnings of $0.47 per share, Adjusted Net Income of $0.20 per share, and Adjusted EBITDA of $19.5 million for the first quarter of fiscal 2026, all of which exceeded or were at the high end of expectations [4][17] - Recurring service revenues were approximately $43 million, a sequential quarter decrease of approximately $2.5 million, primarily due to the wind down of AlerisLife's business and a decrease in SVC's enterprise value [17] - The company expects recurring service revenues to decrease to approximately $41 million in the next quarter [18] Business Line Data and Key Metrics Changes - DHC sold 37 properties for gross proceeds of approximately $250 million in the fourth quarter, and a total of 69 properties for approximately $605 million in 2025 [6][7] - SVC completed the sale of 66 hotels for approximately $534 million during the quarter and sold a total of 112 hotels in 2025 for $859 million [8] - ILPT successfully refinanced over $1.2 billion of debt in 2025 and materially increased its dividend [9] Market Data and Key Metrics Changes - The company arranged nearly 10 million square feet of leasing at rental rates approximately 13% higher than previous rents for the same space [12] - The managed portfolio of RMR Residential ended the year with approximately 93% occupancy and a resident retention rate of over 70% [14] Company Strategy and Development Direction - The company is focused on enhancing its private capital growth initiatives and has hired Peter Welch to lead international capital formation [12][13] - RMR is actively exploring investment opportunities in multifamily, retail, and select development projects [30] - The company aims to raise approximately $250 million for its enhanced growth venture fundraising [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance of multifamily assets, noting strong operational results and tenant retention rates [39] - The company anticipates a challenging fundraising environment but remains focused on residential and select development opportunities [13] - Management expects to see an increase in quarterly Adjusted EBITDA from additional dividends on increased investment in Seven Hills [21] Other Important Information - The company ended the quarter with nearly $150 million of total liquidity, including nearly $50 million in cash and $100 million of capacity on its undrawn revolving credit facility [22] - OPI filed for Chapter 11 bankruptcy, with the process ongoing [10] Q&A Session Summary Question: Comments on Peter's addition and fundraising efforts - Management clarified that the addition of Peter Welch is to bolster existing fundraising efforts, focusing on both U.S. and international capital [24][25] Question: Investment products for capital raising - Management indicated a focus on multifamily, loans, and retail investments, with a strong interest in multifamily for 2026 [30] Question: Performance of multifamily assets - Management noted strong operational results and tenant retention in multifamily assets, with rent growth approaching 5% [39] Question: Transition from adjusted net income to guidance - Management explained expected headwinds from the AlerisLife contract and lower construction management fees impacting future earnings [41][42] Question: Appetite for loan investments - Management views lending as a growth engine, with expectations for an active year in new loans primarily through Seven Hills [44][46] Question: Timeline for multifamily fund capital raising - Management aims to raise capital for the multifamily fund as soon as possible, with expectations for completion within fiscal year 2026 [48]