Download PDF

1. Company Snapshot

1.a. Company Description

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States.The company provides management services to its four publicly traded real estate investment trusts and three real estate operating companies.It also provides investment advisory services.


The company was formerly known as REIT Management & Research Inc.and changed its name to The RMR Group Inc.in September 2015.


The RMR Group Inc.was founded in 1986 and is headquartered in Newton, Massachusetts.

Show Full description

1.b. Last Insights on RMR

The RMR Group Inc.'s recent performance was positively driven by its high-yielding dividend and deep value in asset management. The company's strategic shift from reliance on four REITs to private capital and residential strategies is expected to drive long-term value creation. Additionally, the OPI restructuring secured new management fees and equity, while expansion into private credit via SEVN presents an upside driver. The company also earned $23.6 million in incentive business management fees for the 2025 calendar year.

1.c. Company Highlights

2. RMR Group's Q1 Earnings Exceed Expectations

RMR Group reported a strong financial performance in the first quarter of 2026, with distributable earnings of $0.47 per share, adjusted net income of $0.20 per share, and adjusted EBITDA of $19.5 million, all of which exceeded or were at the high end of their guidance. The actual EPS of $0.20 beat analysts' estimates of $0.18. Recurring service revenues were approximately $43 million, a sequential quarter decrease of approximately $2.5 million, driven primarily by the wind down of AlerisLife's business and a decrease in SVC's enterprise value as proceeds from hotel sales were used to repay debt.

Publication Date: Mar -05

📋 Highlights
  • Outperformed Guidance:: Distributable earnings of $0.47/share and adjusted EBITDA of $19.5M exceeded or reached the high end of guidance.
  • Seven Hills Capital Raise:: Completed a $65.2M rights offering, enabling over $200M in gross loan investments via the mortgage REIT platform.
  • Leasing Success:: Arranged ~10M sq ft of leasing at 13% higher rental rates for the same space, boosting revenue stability.
  • Balance Sheet Strength:: Ended the quarter with $150M total liquidity ($50M cash + $100M undrawn credit facility).
  • Declining Guidance:: Adjusted net income guidance cut from $0.20/share to $0.12–$0.14/share due to asset sales and debt paydowns at DHC and SVC.

Business Highlights

The company made significant progress in the quarter, with DHC continuing to improve SHOP NOI margins and selling noncore assets to further delever its balance sheet. SVC continues to make significant progress selling noncore hotels to delever its balance sheet. ILPT had a successful year of leasing activity and indicated during its third quarter earnings call that it was expecting a strong end to the year as it finalized a large number of lease renewals. Seven Hills, the mortgage REIT, completed a rights offering in December that raised gross proceeds of $65.2 million, which should allow for over $200 million in gross loan investments.

Private Capital Fundraising

RMR is making investments to further scale its private capital platform and reduce the use of third-party placement agents. The company recently announced the hiring of Peter Welch to lead International Capital Formation, which is expected to be instrumental in growing the Sonesta platform and improving EBITDA margins at the SVC-owned hotels. As Adam Portnoy mentioned, "We have four dedicated people now at the RMR Group dedicated wholly to raising capital privately."

Valuation and Outlook

With a P/E Ratio of 12.38 and a Dividend Yield of 10.4%, RMR's stock appears to be reasonably valued. Analysts estimate revenue growth at 3.8% for the next year. The company's investment outlook includes an active year for loan investments, with a focus on the Seven Hills mortgage REIT. Guidance for adjusted net income in 1Q '26 is $0.20, with a forecasted decrease to $0.12 to $0.14 due to several factors, including the sale of AlerisLife assets and debt paydowns at DHC and SVC.

Multifamily Performance

The multifamily assets on RMR's balance sheet are performing well, with most being early in their life cycle. The company is seeing strong operational results, including a 70% tenant retention rate, and rent growth approaching 5%. This outperformance is attributed to the company's in-house expertise and data-driven approach in identifying key submarkets.

3. NewsRoom

Card image cap

Comparing W.P. Carey (NYSE:WPC) and Service Properties Trust (NASDAQ:SVC)

Mar -22

Source: defenseworld.net

Card image cap

14 Ideal 'Safer' Dividend Buys From 70 Mid-March Graham Value All-Stars (GVAS)

Mar -12

Source: seekingalpha.com

Card image cap

The RMR Group (NASDAQ:RMR) versus Henderson Land Development (OTCMKTS:HLDCY) Head-To-Head Comparison

Mar -08

Source: defenseworld.net

Card image cap

The RMR Group (NASDAQ:RMR) Stock Passes Below Fifty Day Moving Average – Here’s What Happened

Mar -03

Source: defenseworld.net

Card image cap

14 Ideal 'Safer' Dividend Buys From 29 Of 69 March Graham Value All-Stars (GVAS)

Mar -01

Source: seekingalpha.com

Card image cap

Smith+Nephew signs exclusive US distribution agreement with RMR Ortho for patented technology that provides a unique dynamic compression nitinol fixation option (A'TOMIC™) to our surgeons

Feb -24

Source: globenewswire.com

Card image cap

Contrasting CareTrust REIT (NYSE:CTRE) & Industrial Logistics Properties Trust (NASDAQ:ILPT)

Feb -24

Source: defenseworld.net

Card image cap

Head to Head Analysis: The RMR Group (NASDAQ:RMR) & Colliers International Group (NASDAQ:CIGI)

Feb -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.95%)

6. Segments

Other Reimbursable Expenses

Expected Growth: 4.83%

The 4.83% growth in Other Reimbursable Expenses at The RMR Group Inc. is driven by increased property management fees, higher reimbursement rates, and an expansion of services offered to clients, resulting in higher billable hours and expenses. Additionally, the company's growing portfolio of properties under management has led to increased expenses related to property operations and maintenance.

Management Services

Expected Growth: 8.4%

The 8.4% growth in Management Services from The RMR Group Inc. is driven by increasing demand for property management and leasing services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology integration and operational efficiency has improved its ability to attract and retain clients, contributing to revenue growth.

Reimbursable Compensation and Benefits

Expected Growth: 8.37%

The 8.37% growth in Reimbursable Compensation and Benefits from The RMR Group Inc. is driven by increasing property values, rising rent and fees, and a growing portfolio of properties under management, resulting in higher reimbursement rates and fees earned.

Termination and Incentive Business Management Fees

Expected Growth: 7.92%

The 7.92% growth in Termination and Incentive Business Management Fees from The RMR Group Inc. is driven by increasing demand for property management services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

Reimbursable Equity Based Compensation

Expected Growth: 8.9%

The 8.9% growth in Reimbursable Equity Based Compensation from The RMR Group Inc. is driven by increasing property values, rising management fees, and a growing portfolio of properties under management. Additionally, the company's ability to attract and retain top talent through competitive compensation packages has contributed to the growth.

Advisory Services

Expected Growth: 8.37%

The RMR Group Inc.'s 8.37% growth in Advisory Services is driven by increasing demand for real estate investment management, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in property management and leasing, as well as its ability to provide comprehensive solutions to clients, contribute to its growth momentum.

7. Detailed Products

Property Management

The RMR Group Inc. provides property management services to commercial and residential properties, including office buildings, apartments, and condominiums.

Facilities Management

The RMR Group Inc. offers facilities management services to ensure that buildings and facilities are well-maintained and running efficiently.

Construction Management

The RMR Group Inc. provides construction management services to oversee construction projects from start to finish.

Leasing and Brokerage

The RMR Group Inc. provides leasing and brokerage services to help property owners find tenants and negotiate leases.

Investment and Advisory Services

The RMR Group Inc. provides investment and advisory services to help clients make informed investment decisions.

8. The RMR Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The RMR Group Inc. is medium due to the availability of alternative investment options for investors.

Bargaining Power Of Customers

The bargaining power of customers for The RMR Group Inc. is low due to the company's diversified portfolio and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The RMR Group Inc. is medium due to the company's reliance on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants for The RMR Group Inc. is high due to the relatively low barriers to entry in the real estate investment trust (REIT) industry.

Intensity Of Rivalry

The intensity of rivalry for The RMR Group Inc. is high due to the competitive nature of the REIT industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.15%
Debt Cost 3.95%
Equity Weight 88.85%
Equity Cost 10.55%
WACC 9.82%
Leverage 12.54%

11. Quality Control: The RMR Group Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
RMR Group

A-Score: 6.4/10

Value: 7.5

Growth: 4.4

Quality: 5.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Newmark

A-Score: 4.8/10

Value: 5.6

Growth: 4.0

Quality: 4.4

Yield: 2.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Kennedy-Wilson Holdings

A-Score: 4.6/10

Value: 4.8

Growth: 3.7

Quality: 2.4

Yield: 9.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
RE/MAX

A-Score: 4.6/10

Value: 9.2

Growth: 3.2

Quality: 7.1

Yield: 2.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Marcus Millichap

A-Score: 4.2/10

Value: 5.7

Growth: 1.4

Quality: 5.5

Yield: 3.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
FRP Holdings

A-Score: 3.9/10

Value: 2.9

Growth: 4.0

Quality: 6.2

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.53$

Current Price

15.53$

Potential

-0.00%

Expected Cash-Flows