RMR Projects $22M in Possible Incentive Fees and Expects Q1 Adjusted EBITDA of $18M to $20M as Private Capital Efforts Progress
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2025
0mins
Should l Buy RMR?
Source: SeekingAlpha
Financial Performance: RMR Group reported Q4 2025 distributable earnings of $0.44 per share and adjusted EBITDA of $20.5 million, with management noting strong results from DHC's senior housing segment and ongoing asset sales, including 40 hotels for over $292 million.
Outlook and Guidance: CFO Matthew Brown projected a decline in recurring service revenues to approximately $42.5 million next quarter due to the sale of AlerisLife's business, with expected adjusted EBITDA between $18 million to $20 million and distributable earnings per share between $0.42 and $0.44.
Risks and Concerns: Management highlighted risks from lost fee revenue due to the AlerisLife sale and uncertainties surrounding OPI's restructuring, while also noting rising interest expenses and potential declines in recurring revenue.
Strategic Focus: RMR remains committed to asset sales, deleveraging, and private capital fundraising, with a focus on adapting its strategy to capitalize on retail and residential opportunities while navigating market uncertainties.
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Analyst Views on RMR
Wall Street analysts forecast RMR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RMR is 17.00 USD with a low forecast of 17.00 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 16.860
Low
17.00
Averages
17.00
High
17.00
Current: 16.860
Low
17.00
Averages
17.00
High
17.00
About RMR
The RMR Group Inc. is an alternative asset management company, which is focused on commercial real estate (CRE) and related businesses. The Company is a holding company and operates through its subsidiary, The RMR Group LLC (RMR LLC). RMR LLC provides management services to four publicly traded equity real estate investment trusts (REITs): Diversified Healthcare Trust (DHC), which owns medical office and life science properties, senior living communities and other healthcare-related properties; Industrial Logistics Properties Trust (ILPT), which owns and leases industrial and logistics properties; Office Properties Income Trust (OPI), which owns and leases office properties primarily to single tenants and those with high credit quality characteristics; and Service Properties Trust (SVC), which owns a diverse portfolio of hotels and service-focused retail net lease properties. In addition, RMR LLC provides management services to private capital vehicles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RMR Group Q1 2026 Earnings Highlights
- Strong Financial Performance: RMR Group reported distributable earnings of $0.47 per share, adjusted net income of $0.20 per share, and adjusted EBITDA of $19.5 million for Q1 2026, all exceeding expectations and reflecting robust market performance and profitability.
- Strategic Actions Yield Results: RMR's strategic management of DHC and ILPT generated $23.6 million in incentive fees, with DHC and ILPT ranking as the #1 and #3 best-performing REITs in the U.S., further solidifying RMR's leadership position in the real estate investment trust sector.
- Asset Disposition and Debt Management: DHC sold 69 properties in 2025 for gross proceeds of $605 million, successfully repaying zero coupon senior secured notes due in 2026, ensuring no debt maturities until 2028 and enhancing financial flexibility.
- Future Outlook and Risks: Management anticipates recurring service revenues to decrease to approximately $41 million next quarter, primarily due to revenue pressures from asset sales and contract wind-downs, yet remains optimistic about the launch of the multifamily fund and capital raising efforts, demonstrating confidence in future growth.
See More
RMR Group Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: RMR Group reported a GAAP EPS of $0.71 for Q1, exceeding expectations by $0.47, indicating strong profitability despite challenges in revenue generation.
- Revenue Decline: The company's revenue of $180.42 million represents a 17.8% year-over-year decrease, missing estimates by $10.13 million, reflecting market challenges and potential impacts on investor confidence moving forward.
- Stock Price Increase: Despite missing revenue targets, RMR Group's shares rose by 2.11%, suggesting market recognition of its earnings strength and potentially attracting more investor interest in its long-term value.
- Incentive Management Fees: RMR Group earned $23.6 million in incentive business management fees in 2025, demonstrating its ongoing profitability and competitive position in asset management, which could lay the groundwork for future growth.
See More
RMR Group Appoints Peter Welch as Senior VP of International Expansion
- International Expansion: RMR Group has appointed Peter Welch as Senior Vice President of International, focusing on expanding the company's international brand and relationships with global institutional capital partners, aiming to enhance its reputation and attract new capital sources.
- Capital Formation Strategy: Welch's role complements Mary Smendzuika's position as Head of Capital Formation, who primarily focuses on North American institutional partners, thereby enhancing RMR's competitiveness in the global capital markets.
- Extensive Industry Experience: Welch previously served as a Senior Advisor at Bain Capital Credit and was the CEO for Asia Pacific at Wells Fargo Securities, bringing valuable relationships with sovereign wealth funds, pension plans, and family offices, which are expected to create new investment opportunities for RMR.
- Asset Management Scale: RMR Group manages approximately $39 billion in assets with nearly 900 real estate professionals, and Welch's addition is anticipated to further drive the expansion of the company's global investor base and private capital assets under management.
See More
Office Properties Income Trust (OPI) Announces 2025 Dividend Tax Characterization
- Dividend Overview: OPI announces a total dividend of $0.02 per share for 2025, which includes ordinary income and qualified dividends, reflecting the company's stable cash flow and shareholder return capacity.
- Tax Information Transparency: The dividend tax characterization provided by the company will assist shareholders in accurate tax reporting, ensuring compliance and enhancing investor confidence.
- Asset Management Background: Managed by RMR Group, which oversees approximately $39 billion in assets, indicating OPI's strong management capabilities and market position in commercial real estate.
- Property Portfolio Scale: OPI owns 122 properties across the U.S., with approximately 17.1 million rentable square feet, showcasing its extensive footprint and influence in the office property market.
See More
Diversified Healthcare Trust (DHC) Announces 2025 Dividend Allocation Details
- Dividend Overview: Diversified Healthcare Trust (DHC) announced a total dividend allocation of $0.04 per share for 2025, covering four payment dates, indicating the company's ongoing cash flow stability.
- Tax Information Reminder: DHC advises shareholders to refer to IRS Form 1099-DIV for tax reporting, ensuring shareholders are aware of the tax implications of dividends, thereby enhancing transparency.
- Portfolio Scale: As of September 30, 2025, DHC's portfolio is valued at approximately $6.7 billion, encompassing 335 properties, showcasing its extensive footprint in the healthcare real estate sector.
- Management Company Background: DHC is managed by RMR Group, which oversees approximately $39 billion in assets and has over 35 years of experience in commercial real estate operations, bolstering DHC's credibility in the market.
See More
RMR Group Declares $0.45 Quarterly Dividend with 11.11% Yield
- Quarterly Dividend Announcement: RMR Group declared a quarterly dividend of $0.45 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- High Yield Appeal: The forward yield of 11.11% not only reflects the deep value of the company in asset management but may also enhance market demand for its stock, potentially boosting share price performance.
- Future Earnings Outlook: RMR Group anticipates adjusted EBITDA between $18 million and $20 million for Q1 2025, indicating positive performance in advancing private capital initiatives, which could further bolster investor confidence.
- Incentive Management Fee Growth: The company earned $23.6 million in incentive business management fees in 2025, showcasing its profitability and growth potential in asset management, which may support future shareholder returns.
See More
RMR Group Q1 2026 Earnings Highlights
- Strong Financial Performance: RMR Group reported distributable earnings of $0.47 per share, adjusted net income of $0.20 per share, and adjusted EBITDA of $19.5 million for Q1 2026, all exceeding expectations and reflecting robust market performance and profitability.
- Strategic Actions Yield Results: RMR's strategic management of DHC and ILPT generated $23.6 million in incentive fees, with DHC and ILPT ranking as the #1 and #3 best-performing REITs in the U.S., further solidifying RMR's leadership position in the real estate investment trust sector.
- Asset Disposition and Debt Management: DHC sold 69 properties in 2025 for gross proceeds of $605 million, successfully repaying zero coupon senior secured notes due in 2026, ensuring no debt maturities until 2028 and enhancing financial flexibility.
- Future Outlook and Risks: Management anticipates recurring service revenues to decrease to approximately $41 million next quarter, primarily due to revenue pressures from asset sales and contract wind-downs, yet remains optimistic about the launch of the multifamily fund and capital raising efforts, demonstrating confidence in future growth.
See More
RMR Group Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: RMR Group reported a GAAP EPS of $0.71 for Q1, exceeding expectations by $0.47, indicating strong profitability despite challenges in revenue generation.
- Revenue Decline: The company's revenue of $180.42 million represents a 17.8% year-over-year decrease, missing estimates by $10.13 million, reflecting market challenges and potential impacts on investor confidence moving forward.
- Stock Price Increase: Despite missing revenue targets, RMR Group's shares rose by 2.11%, suggesting market recognition of its earnings strength and potentially attracting more investor interest in its long-term value.
- Incentive Management Fees: RMR Group earned $23.6 million in incentive business management fees in 2025, demonstrating its ongoing profitability and competitive position in asset management, which could lay the groundwork for future growth.
See More
RMR Group Appoints Peter Welch as Senior VP of International Expansion
- International Expansion: RMR Group has appointed Peter Welch as Senior Vice President of International, focusing on expanding the company's international brand and relationships with global institutional capital partners, aiming to enhance its reputation and attract new capital sources.
- Capital Formation Strategy: Welch's role complements Mary Smendzuika's position as Head of Capital Formation, who primarily focuses on North American institutional partners, thereby enhancing RMR's competitiveness in the global capital markets.
- Extensive Industry Experience: Welch previously served as a Senior Advisor at Bain Capital Credit and was the CEO for Asia Pacific at Wells Fargo Securities, bringing valuable relationships with sovereign wealth funds, pension plans, and family offices, which are expected to create new investment opportunities for RMR.
- Asset Management Scale: RMR Group manages approximately $39 billion in assets with nearly 900 real estate professionals, and Welch's addition is anticipated to further drive the expansion of the company's global investor base and private capital assets under management.
See More
Office Properties Income Trust (OPI) Announces 2025 Dividend Tax Characterization
- Dividend Overview: OPI announces a total dividend of $0.02 per share for 2025, which includes ordinary income and qualified dividends, reflecting the company's stable cash flow and shareholder return capacity.
- Tax Information Transparency: The dividend tax characterization provided by the company will assist shareholders in accurate tax reporting, ensuring compliance and enhancing investor confidence.
- Asset Management Background: Managed by RMR Group, which oversees approximately $39 billion in assets, indicating OPI's strong management capabilities and market position in commercial real estate.
- Property Portfolio Scale: OPI owns 122 properties across the U.S., with approximately 17.1 million rentable square feet, showcasing its extensive footprint and influence in the office property market.
See More
Diversified Healthcare Trust (DHC) Announces 2025 Dividend Allocation Details
- Dividend Overview: Diversified Healthcare Trust (DHC) announced a total dividend allocation of $0.04 per share for 2025, covering four payment dates, indicating the company's ongoing cash flow stability.
- Tax Information Reminder: DHC advises shareholders to refer to IRS Form 1099-DIV for tax reporting, ensuring shareholders are aware of the tax implications of dividends, thereby enhancing transparency.
- Portfolio Scale: As of September 30, 2025, DHC's portfolio is valued at approximately $6.7 billion, encompassing 335 properties, showcasing its extensive footprint in the healthcare real estate sector.
- Management Company Background: DHC is managed by RMR Group, which oversees approximately $39 billion in assets and has over 35 years of experience in commercial real estate operations, bolstering DHC's credibility in the market.
See More
RMR Group Declares $0.45 Quarterly Dividend with 11.11% Yield
- Quarterly Dividend Announcement: RMR Group declared a quarterly dividend of $0.45 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy, which is likely to attract more investor interest.
- High Yield Appeal: The forward yield of 11.11% not only reflects the deep value of the company in asset management but may also enhance market demand for its stock, potentially boosting share price performance.
- Future Earnings Outlook: RMR Group anticipates adjusted EBITDA between $18 million and $20 million for Q1 2025, indicating positive performance in advancing private capital initiatives, which could further bolster investor confidence.
- Incentive Management Fee Growth: The company earned $23.6 million in incentive business management fees in 2025, showcasing its profitability and growth potential in asset management, which may support future shareholder returns.
See More
