The RMR Group Inc. Announces Second Quarter Fiscal 2021 Results

Rhea-AI Summary

The RMR Group Inc. (Nasdaq: RMR) reported its financial results for the fiscal quarter ending March 31, 2021. The company generated total management and advisory services revenues of $42.0 million, a decline from $44.1 million in the same quarter of 2020. Despite this, RMR noted its third consecutive quarter of revenue growth since early pandemic lows, primarily driven by its Managed Equity REITs. The company holds $376 million in cash with no debt, and anticipates earning $20.8 million in estimated incentive fees this year.

Positive

• Generated total management and advisory services revenues of $42.0 million, marking growth from early pandemic lows.
• Strong balance sheet with over $376 million in cash and no debt.
• Anticipating earning estimated incentive fees of $20.8 million in 2021.

Negative

• Total management and advisory services revenues decreased from $44.1 million in Q1 2020 to $42.0 million in Q1 2021.
• Assets under management (AUM) decreased from $32.1 billion in Q1 2020 to $31.8 billion in Q1 2021.

The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended March 31, 2021.

Adam Portnoy, President and Chief Executive Officer, made the following statement regarding the second quarter fiscal 2021 results:

“In the second fiscal quarter, RMR generated total management and advisory services revenues of $42.0 million, which represents our third straight quarter of service revenue growth from early pandemic lows and primarily comes from growth at our Managed Equity REITs. Throughout the pandemic, we have remained focused as an organization on the recovery and repositioning of our clients, which includes recent efforts such as strategically amending the Five Star Senior Living and Diversified Healthcare Trust management agreements, assisting RMR Mortgage Trust and Tremont Mortgage Trust with their agreement to merge into a larger more diversified commercial mortgage REIT and successfully assisting Sonesta in taking on the management of almost 200 Service Properties Trust owned hotels.

We are also cautiously optimistic that we may begin earning incentive fees this calendar year, as Office Properties Income Trust began accruing a $20.8 million estimated incentive fee for calendar 2021 based on its total return per share out-performance relative to its peers. RMR’s balance sheet remains strong, with over $376 million of cash on hand and no debt, leaving us well positioned as we assess capital allocation strategies.”

Second Quarter Fiscal 2021 Highlights:

• As of March 31, 2021, The RMR Group LLC had $31.8 billion of assets under management, or AUM, compared to $32.1 billion as of March 31, 2020.
• Total management and advisory services revenues for the quarter ended March 31, 2021, were $42.0 million, including $0.6 million of incentive business management fees from Tremont Mortgage Trust, compared to $44.1 million for the quarter ended March 31, 2020.
• The RMR Group LLC’s AUM and management and advisory services revenues by source are as follows (dollars in thousands):

									Total
									Management
									and Advisory
		AUM							S

FAQ

What were RMR's revenues for the second quarter of fiscal 2021?

RMR reported total management and advisory services revenues of $42.0 million for the second quarter of fiscal 2021.

How much cash does RMR have on hand?

RMR has over $376 million in cash with no debt.

What is the estimated incentive fee RMR expects to earn in 2021?

RMR anticipates earning an estimated incentive fee of $20.8 million in 2021.

What was the change in RMR's assets under management as of March 31, 2021?

RMR's assets under management decreased from $32.1 billion as of March 31, 2020, to $31.8 billion as of March 31, 2021.