Earnings

RMR Group Distributable Earnings Beat Guidance at $0.53 a Share

The Tip Desk · November 13, 2026 · 3 min read

Fiscal fourth-quarter 2026 revenue was $163.6 million and Adjusted EBITDA reached $21.5 million as cost controls improved its margin to 45.9%, while a $22.7 million investment loss contributed to a $12.4 million consolidated net loss.

The RMR Group Inc. (RMR) reported total revenues of $163.6 million and a consolidated net loss of $12.4 million for the fiscal quarter ended September 30, 2026, after a $22.7 million loss on investments more than offset an operating-income recovery. Net loss attributable to RMR Inc. was $5.7 million, or $0.35 per diluted share.

The commercial real estate asset manager said the investment loss was largely driven by unrealized fair-value declines on certain equity investments. Operating income recovered to $11.0 million from an operating loss of $9.3 million in the June quarter, which had included a $19.1 million impairment of other assets tied to Office Properties Income Trust’s June 2026 emergence from Chapter 11.

Cost control was the quarter’s defining operating turn. Adjusted EBITDA rose to $21.5 million from $19.7 million, and the Adjusted EBITDA margin expanded 460 basis points sequentially to 45.9% from 41.3%, which the company attributed to cost-control measures. Compensation and benefits expense fell to $44.6 million from $47.0 million, and general and administrative expense fell to $9.6 million from $10.7 million.

Distributable Earnings increased to $17.2 million, or $0.53 a share, from $15.4 million, or $0.48 a share. The company said both Distributable Earnings and Adjusted EBITDA exceeded its guidance. A per-share bridge showed a $0.05 lift from lower compensation and benefits and a $0.03 lift from lower G&A, partly offset by a $0.02 decline from lower property-management fees after Greenwich, Connecticut, acquisition fees earned in the prior quarter.

Total revenues rose to $163.6 million from $153.5 million, driven by reimbursable costs of $113.4 million versus $102.8 million. Total management, incentive and advisory services revenues slipped to $45.3 million from $45.5 million.

Assets under management were $36.8 billion as of September 30, 2026, down approximately $2.2 billion from September 30, 2025, largely from asset sales at certain managed clients. Fee-earning AUM was $26.0 billion. The company said it has been rationalizing operating costs, most notably compensation and benefits, and is investing in capital-formation personnel, technology and marketing.

If September 30, 2026 were the end of the measurement period, RMR would earn $37.7 million in aggregate incentive management fees, including $29.3 million from Diversified Healthcare Trust and $8.4 million from Industrial Logistics Properties Trust. The company said DHC and ILPT are collectively on pace to generate nearly $38 million of incentive fees this calendar year. Incentive fee revenue is recognized, if any, when earned at the conclusion of the measurement period ending December 31, 2026.

Total liquidity was $102.9 million, including $47.9 million of cash on hand and $55.0 million available on the revolving credit facility. The secured revolving credit facility balance was $45.0 million.

Wholly owned value-add real estate produced consolidated EBITDA of $3.3 million versus $3.5 million in the June quarter. Residential occupancy rose to 93.2% from 91.9%; retail occupancy was 76.5%. Gross asset value was $243.9 million.

RMR declared a $0.45 quarterly dividend on Class A and Class B-1 common stock, with a distribution payout ratio of 59.7% versus 66.7% in the prior quarter. The company said $10.4 million of cash accumulated from tax distributions provides capacity, combined with expected Distributable Earnings, to continue dividends at current levels for more than two years.

President and Chief Executive Officer Adam Portnoy said the company believes RMR is poised to deliver solid earnings growth as managed REITs continue benefiting from strategic initiatives and the firm looks to grow Private Capital under management.

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