RMR’s Distributable Earnings Reach $0.53 per Share in Fourth Quarter
Key Facts
The RMR Group reported results on November 12 for its fiscal fourth quarter ended September 30, 2026, with revenue of $163.641 million and earnings per share of $0.21, according to figures cited by Investing.com. Earnings per share topped analysts’ estimate of $0.18, while revenue exceeded the consensus estimate of $155.4 million, coming in at $163.64 million. These figures offer a different view from the accounting bottom line, as the company reported a net loss of $12.426 million. The loss attributable to RMR was about $5.690 million, or $0.35 per diluted share. The company attributed much of the quarterly loss to noncash changes in the fair value of its investments.
Adjusted earnings attributable to the company were $3.664 million, or $0.21 per share, compared with $2.640 million and $0.15 per share in the previous quarter. Year over year, adjusted earnings were below the $3.808 million, or $0.22 per share, recorded in the quarter ended September 30, 2025. These earnings differ from the reported accounting loss because they exclude items including the impact of investment gains or losses. For this item, the adjusted earnings reconciliation included investment losses of $22.711 million in the latest quarter. The reconciliation recorded investment gains of $21.348 million in the previous quarter and losses of $3.090 million a year earlier.
Distributable earnings rose to $17.198 million, or $0.53 per share, from $14.252 million and $0.44 per share in the year-earlier period. They were down from $15.401 million and $0.48 per share in the previous quarter. The company uses this measure alongside its accounting results; it is not a substitute for them. In the same quarter, adjusted earnings before interest, taxes, depreciation and amortization were $21.465 million, up from $19.667 million in the previous quarter and $20.478 million a year earlier. The margin on this measure rose to 45.9%, from 41.3% in the previous quarter and 42.9% in the year-earlier period.
At the operating level, total revenue was $163.641 million, compared with $153.514 million in the previous quarter and $159.412 million in the quarter ended September 30, 2025. The company said assets under management had fallen by about $2.2 billion since September 30, 2025. It attributed much of the decline to asset sales by some clients whose assets it manages. The company added that it is working to streamline operating costs, particularly compensation and benefits. Total assets under management were $36.804 billion on September 30, 2026, including $24.919 billion in perpetual capital and $11.885 billion in private capital.
RMR’s total liquidity was $102.9 million on September 30, 2026, including $47.9 million in cash and $55 million available under its revolving credit facility. The company declared a quarterly distribution of $0.45 per share for shareholders of record on October 19, with payment expected around November 12, 2026. It said the distribution comprises $0.32 per share funded by RMR LLC’s distributable earnings and $0.13 from RMR Inc.’s cash balance. The distribution compares with quarterly distributable earnings of $0.53 per share, according to the company’s measure. A call to discuss the results was scheduled for November 13, 2026, at 11 a.m. Eastern time.
The company noted that estimated aggregate management incentive fees of $37.7 million could become payable if September 30, 2026, were treated as the end of the measurement period. This conditional estimate comprises $29.3 million related to DHC and $8.4 million related to ILPT. The company said the estimates could change materially and that the fees might not be earned. RMR records revenue from these fees only when they are earned at the close of the measurement period ending December 31, 2026. The company also said its investments in line with its long-term strategic objectives include capital formation, technology and marketing initiatives.