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Jun 30, 2021
RMR Q3 2021 Earnings Report
Announced third quarter fiscal 2021 results with net income of $19.0 million.
Key Takeaways
The RMR Group Inc. reported a strong third quarter with management and advisory services revenues increasing by 16% compared to the same period last year. The company's results reflect post-pandemic tailwinds across various sectors, with significant increases in earnings per share, cash flows, and EBITDA margins. Adjusted EBITDA Margin was 51.1%, a sequential quarter increase of 300 basis points.
Assets under management reached $32.4 billion as of June 30, 2021, compared to $32.1 billion as of June 30, 2020.
Total management and advisory services revenues were $45.5 million, compared to $39.3 million for the quarter ended June 30, 2020.
Net income was $19.0 million, with net income attributable to The RMR Group Inc. at $8.2 million, or $0.50 per diluted share.
Adjusted EBITDA was $24.4 million, with an Operating Margin of 45.9% and an Adjusted EBITDA Margin of 51.1%.
Forward Guidance
The RMR Group Inc. anticipates continued growth and performance in the coming periods, driven by post-pandemic tailwinds and strategic capital allocation.
Positive Outlook
- Potential for increased management and advisory services revenues.
- Expected continued improvements in earnings per share, cash flows, and EBITDA margins.
- Opportunity to earn incentive fees based on the performance of Managed Equity REITs.
- Strong cash position to pursue various capital allocation strategies.
- Optimism regarding the ongoing economic recovery and its positive impact on RMR's operations.
Challenges Ahead
- Businesses are subject to various risks, including those outside of RMR's control.
- The impact and duration of the COVID-19 pandemic is not known and economic conditions could deteriorate.
- Limited control over the total returns realized by shareholders of the Managed Equity REITs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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