The RMR Group (RMR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded expectations, with Distributable Earnings of $0.47 per share, Adjusted Net Income of $0.20 per share, and Adjusted EBITDA of $19.5 million, driven by strong REIT performance and share price gains at DHC and ILPT.

• Net income attributable to shareholders rose 91.1% year-over-year to $12.2 million, supported by higher incentive fees and cost containment.

• Earned $23.6 million in incentive fees for 2025 as DHC and ILPT outperformed industry benchmarks.

• Assisted managed REITs with nearly $800 million in asset sales, primarily used for deleveraging.

• Increased ownership in Seven Hills Realty Trust (SEVN) to 20.3% by fully backstopping its rights offering.

Financial highlights

• Net income of $26.8 million, net income margin of 40.2%, and net income attributable to the company of $12.2 million ($0.71 per diluted share) for Q1 2026.

• Adjusted EBITDA was $19.5 million with a margin of 42.9%; Distributable Earnings were $15.2 million ($0.47 per diluted share); Adjusted Net Income was $3.4 million ($0.20 per diluted share).

• Management, incentive, and advisory services revenues grew 40.8% to $66.7 million, with incentive fees up $23.6 million, primarily from DHC and ILPT.

• Recurring service revenues were approximately $43 million, down $2.5 million sequentially due to AlerisLife wind down and SVC asset sales.

• Ended the quarter with nearly $150 million in liquidity, including $50 million in cash and $100 million in undrawn credit.

Outlook and guidance

• Next quarter, recurring service revenues expected to decrease to ~$41 million due to lower construction supervision fees and asset sales.

• Adjusted EBITDA guidance for next quarter is $17–$19 million; Distributable Earnings $0.41–$0.43 per share; Adjusted Net Income $0.12–$0.14 per share.

• Tax rate expected to rise to ~17% in the second quarter.

• Focus remains on launching a multifamily fund, moving assets off balance sheet, and investing in private capital and technology initiatives within fiscal 2026.

• Management believes the company is well positioned to execute strategic goals in 2026, supported by a scalable platform and strong liquidity.