RMR Group Inc Stock Price, News & Analysis

The RMR Group Inc. has announced the redevelopment of Unison Elliott Bay in Seattle, transforming three buildings into over 300,000 square feet of Class A office and life science lab space with wellness-focused amenities. Designed for flexibility, it features customizable floor plates and advanced lab infrastructure. Managed by RMR, the project targets completion in early 2023, catering to rising demand from tech and life science sectors. The location is near key parks and dining, enhancing its appeal to potential tenants.

The RMR Group (Nasdaq: RMR) announced the execution of 108 leases, totaling approximately 4.0 million square feet, for the three months ended December 31, 2021. This represented a 39% increase from the previous quarter and a 76% increase compared to the same period in 2020. Among these, 49 new leases accounted for 663,000 square feet. The company emphasized significant growth compared to pre-pandemic levels, marking the highest leasing activity in a decade, and operates nearly 1,300 properties nationwide with $33 billion in assets under management.

Service Properties Trust (Nasdaq: SVC) reported a fourth-quarter net loss of $(198.8) million or $(1.21) per share, an increase from a $(137.7) million loss in Q4 2020. Normalized funds from operations (FFO) were $27.9 million, or $0.17 per share, compared to a loss of $(22.5) million in the prior year. The company achieved an adjusted EBITDAre of $119 million, up 83.2% year-over-year. SVC continues to execute its hotel disposition plan with $430 million in sales either closed or under contract, anticipating proceeds exceeding $560 million. The portfolio remains stable despite Omicron impacts.

Diversified Healthcare Trust (Nasdaq: DHC) reported financial results for Q4 2021, highlighting a net income of $365.6 million ($1.54/share) and a gain on property sales of $461.4 million. The company raised over $1 billion from joint ventures and completed the transition of 107 senior living communities to new operators. However, the normalized funds from operations (FFO) were negative at $(16.5) million. DHC maintained strong occupancy rates in its Office Portfolio at 91.3% but faced significant declines in the Same Property Cash Basis NOI for its SHOP segment, down 63.3% year-over-year.

Diversified Healthcare Trust (Nasdaq: DHC) has announced an amendment to its revolving credit facility, extending the maturity date to January 2024. Key changes include:

• Extension of waivers for certain financial covenants until December 31, 2022.
• Increased ability to fund capital expenditures from $350 million to $400 million.
• Reduction of revolving credit facility commitments from $800 million to $700 million, with a further decrease to $586 million in January 2023.
• Interest rate premium raised by 15 basis points.

Seven Hills Realty Trust (Nasdaq: SEVN) reported record loan originations of $165 million and a net income per share of $1.42 for the fourth quarter of 2021. Adjusted Distributable Earnings per share was $0.21. The company declared a 67% increase in its quarterly distribution to $0.25 per share, supported by $650 million in total loan commitments. SEVN also closed a $100 million financing facility with BMO Harris Bank, enhancing its investment capabilities. Overall, the results reflect strong operational performance and a positive outlook for growth.

Office Properties Income Trust (OPI) reported a fourth-quarter 2021 net income of $16.9 million ($0.35 per share) compared to a net loss of $1.7 million in Q4 2020. Normalized FFO was $58.1 million ($1.20 per share), down from $61.8 million a year earlier. The company leased 702,000 square feet with a 4.0% rent increase, and occupancy rose to 91.2%. Key metrics included the sale of nine properties for over $250 million and acquisitions totaling $550 million. OPI ended the quarter with over $830 million in liquidity, positioning for further growth in 2022.

DHC has announced a joint venture worth $703 million involving 10 properties in its Office Portfolio, acquiring around $653 million in cash proceeds while maintaining a 20% equity stake. The properties, with a total area of 1.1 million square feet, were sold at $657 per square foot, resulting in an expected gain on sale of about $320 million. The funding will be used for capital expenditures and debt reduction. This venture is managed by The RMR Group, reinforcing DHC's operational liquidity.

The RMR Group reported strong financial results for the first fiscal quarter of 2022, ending December 31, with a net income of $18.3 million or $0.49 per diluted share. Adjusted net income increased to $0.46 per diluted share, a 12% rise from last year. The company’s total assets under management (AUM) grew to $33.4 billion, supported by an 11% uptick in management revenues, reaching $46.0 million. Growth was driven by higher equity values and expansion of managed private capital, which reached $3.2 billion.