The RMR Group (RMR) Q2 2026 earnings summary

Executive summary

• Q2 2026 distributable earnings and Adjusted EBITDA reached the high end of expectations, with net income attributable to the company at $1.0 million ($0.05 per share) and Adjusted Net Income of $2.2 million ($0.11 per share).

• Managed REITs (DHC, ILPT, SVC, Seven Hills Realty Trust, OPI) showed strong operational and financial performance, with notable asset sales, refinancing, and portfolio growth.

• Assets under management totaled $37.1 billion as of March 31, 2026, with a vertically integrated platform of over 800 professionals across 30+ offices.

• Liquidity stood at $180.1 million at quarter-end, decreasing to $130.1 million after a $50 million investment in SVC in April.

• A quarterly dividend of $0.45 per share was declared, funded by Distributable Earnings and cash reserves.

Financial highlights

• Q2 distributable earnings were $0.44 per share; Adjusted EBITDA was $18.5 million (41.6% margin); net income margin was 4.9%.

• Recurring service revenues were $42 million, down $1 million sequentially, mainly due to hotel sales and debt paydowns at SVC and DHC.

• Distribution payout ratio was 72.2% for Q2 2026.

• Management and advisory services revenues totaled $42.0 million for Q2 2026.

• Incentive fees for 2025 totaled $23.6 million, with additional fees accruing in Q2 2026 as managed REITs outperformed.

Outlook and guidance

• Q3 recurring service revenues expected to rise to $44 million, driven by new multifamily portfolio revenue and construction management fees.

• Q3 Adjusted EBITDA guidance is $19 million-$21 million; distributable earnings expected between $0.48 and $0.50 per share.

• Management expects continued positive outcomes and improved earnings, with REIT clients on pace to generate nearly $33 million in incentive fees for calendar 2026.

• The company anticipates that its liquidity position will support opportunistic investments and strategic actions.

• Ongoing restructuring of management agreements with a managed REIT (OPI) due to its chapter 11 process may impact future fee revenue.