The RMR Group Profile
The RMR Group Inc. provides management services.
Substantially all of the company's business is conducted by its majority owned subsidiary, The RMR Group LLC, or RMR LLC. RMR Inc. serves as the sole managing member of RMR LLC.
The company provides management services to four publicly traded equity real estate investment trusts, or REITs, whose securities are listed on The Nasdaq Stock Market LLC, or Nasdaq: Diversified Healthcare Trust, a Maryland REIT, including its subsidiaries, or DHC; Industrial Logistics Properties Trust, a Maryland REIT, including its subsidiaries, or ILPT; Office Properties Income Trust, a Maryland REIT, including its subsidiaries, or OPI; and Service Properties Trust, a Maryland REIT, including its subsidiaries, or SVC. DHC, ILPT, OPI and SVC are collectively referred to as the Managed Equity REITs.
As manager of the Managed Equity REITs, the company is responsible for implementing investment strategies and managing day to day operations, subject to supervision and oversight by each Managed Equity REIT's board of trustees. The company provides the personnel and services necessary for each Managed Equity REIT to conduct its business. The Managed Equity REITs invest in diverse income producing properties across multiple real estate asset classes as follows:
DHC owns medical office and life science properties, senior living communities, and other healthcare related properties. As of September 30, 2023, DHC owned properties located in 36 states and the District of Columbia.
ILPT owns and leases industrial and logistics properties. As of September 30, 2023, ILPT owned properties, including buildings, leasable land parcels and easements in Oahu, Hawaii, and properties located in 38 other states.
OPI owns office properties primarily leased to single tenants and those with high credit quality characteristics. As of September 30, 2023, OPI owned properties located in 30 states and the District of Columbia.
SVC owns a diverse portfolio of hotels and service-focused retail net lease properties. As of September 30, 2023, SVC owned properties (hotels and net lease properties) located in 46 states, the District of Columbia, Canada. and Puerto Rico.
RMR LLC's wholly owned subsidiary, Tremont Realty Capital LLC, or Tremont, an investment adviser registered with the Securities and Exchange Commission (SEC), provides advisory services for Seven Hills Realty Trust, or SEVN. SEVN is a publicly traded mortgage REIT that focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate. Tremont also provided advisory services to Tremont Mortgage Trust, or TRMT, until it merged with and into SEVN on September 30, 2021, or the Tremont Merger, with SEVN continuing as the surviving company.
RMR LLC also provided management services to TravelCenters of America Inc., or TA, until it was acquired by BP Products North America Inc., or BP, on May 15, 2023.
The Managed Equity REITs, SEVN, TRMT until September 30, 2021, and TA until May 15, 2023, are collectively referred to as the Perpetual Capital clients.
In addition, RMR LLC provides management services to private capital vehicles, including ABP Trust and its subsidiaries, or collectively ABP Trust, AlerisLife Inc., or AlerisLife, Sonesta International Hotels Corporation, or Sonesta, and other private entities that own commercial real estate, of which certain of the company's Managed Equity REITs own minority equity interests. These clients are collectively referred to as the Private Capital clients.
Strategy
The company's business strategy is to provide an expanded range of management services to its existing clients, as well as to diversify the number of clients to which it provides services and the sources of capital upon which those clients may rely for growth.
Management Agreements with the Managed Equity REITs
RMR LLC is party to a business management agreement and a property management agreement with each Managed Equity REIT.
Other Management Agreements
RMR LLC provides services and earns fees pursuant to management agreements with ABP Trust regarding AlerisLife; with Sonesta; and until May 15, 2023, with TA. Under these agreements, RMR LLC provides services to these clients relating to, or assists them with, among other things, their compliance with various laws and rules applicable to them, capital markets and financing activities, maintenance of their properties, selection of new business sites and evaluation of other business opportunities, accounting and financial reporting, internal audit, investor relations and general oversight of the company's daily business activities, including legal and tax matters, human resources, insurance programs, and management information systems. RMR LLC provides management services to other Private Capital clients for which the company receives, depending upon the services.
Management Agreements with Advisory Clients
Tremont is party to a management agreement with SEVN. Pursuant to this agreement, Tremont provides SEVN with a continuous investment program, makes day to day investment decisions, and generally manages the business affairs of SEVN in accordance with SEVN's investment objectives and policies.
Regulation
Tremont is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended, or the Investment Advisers Act.
History
The RMR Group Inc. was founded in 1986. The company was incorporated in Maryland in 2015.
