The RMR Group Inc. (RMR): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see the actual mechanics of The RMR Group Inc.'s (RMR) business, and frankly, their model is a masterclass in sticky revenue built on long-term management contracts and a determined pivot toward private capital. This strategy powered their $700.28 million in Fiscal Year 2025 revenue, all while managing about $39.0 billion in total Assets Under Management as of September 30, 2025. To really understand the stability and growth levers here, we need to map out exactly how they connect their resources to their clients across all nine essential building blocks below.

The RMR Group Inc. (RMR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep The RMR Group Inc. running and funding its growth, especially its push into private capital. These aren't just names on a page; they represent billions in assets and critical lines of credit.

The most visible partnerships are with the Managed Equity REITs, which form the base of the fee-earning business. As of September 30, 2025, The RMR Group Inc. managed investments across approximately 1,900 properties nationwide, overseeing a total of \$39.0 billion in assets under management.

Here is a breakdown of the key Managed Equity REIT partnerships, showing the scale of assets managed for each as of September 30, 2025:

Managed Equity REIT	Ticker/Status (as of late 2025)	Properties Managed (as of 9/30/2025)	Historical Cost of AUM (in thousands)
Service Properties Trust	Nasdaq: SVC	Not specified	\$10,750,102
Diversified Healthcare Trust	Nasdaq: DHC	335	\$7,323,576
Office Properties Income Trust	OTCPK: OPITQ	124	\$5,348,885
Industrial Logistics Properties Trust	Nasdaq: ILPT	411	\$5,714,174

The RMR Group Inc. provides the personnel and services for each Managed Equity REIT to operate, as these entities have no employees.

For its private capital expansion, The RMR Group Inc. relies on institutional partners for joint ventures and private funds. This strategy is aggressive; for instance, The RMR Group Inc. expects to execute up to \$1 billion in residential investments during fiscal 2025, largely through joint venture structures. Recently, The RMR Group Inc. closed two residential community joint ventures in South Florida with an aggregate all-in transaction value of \$196.1 million, raising over \$60 million in equity from institutional partners for these deals. Furthermore, The RMR Group Inc. created a private capital debt vehicle that currently has \$67 million in aggregate loan commitments.

The financial flexibility to pursue these opportunities is underpinned by key banking relationships. The RMR Group Inc. entered a new senior secured revolving credit facility:

• Facility Size: \$100 million.
• Administrative and Collateral Agent: Citibank, N.A..
• Initial Maturity Date: January 22, 2028.
• Fee on Undrawn Amounts: 0.50% per annum.

The RMR Group Inc. also partners with third-party property owners to provide residential management services. This is supported by its vertically integrated platform, RMR Residential, which manages assets valued at \$5 billion.

Finally, The RMR Group Inc. uses real estate brokers as a key channel for property acquisition and disposition activities across its various client mandates.

The RMR Group Inc. (RMR) - Canvas Business Model: Key Activities

The core operations of The RMR Group Inc. center on managing real estate assets across public and private mandates, supported by a vertically integrated platform.

Alternative asset management and investment strategy

The RMR Group Inc. manages assets for four publicly traded equity real estate investment trusts (REITs) and various private capital vehicles. For the fiscal year ended September 30, 2025, revenues earned from the Managed Equity REITs accounted for 68.0% of total management and advisory services revenue. The total Assets Under Management (AUM) stood at $39.0 billion as of September 30, 2025.

The firm actively pursues growth in its private capital segment. As of March 31, 2025, the Private Capital AUM totaled $12.4 billion, representing about 31 percent of the overall AUM at that time. The company expects to execute up to $1 billion in residential investments in fiscal 2025, largely through joint venture structures.

Key financial results for the fiscal year ended September 30, 2025, included net cash from operating activities of $75.7 million and net income of $38.7 million. The regular quarterly dividend was maintained at $0.45 per share, or $1.80 per share annually.

Property management and construction supervision (5.0% fee on costs)

The RMR Group Inc. earns fees based on the services provided to its clients, which include property management and construction supervision. For certain new management agreements, the fee structure is explicitly defined.

Activity Type	Fee Basis/Rate	Specific Rate Mentioned
Property Management Fee	Percentage of gross collected rents or percentage of average invested capital	Generally ranges from 2.5% to 3.5% of gross collected rents; 3% under a new agreement.
Construction Supervision Fee	Percentage of construction, renovation, or repair costs	5.0% of construction costs; 5% under a new agreement.
Business Management Fee (Flat)	Annual fixed fee	$14.0 million payable per year for the first two years under a specific new agreement.

The platform supports this activity with over 900 real estate professionals operating across more than 35 offices nationwide.

Real estate acquisition, disposition, and financing

Acquisition activity is a key function, often executed through joint ventures. In the first quarter of fiscal 2025, RMR closed on two joint venture acquisitions in Florida with an aggregate all-in transaction value of $196.1 million. For these joint ventures, RMR raised an aggregate of $64.3 million in equity from institutional investors. The company is also entitled to acquisition fees and a carried interest if certain investment returns are met.

Dispositions are also active, with managed equity REITs completing over $300 million in asset sales in Q4 2025. For example, Diversified Healthcare Trust (DHC) completed the sale of a San Diego life science campus for $159 million.

Growing the private capital Assets Under Management (AUM)

The RMR Group Inc. is focused on expanding its unlisted property business. The private assets business grew to $12.4 billion, representing about 31 percent of overall AUM as of March 31, 2025. The company hired a specialist to head capital formation to further this expansion. In Q1 2025, RMR raised over $60 million from institutional partners to acquire two South Florida residential communities for nearly $200 million.

The firm's private capital initiatives are supported by financial flexibility, including a $100 million senior secured revolving credit facility established in January 2025.

Maintaining the vertically integrated operating platform

The vertically integrated platform is supported by over 900 real estate professionals across more than 35 offices nationwide, leveraging more than 35 years of institutional experience. The platform supports a diversity of direct real estate strategies.

Operational performance metrics for the platform include leasing activity. COO Matthew Jordan reported almost 8 million square feet of non-residential leases signed for the fiscal year at rental rates approximately 14% higher than previous rents.

The platform's scale and operational capacity are reflected in the following summary of AUM distribution as of a recent period:

• Managed Public Real Estate Capital: $27.780 million (representing 69% of total AUM).
• Managed Private Real Estate Capital: $12.481 million (representing 31% of total AUM).
• Total AUM (Q1 2025): $40.261 million (in thousands, or $40.3 billion).

This structure is maintained while generating net income of $38.7 million for the fiscal year ended September 30, 2025.

The RMR Group Inc. (RMR) - Canvas Business Model: Key Resources

You're looking at the core assets that power The RMR Group Inc.'s operations as of late 2025. These aren't just line items; they are the tangible and intangible engines driving their alternative asset management business.

The sheer scale of capital managed is a primary resource. As of September 30, 2025, The RMR Group Inc. reported approximately $39.0 billion in total Assets Under Management (AUM). This AUM base is supported by a significant human capital investment and geographic reach.

The operational backbone is built on its people and infrastructure. The RMR Group Inc.'s vertical integration is supported by nearly 900 real estate professionals operating across more than 30 offices nationwide. This scale allows them to service a diverse set of mandates.

A critical intangible resource is the contractual relationship structure with its managed REITs. These include Diversified Healthcare Trust (DHC), Industrial Logistics Properties Trust (ILPT), Service Properties Trust (SVC), and Office Properties Income Trust (OPI). The RMR Group Inc. benefits from long-term management agreements, with terms extending up to 20 years with managed REITs. For the fiscal year ended September 30, 2025, revenues earned from these Managed Equity REITs represented 68.0% of total management and advisory services revenue.

The company also emphasizes its scalable, vertically integrated operating platform, which leverages more than 35 years of institutional experience in buying, selling, financing, and operating commercial real estate (CRE). This platform supports growth in their private capital business, which stood at $12.3 billion of AUM as of September 30, 2025.

For immediate financial flexibility, The RMR Group Inc. secured a $100 million senior secured revolving credit facility in January 2025, with an initial maturity date of January 22, 2028. This facility is intended for general corporate purposes and to enhance flexibility for investing in private capital initiatives. Undrawn amounts under this facility incur a fee of 0.50% per annum.

Here's a quick look at the core quantitative resources as of late 2025:

Resource Category	Metric/Value	Date/Context
Total Assets Under Management (AUM)	$39.0 billion	As of September 30, 2025
Private Capital AUM	$12.3 billion	As of September 30, 2025
Real Estate Professionals	Nearly 900	As of late 2025
Office Footprint	More than 30 offices	Nationwide
Liquidity Facility	$100 million senior secured revolving credit facility	Secured January 2025
Operating Cash Flow (FY 2025)	$75.7 million in net cash from operating activities	For the fiscal year ended September 30, 2025

The platform's structure supports the management of four key publicly traded REITs, which contributed 68.0% of the total management and advisory services revenue for the fiscal year ending September 30, 2025.

The RMR Group Inc. also maintains specific financial covenants related to its credit facility, which are tested quarterly, including a maximum leverage ratio of 2.0:1.0 and a minimum interest coverage ratio of 3.0:1.0.

Finance: draft 13-week cash view by Friday.

The RMR Group Inc. (RMR) - Canvas Business Model: Value Propositions

The RMR Group Inc.'s value proposition centers on its comprehensive, integrated platform for real estate management and advisory services across diverse asset classes.

Vertically integrated, full-service real estate management

The RMR Group Inc. offers end-to-end services, blending long-term strategic vision with day-to-day operational execution for clients' investments. This integration is supported by a national network of professionals.

• Professionals: Over 900 real estate professionals in more than 35 offices nationwide as of Q2 2025.
• AUM Scale: Managed approximately $39.0 billion in assets under management as of September 30, 2025. Another report noted AUM of $39.8 billion at Q2 2025.
• Operational Reach: Recognized by the Building Owners and Managers Association (BOMA) for having one of the highest numbers of BOMA 360 designated properties in its portfolio.

Long-term, stable management of publicly traded REITs

A core part of the business is providing management services to its four publicly traded real estate investment trusts (REITs). The revenue base is anchored by this segment.

Metric	Value (As of FYE Sept 30, 2025)
Revenue from Managed Equity REITs as % of Total Management & Advisory Services Revenue	68.0%
Quarterly Dividend Per Share (Class A & B-1)	$0.45 ($1.80 per year)

Access to diverse real estate strategies (CRE and residential)

The RMR Group Inc. is unique in its focus spanning both commercial real estate (CRE) and residential properties, supported by dedicated subsidiaries like RMR Residential.

• Strategy Focus: Accelerating private capital initiatives across residential, credit, and development sectors.
• Residential Goal: Management guided to deploy $500 million-$1 billion in residential joint ventures in FY25.
• Client Diversity: Provides management services to its four Managed Equity REITs, two real estate operating companies, and various Private Capital vehicles.

Alignment of interest through incentive fee structures

Fee structures are designed to align The RMR Group Inc.'s success with client performance, though incentive fee realization can be cyclical.

• Incentive Fee Trigger: Generally earned if a Managed Equity REIT outperforms an identified REIT total shareholder return index.
• Potential 2025 Incentive Fees: Management noted potential incentive fees of approximately $22 million for 2025 based on improved share prices at DHC and ILPT.
• Property Management Fees: Property management agreements generally provide for fees ranging from 2.5% to 3.5% of gross collected rents.

Deep institutional experience of over 35 years in CRE operations

The firm leverages a long operational history, having been founded in 1986.

• Experience Tenure: Leverages more than 35 years of institutional experience in buying, selling, financing, and operating CRE.
• Founding Year: Founded in 1986.

Finance: draft 13-week cash view by Friday.

The RMR Group Inc. (RMR) - Canvas Business Model: Customer Relationships

You're looking at how The RMR Group Inc. keeps its clients locked in and engaged; it's all about deep, long-term structural relationships, especially with its public vehicles.

Dedicated, long-term contractual relationships with managed entities

The foundation of The RMR Group Inc.'s recurring revenue comes from these long-term agreements. The agreements with the Managed Equity REITs are structured as 20-year term evergreen contracts, which include significant termination fees payable under certain conditions. This structure definitely locks in the relationship. For the fiscal year ended September 30, 2025, revenues earned from these Managed Equity REITs accounted for 68.0% of the total management and advisory services revenue. As of September 30, 2025, The RMR Group Inc. provides management services to four publicly traded equity REITs.

Here's a snapshot of the client base and AUM as of late 2025:

Metric	Value as of September 30, 2025	Source Context
Total Assets Under Management (AUM)	$39.0 billion	Total managed assets
AUM from Private Capital Clients	$12.3 billion	Represents growth of $11.0 billion since September 30, 2021
Managed Equity REITs Revenue Share	68.0%	Of total management and advisory services revenue for FY2025
Quarterly Dividend per Share	$0.45	Planned payment to Class A Common Shares holders

High-touch, direct management model ('like we own it')

The RMR Group Inc. explicitly states its mission is to manage investments and assets 'like we own it'-an approach meant to consistently generate opportunities for everyone involved. This philosophy is supported by a vertically integrated platform employing nearly 900 real estate professionals across more than 30 offices nationwide as of September 30, 2025.

General Partner (GP) role in private capital joint ventures

In the private capital space, The RMR Group Inc. acts as the General Partner (GP) in joint ventures, aligning its interests directly with the investment performance. For instance, in two South Florida residential community acquisitions closed in February and March 2025, The RMR Group Inc. made an aggregate equity contribution of $11,031 thousand as the GP, with institutional investors funding the rest of the equity. For these deals, The RMR Group Inc. earned aggregate acquisition fees of $664 thousand and is entitled to ongoing fees and a carried interest if investment hurdles are met. Management has expressed an expectation to deploy upwards of $1 billion in calendar year 2025 for private capital initiatives.

Investor relations and reporting for public REIT shareholders

For its public shareholders, The RMR Group Inc. maintains a regular dividend policy, planning to pay $0.45 per share quarterly. The distribution payout ratio for the fourth quarter of fiscal 2025 was reported at 71.6%. Since its founding in 1986, The RMR Group Inc.'s clients have successfully completed nearly $47.0 billion of equity and debt financing through over 190 capital raising transactions.

Direct engagement with institutional investors for fund raising

The push into private capital involves direct engagement with institutional partners. The company recently raised over $60 million from institutional partners to acquire two residential communities for nearly $200 million. The private capital segment has grown to account for $12.3 billion of the total AUM as of September 30, 2025. The firm hired a senior vice-president and head of capital formation to further expand this business, which currently comprises joint ventures and separately managed accounts with US sovereign wealth funds and other asset managers.

Finance: draft the Q1 Fiscal 2026 cash flow projection incorporating the expected private capital deployment by Friday.

The RMR Group Inc. (RMR) - Canvas Business Model: Channels

You're looking at how The RMR Group Inc. gets its services to clients and the market, which is a mix of direct relationships and digital access points. Honestly, for a firm this size, the channel strategy is heavily weighted toward those long-term management contracts.

Direct management agreements with client entities

The core channel involves direct, long-term contracts. As of September 30, 2025, The RMR Group Inc. provides management services to four publicly traded equity real estate investment trusts (REITs). For the fiscal year ended September 30, 2025, revenues earned from these Managed Equity REITs accounted for 68.0% of the total management and advisory services revenue. These agreements are often 20-year term evergreen contracts. Property management fees are typically structured between 2.5% to 3.5% of gross collected rents, plus additional fees of up to 5.0% of construction costs for supervision services.

Investor relations and public filings for capital markets

The channel to capital markets is maintained through formal, scheduled communications. The RMR Group Inc. announced its Fiscal Fourth Quarter 2025 results on November 12, 2025. Investor relations contact is available at (617) 796-8230. The company's filings with the Securities and Exchange Commission (SEC) are accessible via its website.

National network of over 30 offices for local property expertise

Local expertise is distributed through a physical footprint. The RMR Group Inc. supports its vertical integration with nearly 900 real estate professionals operating in more than 30 offices nationwide. One source specifically notes 31 office and retail locations throughout the US. This network allows for on-the-ground management across various markets.

Company website and tenant portal for property-level services

Digital channels serve both investors and property occupants. The primary corporate and investor-facing channel is the company website, www.rmrgroup.com. For property-level services, a dedicated tenant portal is available, indicated by a 'Tenant Login' feature on the site. As of September 30, 2025, The RMR Group Inc. manages investments in approximately 1,900 properties throughout the United States.

Direct sales and relationship management for private funds

Growth in private capital relies on direct relationship management. As of September 30, 2025, Private Capital clients accounted for $12.3 billion of the total Assets Under Management (AUM). The firm is actively raising private capital across multiple strategies. For instance, in the fiscal quarter ended March 31, 2025, The RMR Group Inc. closed on two joint venture acquisitions in Florida totaling $196 million. The General Partner (GP) co-investment from The RMR Group Inc. in these deals was approximately $10 million.

Here is a quick look at some key channel-related statistics as of late 2025:

Channel Metric	Value (as of late 2025)	Context/Date
Total Assets Under Management (AUM)	$39.0 billion	As of September 30, 2025
Private Capital AUM	$12.3 billion	As of September 30, 2025
Public REIT Clients Managed	4	Publicly traded equity REITs as of September 30, 2025
National Office Footprint	More than 30	Nationwide network
Real Estate Professionals	Nearly 900	Staff supporting vertical integration
Managed Properties	Approximately 1,900	Total properties managed as of September 30, 2025
REIT Revenue Share of Total Advisory Revenue	68.0%	Fiscal Year Ended September 30, 2025

The firm's trailing 12-month revenue as of September 30, 2025, was $700M. Net cash from operating activities for the fiscal year ended September 30, 2025, was $75.7 million.

• Property management fees range from 2.5% to 3.5% of gross collected rents.
• Construction supervision fees are up to 5.0% of construction costs.
• The RMR Group Inc. co-invested approximately $10 million in aggregate into two South Florida joint venture deals closed in Q1 FY25.

The RMR Group Inc. (RMR) - Canvas Business Model: Customer Segments

You're looking at The RMR Group Inc.'s client base as of late 2025, which is heavily anchored in long-term advisory relationships and a growing private capital platform. The core of the business remains servicing the Perpetual Capital clients, but the strategic pivot is clearly toward institutional capital.

The customer segments are diverse, spanning public market entities, private institutional capital allocators, and the ultimate occupiers of the real estate assets managed.

The RMR Group Inc. manages assets across several distinct client types:

• Publicly traded Managed Equity REITs, which are anchored by long-term management agreements.
• Institutional investors participating in the Private Capital funds.
• Third-party property owners who utilize the Asset Services platform.
• The equity holders of The RMR Group Inc. itself.
• The tenants residing or operating within the managed properties.

Here's a breakdown of the scale associated with the primary client groups as of the fiscal year-end September 30, 2025, unless otherwise noted.

Customer Segment Detail	Metric	Amount/Value (As of Late 2025)
Total Assets Under Management (AUM)	Total AUM	$39.0 billion
Managed Equity REITs (Perpetual Capital)	Service Properties Trust (SVC) AUM	$10.8 Billion
Managed Equity REITs (Perpetual Capital)	Diversified Healthcare Trust (DHC) AUM	$7.3 Billion
Managed Equity REITs (Perpetual Capital)	Office Properties Income Trust (OPI) AUM	$5.3 Billion
Managed Equity REITs (Perpetual Capital)	Industrial Logistics Properties Trust (ILPT) AUM	$2.7 Billion
Private Capital Clients	AUM as of September 30, 2025	$12.3 billion
Private Capital Clients	Growth in AUM since September 30, 2021	$11.0 billion increase
Asset Services Clients (Third-Party Owners)	Properties Managed	More than 1,300
Asset Services Clients (Third-Party Owners)	Square Footage Managed	Approximately 114 million square feet

The focus on institutional investors in private capital funds is a major driver. The RMR Group Inc. has successfully grown this segment from virtually zero to over $12 billion in less than five years, with a projection that private capital could eventually make up over half of the total AUM within the next five years. For example, in Q1 Fiscal 2025, they closed on two residential joint venture acquisitions totaling $195.8 million.

For the shareholders of The RMR Group Inc. (RMR), the financial performance directly impacts their investment. As of November 7, 2025, the total shares outstanding included:

• Class A common stock: 16,061,399 shares
• Class B-1 common stock: 1,000,000 shares
• Class B-2 common stock: 15,000,000 shares

The market reflected a closing stock price of $15.85 on November 7, 2025, resulting in a market capitalization of $267M. The dividend paid in Q4 2025 was $0.45 per share.

Tenants of managed commercial and residential properties are the base upon which the fee revenue is generated. The Asset Services division manages properties across office, industrial, medical office, life science, retail, and multifamily sectors. For instance, the Managed Equity REITs collectively own hundreds of properties, such as Diversified Healthcare Trust (DHC) owning 335 properties as of September 30, 2025.

To be fair, revenue from the Managed Equity REITs was the dominant source of fee revenue, representing 68.0% of total management and advisory services revenue for the fiscal year ended September 30, 2025. The trailing twelve-month revenue as of September 30, 2025, was reported at $700M.

Finance: draft 13-week cash view by Friday.

The RMR Group Inc. (RMR) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep The RMR Group Inc.'s platform running and fund its growth initiatives. The Cost Structure is heavily weighted toward personnel and the physical infrastructure needed to manage a nationwide real estate portfolio. Honestly, for an asset manager, compensation and G&A are always the big levers to watch.

The most significant recurring personnel cost is the Recurring Cash Compensation, which stood at $42.1 million for the second quarter of Fiscal 2025. This reflects the cost of the professionals supporting the management agreements. Also critical is the Recurring General & Administrative (G&A) Expenses, which were reported at $10.7 million for Q2 Fiscal 2025, notably excluding $600,000 in annual director share grants for that period. That's a clear, measurable operational expense you can track quarter-over-quarter.

The cost to maintain the physical footprint is substantial, supporting the vertical integration model. The RMR Group Inc. supports its operations with a large team across the country, which translates directly into office operating costs. Here's the quick math on the scale of that infrastructure:

Metric	Value (as of Q2/Q3 2025)
Real Estate Professionals	Over 900
Nationwide Offices	More than 35
Total Assets Under Management (AUM)	Approximately $39.8 billion (as of Q2 2025)

Financing costs are another component, particularly with the new credit facility put in place in early 2025. Amounts drawn under The RMR Group LLC's $100 million senior secured revolving credit facility bear interest at a variable rate based on SOFR plus a margin of 2.25% per annum. For the quarter ending March 31, 2025, the reported Interest Expense was $1.1 million, which will fluctuate with SOFR and the amount drawn on the facility.

The final major cost category involves the Investment in seed capital for new private capital initiatives. This is an investment in future revenue streams, but it requires upfront cash deployment. You can see this in action through recent deal activity:

• Two joint venture acquisitions in Florida closed in Q2 2025 with an aggregate transaction value of approximately $196 million.
• The RMR Group Inc. retained equity interests totaling $11.0 million in those Q2 joint ventures.
• The private capital platform AUM grew to over $12 billion by Q3 2025, showing sustained seeding efforts.
• The company also launched a value-add retail strategy with a $21.3 million acquisition outside Chicago.

The company maintains zero corporate debt, relying on cash on hand-which was over $137 million at the end of Q2 2025-and the revolving facility for this seeding capital.

The RMR Group Inc. (RMR) - Canvas Business Model: Revenue Streams

You're looking at The RMR Group Inc.'s (RMR) revenue sources as of late 2025. Honestly, the structure is heavily weighted toward recurring management fees, which is typical for an asset manager of this scale, but the recent performance shows how transaction-based income can fluctuate.

Annual Revenue for Fiscal Year 2025 was $700.28 million.

The core of The RMR Group Inc.'s income comes from managing assets for its clients, which includes REITs and private capital vehicles. This is broken down into several distinct fee types.

Base and Advisory Management Fees

These fees are the bedrock, generally calculated based on the value of assets under management (AUM). While the exact contractual rates vary by client and mandate, we see concrete examples of the scale of these recurring services.

• Management and advisory services revenues totaled $45.5 million for the fourth quarter of Fiscal 2025.
• For the first quarter of Fiscal 2025, Recurring Service Revenues were reported at $47.3 million.
• The company maintains zero corporate debt, which means the net impact of these recurring fees flows more directly to earnings before other operating expenses.

The RMR Group Inc.'s total Assets Under Management (AUM) stood at $39.0 billion as of September 30, 2025, which directly supports the calculation base for these management fees.

Property Management Fees

These fees cover the day-to-day oversight of physical properties, distinct from the advisory fees on the investment structure itself. For The RMR Group Inc.'s commercial real estate portfolio, the contractual structure often falls within a tight band, reflecting the scale of the assets managed.

The typical range for Property Management Fees on their commercial assets is between 2.5% to 3.5% of gross collected rents. This is generally lower than residential property management fees, which can range from 8% to 12% of collected rent in the broader industry, due to the economies of scale in managing large commercial properties.

Incentive Fees for Outperformance

This is the performance-based component, directly aligning The RMR Group Inc.'s interests with achieving superior returns for its managed entities. These fees are earned when specific performance hurdles are cleared.

For instance, due to strong year-to-date share price increases for certain managed REITs like DHC and ILPT, The RMR Group Inc. accrued potential incentive fees exceeding $17 million for the past quarter. The structure mentioned in your outline suggests a cap tied to market capitalization, but the realized figure is driven by investment performance metrics.

Acquisition and Disposition Fees

The RMR Group Inc. also generates revenue from transactional activities, which are inherently lumpy compared to the recurring management fees. These fees are earned when The RMR Group Inc. facilitates the buying or selling of real estate assets for its managed accounts.

For example, in a recent joint venture acquisition with a total transaction value of $195.8 million, The RMR Group Inc. was entitled to acquisition fees, ongoing property management fees, and a carried interest if performance targets were met. The company also announced plans to sell its loan portfolio, which was expected to generate net proceeds of approximately $16.7 million.

Here's a quick look at the components we have concrete, recent data for:

Revenue Stream Component	Latest Reported Metric/Value	Period/Context
Annual Revenue (TTM)	$700.28 million	Fiscal Year 2025 (ending Sep 30, 2025)
Management & Advisory Services Revenue	$45.5 million	Q4 Fiscal 2025
Potential Incentive Fee Accrual	Exceeding $17 million	Past Quarter (related to DHC and ILPT performance)
Loan Portfolio Sale Proceeds (Expected)	Approximately $16.7 million	Announcement related to SEVN transaction
AUM Base for Fee Calculation	$39.0 billion	As of September 30, 2025

The structure of these revenue streams shows a clear focus on fee generation from the scale of assets managed, supplemented by transactional events.