2024-02-18 22:28:00 ET
Summary
- RMR Group is a property management company that generates revenue from managing properties for REITs and private real estate firms.
- The company earns fees through various methods, including base business management fees and incentive business management fees.
- RMR recently completed the acquisition of CARROLL, a property management firm specializing in multifamily residential properties, which is expected to boost its assets under management and diversify its revenue sources.
- RMR checks all of the boxes for my valuation process, and I intend to initiate a position in the upcoming trading week.
Today I explain why I'm adding RMR Group ( RMR ) to my value portfolio. RMR is a company that derives its revenues from managing properties, both those of publicly traded REITs and privately owned real estate firms. The company refers to its REIT property management business as "Managed Equity", and lists four major REITs as clients: Diversified Healthcare Trust ( DHC ), Industrial Logistics Properties Trust ( ILPT ), Office Properties Income Trust ( OPI ) and Service Properties Trust ( SVC ). It also provides advisory services to Seven Hills Realty Trust ( SEVN ). It refers to the clients comprised by the Managed Equity and SEVN as "Perpetual Capital" clients. The services provided to private real estate companies are referred to as "Private Capital" services....
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Adding RMR Group To My Value Portfolio