RMR Group Reports 24.8% Revenue Decline in Q3 Fiscal 2025

The RMR Group Inc. reported a decline in financial performance for the third quarter of fiscal 2025, with total revenues of $154.7 million, down 24.8% from $205.7 million in the same period last year. The decrease was primarily driven by a 10.6% drop in management services revenue, which fell to $42.7 million from $47.8 million, alongside a significant reduction in reimbursable costs. Net income attributable to RMR Group Inc. was $4.2 million, a decrease of 15.2% compared to $4.9 million in the prior year. The company’s earnings per share for the quarter were $0.25, down from $0.29.

For the nine months ending June 30, 2025, total revenues also decreased by 21.1% to $540.9 million from $685.3 million in the previous year. Management services revenue for this period fell by 5.7% to $133.3 million, while income from loan investments increased to $1.9 million, reflecting the company's strategic focus on expanding its private capital business. The net income for the nine-month period was $31.1 million, down 23.5% from $40.6 million in the prior year.

Significant operational changes included the acquisition of a community shopping center near Chicago, IL, for $21.3 million, and the ongoing integration of MPC Partnership Holdings LLC, which was acquired in December 2023. The company also reported a gain of $445,000 from the sale of a property during the nine-month period. RMR Group's total assets decreased to $648.0 million as of June 30, 2025, down from $700.5 million at the end of the previous fiscal year, largely due to reductions in cash and cash equivalents and amounts due from related parties.

The company’s strategic focus remains on managing its portfolio of Managed Equity REITs and expanding its private capital initiatives. RMR Group continues to navigate a challenging economic environment characterized by uncertainty in financial markets and fluctuating interest rates. The company anticipates that its liquidity, bolstered by cash reserves of $121.3 million, will support ongoing operations and potential growth opportunities in the coming months. RMR Group has also entered into a $100 million senior secured revolving credit facility to enhance its financial flexibility.

Looking ahead, RMR Group aims to leverage its existing relationships with institutional investors to diversify and grow its private capital revenues. The company plans to pursue new real estate acquisitions and investment funds while managing operational costs and optimizing its capital structure to enhance shareholder value.