The RMR Group Inc. (RMR) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
Entity Registrant Name	RMR Group Inc.
Entity Central Index Key	1,644,378
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Class A common shares
Entity Common Stock, Shares Outstanding		15,007,500
Class B-1 common shares
Entity Common Stock, Shares Outstanding		1,000,000
Class B-2 common shares
Entity Common Stock, Shares Outstanding		15,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 81,137	$ 34,497
Due from related parties	22,516	17,986
Prepaid and other current assets	4,920	2,863
Total current assets	108,573	55,346
Furniture and equipment	4,900	5,307
Leasehold improvements	1,077	852
Capitalized software costs	4,250	4,292
Total property and equipment	10,227	10,451
Accumulated depreciation	(6,192)	(5,772)
Total Property and Equipment, Net	4,035	4,679
Due from related parties, net of current portion	4,846	6,446
Deferred tax asset	45,383	46,614
Other assets, net of amortization	183,745	190,807
Total assets	346,582	303,892
Current liabilities:
Accounts payable, accrued expenses and deposits	35,147	18,439
Total current liabilities	35,147	18,439
Long term portion of deferred rent payable, net of current portion	707	450
Amounts due pursuant to tax receivable agreement, net of current portion	64,905	64,905
Employer compensation liability, net of current portion	4,846	6,446
Total liabilities	105,605	90,240
Equity:
Additional paid in capital	93,600	93,425
Retained earnings	37,169	7,303
Cumulative other comprehensive income (loss)	80	73
Cumulative common distributions	13,207
Total Shareholders and Members equity	117,673	100,832
Noncontrolling interest	123,304	112,820
Total equity	240,977	213,652
Total liabilities and equity	346,582	303,892
Class A common shares
Equity:
Common stock	15	15
Class B-1 common shares
Equity:
Common stock	1	1
Class B-2 common shares
Equity:
Common stock	$ 15	$ 15

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Common stock shares issued	175,000
Class A common shares
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	31,600,000	31,000,000
Common stock shares issued	15,007,500	15,000,000
Common stock shares outstanding	15,007,500	15,000,000
Class B-1 common shares
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	1,000,000	1,000,000
Common stock shares issued	1,000,000	1,000,000
Common stock shares outstanding	1,000,000	1,000,000
Class B-2 common shares
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	15,000,000	15,000,000
Common stock shares issued	15,000,000	15,000,000
Common stock shares outstanding	15,000,000	15,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Management services	$ 41,867	$ 41,156	$ 182,940	$ 122,489
Reimbursable payroll and related costs	9,744	6,427	25,993	20,535
Advisory services	600	596	1,741	1,801
Total revenues	52,211	48,179	210,674	144,825
Expenses
Compensation and benefits	22,719	20,596	65,584	64,155
Separation expense	1,195		1,358	116
General and administrative	6,110	8,970	19,110	18,657
Depreciation expense	349	512	1,333	1,662
Total expenses	30,373	30,078	87,385	84,590
Operating Income (Loss), Total	21,838	18,101	123,289	60,235
Interest and other income	68	535	144	1,698
Unrealized losses attributable to changes in fair value of stock accounted for under the fair value option		(1,727)		(290)
Income before income tax expense and equity in earnings of investee	21,906	16,909	123,433	61,643
Income tax expense	(4,504)	(651)	(19,904)	(654)
Equity in earnings of investee		15		115
Net income	17,402	16,273	103,529	61,104
Net income attributable to noncontrolling interest	(10,704)	(15,303)	(73,663)	(60,134)
Net income attributable to RMR Inc.	6,698	970	29,866	970
Other comprehensive income (loss):
Foreign currency translation adjustments	(6)	88	13	(167)
Unrealized loss in investment in available for sale securities		(130)		(54)
Equity interest in investee's unrealized gains (losses)		(4)		35
Other comprehensive income (loss)	(6)	(46)	13	(186)
Comprehensive income	17,396	16,227	103,542	60,918
Comprehensive income attributable to noncontrolling interest	(10,701)	(15,115)	(73,669)	(59,806)
Comprehensive income attributable to RMR Inc.	$ 6,695	$ 1,112	$ 29,873	$ 1,112
Weighted average common shares outstanding - basic and diluted	16,008	16,000	16,003	16,000
Net income attributable to RMR Inc. per common shares - basic and diluted	$ 0.42	$ 0.06	$ 1.87	$ 0.06

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total Shareholders' Equity	Common sharesClass A common shares	Common sharesClass B-1 common shares	Common sharesClass B-2 common shares	Additional Paid In Capital	Retained Earnings	Cumulative Other Comprehensive Income	Cumulative Common Distributions	Noncontrolling Interest	Class A common shares	Class B-1 common shares	Class B-2 common shares	Total
Increase (Decrease) in Shareholders' Equity
Share grants										15,000,000	1,000,000	15,000,000
Balance at Sep. 30, 2015	$ 100,832	$ 15	$ 1	$ 15	$ 93,425	$ 7,303	$ 73		$ 112,820				$ 213,652
Increase (Decrease) in Shareholders' Equity
Net income	29,866					29,866			73,663				103,529
Incentive fee allocable to ABP Trust									(26,611)				(26,611)
Tax distributions to Member									(24,195)				(24,195)
Common share distributions	(13,207)							$ (13,207)	(12,379)				(25,586)
Other comprehensive income	7						7		6				13
Balance at Jun. 30, 2016	$ 117,673	$ 15	$ 1	$ 15	$ 93,600	$ 37,169	$ 80	$ (13,207)	$ 123,304				$ 240,977
Increase (Decrease) in Shareholders' Equity
Share grants	175,000				175,000					15,007,500	1,000,000	15,000,000	175,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net income (loss)	$ 103,529	$ 61,104
Adjustments to reconcile net income to net cash from operating activities:
Depreciation expense	1,333	1,662
Straight line office rent amortization	257	(10)
Amortization expense related to other asset	7,062	645
Deferred income taxes	1,231
Unrealized losses attributable to changes in fair value of stock accounted for under the fair value option		290
Dividend income		(1,259)
Revenues paid in common shares of Managed REITs		(6,564)
Gain on sale of shares		(15)
Equity in earnings of investee		(115)
Other Noncash Expense	175
Changes in assets and liabilities:
Due from related parties	(4,757)	25,613
Accounts receivable		26,229
Prepaid and other current assets	(2,054)	(119)
Accounts payable, accrued expenses and deposits	17,198	13,817
Incentive fee allocable to ABP Trust	(26,611)
Due to related parties		(27,639)
Net cash from operating activities	97,363	93,639
Investing activities
Purchase of property and equipment	(955)	(1,176)
Proceeds from sale of shares		2,369
Proceeds from disposal of assets		1,335
Dividends received from investment in REITs		1,237
Purchase of investment in RMR LLC		(46,386)
Net cash (used in) provided by investing activities	(955)	(42,621)
Financing activities
Proceeds from Issuance of Common Stock		57,906
Distributions to noncontrolling interest	(36,574)
Members distribution		(224,139)
Distributions to common shareholders	(13,207)
Net cash used in financing activities	(49,781)	(166,233)
Effect of exchange rate fluctuations on cash and cash equivalents	13	12
Cash and Cash Equivalents, Period Increase (Decrease), Total	46,640	(115,203)
Cash and cash equivalents at beginning of year	34,497	141,731
Cash and cash equivalents at end of year	81,137	26,528
Supplemental cash flow information
Income taxes paid	$ 19,287	217
Supplemental schedule of non-cash activities
Establishment of deferred taxes, net of amounts payable under tax receivable agreement		14,107
Non-cash equity activity		60,143
Establishment of other asset		193,806
Proceeds from the issuance of common shares received in Managed REIT shares		121,378
Purchase of investment in RMR LLC in Managed REIT shares		$ (121,378)

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2016
Basis of Presentation
Basis of Presentation	Note 1 - Basis of Presentation The RMR Group Inc., or RMR Inc., a Maryland corporation, is a holding company and substantially all of its business is conducted by its majority owned subsidiary The RMR Group LLC, or RMR LLC, historically a Delaware limited liability company and, as of June 5, 2015, a Maryland limited liability company. In these financial statements, unless otherwise indicated, “we,” us” and “our” refer to RMR Inc. and its direct and indirect subsidiaries. RMR Inc. serves as the sole managing member of RMR LLC and, in that capacity, operates and controls the business and affairs of RMR LLC. RMR Inc. was incorporated in Maryland on May 28, 2015 in contemplation of the June 5, 2015 transaction described in Note 6, Related Person Transactions , or the Up-C Transaction. Prior to the Up-C Transaction, RMR Inc. had not engaged in any business or other activities, except in connection with its incorporation. The Up-C Transaction and preceding reorganization transactions resulted in a change in the reporting entity for periods prior to June 5, 2015 due to the contribution to RMR LLC of operating entities under common control as described in our Annual Report on Form 10-K for the year ended September 30, 2015, or our Annual Report. These operating entities were then wholly owned by ABP Trust (formerly known as Reit Management & Research Trust), historically a Massachusetts business trust, and as of January 20, 2016, a Maryland statutory trust, or by Barry M. Portnoy and Adam D. Portnoy, our Founders, who are the beneficial owners of ABP Trust. ABP Trust and its beneficial owners are referred to herein collectively as the Members. The operating entities include RMR Advisors LLC, a Maryland limited liability company which was formerly a Massachusetts corporation named RMR Advisors, Inc., or RMR Advisors, and RMR Intl LLC, a Maryland limited liability company, or RMR Intl. These transactions among entities under common control have been accounted for using the pooling method of accounting as if the operations of RMR Advisors and RMR Intl were consolidated as of the beginning of the earliest period presented in our condensed consolidated financial statements and the ownership structure as of June 5, 2015 had been in existence throughout the periods covered by our condensed consolidated financial statements. RMR Inc. owns 15,007,500 class A membership units of RMR LLC, or Class A Units, and 1,000,000 class B membership units of RMR LLC, or Class B Units. The aggregate RMR LLC membership units RMR Inc. owns represent 51.6% of the economic interest of RMR LLC. We refer to economic interest as the right of a holder of a Class A Unit or Class B Unit to share in distributions made by RMR LLC and, upon liquidation, dissolution or winding up of RMR LLC, to share in the assets of RMR LLC after payments to creditors. ABP Trust owns 15,000,000 redeemable Class A Units, representing 48.4% of the economic interest of RMR LLC, which is presented as a noncontrolling interest within the condensed consolidated financial statements. RMR LLC was founded in 1986 to manage public investments in real estate and, as of June 30, 2016, managed a diverse portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages: Government Properties Income Trust, or GOV, a publicly traded real estate investment trust, or REIT, that primarily owns properties that are majority leased to government tenants; Hospitality Properties Trust, or HPT, a publicly traded REIT that primarily owns hotels and travel centers; Select Income REIT, or SIR, a publicly traded REIT that primarily owns properties leased to single tenants throughout the United States and leased lands in Hawaii; and Senior Housing Properties Trust, or SNH, a publicly traded REIT that primarily owns senior living communities and medical office buildings. Hereinafter, GOV, HPT, SIR and SNH are collectively referred to as the Managed REITs. RMR LLC also provides management services to other publicly traded and private businesses, including: Five Star Quality Care, Inc., or Five Star, an operator of senior living communities, many of which are owned by SNH; Sonesta International Hotels Corporation, or Sonesta, a privately owned manager and franchisor of hotels, resorts and cruise ships in the United States, Latin America, the Caribbean and the Middle East, some of whose U.S. hotels are owned by HPT; and TravelCenters of America LLC, or TA, an operator of travel centers along the U.S. Interstate Highway System, many of which are owned by HPT, convenience stores with retail gas stations and restaurants. Hereinafter, Five Star, Sonesta and TA are collectively referred to as the Managed Operators. In addition, RMR LLC also provides management services to certain related private companies, including Affiliates Insurance Company, or AIC, an Indiana insurance company, and ABP Trust and its subsidiaries. During the nine months ended June 30, 2015, RMR LLC provided transition services to Equity Commonwealth, or EQC, a publicly traded REIT that primarily owns office properties. RMR Advisors was founded in 2002. RMR Advisors is the advisor to RMR Real Estate Income Fund, or RIF. RIF is a closed end investment company focused on investing in real estate securities, including REITs and other dividend paying securities, but excluding our Client Companies, as defined below. RMR Intl was founded in 2012 and is the owner of RMR Australia Asset Management Pty Ltd, or RMR Australia, a company founded in 2012 to manage properties owned by EQC located in Australia. RMR Australia holds an Australian financial services license granted by the Australian Securities & Investments Commission. In these financial statements, we refer to the Managed REITs, the Managed Operators, RIF, AIC and ABP Trust as our Client Companies. The accompanying condensed consolidated financial statements of RMR Inc. are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles, or GAAP, for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes contained in our Annual Report. In the opinion of our management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. Preparation of these financial statements in conformity with GAAP, requires our management to make certain estimates and assumptions that may affect the amounts reported in these financial statements and related notes. The actual results could differ from these estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Jun. 30, 2016
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers . The main provision of ASU No. 2014-09 is to recognize revenue when control of the goods or services transfers to the customer, as opposed to the existing guidance of recognizing revenue when the risk and rewards transfer to the customer. In July 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017. We have not yet determined the effects, if any, that the adoption of ASU 2014-09 may have on our financial position, results of operations, cash flows or disclosures. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes , which is intended to improve how deferred taxes are classified on organizations’ balance sheets by eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. We adopted this ASU effective October 1, 2015 and have applied the requirements retrospectively to all periods presented. The adoption of this standard resulted in the reclassification of $3,398 from prepaid and other current assets to deferred income tax assets in our condensed consolidated balance sheet as of September 30, 2015. In February 2016, the FASB issued ASU No. 2016-02, Leases , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). ASU No. 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016-02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. We are currently assessing the potential impact the adoption of ASU No. 2016-02 will have on our condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 will become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently assessing the potential impact that adoption of ASU No. 2016-13 will have on our condensed consolidated financial statements.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Jun. 30, 2016
Revenue Recognition
Revenue Recognition	Note 3. Revenue Recognition Revenues from services that we provide are recognized as earned in accordance with contractual agreements. In the periods presented, management and advisory services revenue consists principally of business management fees, property management fees and advisory fees earned from our Client Companies. Business Management and Incentive Fees—Managed REITs We earn base business management fees from the Managed REITs equal to the lesser of: · the sum of (a) 0.5% of the historical cost of transferred real estate assets, if any, as defined in the applicable business management agreement, plus (b) 0.7% of the average invested capital (exclusive of the transferred real estate assets), as defined in the applicable business management agreement, up to $250,000 , plus (c) 0.5% of the average invested capital exceeding $250,000; and · the sum of (a) 0.7% of the average market capitalization, as defined in the applicable business management agreement, up to $250,000 , plus (b) 0.5% of the average market capitalization exceeding $250,000 . The foregoing base business management fees are paid monthly in arrears, based on the REIT’s monthly financial statements and average market capitalization during the month. For purposes of these fees, a Managed REIT’s assets under management do not include shares it owns of another Client Company. As part of the Up ‑C Transaction, which is more fully described in Note 6 below and in our Annual Report, RMR LLC and each of the Managed REITs entered into amended and restated business management agreements and amended and restated property management agreements. Each of our amended management agreements have terms that end on December 31, 2036, and automatically extend on December 31 st of each year so that the terms of the agreements thereafter end on the 20 th anniversary of the date of the extension. Each of the Managed REITs has the right to terminate each amended management agreement: (i) at any time on 60 days’ written notice for convenience, (ii) immediately upon written notice for cause, as defined therein, (iii) on 60 days’ written notice given within 60 days after the end of an applicable calendar year for a performance reason, as defined therein, and (iv) by written notice during the 12 months following a change of control of RMR LLC, as defined therein. We have the right to terminate the amended management agreements for good reason, as defined therein. Under our amended management agreements with the Managed REITs, if a Managed REIT terminates one or both of our amended management agreements with that Managed REIT for convenience, or if we terminate one or both of our amended management agreements with a Managed REIT for good reason, the Managed REIT has agreed to pay us a termination fee in an amount equal to the sum of the present values of the Managed REIT’s monthly future fees, as defined therein, for the terminated amended management agreement(s) for the remaining term. If a Managed REIT terminates one or both of our amended management agreements for a performance reason, as defined therein, the Managed REIT has agreed to pay to us the termination fee calculated as described above, but assuming a remaining term of 10 years. No Managed REIT has agreed to pay any termination fee if it terminates one or both of our amended management agreements with that Managed REIT for cause or as a result of a change of control of us, as defined in the applicable management agreement. During the period January 1, 2014 until June 5, 2015, the base business management fee was paid 90.0% in cash and 10.0% in the applicable REIT’s common shares, which were fully vested when issued. The number of the REIT’s common shares issued in payment of the base business management fee for each month equaled 10.0% of the total base management fee for the REIT for that month divided by the average daily closing price on the New York Stock Exchange of its common shares during that month. The amended management agreements require that all of the management fees payable from the Managed REITs to us after June 5, 2015 be paid in cash. Under the business management agreements, we also have the ability to earn annual incentive business management fees from the Managed REITs. The incentive business management fees are contingent performance based fees which are only recognized when earned at the end of each respective measurement period or termination of the related management agreement. The incentive fees are calculated for each Managed REIT as 12.0% of the product of (a) the equity market capitalization of the Managed REIT, as defined in the applicable business management agreement, and (b) the amount, expressed as a percentage, by which the Managed REIT’s total return per share, as defined in the applicable business management agreement, exceeded the benchmark total return per share, as defined in the applicable business management agreement, of a specified REIT index identified in the applicable business management agreement for the measurement period, subject to caps on the values of the incentive fees. The measurement period for the annual incentive fee in respect of calendar year 2015 is the two year period that ended on December 31, 2015 and for calendar years thereafter, the three year period ended on December 31 of that calendar year. The amended management agreements require that any incentive fee payable by the Managed REITs to us after June 5, 2015 be paid in cash. We earned aggregate base business management fees of $26,623 and $27,070 for the three months ended June 30, 2016 and 2015, respectively, and $76,628 and $76,763 for the nine months ended June 30, 2016 and 2015, respectively, from the Managed REITs. We earned aggregate incentive business management fees from the Managed REITs of $62,263 and zero for the nine months ended June 30, 2016 and 2015, respectively. Incentive business management fees recognized as earned in the nine months ended June 30, 2016 were earned in respect of the 2015 calendar year. Under the agreements entered into for the Up-C Transaction, ABP Trust is entitled to receive a pro rata share of any incentive business management fee earned for the 2015 calendar year, based on the number of days in 2015 to June 5, 2015, the effective date of the Up-C Transaction. Accordingly, $26,611 of the incentive business management fee was allocated to ABP Trust. See Note 6 below . Business Management Fees—Managed Operators, ABP Trust and AIC We earn business management fees from the Managed Operators and ABP Trust pursuant to business management agreements equal to 0.6% of: (i) in the case of Five Star, Five Star’s revenues from all sources reportable under GAAP, less any revenues reportable by Five Star with respect to properties for which it provides management services, plus the gross revenues at those properties determined in accordance with GAAP, (ii) in the case of Sonesta, Sonesta’s revenues from all sources reportable under GAAP, less any revenues reportable by Sonesta with respect to hotels for which it provides management services, plus the gross revenues at those hotels determined in accordance with GAAP, (iii) in the case of TA, the sum of TA’s gross fuel margin, as defined in the applicable agreement, plus TA’s total non fuel revenues and (iv) in the case of ABP Trust, revenues from all sources reportable under GAAP. We earn business management fees from AIC pursuant to a management agreement equal to 3.0% of its total premiums paid under active insurance underwritten or arranged by AIC. These fees are estimated and payable monthly in advance. We earned aggregate business management fees from the Managed Operators, ABP Trust and AIC of $6,804 and $6,181 for the three months ended June 30, 2016 and 2015, respectively, and $19,121 and $18,229 for the nine months ended June 30, 2016 and 2015, respectively. Property Management Fees We earned property management fees pursuant to property management agreements with certain Client Companies. We generally earn fees under these agreements for property management services equal to 3.0% of gross collected rents. Also, under the terms of the property management agreements, we receive additional property management fees for construction supervision in connection with certain construction activities undertaken at the managed properties equal to 5.0% of the cost of such construction. We earned aggregate property management fees of $8,440 a nd $7, 731 , for the three months ended June 30, 2016 and 2015, respectively , and $ 24,870 and $21,400 for the nine months ended June 30, 2016 and 2015, respectively. Reimbursable Payroll and Related Costs Pursuant to certain of our management agreements, the companies to which we provide management services pay or reimburse us for expenses incurred on their behalf. In accordance with FASB Accounting Standards Codification, or ASC, 605 Revenue Recognition , we present certain payroll and related cost reimbursements we receive as revenue. A significant portion of these reimbursable payroll and related costs arises from services we provide pursuant to our property management agreements that are charged or passed through to and were paid by tenants of our Client Companies. We realized reimbursable payroll and related costs of $9,744 and $6,427 for the three months ended June 30, 2016 and 2015, respectively, and $25,993 and $20,535 for the nine months ended June 30, 2016 and 2015, respectively . Our reimbursable payroll and related costs include grants of common shares from Client Companies directly to certain of our officers and employees in connection with the provision of management services to those companies. The revenue in respect of each grant is based on the fair value as of the grant date for those shares that have vested, with subsequent changes in the fair value of the unvested grants being recognized in the condensed consolidated statements of comprehensive income over the requisite service period. We record an equal offsetting amount as compensation and benefits expense for all of our payroll and related cost revenues. Equity based compensation expense and related reimbursements were $2,128 and $953 for the three months ended June 30, 2016 and 2015 , respectively, and $4,971 and $4,435 for the nine months ended June 30, 2016 and 2015, respectively. We report all other expenses we incur on behalf of our Client Companies on a net basis as the management agreements provide that reimbursable expenses are to be billed directly to the client. This net basis accounting method is supported by some or all of the following factors, which we have determined defines us as an agent rather than a principal with respect to these matters: · reimbursement to us is generally completed prior to payment of the related expenses; · the property owner is contractually obligated to fund such operating costs of the property from existing cash flow or direct funding from its building operating account and we bear little or no credit risk; · our clients are the primary obligor in relationships with the affected suppliers and service providers; and · we earn no margin on the reimbursement aspect of the arrangement, obtaining reimbursement only for actual costs incurred. Advisory Fees—RIF We earn advisory fees pursuant to an advisory agreement with RIF at the annual rate of 0.85% of RIF’s average daily managed assets, as defined in the agreement. Average daily managed assets includes the net asset value attributable to RIF’s outstanding common shares, plus the liquidation preference of RIF’s outstanding preferred shares plus the principal amount of any borrowings evidenced by notes, commercial paper or other similar instruments issued by RIF. We earned advisory fees of $600 and $596 for the three months ended June 30, 2016 and 2015, respectively, and $1,741 and $1,801 for the nine months ended June 30, 2016 and 2015, respectively. EQC Termination and Cooperation Agreement Pursuant to a Termination and Cooperation Agreement dated September 30, 2014, or the Termination and Cooperation Agreement, RMR LLC assisted EQC in the transition of EQC’s management and operations through February 28, 2015, and EQC paid RMR LLC $174 and $6,097 for the three and nine months ended June 30, 2015, respectively, for transition services. Also, we continued to provide certain services for EQC in Australia until October 31, 2015 and earned zero and $58 for the three and nine months ended June 30, 2016, respectively, for these services.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	Note 4. Income Taxes As a result of the Up ‑C Transaction, we became the sole managing member of RMR LLC. RMR LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. In addition, on June 1, 2015 and June 3, 2015, respectively, RMR Intl and RMR Advisors became wholly owned disregarded subsidiaries of RMR LLC. As a partnership, RMR LLC is generally not subject to U.S. federal and most state income taxes. Any taxable income or loss generated by RMR LLC is passed through to and included in the taxable income or loss of its members, including RMR Inc. and ABP Trust, based on each member’s respective ownership percentage. We are a corporation subject to U.S. federal and state income tax with respect to our allocable share of any taxable income of RMR LLC and its wholly owned subsidiaries. For the three and nine months ended June 30, 2016, we recognized income tax expense of $4,504 and $ 19,904 , respectively, which includes $2,837 and $16,182 , respectively, of U.S. federal income tax and $1,667 and $3,722 , respectively, of state income taxes . For the three and nine months ended June 30, 2015, we recognized income tax expense of $651 and $654 , respectively, which includes $574 of U.S. federal income tax for both periods and $77 and $80 , respectively, of state income taxes. As of June 30, 2016, we had a net deferred tax asset of $45,383 , which is primarily a result of the Up-C Transaction. For further information about the Up-C Transaction, please refer to Note 6 below and our Annual Report. A reconciliation of the statutory income tax rate to the effective tax rate is as follows: Three Months Ended Nine Months Ended June 30, 2016 June 30, 2016 Income taxes computed at the federal statutory rate % % State taxes, net of federal benefit % % Net income attributable to non-controlling interest % % Income tax rate % % Prior to June 5, 2015, RMR LLC was a single member limited liability company and together with its sole owner was classified as an S corporation for tax purposes and generally not subject to federal and most state income taxes. Also prior to June 5, 2015, RMR Advisors and RMR Intl were classified as an S corporation and partnership, respectively, for income tax purposes and were also generally not subject to federal and most state income taxes. RMR Intl conducted business in Australia through a foreign entity that was subject to Australian income tax and has certain deferred tax assets. We have determined that it is more likely than not that RMR Intl will not realize the benefit of its deferred tax assets, and therefore, we maintain a full valuation allowance for its deferred tax assets. ASC 740, Income Taxes , provides a model for how a company should recognize, measure and present in its financial statements uncertain tax positions that have been taken or are expected to be taken with respect to all open years and in all significant jurisdictions. We recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent the “more likely than not” standard has been satisfied, the benefit associated with a tax position is measured as the largest amount that is greater than 50% likely of being realized upon settlement. As of June 30, 2016 and September 30, 2015, we have no uncertain tax positions.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments
Fair Value of Financial Instruments	Note 5. Fair Value of Financial Instruments As of June 30, 2016 and September 30, 2015, the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties and accounts payable, accrued expenses and deposits, were not materially different from their carrying values due to the short term nature of these financial instruments. The following are our assets and liabilities that all have been measured at fair value using Level 1 inputs in the fair value hierarchy as of June 30, 2016 and September 30, 2015: June 30, September 30, 2016 2015 Money market funds included in cash and cash equivalents $ $ Current portion of due from related parties related to share based payment awards Long term portion of due from related parties related to share based payment awards Current portion of accounts payable, accrued expenses and deposits related to share based payment awards Long term portion of employer compensation liability related to share based payment awards

Related Person Transactions

Related Person Transactions	9 Months Ended
	Jun. 30, 2016
Related Person Transactions
Related Person Transactions	Note 6. Related Person Transactions Our Founders are the beneficial owners and trustees of ABP Trust, which for the periods prior to June 5, 2015 was the sole owner of RMR LLC. ABP Trust owns (i) all of the outstanding shares of Class B ‑1 common stock of RMR Inc., or Class B-1 Common Shares; (ii) all of the outstanding shares of Class B ‑2 common stock of RMR Inc., or Class B-2 Common Shares; and (iii) 15,000,000 Class A Units. For the periods prior to June 5, 2015, our Founders also were the owners of RMR Advisors and RMR Intl. Our Founders are directors of AIC and the shareholders and directors of Sonesta. Our Founders are directors and officers of RMR Inc. and officers of RMR LLC. Our Founders are also managing trustees of each of the Managed REITs; and, as of June 30, 2016, the Managed REITs collectively owned a majority of the outstanding shares of Class A common stock of RMR Inc., or Class A Common Shares. Barry M. Portnoy is a managing director of Five Star and of TA. All of the executive officers of the Managed REITs and many of the executive officers of the Managed Operators are also officers of RMR LLC. Revenues from Related Parties For the three and nine months ended June 30, 2016 and 2015, we recognized revenues from related parties (excluding incentive business management fees) as set forth in the following table: For the Three Months Ended June 30, For the Nine Months Ended June 30, 2016 2015 2016 2015 $ % $ % $ % $ % Managed REITs: GOV $ $ $ $ HPT SIR SNH Managed Operators: Five Star Sonesta TA Other: AIC RIF ABP Trust Other unrelated parties - $ $ $ $ On December 31, 2015, RMR LLC also earned a $62,263 incentive business management fee from HPT pursuant to our business management agreement with HPT. Pursuant to the RMR LLC Operating Agreement, ABP Trust was entitled to receive a pro rata share of any incentive business management fee earned by RMR LLC for the 2015 calendar year based on the number of days in 2015 to June 5, 2015, the effective date of the Up-C Transaction; the pro rata portion of the $62,263 incentive fee allocated solely to ABP Trust was $26,611 . In January 2016, HPT paid RMR LLC this $62,263 incentive fee and RMR LLC paid ABP Trust $26,611 . We earned no other incentive fees during the periods presented. Investments in Managed REITs, RIF and AIC For periods prior to June 5, 2015, we were paid a part of our base business management fees from the Managed REITs in common shares of each Managed REIT. During the three and nine months ended June 30, 2015, we received shares for such services as follows: During the Three Months Ended During the Nine Months Ended June 30, 2015 June 30, 2015 No. of No. of REIT Shares Value Shares Value GOV $ $ HPT SIR SNH $ $ Cash dividends that we received on the shares of the Managed REITs which we owned during the three and nine months ended June 30, 2015 totaled $375 and $1,237 , respectively, and are reported as interest and other income in our condensed consolidated statements of comprehensive income. We also historically owned shares of RIF, for which our quarterly dividend distributions were reinvested in purchasing additional RIF shares. For the three and nine months ended June 30, 2015, we purchased zero and 1,068 shares for zero and $22 , respectively, pursuant to this dividend reinvestment program. AIC was formed in 2008 and provides a combined property insurance program for its shareholders, including the companies to which we provide management services. For the three and nine months ended June 30, 2015, RMR LLC or its transferee, ABP Trust, the Managed REITs, Five Star and TA each owned 14.3% of AIC. Our investments in the Managed REITs, RIF and AIC were distributed by RMR LLC to ABP Trust at their respective carrying values prior to the Up-C Transaction. Amounts due from related parties The following table represents amounts due from related parties as of the dates listed: June 30, September 30, 2016 2015 Managed REITs: GOV $ $ HPT SIR SNH Managed Operators: Five Star Sonesta TA Other Client Companies: AIC ABP Trust $ $ Leases As of June 30, 2016 , we leased from ABP Trust and certain Managed REITs office space for use as our headquarters and local offices. We incurred rental expense under related party leases aggregating $1,077 and $902 for the three months ended June 30, 2016 and 2015, respectively, and $3,190 and $2,983 for the nine months ending June 30, 2016 and 2015, respectively. Our related party leases have various termination dates and many have renewal options. Some of our related party leases are terminable on 30 days’ notice and many allow us to terminate early if our management agreements for the buildings in which we lease space are terminated. The Up-C Transaction On June 5, 2015, our Founders, ABP Trust and the Managed REITs were parties to the Up-C Transaction. In the Up-C Transaction: (a) ABP Trust contributed $11,520 in cash to RMR Inc. which RMR Inc. subsequently contributed to RMR LLC; (b) RMR LLC issued 1,000,000 Class B Units to RMR Inc.; (c) GOV contributed 700,000 of its common shares and $3,917 in cash to RMR Inc., HPT contributed 1,490,000 of its common shares and $12,622 in cash to RMR Inc., SIR contributed 880,000 of its common shares and $15,880 in cash to RMR Inc. and SNH contributed 2,345,000 of its common shares and $13,967 in cash to RMR Inc.; (d) RMR Inc. issued 1,000,000 Class B-1 Common Shares and 15,000,000 Class B-2 Common Shares to ABP Trust; (e) RMR Inc. issued 1,541,201 shares of Class A Common Shares to GOV, 5,019,121 Class A Common Shares to HPT, 3,166,891 Class A Common Shares to SIR and 5,272,787 Class A Common Shares to SNH; (f) ABP Trust delivered to RMR Inc. 15,000,000 of the 30,000,000 Class A Units it then owned; and (g) RMR Inc. delivered to ABP Trust the shares and cash which had been contributed to RMR Inc. by the Managed REITs. Pursuant to the Up-C Transaction agreements, the Managed REITs agreed to distribute approximately half of our Class A Common Shares they acquired in the Up-C Transaction to their respective shareholders as a special distribution. This distribution took place on December 14, 2015. As a result of the Up-C Transaction, RMR LLC became a subsidiary of RMR Inc., RMR Inc. became the Managing Member of RMR LLC and each Managed REIT became the owner of more than 5.0% of the outstanding Class A Common Shares of RMR Inc. For further information regarding the Up-C Transaction, please refer to our Annual Report. In the Up ‑C Transaction, the Managed REITs contributed cash and shares of the Managed REITs with a combined value of $167,764 to RMR Inc. The transaction agreements calculated the value of the Managed REITs’ common shares using a 20 business day volume weighted average trading price, or $126,40 0; however, for accounting purposes, the common shares were valued at the closing price of those shares on the date of the Up ‑C Transaction, or $121,378 . Also, for purposes of GAAP, we concluded that the consideration received from the Managed REITs for the Class A Common Shares represented a discount to the fair value of RMR Inc.’s Class A Common Shares; and as a result, we recorded $193,806 in other assets under ASC 605 ‑50, Consideration Given to a Customer . The consideration received from the Managed REITs was allocated to the 15,000,000 Class A Common Shares and the 20 year management agreements under the relative selling price method in accordance with ASC 605 ‑25, Multiple Element Arrangements, using our best estimate of selling price for each of the deliverables. The other assets of $193,806 are being amortized against revenue recognized related to the management agreements with the Managed REITs using the straight line method through the period ended December 31, 2035. We reduced revenue by $2,354 and $645 for the three months ended June 30, 2016 and 2015, respectively, and $7,062 and $645 for the nine months ended June 30, 2016 and 2015, respectively, related to the amortization of these other assets. As of June 30, 2016, the unamortized amount of this asset was $183,745 . Pursuant to the Up-C Transaction agreements, on December 14, 2015, GOV, HPT, SIR and SNH distributed 768,032 , 2,515,344 , 1,580,055 and 2,635,379 Class A Common Shares, respectively, to their respective shareholders, which represented approximately half of the Class A Common Shares that each received in the Up-C Transaction, and we facilitated this distribution by filing a registration statement with the U.S. Securities and Exchange Commission, or the SEC, to register the Class A Common Shares being distributed and by listing those shares on The NASDAQ Stock Market LLC, or NASDAQ. Tax Related Payments In the Up-C Transaction, we entered into the Tax Receivable Agreement with ABP Trust which provides for the payment by RMR Inc. to ABP Trust of 85.0% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that RMR Inc. realizes as a result of (a) the increases in tax basis attributable to our dealings with ABP Trust and (b) tax benefits related to imputed interest deemed to be paid by us as a result of the Tax Receivable Agreement. During the nine months ended June 30, 2016, we made no payments to ABP Trust pursuant to this agreement. As of June 30, 2016, our condensed consolidated balance sheet reflects a liability related to the Tax Receivable Agreement of $65,834 , of which we expect to pay $929 to ABP Trust during the fourth quarter of fiscal 2016. Under the RMR LLC Operating Agreement, RMR LLC is also required to make certain pro rata distributions to each member of RMR LLC quarterly on the basis of the assumed tax liabilities of its members. For the nine months ended June 30, 2016, pursuant to the RMR LLC Operating Agreement, RMR LLC made required quarterly tax distributions to holders of its membership units totaling $49,995 , of which $25,800 was distributed to us and $24,195 was distributed to ABP Trust, based on each membership unit holder’s respective ownership percentage. The $25,800, distributed to us was eliminated in our condensed consolidated financial statements, and the $24,195 distributed to ABP Trust was recorded as a reduction of their noncontrolling interest. We used funds from this distribution for payment of certain U.S. federal and state income tax liabilities. We also expect to use funds from this distribution to pay our obligations under the Tax Receivable Agreement . Other For the period October 1, 2014 through June 5, 2015, amounts were periodically advanced and repaid between ABP Trust and its then 100.0% owned subsidiary RMR LLC. These advances were due on demand without interest. There were no advances outstanding between ABP Trust and RMR LLC as of June 30, 2016 and September 30, 2015. Also, for the period October 1, 2014 through June 5, 2015, our Founders periodically made loans for working capital to RMR LLC which loans were due on demand and required interest at the minimum monthly adjustable federal rate required for tax reporting. At June 30, 2016 and September 30, 2015, respectively, no loans were outstanding from our Founders to RMR LLC. Additional information about our related person transactions appears in Note 7 below.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Jun. 30, 2016
Shareholders' Equity
Shareholders' Equity	Note 7. Shareholders’ Equity Common Shares RMR Inc.’s authorized capital stock consists of 31,600,000 Class A Common Shares, 1,000,000 Class B ‑1 Common Shares and 15,000,000 Class B ‑2 Common Shares. Class A Common Shares entitle holders to one vote for each share held of record on all matters submitted to a vote of shareholders. Class B-1 Common Shares entitle holders to ten votes for each share held of record on all matters submitted to a vote of shareholders. Each Class B-1 Common Share may, at the option of its holder, be converted into a Class A Common Share, on a one for one basis. Class B-2 Common Shares are entitled to ten votes for each share held of record on all matters submitted to a vote of shareholders. RMR Inc.'s Class B-2 Common Shares are paired with Class A Units held by ABP Trust. The Class A Units may, at the option of the holder, be redeemed for Class A Common Shares on a one to one basis, and upon such redemption our Class B-2 Common Shares that are paired with the Class A Units are automatically cancelled. RMR Inc. has the option to settle the redemption in cash. Holders of our Class A Common Shares, Class B ‑1 Common Shares and Class B-2 Common Shares vote together as a single class on all matters submitted to a vote of our common shareholders except as required by law and except for amendments to our charter that materially and adversely affect a single class of common shares, in which case, the affected class of shares shall have the right to vote separately on such amendments. Issuances On March 9, 2016, under our equity compensation plan we granted 2,500 of our Class A Common Shares valued at $23.27 per share, the closing price of our Class A Common Shares on NASDAQ on that day, to each of our then three Independent Directors as part of their annual compensation. These Class A Common Shares awarded to our Independent Directors vested immediately and are included in general and administrative expense in our condensed consolidated financial statements. In connection with the grant of Class A Common Shares to our Independent Directors, RMR LLC concurrently issued 7,500 Class A Units to RMR Inc., consistent with the terms of the RMR LLC Operating Agreement. Distributions On December 15, 2015, we paid a dividend on our Class A Common Shares and Class B-1 Common Shares, in the amount of $0.5260 per Class A Common Share and Class B-1 Common Share, or $8,416 . This dividend was paid to our shareholders of record as of the close of business on November 25, 2015, which included the Managed REITs and ABP Trust. The amount of this dividend was calculated at a rate of $0.25 per share per quarter pro rata for the period June 5, 2015 to December 14, 2015. This dividend was funded by a distribution from RMR LLC to holders of its membership units in the amount of $0.5260 per unit, or $16,306 , of which $8,416 was distributed to us based on our aggregate ownership of 16,007,500 membership units of RMR LLC and $7,890 was distributed to ABP Trust based on its ownership of 15,000,000 membership units of RMR LLC. On May 19, 2016, we paid a dividend on our Class A Common Shares and Class B-1 Common Shares, in the amount of $0.2993 per Class A Common Share and Class B-1 Common Share, or $4,791 . This dividend was paid to our shareholders of record as of the close of business on April 25, 2016. The amount of this dividend was calculated as $0.25 per share for the quarter ended March 31, 2016, plus a pro rata dividend in respect of the period from December 14, 2015 through and including December 31, 2015. This dividend was funded by a distribution from RMR LLC to holders of its membership units in the amount of $0.2993 per unit, or $9,280 , of which $4,791 was distributed to us based on our aggregate ownership of 16,007,500 membership units of RMR LLC and $4,489 was distributed to ABP Trust based on its ownership of 15,000,000 membership units of RMR LLC. On July 12, 2016, we declared a dividend on our Class A Common Shares and Class B-1 Common Shares payable to our shareholders of record as of July 22, 2016, in the amount of $0.25 per Class A Common Share and Class B-1 Common Share, or $4,002 . This dividend will be funded by a distribution by RMR LLC to holders of its membership units in the amount of $0.25 per unit, or $7,752 , of which $4,002 will be distributed to us based upon our aggregate ownership of 16,007,500 membership units of RMR LLC and $3,750 will be distributed to ABP Trust based on its ownership of 15,000,000 membership units of RMR LLC. We expect to pay this dividend on or about August 18, 2016 with cash on hand.

Per Common Share Amounts

Per Common Share Amounts	9 Months Ended
	Jun. 30, 2016
Per Common Share Amounts
Per Common Share Amounts	Note 8. Per Common Share Amounts Earnings per common share for the three and nine months ended June 30, 2016 reflects net income attributable to RMR Inc. divided by our weighted average common shares outstanding. Basic and diluted weighted average common shares outstanding represent our 15,007,500 Class A Common Shares and our 1,000,000 Class B ‑1 Common Shares. Our Class B ‑2 Common Shares, which are paired with ABP Trust’s Class A Units, have no independent economic interest in RMR Inc. and thus are not included as common stock outstanding for purposes of calculating our net income attributable to RMR Inc. per share. The 15,000,000 Class A Units that we do not own may be redeemed for our Class A Common Shares on a one for one basis, or upon such redemption, we may elect to pay cash instead of issuing Class A Common Shares. Upon redemption of a Class A Unit, our Class B ‑2 Common Share “paired” with such unit is cancelled for no additional consideration. If all outstanding Class A Units were redeemed for our Class A Common Shares in the periods presented our Class A Common Shares outstanding would have been 30,007,500 . In computing the dilutive effect, if any, that the aforementioned redemption would have on earnings per share attributable to RMR Inc., we considered that net income available to holders of our Class A Common Shares would increase due to elimination of the noncontrolling interest (including any tax impact). Accordingly, in the periods presented, such redemption is not reflected in diluted earnings per share as the assumed redemption would be anti ‑dilutive.

Net Income Attributable to RMR

Net Income Attributable to RMR Inc	9 Months Ended
	Jun. 30, 2016
Net Income Attributable to RMR Inc.
Net Income Attributable to RMR Inc.	Note 9. Net Income Attributable to RMR Inc. Net income attributable to RMR Inc. for three and nine months ended June 30, 2016, is derived as follows: Three Months Ended Nine Months Ended June 30, 2016 June 30, 2016 Net income before income tax expense $ $ Add: RMR Inc. franchise tax expense and interest income Less: incentive fee allocable to ABP Trust - Net income before non-controlling interest Less: non-controlling interest Net income attributable to RMR Inc. before income tax expense Less: income tax expense attributable to RMR Inc. Less: RMR Inc. franchise tax expense and interest income Net income attributable to RMR Inc. $ $

Segment Reporting

Segment Reporting	9 Months Ended
	Jun. 30, 2016
Segment Reporting
Segment Reporting	Note 10. Segment Reporting We have one reportable business segment, which is RMR LLC. In the tables below, All Other Operations include the operations of RMR Inc., RMR Advisors and RMR Intl. Three Months Ended June 30, 2016 All Other Revenues RMR LLC (1) Operations Total Management services $ $ - $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Income before income tax expense - Income tax expense - Net income (loss) $ $ $ (1) Intersegment revenues of $192 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Nine Months Ended June 30, 2016 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Income before income tax expense Income tax expense Net income (loss) $ $ $ (1) Intersegment revenues of $737 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Three Months Ended June 30, 2015 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits General and administrative Depreciation expense - Total expenses Operating income Interest and other income Unrealized losses attributable to changes in fair value of stock accounted for under the fair value option Income before income tax benefit (expense) and equity in earnings of investee Income tax benefit (expense) Equity in earnings of investee - Net income (loss) $ $ $ (1) Intersegment revenues of $297 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Nine Months Ended June 30, 2015 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Unrealized gains (losses) attributable to changes in fair value of stock accounted for under the fair value option Income before income tax expense and equity in earnings of investee Income tax expense - Equity in earnings of investee - Net income (loss) $ $ $ (1) Intersegment revenues of $893 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.

Separation Expense

Separation Expense	9 Months Ended
	Jun. 30, 2016
Separation Expense
Separation Expense	Note 11. Separation Expense We recognized separation expense of $1,195 for the three months ended June 30, 2016 in connection with employment termination costs.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2016
Subsequent Events
Subsequent Events	Note 12. Subsequent Events On August 5, 2016, RMR LLC acquired assets of Tremont Realty Capital LLC, or Tremont, for an upfront purchase price of $2,200 , excluding transaction costs. Tremont also has the right to receive an “earn out” over the next two years based on a portion of payments that RMR LLC receives from Tremont’s historical business. Tremont principally raises debt and equity capital for owners of commercial real estate and serves as a manager of funds invested in commercial real estate. Tremont is headquartered in Boston, MA and has been in business since 2000.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2016
Income Taxes
Schedule of reconciliation of the differences between the statutory income tax rate to effective tax rate	Three Months Ended Nine Months Ended June 30, 2016 June 30, 2016 Income taxes computed at the federal statutory rate % % State taxes, net of federal benefit % % Net income attributable to non-controlling interest % % Income tax rate % %

Fair Value of Financial Instr20

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments
Schedule of assets and liabilities measured at fair value	June 30, September 30, 2016 2015 Money market funds included in cash and cash equivalents $ $ Current portion of due from related parties related to share based payment awards Long term portion of due from related parties related to share based payment awards Current portion of accounts payable, accrued expenses and deposits related to share based payment awards Long term portion of employer compensation liability related to share based payment awards

Related Person Transactions (Ta

Related Person Transactions (Tables)	9 Months Ended
	Jun. 30, 2016
Related Person Transactions
Schedule of revenue from related party	For the Three Months Ended June 30, For the Nine Months Ended June 30, 2016 2015 2016 2015 $ % $ % $ % $ % Managed REITs: GOV $ $ $ $ HPT SIR SNH Managed Operators: Five Star Sonesta TA Other: AIC RIF ABP Trust Other unrelated parties - $ $ $ $
Schedule of investments in related party	During the Three Months Ended During the Nine Months Ended June 30, 2015 June 30, 2015 No. of No. of REIT Shares Value Shares Value GOV $ $ HPT SIR SNH $ $
Schedule of amount due from (to) related party	June 30, September 30, 2016 2015 Managed REITs: GOV $ $ HPT SIR SNH Managed Operators: Five Star Sonesta TA Other Client Companies: AIC ABP Trust $ $

Net Income Attributable to RM22

Net Income Attributable to RMR Inc (Tables)	9 Months Ended
	Jun. 30, 2016
Net Income Attributable to RMR Inc.
Schedule of net income attributable to parent	Three Months Ended Nine Months Ended June 30, 2016 June 30, 2016 Net income before income tax expense $ $ Add: RMR Inc. franchise tax expense and interest income Less: incentive fee allocable to ABP Trust - Net income before non-controlling interest Less: non-controlling interest Net income attributable to RMR Inc. before income tax expense Less: income tax expense attributable to RMR Inc. Less: RMR Inc. franchise tax expense and interest income Net income attributable to RMR Inc. $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Jun. 30, 2016
Segment Reporting
Schedule of segment reporting information	Three Months Ended June 30, 2016 All Other Revenues RMR LLC (1) Operations Total Management services $ $ - $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Income before income tax expense - Income tax expense - Net income (loss) $ $ $ (1) Intersegment revenues of $192 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Nine Months Ended June 30, 2016 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Income before income tax expense Income tax expense Net income (loss) $ $ $ (1) Intersegment revenues of $737 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Three Months Ended June 30, 2015 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits General and administrative Depreciation expense - Total expenses Operating income Interest and other income Unrealized losses attributable to changes in fair value of stock accounted for under the fair value option Income before income tax benefit (expense) and equity in earnings of investee Income tax benefit (expense) Equity in earnings of investee - Net income (loss) $ $ $ (1) Intersegment revenues of $297 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements. Nine Months Ended June 30, 2015 All Other Revenues RMR LLC (1) Operations Total Management services $ $ $ Reimbursable payroll and related costs - Advisory services - Total revenues Expenses Compensation and benefits Separation expense - General and administrative Depreciation expense - Total expenses Operating income Interest and other income Unrealized gains (losses) attributable to changes in fair value of stock accounted for under the fair value option Income before income tax expense and equity in earnings of investee Income tax expense - Equity in earnings of investee - Net income (loss) $ $ $ Intersegment revenues of $893 recognized by RMR LLC for services provided to the All Other Operations segment have been eliminated in the condensed consolidated financial statements.

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Jun. 30, 2016shares
ABP Trust
Ownership percentage	48.40%
Redeemable Class A membership units | ABP Trust
Membership units (in units)	15,000,000
RMR LLC
Ownership percentage	51.60%
RMR LLC | Class A membership units
Membership units (in units)	15,007,500
RMR LLC | Class B membership units
Membership units (in units)	1,000,000

Recent Accounting Pronounceme25

Recent Accounting Pronouncements (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2015USD ($)
Reclassification adjustment
Prior Period Adjustment
Prior period reclassification adjustment	$ 3,398

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	Jun. 05, 2015	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Management and Incentive Fees
Incentive fee allocated to related party					$ (26,611,000)
Property Management Fees
Preperty management fee percent based on gross collected rents					3.00%
Property management fee percent based on the cost of construction					$ 5
Aggregate property management fees		$ 8,440,000		$ 7,731,000	24,870,000	$ 21,400,000
Reimbursable Payroll and Related Costs
Equity based compensation expense and related reimbursements		2,128,000		953,000	4,971,000	4,435,000
Reimbursable payroll and related costs		9,744,000		6,427,000	25,993,000	20,535,000
Advisory Fees
Investment Advisory Fees		600,000		596,000	$ 1,741,000	1,801,000
Managed REIT's
Business Management and Incentive Fees
Business management fees as a percentage of transferred real estate assets					0.50%
Business management fees as a percentage of average invested capital below the threshold limit					0.70%
Business management fees as a percentage of average invested capital above the threshold limit					0.50%
Business management fees as a percent of average market capitalization below the threshold limit					0.70%
Business management fees as a percent of average market capitalization above the threshold limit					0.50%
Maximum threshold amount for calculating the business management fees		250,000			$ 250,000
Minimum threshold amount for calculating the business management fees		250,000			$ 250,000
Termination fee remaining term assumption					10 years
Percentage of business management fees paid in the form of cash	90.00%
Percentage of business management fees paid in the form of common shares	10.00%
Contingent incentive business management fee percentage					12.00%
Measurement period for calculating the annual incentive fee as of December 31, 2015			2 years
Measurement period for calculating the annual incentive fee after December 31, 2015					3 years
Aggregate base business management fees		26,623,000		27,070,000	$ 76,628,000	76,763,000
Aggregate incentive business management fees					$ 62,263,000	0
AIC
Business Management and Incentive Fees
Business management fee percent based on total premiums paid					3.00%
Managed Operators, ABP Trust and AIC
Business Management and Incentive Fees
Business management fee percent based on management agreements					0.60%
Aggregate business management fees		6,804,000		6,181,000	$ 19,121,000	18,229,000
RIF
Advisory Fees
Advisory fee percent					0.85%
Up C Transaction | ABP Trust
Business Management and Incentive Fees
Incentive fee allocated to related party			$ 26,611,000		$ 26,611,000
RMR LLC | Up C Transaction
Business Management and Incentive Fees
Number of business days notice for termination of property management agreement for convenience by the related party	60 days
Number of business days notice for termination of property management agreement for performance by the related party	60 days
Window for providing notice of termination of property management agreement for performance by the related party	60 days
Window for providing notice of termination of property management agreement for change of control by the related party	12 months
RMR LLC | EQC Termination and Cooperation Agreement | EQC
Property Management Fees
Amount Paid For Transition Service				174,000		$ 6,097,000
Aggregate property management fees		$ 0		$ 174,000	$ 58,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Income Tax Expense (Benefit)	$ 4,504	$ 651	$ 19,904	$ 654
Federal income tax	2,837	574	16,182	574
State income tax	$ 1,667	$ 77	$ 3,722	$ 80
Reconciliation of the statutory tax rate to effective tax rate
Income taxes computed at the federal statutory rate	35.00%		35.00%
State taxes, net of federal benefit	4.80%		4.80%
Net income attributable to non-controlling interest	(19.20%)		(23.70%)
Total	20.60%		16.10%
Net deferred tax asset	$ 45,383		$ 45,383
Uncertain tax provisions	$ 0		$ 0		$ 0

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Details) - Recurring basis - Level 1 - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Schedule of assets and liabilities measured at fair value
Money market funds included in cash and cash equivalents	$ 77,280	$ 33,241
Current portion of due from related parties related to share based payment awards	4,040	4,267
Long term portion of due from related parties related to share based payment awards	4,846	6,446
Current portion of accounts payable, accrued expenses and deposits related to share based payment awards	4,040	4,267
Long term portion of employer compensation liability related to share based payment awards	$ 4,846	$ 6,446

Related Person Transactions (De

Related Person Transactions (Details) - USD ($) $ in Thousands	Dec. 14, 2015	Jun. 05, 2015	Jun. 04, 2015	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jul. 12, 2016	May 19, 2016	Dec. 15, 2015	Sep. 30, 2015
Related party transactions
Other unrelated parties						$ 174	$ 58	$ 6,097
Revenues net of incentive business management fees				$ 52,211		$ 48,179	$ 148,411	$ 144,825
Percentage of revenues from unrelated parties				0.00%		0.40%	0.00%	4.20%
Percentage of revnues				100.00%		100.00%	100.00%	100.00%
Incentive fee allocated to related party							$ (26,611)
Other incentive business management fees							0
Cash dividend								$ 1,237
Dividend reinvestment plan, Value of shares purchased								22
Due from related parties				$ 27,362			27,362					$ 24,432
Unamortized amount of other asset				$ 183,745			183,745					$ 190,807
Quarterly tax distributions to Member							$ 24,195
Class A common shares
Related party transactions
Common stock shares outstanding				15,007,500			15,007,500					15,000,000
Class A common shares
Related party transactions
Common stock shares outstanding				15,000,000			15,000,000
RMR LLC | Interest And Other Income
Related party transactions
Cash dividend						$ 375		1,237
Managed REIT's
Related party transactions
Revenue from related parties				$ 43,829		$ 39,915	$ 124,621	$ 115,146
Percentage of revenues from related parties				83.90%		83.00%	84.00%	79.50%
Aggregate incentive business management fees							$ 62,263	$ 0
Value of shares received						$ 1,859		6,564
Due from related parties				$ 25,061			25,061					$ 22,090
Managed REIT's | Up C Transaction
Related party transactions
Related party consideration respective of Up C Transaction		$ 193,806
Management agreement term		20 years
Amortization of related party consideration asset				2,354		645	7,062	645
Unamortized amount of other asset				183,745			183,745
Managed REIT's | Up C Transaction | Class A common shares
Related party transactions
Common stock shares outstanding		15,000,000
GOV
Related party transactions
Revenue from related parties				$ 8,310		$ 6,820	$ 23,351	$ 21,774
Percentage of revenues from related parties				15.90%		14.30%	15.70%	15.00%
Shares received from related party						7,610		30,276
Value of shares received						$ 171		$ 692
Due from related parties				$ 5,108			$ 5,108					3,506
GOV | Class A common shares
Related party transactions
Shares issued in connection with acquisition		1,541,201
SIR
Related party transactions
Revenue from related parties				$ 10,824		$ 9,449	$ 30,722	$ 22,713
Percentage of revenues from related parties				20.70%		19.60%	20.70%	15.70%
Shares received from related party						15,383		39,927
Value of shares received						$ 374		$ 982
Due from related parties				$ 5,815			$ 5,815					4,741
SIR | Class A common shares
Related party transactions
Shares issued in connection with acquisition		3,166,891
HPT
Related party transactions
Revenue from related parties				$ 9,840		$ 10,134	$ 28,358	$ 31,148
Percentage of revenues from related parties				18.80%		21.10%	19.10%	21.50%
Shares received from related party						21,104		84,810
Value of shares received						$ 677		$ 2,605
Due from related parties				$ 6,080			$ 6,080					6,990
HPT | Class A common shares
Related party transactions
Shares issued in connection with acquisition		5,019,121
SNH
Related party transactions
Revenue from related parties				$ 14,855		$ 13,512	$ 42,190	$ 39,511
Percentage of revenues from related parties				28.50%		28.00%	28.50%	27.30%
Shares received from related party						29,179		103,265
Value of shares received						$ 637		$ 2,285
Due from related parties				$ 8,058			$ 8,058					6,853
SNH | Class A common shares
Related party transactions
Shares issued in connection with acquisition		5,272,787
Managed Operators
Related party transactions
Revenue from related parties				$ 6,994		$ 6,553	$ 19,571	$ 19,150
Percentage of revenues from related parties				13.40%		13.50%	13.20%	13.20%
Due from related parties				$ 1,753			$ 1,753					2,198
Five Star
Related party transactions
Revenue from related parties				$ 2,387		$ 2,329	$ 7,109	$ 6,980
Percentage of revenues from related parties				4.60%		4.80%	4.80%	4.80%
Due from related parties				$ 385			$ 385					1,361
Sonesta
Related party transactions
Revenue from related parties				$ 594		$ 542	$ 1,503	$ 1,372
Percentage of revenues from related parties				1.10%		1.10%	1.00%	0.90%
Due from related parties				$ 265			$ 265					16
TA
Related party transactions
Revenue from related parties				$ 4,013		$ 3,682	$ 10,959	$ 10,798
Percentage of revenues from related parties				7.70%		7.60%	7.40%	7.50%
Due from related parties				$ 1,103			$ 1,103					821
Other
Related party transactions
Revenue from related parties				$ 1,388		$ 1,537	$ 4,161	$ 4,432
Percentage of revenues from related parties				2.70%		3.10%	2.80%	3.10%
Due from related parties				$ 548			$ 548					144
AIC
Related party transactions
Revenue from related parties				$ 60		$ 64	$ 180	$ 186
Percentage of revenues from related parties				0.10%		0.10%	0.10%	0.10%
Due from related parties				$ 20			$ 20					22
RIF
Related party transactions
Revenue from related parties				$ 600		$ 596	$ 1,741	$ 1,801
Percentage of revenues from related parties				1.10%		1.20%	1.20%	1.20%
Dividend reinvestment plan, Shares purchased						0		1,068
ABP Trust
Related party transactions
Revenue from related parties				$ 728		$ 877	$ 2,240	$ 2,445
Percentage of revenues from related parties				1.50%		1.80%	1.50%	1.80%
Due from related parties				$ 528			$ 528					122
ABP Trust | Class A common shares
Related party transactions
Common stock shares outstanding									15,000,000	15,000,000	15,000,000
ABP Trust | Up C Transaction
Related party transactions
Incentive fee allocated to related party					$ 26,611		26,611
Tax receivable agreement payment (as a percent)		85.00%
Gross amount of tax receivable obligations				65,834			65,834
Current portion of tax receivable obligations				929			929
Tax payable							0
ABP Trust | Class B-1 common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		1,000,000
ABP Trust | Class B-2 common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		15,000,000
ABP Trust and Managed REIT's
Related party transactions
Rental expenses incurred				$ 1,077		$ 902	3,190	$ 2,983
Notice period on lease agreements				30 days
RMR LLC
Related party transactions
Advances outstanding				$ 0			0
Loans Payable				0			0					$ 0
RMR LLC | HPT | Up C Transaction
Related party transactions
Aggregate incentive business management fees					$ 62,263
RMR LLC | AIC
Related party transactions
Ownership percentage by noncontrolling owners						14.30%		14.30%
RMR LLC | ABP Trust
Related party transactions
Quarterly tax distributions to Member							24,195
RMR LLC | ABP Trust and Managed REIT's
Related party transactions
Quarterly tax distributions to Member							49,995
Managed REIT's | Up C Transaction
Related party transactions
Payment made to acquire common shares		$ 167,764
Number of business days on which the value of the common shares are calculated		20 days
Value of common shares		$ 126,400
Closing price of common shares		121,378
GOV | Up C Transaction
Related party transactions
Aggregate consideration paid		$ 3,917
GOV | Common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		700,000
GOV | Class A common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition	768,032
SIR | Up C Transaction
Related party transactions
Aggregate consideration paid		$ 15,880
SIR | Common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		880,000
SIR | Class A common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition	1,580,055
HPT | Up C Transaction
Related party transactions
Aggregate consideration paid		$ 12,622
HPT | Common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		1,490,000
HPT | Class A common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition	2,515,344
SNH | Up C Transaction
Related party transactions
Aggregate consideration paid		$ 13,967
SNH | Common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition		2,345,000
SNH | Class A common shares | Up C Transaction
Related party transactions
Shares issued in connection with acquisition	2,635,379
ABP Trust
Related party transactions
Quarterly tax distribution recorded as a reduction to noncontrolling interest				24,195			24,195
Advances outstanding				$ 0			0
ABP Trust | Up C Transaction
Related party transactions
Aggregate consideration paid		$ 11,520
ABP Trust | RMR LLC
Related party transactions
Ownership percentage (in percent)		100.00%
ABP Trust | RMR LLC | Class A membership units
Related party transactions
Business acquisition related pary equity interests delivered		15,000,000	30,000,000
Consolidation, Eliminations | RMR LLC
Related party transactions
Quarterly tax distributions to Member							$ 25,800

Shareholders' Equity (Details)

Shareholders' Equity (Details) $ / shares in Units, $ in Thousands	Jul. 12, 2016USD ($)$ / sharesshares	May 19, 2016USD ($)$ / sharesshares	Mar. 09, 2016director$ / sharesshares	Dec. 15, 2015USD ($)$ / sharesshares	Nov. 25, 2015USD ($)$ / shares	Dec. 14, 2015$ / shares	Jun. 30, 2016itemshares	Sep. 30, 2015shares
Class A membership units
Conversion ratio							1
Class A common shares
Common stock shares authorized							31,600,000	31,000,000
Number of votes per each share held | item							1
Dividend declared (in dollars per share) | $ / shares	$ 0.25
Dividend paid (in dollars per share) | $ / shares		$ 0.2993			$ 0.5260
Common stock shares outstanding							15,007,500	15,000,000
Class A common shares | Equity Compensation Plan | Independent Directors
Shares granted			2,500
Share value | $ / shares			$ 23.27
Number of independent directors | director			3
Class B-1 common shares
Common stock shares authorized							1,000,000	1,000,000
Number of votes per each share held | item							10
Conversion ratio							1
Dividend declared (in dollars per share) | $ / shares	$ 0.25
Dividend paid (in dollars per share) | $ / shares		$ 0.2993			$ 0.5260
Common stock shares outstanding							1,000,000	1,000,000
Class B-2 common shares
Common stock shares authorized							15,000,000	15,000,000
Number of votes per each share held | item							10
Common stock shares outstanding							15,000,000	15,000,000
Class A and Class B-1 Common Share
Dividend, Cash | $	$ 4,002	$ 4,791		$ 8,416	$ 8,416
Dividend paid (in dollars per share) | $ / shares		$ 0.25				$ 0.25
Common stock shares outstanding	16,007,500	16,007,500		16,007,500
ABP Trust | Class A common shares
Dividend, Cash | $	$ 3,750	$ 4,489		$ 7,890
Common stock shares outstanding	15,000,000	15,000,000		15,000,000
RMR LLC
Dividend declared (in dollars per share) | $ / shares	$ 0.25
Dividend, Cash | $	$ 7,752	$ 9,280		$ 16,306
Dividend paid (in dollars per share) | $ / shares		$ 0.2993		$ 0.5260
RMR LLC | Class A common shares | Equity Compensation Plan | Independent Directors
Shares granted			7,500

Per Common Share Amounts (Detai

Per Common Share Amounts (Details)	9 Months Ended
	Jun. 30, 2016shares
Class A membership units
Conversion ratio	1
Adjustment for dilution of shares	15,000,000
Weighted average common stock shares outstanding diluted (in shares)	30,007,500
Class A common shares
Weighted average common stock shares outstanding basic(in shares)	15,007,500
Class B-1 common shares
Weighted average common stock shares outstanding basic(in shares)	1,000,000
Conversion ratio	1

Net Income Attributable to RM32

Net Income Attributable to RMR Inc (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income Attributable to RMR Inc.
Net income before income tax expense	$ 21,906	$ 16,909	$ 123,433	$ 61,643
Add: RMR Inc. franchise tax expense and interest income	220		443
Incentive fee allocable to ABP Trust			(26,611)
Net income before non-controlling interest	22,126		97,265
Less: non-controlling interest	(10,704)		(47,052)
Net income attributable to RMR Inc. before income tax expense	11,422		50,213
Less: income tax expense attributable to RMR Inc.	(4,504)	(651)	(19,904)	(654)
Less: RMR Inc. franchise tax expense and interest income	(220)		(443)
Net income attributable to RMR Inc.	$ 6,698	$ 970	$ 29,866	$ 970

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)
Segment Reporting
Number of segment | item			1
Revenues
Management services	$ 41,867	$ 41,156	$ 182,940	$ 122,489
Reimbursable payroll and related costs	9,744	6,427	25,993	20,535
Advisory services	600	596	1,741	1,801
Total revenues	52,211	48,179	210,674	144,825
Expenses
Compensation and benefits	22,719	20,596	65,584	64,155
Separation expense	1,195		1,358	116
General and administrative	6,110	8,970	19,110	18,657
Depreciation expense	349	512	1,333	1,662
Total expenses	30,373	30,078	87,385	84,590
Operating income	21,838	18,101	123,289	60,235
Interest and other income	68	535	144	1,698
Unrealized gains (losses) attributable to changes in fair value of stock		(1,727)		(290)
Income before income tax expense and equity in earnings of investee	21,906	16,909	123,433	61,643
Income tax expense	(4,504)	(651)	(19,904)	(654)
Equity in earnings of investee		15		115
Net income	17,402	16,273	103,529	61,104
Intersegment Eliminations
Revenues
Total revenues	192	297	737	893
RMR LLC
Revenues
Management services	41,867	40,976	182,882	122,249
Reimbursable payroll and related costs	9,744	6,427	25,993	20,535
Total revenues	51,611	47,403	208,875	142,784
Expenses
Compensation and benefits	22,445	20,090	64,712	62,621
Separation expense	1,195		1,358	116
General and administrative	5,778	8,827	18,234	18,287
Depreciation expense	349	512	1,333	1,662
Total expenses	29,767	29,429	85,637	82,686
Operating income	21,844	17,974	123,238	60,098
Interest and other income	62	517	137	1,633
Unrealized gains (losses) attributable to changes in fair value of stock		(1,682)		(317)
Income before income tax expense and equity in earnings of investee	21,906	16,809	123,375	61,414
Income tax expense		3	(1)
Equity in earnings of investee		15		115
Net income	21,906	16,827	123,374	61,529
All other operations
Revenues
Management services		180	58	240
Advisory services	600	596	1,741	1,801
Total revenues	600	776	1,799	2,041
Expenses
Compensation and benefits	274	506	872	1,534
General and administrative	332	143	876	370
Total expenses	606	649	1,748	1,904
Operating income	(6)	127	51	137
Interest and other income	6	18	7	65
Unrealized gains (losses) attributable to changes in fair value of stock		(45)		27
Income before income tax expense and equity in earnings of investee		100	58	229
Income tax expense	(4,504)	(654)	(19,903)	(654)
Net income	$ (4,504)	$ (554)	$ (19,845)	$ (425)

Separation Expense (Details)

Separation Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Separation Expense
Severance Costs	$ 1,195	$ 1,358	$ 116

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands	Aug. 05, 2016USD ($)
Subsequent event. | Tremont
Subsequent Event
Purchase price	$ 2,200