The RMR Group Inc. (RMR) 10-Q 2 Feb 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2022	Feb. 01, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	001-37616
Entity Registrant Name	RMR GROUP INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	47-4122583
Entity Address, Address Line One	Two Newton Place
Entity Address, Address Line Two	255 Washington Street
Entity Address, Address Line Three	Suite 300
Entity Address, City or Town	Newton
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02458-1634
City Area Code	617
Local Phone Number	796-8230
Title of 12(b) Security	Class A common stock, $0.001 par value per share
Trading Symbol	RMR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001644378
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,603,262
Class B-1 Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,000
Class B-2 Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 200,965	$ 189,088
Due from related parties	120,069	108,821
Prepaid and other current assets	5,750	5,372
Total current assets	326,784	303,281
Property and equipment, net	3,769	2,495
Due from related parties, net of current portion	18,209	14,557
Equity method investments accounted for under the fair value option	43,373	49,114
Goodwill and intangible assets, net of amortization	2,050	2,057
Operating lease right of use assets	30,259	28,894
Deferred tax asset	17,552	17,112
Other assets, net of amortization	122,541	124,895
Total assets	564,537	542,405
Current liabilities:
Reimbursable accounts payable and accrued expenses	87,213	80,221
Accounts payable and accrued expenses	28,023	16,745
Operating lease liabilities	4,820	4,693
Employer compensation liability	6,908	7,516
Total current liabilities	126,964	109,175
Operating lease liabilities, net of current portion	26,764	25,626
Amounts due pursuant to tax receivable agreement, net of current portion	23,308	23,308
Employer compensation liability, net of current portion	18,209	14,557
Total liabilities	195,245	172,666
Commitments and contingencies
Equity:
Additional paid in capital	113,730	113,136
Retained earnings	362,286	355,949
Cumulative common distributions	(269,138)	(262,496)
Total shareholders’ equity	206,910	206,621
Noncontrolling interest	162,382	163,118
Total equity	369,292	369,739
Total liabilities and equity	564,537	542,405
Class A Common Stock
Equity:
Common stock	16	16
Class B-1 Common Stock
Equity:
Common stock	1	1
Class B-2 Common Stock
Equity:
Common stock	$ 15	$ 15

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Sep. 30, 2022
Class A Common Stock
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	31,950,000	31,600,000
Common stock, shares issued (in shares)	15,604,980	15,606,115
Common stock shares outstanding (in shares)	15,604,980	15,606,115
Class B-1 Common Stock
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	1,000,000	1,000,000
Common stock shares outstanding (in shares)	1,000,000	1,000,000
Class B-2 Common Stock
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	15,000,000	15,000,000
Common stock shares outstanding (in shares)	15,000,000	15,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Total revenues	$ 250,740	$ 181,568
Expenses:
Compensation and benefits	33,264	31,791
Equity based compensation	2,850	2,219
Separation costs	438	0
Total compensation and benefits expense	36,552	34,010
General and administrative	9,163	7,671
Other reimbursable expenses	184,489	119,558
Depreciation and amortization	268	236
Total expenses	230,472	161,475
Operating income	20,268	20,093
Interest income	1,770	57
Unrealized (loss) gain on equity method investments accounted for under the fair value option	(5,314)	1,196
Income before income tax expense	16,724	21,346
Income tax expense	(2,484)	(3,054)
Net income	14,240	18,292
Net income attributable to noncontrolling interest	(7,903)	(10,250)
Net income attributable to The RMR Group Inc.	$ 6,337	$ 8,042
Weighted average common shares outstanding - basic (in shares)	16,404	16,325
Weighted average common shares outstanding - diluted (in shares)	31,413	31,325
Net income attributable to The RMR Group Inc. per common share - basic (in dollars per share)	$ 0.38	$ 0.49
Net income attributable to The RMR Group Inc. per common share - diluted (in dollars per share)	$ 0.37	$ 0.49
Total management and advisory services revenues
Revenues:
Total revenues	$ 49,639	$ 46,015
Management services
Revenues:
Total revenues	48,548	44,897
Advisory services
Revenues:
Total revenues	1,091	1,118
Total reimbursable costs
Revenues:
Total revenues	201,101	135,553
Reimbursable compensation and benefits
Revenues:
Total revenues	14,323	14,397
Reimbursable equity based compensation
Revenues:
Total revenues	2,289	1,598
Other reimbursable expenses
Revenues:
Total revenues	$ 184,489	$ 119,558

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Total Shareholders' Equity	Common Stock Class A Common Stock	Common Stock Class B-1 Common Stock	Common Stock Class B-2 Common Stock	Additional Paid In Capital	Retained Earnings	Cumulative Common Distributions	Noncontrolling Interest
Balance beginning at Sep. 30, 2021	$ 347,715	$ 195,120	$ 15	$ 1	$ 15	$ 109,910	$ 321,945	$ (236,766)	$ 152,595
Increase (Decrease) in Shareholders' Equity
Share awards, net	613	613				613
Net income	18,292	8,042					8,042		10,250
Tax distributions to member	(1,979)								(1,979)
Common share distributions	(10,764)	(6,264)						(6,264)	(4,500)
Balance ending at Dec. 31, 2021	353,877	197,511	15	1	15	110,523	329,987	(243,030)	156,366
Balance beginning at Sep. 30, 2022	369,739	206,621	16	1	15	113,136	355,949	(262,496)	163,118
Increase (Decrease) in Shareholders' Equity
Share awards, net	594	594				594
Net income	14,240	6,337					6,337		7,903
Tax distributions to member	(3,839)								(3,839)
Common share distributions	(11,442)	(6,642)						(6,642)	(4,800)
Balance ending at Dec. 31, 2022	$ 369,292	$ 206,910	$ 16	$ 1	$ 15	$ 113,730	$ 362,286	$ (269,138)	$ 162,382

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities:
Net income	$ 14,240	$ 18,292
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	268	236
Straight line office rent	(100)	(66)
Amortization expense related to other assets	2,354	2,354
Deferred income taxes	(440)	498
Operating expenses paid in The RMR Group Inc. common shares	619	621
Distributions from equity method investments	427	0
Unrealized loss (gain) on equity method investments accounted for under the fair value option	5,314	(1,196)
Changes in assets and liabilities:
Due from related parties	(11,856)	3,731
Prepaid and other current assets	(378)	1,089
Reimbursable accounts payable and accrued expenses	6,992	2,123
Accounts payable and accrued expenses	10,660	7,286
Net cash from operating activities	28,100	34,968
Cash Flows from Investing Activities:
Purchase of property and equipment	(917)	(165)
Net cash used in investing activities	(917)	(165)
Cash Flows from Financing Activities:
Distributions to noncontrolling interest	(8,639)	(6,479)
Distributions to common shareholders	(6,642)	(6,264)
Repurchase of common shares	(25)	(8)
Net cash used in financing activities	(15,306)	(12,751)
Increase in cash and cash equivalents	11,877	22,052
Cash and cash equivalents at beginning of period	189,088	159,835
Cash and cash equivalents at end of period	200,965	181,887
Supplemental Cash Flow Information and Non-Cash Activities:
Income taxes paid	0	1,367
Recognition of right of use assets and related lease liabilities	$ 2,769	$ 467

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The RMR Group Inc., or RMR Inc., is a holding company and substantially all of its business is conducted by its majority owned subsidiary, The RMR Group LLC, or RMR LLC. RMR Inc. is a Maryland corporation and RMR LLC is a Maryland limited liability company. 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. In these financial statements, unless otherwise indicated, “we”, “us” and “our” refer to RMR Inc. and its direct and indirect subsidiaries, including RMR LLC. As of December 31, 2022, RMR Inc. owned 15,604,980 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 represented 52.5% of the economic interest of RMR LLC as of December 31, 2022. 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. A wholly owned subsidiary of ABP Trust, a Maryland statutory trust, owns 15,000,000 redeemable Class A Units, representing 47.5% of the economic interest of RMR LLC as of December 31, 2022, which is presented as a noncontrolling interest within the condensed consolidated financial statements. Adam D. Portnoy, the Chair of our Board and one of our Managing Directors, is the sole trustee of ABP Trust, and owns all of ABP Trust’s voting securities. RMR LLC was founded in 1986 to manage public investments in real estate and, as of December 31, 2022, managed a diverse portfolio of real estate and real estate related businesses. RMR LLC provides management services to four publicly traded equity real estate investment trusts, or REITs: Diversified Healthcare Trust, or DHC, which owns medical office and life science properties, senior living communities and wellness centers; Industrial Logistics Properties Trust, or ILPT, which owns and leases industrial and logistics properties; Office Properties Income Trust, or OPI, which owns office properties primarily leased to single tenants and those with high quality credit characteristics, including the government; and Service Properties Trust, or SVC, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties. DHC, ILPT, OPI and SVC are collectively referred to as the Managed Equity REITs. RMR LLC’s wholly owned subsidiary, Tremont Realty Capital LLC, or Tremont, an investment adviser registered with the Securities and Exchange Commission, or SEC, provides advisory services for Seven Hills Realty Trust, or SEVN. SEVN is a publicly traded mortgage REIT that focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate. Tremont has in the past and may in the future manage additional accounts that invest in commercial real estate debt. Tremont may also act as a transaction broker for non-investment advisory clients for negotiated fees, which we refer to as the Tremont business. RMR LLC also provides management services to two publicly traded real estate operating companies: AlerisLife Inc., or ALR, a publicly traded operator of senior living communities, many of which are owned by DHC, and TravelCenters of America Inc., or TA, an operator and franchisor of travel centers primarily along the U.S. interstate highway system, many of which are owned by SVC, and standalone truck service facilities. The Managed Equity REITs, SEVN, ALR and TA are collectively referred to as the Perpetual Capital clients. In addition, RMR LLC provides management services to private capital vehicles, including ABP Trust, Sonesta International Hotels Corporation, or Sonesta, a privately owned franchisor and operator of hotels, resorts and cruise ships in the United States, Latin America, the Caribbean and the Middle East, and many of the U.S. hotels that Sonesta operates are owned by SVC, and other private entities that own commercial real estate, of which certain of our Managed Equity REITs own minority equity interests. These clients are collectively referred to as the Private Capital clients. The accompanying condensed consolidated financial statements 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 on Form 10-K for the fiscal year ended September 30, 2022, or our 2022 Annual Report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2022
Revenue Recognition [Abstract]
Revenue Recognition	Revenue Recognition Revenues from services that we provide are recognized as earned over time as the services provided represent performance obligations that are satisfied over time. Management Agreements with the Managed Equity REITs We are party to a business management and a property management agreement with each Managed Equity REIT. The following is a summary of the fees we earn pursuant to our business management agreements with the Managed Equity REITs. For a summary of the fees we earn pursuant to our property management agreements with the Managed Equity REITs, please see Property Management Agreements , below. Base Business Management Fees — We earn annual base business management fees from the Managed Equity REITs by providing continuous services pursuant to business management agreements 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 in cash monthly in arrears. We earned aggregate base business management fees from the Managed Equity REITs of $21,373 and $23,654 for the three months ended December 31, 2022 and 2021, respectively. Incentive Business Management Fees — We also may earn annual incentive business management fees from the Managed Equity REITs under the business management agreements. The incentive business management fees, which are payable in cash, are contingent performance based fees recognized only when earned at the end of each respective measurement period. Incentive business management fees are excluded from the transaction price until it becomes probable that there will not be a significant reversal of cumulative revenue recognized. The incentive business management fees are calculated for each Managed Equity REIT as 12.0% of the product of (a) the equity market capitalization of the Managed Equity REIT, as defined in the applicable business management agreement, on the last trading day of the year immediately prior to the relevant measurement period and (b) the amount, expressed as a percentage, by which the Managed Equity REIT’s total return per share, as defined in the applicable business management agreement, exceeded the applicable 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, as adjusted for net share issuances during the period and subject to caps on the values of the incentive fees. The measurement period for the annual incentive business management fees is defined as the three year period ending on December 31 of the year for which such fee is being calculated. We did not earn incentive business management fees from the Managed Equity REITs for calendar years 2022 or 2021. Other Management Agreements We earn management fees by providing continuous services pursuant to the management agreements with ALR, TA and Sonesta equal to 0.6% of: (i) in the case of ALR, ALR’s revenues from all sources reportable under GAAP, less any revenues reportable by ALR 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 TA, the sum of TA’s gross fuel margin, as defined in the applicable agreement, plus TA’s total nonfuel revenues; and (iii) 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. These management fees are estimated and payable in cash monthly in advance. We also earn management fees from certain Private Capital clients based on a percentage of average invested capital, as defined in the applicable management agreements. These management fees are payable in cash monthly in arrears. We earned aggregate fees from ALR, TA and the Private Capital clients of $10,578 and $7,971 for the three months ended December 31, 2022 and 2021, respectively. Property Management Agreements We earn property management fees by providing continuous services pursuant to property management agreements with the Managed Equity REITs and certain Private Capital clients. We generally earn fees under these agreements equal to 3.0% of gross collected rents. Also, under the terms of the property management agreements, we receive additional fees for construction supervision services up to 5.0% of the cost of such construction. For the three months ended December 31, 2022 and 2021, we earned aggregate property management fees of $16,597 and $13,219, respectively, including construction supervision fees of $5,686 and $3,233, respectively. Management Agreements with Advisory Clients Tremont is primarily compensated pursuant to its management agreement with SEVN at an annual rate of 1.5% of equity, as defined in the applicable agreement. We earned advisory services revenue of $1,091 and $1,118 for the three months ended December 31, 2022 and 2021, respectively. Tremont may also earn an incentive fee under its management agreement with SEVN equal to the difference between: (a) the product of (i) 20% and (ii) the difference between (A) core earnings, as defined in the agreement, for the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of the incentive fee is being made, and (B) the product of (1) equity in the most recent 12 month period (or such lesser number of completed calendar quarters, if applicable), including the calendar quarter (or part thereof) for which the calculation of the incentive fee is being made, and (2) 7% per year and (b) the sum of any incentive fees paid to Tremont with respect to the first three calendar quarters of the most recent 12 month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). No incentive fee shall be payable with respect to any calendar quarter unless core earnings for the 12 most recently completed calendar quarters in the aggregate is greater than zero. The incentive fee may not be less than zero. Tremont did not earn incentive fees from SEVN for the three months ended December 31, 2022 or 2021. The Tremont business earns between 0.5% and 1.0% of the aggregate principal amounts of any loans it brokers. The Tremont business earned fees for such brokerage services of zero and $53 for the three months ended December 31, 2022 and 2021, respectively, which amounts are included in management services revenue in our condensed consolidated statements of income. Reimbursable Costs Reimbursable Compensation and Benefits — Reimbursable compensation and benefits include reimbursements, at cost, that arise primarily from services our employees provide pursuant to our property management agreements at the properties of our clients. A significant portion of these compensation and benefits are charged or passed through to and paid by tenants of our clients. We recognize the revenue for reimbursements when we incur the related reimbursable compensation and benefits expense on behalf of our clients. Reimbursable Equity Based Compensation — Reimbursable equity based compensation includes awards of common shares by our clients directly to certain of our officers and employees in connection with the provision of management services to those clients. The revenue in respect of each award is based on the fair value as of the award date for those shares that have vested, with subsequent changes in the fair value of the unvested awards being recognized in our condensed consolidated statements of income over the requisite service periods. We record an equal, offsetting amount as equity based compensation expense for the value of these awards. Other Reimbursable Expenses —

Equity Method Investments

Equity Method Investments	3 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity Method Investments Seven Hills Realty Trust As of December 31, 2022, Tremont owned 1,708,058, or approximately 11.6%, of SEVN’s outstanding common shares. We account for our investment in SEVN using the equity method of accounting because we are deemed to exert significant influence, but not control, over SEVN’s most significant activities. We elected the fair value option to account for our equity method investment in SEVN and determine fair value using the closing price of SEVN’s common shares as of the end of the period, which is a Level 1 fair value input. The aggregate market value of our investment in SEVN at December 31, 2022 and September 30, 2022, based on quoted market prices, was $15,526 and $15,577, respectively. The unrealized gain in our condensed consolidated statements of income related to our investment in SEVN was $376 and $58 for the three months ended December 31, 2022 and 2021, respectively. We received distributions from SEVN of $427 and zero for the three months ended December 31, 2022 and 2021, respectively. TravelCenters of America Inc. As of December 31, 2022, we owned 621,853, or approximately 4.1%, of TA’s outstanding common shares. We account for our investment in TA using the equity method of accounting because we are deemed to exert significant influence, but not control, over TA’s most significant activities. We elected the fair value option to account for our equity method investment in TA and determine fair value using the closing price of TA’s common shares as of the end of the period, which is a Level 1 fair value input. The aggregate market value of our investment in TA at December 31, 2022 and September 30, 2022, based on quoted market prices, was $27,847 and $33,537, respectively. The unrealized (loss) gain in our condensed consolidated statements of income related to our investment in TA was $(5,690) and $1,138 for the three months ended December 31, 2022 and 2021, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are the sole managing member of RMR LLC. 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 tax consolidated subsidiaries. RMR LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. 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. For the three months ended December 31, 2022 and 2021, we recognized estimated income tax expense of $2,484 and $3,054, respectively, which includes $1,820 and $2,244, respectively, of U.S. federal income tax and $664 and $810, respectively, of state income taxes. A reconciliation of the statutory income tax rate to the effective tax rate is as follows: Three Months Ended December 31, 2022 2021 Income taxes computed at the federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 3.1 % 3.1 % Permanent items 0.7 % 0.3 % Net income attributable to noncontrolling interest (9.9) % (10.1) % Total 14.9 % 14.3 % 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. Pursuant to this topic, 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

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments As of December 31, 2022 and September 30, 2022, the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties, accounts payable and accrued expenses and reimbursable accounts payable and accrued expenses, were not materially different from their carrying values due to the short term nature of these financial instruments. On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. ASC 820, Fair Value Measurements , establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest priority to unobservable inputs (Level 3). A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table presents our assets and liabilities that have been measured at fair value using Level 1 inputs in the fair value hierarchy as of December 31, 2022 and September 30, 2022: December 31, September 30, 2022 2022 Current portion of due from related parties related to share based payment awards $ 6,908 $ 7,516 Long term portion of due from related parties related to share based payment awards 18,209 14,557 Equity method investment in SEVN 15,526 15,577 Equity method investment in TA 27,847 33,537 Current portion of employer compensation liability related to share based payment awards 6,908 7,516 Long term portion of employer compensation liability related to share based payment awards 18,209 14,557

Related Person Transactions

Related Person Transactions	3 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Person Transactions	Related Person Transactions Adam D. Portnoy, Chair of our Board and one of our Managing Directors, is the sole trustee and an officer of our controlling shareholder, ABP Trust, and owns all of ABP Trust’s voting securities and a majority of the economic interests of ABP Trust. RMR Inc.’s other executive officers are officers and employees of RMR LLC and Jennifer B. Clark, our other Managing Director, and Matthew P. Jordan, our Chief Financial Officer and Treasurer, are also officers of ABP Trust. Mr. Portnoy is the chair of the board and a managing trustee or managing director of each of the Perpetual Capital clients and the controlling shareholder and a director of Sonesta (and its parent). Ms. Clark is a managing director of ALR, a managing trustee of OPI and a director of Sonesta (and its parent), and she previously served as a managing trustee of each of DHC and SEVN until June 3, 2021 and January 5, 2021, respectively. Ms. Clark also serves as the secretary of all our publicly traded clients and Sonesta. As of December 31, 2022, Mr. Portnoy beneficially owned, in aggregate, 6.1% of ALR’s outstanding common shares (including through ABP Trust) and 13.4% of SEVN’s outstanding common shares (including through Tremont and ABP Trust). In addition, Mr. Portnoy beneficially owns shares of the Managed Equity REITs and TA comprising less than 5.0% of the outstanding shares of each of those respective companies. The Managed Equity REITs and SEVN have no employees. RMR LLC provides or arranges for all the personnel, overhead and services required for the operation of the Managed Equity REITs pursuant to management agreements with them. The officers of the Managed Equity REITs and ABP Trust are officers or employees of RMR LLC. The officers, overhead and required office space of SEVN are provided or arranged by Tremont. SEVN’s officers are officers or employees of Tremont or RMR LLC. Many of the executive officers of ALR, TA and Sonesta are officers or employees of RMR LLC. Our executive officers are also managing directors or managing trustees of certain of the Perpetual Capital clients. Additional information about our related person transactions appears in Note 7, Shareholders’ Equity , below and in our 2022 Annual Report. Revenues from Related Parties For the three months ended December 31, 2022 and 2021, we recognized revenues from related parties as set forth in the following table: Three Months Ended December 31, 2022 Three Months Ended December 31, 2021 Total Total Management Management and Advisory Total and Advisory Total Services Reimbursable Total Services Reimbursable Total Revenues Costs Revenues Revenues Costs Revenues Perpetual Capital: (1) DHC $ 6,456 $ 51,872 $ 58,328 $ 9,125 $ 35,203 $ 44,328 ILPT 9,020 10,736 19,756 4,515 6,680 11,195 OPI 10,208 95,535 105,743 10,564 70,687 81,251 SVC 9,768 20,595 30,363 11,670 10,735 22,405 Total Managed Equity REITs 35,452 178,738 214,190 35,874 123,305 159,179 SEVN 1,091 1,137 2,228 1,118 2,270 3,388 ALR 1,264 97 1,361 1,145 85 1,230 TA 4,191 1,728 5,919 3,611 547 4,158 41,998 181,700 223,698 41,748 126,207 167,955 Private Capital: (1) Sonesta 2,126 515 2,641 1,814 — 1,814 Other private entities 5,515 18,886 24,401 2,400 9,346 11,746 7,641 19,401 27,042 4,214 9,346 13,560 Total revenues from related parties 49,639 201,101 250,740 45,962 135,553 181,515 Revenues from unrelated parties — — — 53 — 53 $ 49,639 $ 201,101 $ 250,740 $ 46,015 $ 135,553 $ 181,568 (1) On December 23, 2021, DHC sold a 35% equity interest in its existing joint venture with an institutional investor. Following this sale, DHC owned a 20% equity interest in this joint venture. As a result, the management fees earned with respect to this joint venture are characterized as Private Capital for periods on and after December 23, 2021 and as Perpetual Capital for periods prior to December 23, 2021. On June 29, 2022, DHC sold an additional 10% in this joint venture. Following this additional sale, DHC owns a 10% equity interest in this joint venture. Amounts Due From Related Parties The following table presents amounts due from related parties as of the dates indicated: December 31, 2022 September 30, 2022 Accounts Reimbursable Accounts Reimbursable Receivable Costs Total Receivable Costs Total Perpetual Capital: DHC $ 4,917 $ 12,896 $ 17,813 $ 8,098 $ 14,148 $ 22,246 ILPT 3,498 9,066 12,564 3,235 13,717 16,952 OPI 6,544 53,206 59,750 335 47,943 48,278 SVC 4,343 9,683 14,026 5,627 5,357 10,984 Total Managed Equity REITs 19,302 84,851 104,153 17,295 81,165 98,460 SEVN 1,844 1,148 2,992 1,768 1,262 3,030 ALR 86 526 612 112 492 604 TA 86 15,021 15,107 124 11,635 11,759 21,318 101,546 122,864 19,299 94,554 113,853 Private Capital: Sonesta 702 234 936 127 290 417 Other private entities 3,928 10,550 14,478 1,658 7,450 9,108 4,630 10,784 15,414 1,785 7,740 9,525 $ 25,948 $ 112,330 $ 138,278 $ 21,084 $ 102,294 $ 123,378 Leases As of December 31, 2022, RMR LLC leased from ABP Trust and certain Managed Equity REITs office space for use as our headquarters and local offices. We incurred rental expense under related party leases aggregating $1,433 and $1,506 for the three months ended December 31, 2022 and 2021, respectively. Tax-Related Payments Our tax receivable agreement with ABP Trust requires RMR Inc. to pay to ABP Trust 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 RMR Inc.’s dealings with ABP Trust and (b) tax benefits related to imputed interest deemed to be paid by RMR Inc. as a result of the tax receivable agreement. As of December 31, 2022, our condensed consolidated balance sheet reflects a liability related to the tax receivable agreement of $25,583, including $2,275 classified as a current liability in accounts payable and accrued expenses that we expect to pay to ABP Trust during the fourth quarter of fiscal year 2023. Under the RMR LLC operating agreement, RMR LLC is required to make certain pro rata distributions to each member of RMR LLC quarterly on the basis of the estimated tax liabilities of its members, estimated quarterly, subject to future adjustment based on actual results. For the three months ended December 31, 2022 and 2021, RMR LLC made required quarterly tax distributions to holders of its membership units totaling $8,094 and $4,158, respectively, of which $4,255 and $2,179, respectively, was distributed to us and $3,839 and $1,979, respectively, was distributed to ABP Trust. The amounts distributed to us were eliminated in our condensed consolidated financial statements, and the amounts distributed to ABP Trust were recorded as a reduction of its noncontrolling interest. We used funds from these distributions to pay certain of our U.S. federal and state income tax liabilities and to pay part of our obligations under the tax receivable agreement. Purchase of SEVN Shares On May 11, 2022, Tremont purchased 882,407 SEVN common shares of beneficial interest from Diane Portnoy, the mother of Adam D. Portnoy, for an aggregate purchase price of $9,469. Separation Arrangements We enter into retirement agreements with certain of our former executive officers. Pursuant to these agreements, we make various cash payments and accelerate the vesting of unvested shares RMR Inc. previously awarded to these retiring officers. We also enter into separation arrangements from time to time with other nonexecutive officers and employees of ours. All costs associated with separation arrangements, for which there remain no substantive performance obligations, are recorded in our condensed consolidated statements of income as separation costs. For the three months ended December 31, 2022, we recognized separation costs of $438, including cash and equity based separation costs of $380 and $58, respectively. We did not recognize any separation costs for the three months ended December 31, 2021.

Shareholders_ Equity

Shareholders’ Equity	3 Months Ended
	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholders’ Equity	Shareholders’ Equity We award our Class A common stock, or Class A Common Shares, to our Directors, officers and employees under the Amended and Restated 2016 Omnibus Equity Plan, or the 2016 Plan. Director share awards vest immediately. Officer and Employee share awards vest in five equal, consecutive, annual installments, with the first installment vesting on the date of award. We recognize forfeitures as they occur. Compensation expense related to share awards is determined based on the market value of our shares on the date of award, with the aggregate value of the awarded shares amortized to expense over the related vesting period. Expense recognized for Director share awards are included in general and administrative expenses and expense recognized for Officer and Employee share awards are included in equity based compensation in our condensed consolidated statements of income. Equity based compensation expense related to shares awarded to our officers and employees was $561 and $621 for the three months ended December 31, 2022 and 2021, respectively. As of December 31, 2022, we had 199,740 unvested shares outstanding which are scheduled to vest as follows: 73,820 shares in 2023, 58,160 shares in 2024, 42,680 shares in 2025 and 25,080 in 2026. In connection with the vesting and issuance of awards of our Class A Common Shares to our Directors, officers and employees, we provide for the ability to repurchase our Class A Common Shares to satisfy tax withholding and payment obligations. The repurchase price is based on the closing price of our Class A Common Shares on the The Nasdaq Stock Market LLC, or Nasdaq. The aggregate value of 895 Class A Common Shares repurchased during the three months ended December 31, 2022 was $25, which is recorded as a decrease to additional paid in capital within shareholders’ equity in our condensed consolidated balance sheets. In connection with the issuances and repurchases of our Class A Common Shares, and as required by the RMR LLC operating agreement, RMR LLC concurrently issues or acquires an identical number of Class A Units from RMR Inc. Distributions During the three months ended December 31, 2022 and 2021, we declared and paid dividends on our Class A Common Shares and Class B-1 common stock, or Class B-1 Common Shares, as follows: Declaration Record Paid Distributions Total Date Date Date Per Common Share Distributions Three Months Ended December 31, 2022 10/13/2022 10/24/2022 11/17/2022 $ 0.40 $ 6,642 $ 0.40 $ 6,642 Three Months Ended December 31, 2021 10/14/2021 10/25/2021 11/18/2021 $ 0.38 $ 6,264 $ 0.38 $ 6,264 These dividends were funded in part by distributions from RMR LLC to holders of its membership units as follows: Distributions Per Total RMR LLC RMR LLC Declaration Record Paid RMR LLC RMR LLC Distributions Distributions Date Date Date Membership Unit Distributions to RMR Inc. to ABP Trust Three Months Ended December 31, 2022 10/13/2022 10/24/2022 11/17/2022 $ 0.32 $ 10,114 $ 5,314 $ 4,800 $ 0.32 $ 10,114 $ 5,314 $ 4,800 Three Months Ended December 31, 2021 10/14/2021 10/25/2021 11/18/2021 $ 0.30 $ 9,446 $ 4,946 $ 4,500 $ 0.30 $ 9,446 $ 4,946 $ 4,500 The remainder of the dividends noted above were funded with cash accumulated at RMR Inc. On January 12, 2023, we declared a quarterly dividend on our Class A Common Shares and Class B-1 Common Shares to our shareholders of record as of January 23, 2023, in the amount of $0.40 per Class A Common Share and Class B-1 Common Share, or $6,641. This dividend will be partially funded by a distribution from RMR LLC to holders of its membership units in the amount of $0.32 per unit, or $10,113, of which $5,313 will be distributed to us based on our aggregate ownership of 16,603,262 membership units of RMR LLC and $4,800 will be distributed to ABP Trust based on its ownership of 15,000,000 membership units of RMR LLC. The remainder of this dividend will be funded with cash accumulated at RMR Inc. We expect to pay this dividend on or about February 16, 2023.

Per Common Share Amounts

Per Common Share Amounts	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Per Common Share Amounts	Per Common Share Amounts We calculate basic earnings per share using the two-class method. Unvested Class A Common Shares awarded to our employees are deemed participating securities for purposes of calculating basic earnings per common share because they have dividend rights. Under the two-class method, we allocate earnings proportionately to vested Class A Common Shares and Class B-1 Common Shares outstanding and unvested Class A Common Shares outstanding for the period. Accordingly, earnings attributable to unvested Class A Common Shares are excluded from basic earnings per share under the two-class method. Our Class B-2 common stock of RMR Inc., or 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 shares outstanding for purposes of calculating basic earnings per common share. Diluted earnings per share is calculated using the treasury stock method for unvested Class A Common Shares and the if-converted method for Class B-2 Common Shares. 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, the Class B-2 Common Share “paired” with such unit is canceled for no additional consideration. In computing the dilutive effect, if any, that the assumed redemption would have on earnings per share, we considered that net income available to holders of our Class A Common Shares would increase due to elimination of the noncontrolling interest offset by any tax effect, which may be dilutive. For the three months ended December 31, 2022 and 2021, the assumed redemption is dilutive to earnings per share as presented in the table below. The calculation of basic and diluted earnings per share for the three months ended December 31, 2022 and 2021, is as follows: Three Months Ended December 31, 2022 2021 Numerators: Net income attributable to The RMR Group Inc. $ 6,337 $ 8,042 Less: income attributable to unvested participating securities (81) (78) Net income attributable to The RMR Group Inc. used in calculating basic EPS 6,256 7,964 Effect of dilutive securities: Add back: income attributable to unvested participating securities 81 78 Add back: net income attributable to noncontrolling interest 7,903 10,250 Add back: income tax expense 2,484 3,054 Less: income tax expense assuming redemption of noncontrolling interest’s Class A Units for Class A Common Shares (1) (4,983) (6,064) Net income used in calculating diluted EPS $ 11,741 $ 15,282 Denominators: Common shares outstanding 16,605 16,485 Less: unvested participating securities (201) (160) Weighted average common shares outstanding - basic 16,404 16,325 Effect of dilutive securities: Add: assumed redemption of noncontrolling interest’s Class A Units for Class A Common Shares 15,000 15,000 Add: incremental unvested shares 9 — Weighted average common shares outstanding - diluted 31,413 31,325 Net income attributable to The RMR Group Inc. per common share - basic $ 0.38 $ 0.49 Net income attributable to The RMR Group Inc. per common share - diluted $ 0.37 $ 0.49 (1) Income tax expense assumes the hypothetical conversion of the noncontrolling interest, which results in estimated tax rates of 29.8% and 28.4% for the three months ended December 31, 2022 and 2021, respectively.

Net Income Attributable to RMR

Net Income Attributable to RMR Inc.	3 Months Ended
	Dec. 31, 2022
Net Income Attributable to RMR Inc.
Net Income Attributable to RMR Inc.	Net Income Attributable to RMR Inc. Net income attributable to RMR Inc. for the three months ended December 31, 2022 and 2021, is calculated as follows: Three Months Ended December 31, 2022 2021 Income before income tax expense $ 16,724 $ 21,346 RMR Inc. franchise tax expense and interest income (74) 167 Net income before noncontrolling interest 16,650 21,513 Net income attributable to noncontrolling interest (7,903) (10,250) Net income attributable to RMR Inc. before income tax expense 8,747 11,263 Income tax expense attributable to RMR Inc. (2,484) (3,054) RMR Inc. franchise tax expense and interest income 74 (167) Net income attributable to RMR Inc. $ 6,337 $ 8,042

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of reconciliation of the statutory income tax rate to the effective tax rate	A reconciliation of the statutory income tax rate to the effective tax rate is as follows: Three Months Ended December 31, 2022 2021 Income taxes computed at the federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 3.1 % 3.1 % Permanent items 0.7 % 0.3 % Net income attributable to noncontrolling interest (9.9) % (10.1) % Total 14.9 % 14.3 %

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value	The following table presents our assets and liabilities that have been measured at fair value using Level 1 inputs in the fair value hierarchy as of December 31, 2022 and September 30, 2022: December 31, September 30, 2022 2022 Current portion of due from related parties related to share based payment awards $ 6,908 $ 7,516 Long term portion of due from related parties related to share based payment awards 18,209 14,557 Equity method investment in SEVN 15,526 15,577 Equity method investment in TA 27,847 33,537 Current portion of employer compensation liability related to share based payment awards 6,908 7,516 Long term portion of employer compensation liability related to share based payment awards 18,209 14,557

Related Person Transactions (Ta

Related Person Transactions (Tables)	3 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Schedule of related party transactions	For the three months ended December 31, 2022 and 2021, we recognized revenues from related parties as set forth in the following table: Three Months Ended December 31, 2022 Three Months Ended December 31, 2021 Total Total Management Management and Advisory Total and Advisory Total Services Reimbursable Total Services Reimbursable Total Revenues Costs Revenues Revenues Costs Revenues Perpetual Capital: (1) DHC $ 6,456 $ 51,872 $ 58,328 $ 9,125 $ 35,203 $ 44,328 ILPT 9,020 10,736 19,756 4,515 6,680 11,195 OPI 10,208 95,535 105,743 10,564 70,687 81,251 SVC 9,768 20,595 30,363 11,670 10,735 22,405 Total Managed Equity REITs 35,452 178,738 214,190 35,874 123,305 159,179 SEVN 1,091 1,137 2,228 1,118 2,270 3,388 ALR 1,264 97 1,361 1,145 85 1,230 TA 4,191 1,728 5,919 3,611 547 4,158 41,998 181,700 223,698 41,748 126,207 167,955 Private Capital: (1) Sonesta 2,126 515 2,641 1,814 — 1,814 Other private entities 5,515 18,886 24,401 2,400 9,346 11,746 7,641 19,401 27,042 4,214 9,346 13,560 Total revenues from related parties 49,639 201,101 250,740 45,962 135,553 181,515 Revenues from unrelated parties — — — 53 — 53 $ 49,639 $ 201,101 $ 250,740 $ 46,015 $ 135,553 $ 181,568 (1) On December 23, 2021, DHC sold a 35% equity interest in its existing joint venture with an institutional investor. Following this sale, DHC owned a 20% equity interest in this joint venture. As a result, the management fees earned with respect to this joint venture are characterized as Private Capital for periods on and after December 23, 2021 and as Perpetual Capital for periods prior to December 23, 2021. On June 29, 2022, DHC sold an additional 10% in this joint venture. Following this additional sale, DHC owns a 10% equity interest in this joint venture. Amounts Due From Related Parties The following table presents amounts due from related parties as of the dates indicated: December 31, 2022 September 30, 2022 Accounts Reimbursable Accounts Reimbursable Receivable Costs Total Receivable Costs Total Perpetual Capital: DHC $ 4,917 $ 12,896 $ 17,813 $ 8,098 $ 14,148 $ 22,246 ILPT 3,498 9,066 12,564 3,235 13,717 16,952 OPI 6,544 53,206 59,750 335 47,943 48,278 SVC 4,343 9,683 14,026 5,627 5,357 10,984 Total Managed Equity REITs 19,302 84,851 104,153 17,295 81,165 98,460 SEVN 1,844 1,148 2,992 1,768 1,262 3,030 ALR 86 526 612 112 492 604 TA 86 15,021 15,107 124 11,635 11,759 21,318 101,546 122,864 19,299 94,554 113,853 Private Capital: Sonesta 702 234 936 127 290 417 Other private entities 3,928 10,550 14,478 1,658 7,450 9,108 4,630 10,784 15,414 1,785 7,740 9,525 $ 25,948 $ 112,330 $ 138,278 $ 21,084 $ 102,294 $ 123,378

Shareholders_ Equity (Tables)

Shareholders’ Equity (Tables)	3 Months Ended
	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of dividends declared	During the three months ended December 31, 2022 and 2021, we declared and paid dividends on our Class A Common Shares and Class B-1 common stock, or Class B-1 Common Shares, as follows: Declaration Record Paid Distributions Total Date Date Date Per Common Share Distributions Three Months Ended December 31, 2022 10/13/2022 10/24/2022 11/17/2022 $ 0.40 $ 6,642 $ 0.40 $ 6,642 Three Months Ended December 31, 2021 10/14/2021 10/25/2021 11/18/2021 $ 0.38 $ 6,264 $ 0.38 $ 6,264 These dividends were funded in part by distributions from RMR LLC to holders of its membership units as follows: Distributions Per Total RMR LLC RMR LLC Declaration Record Paid RMR LLC RMR LLC Distributions Distributions Date Date Date Membership Unit Distributions to RMR Inc. to ABP Trust Three Months Ended December 31, 2022 10/13/2022 10/24/2022 11/17/2022 $ 0.32 $ 10,114 $ 5,314 $ 4,800 $ 0.32 $ 10,114 $ 5,314 $ 4,800 Three Months Ended December 31, 2021 10/14/2021 10/25/2021 11/18/2021 $ 0.30 $ 9,446 $ 4,946 $ 4,500 $ 0.30 $ 9,446 $ 4,946 $ 4,500

Per Common Share Amounts (Table

Per Common Share Amounts (Tables)	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of earnings per share	The calculation of basic and diluted earnings per share for the three months ended December 31, 2022 and 2021, is as follows: Three Months Ended December 31, 2022 2021 Numerators: Net income attributable to The RMR Group Inc. $ 6,337 $ 8,042 Less: income attributable to unvested participating securities (81) (78) Net income attributable to The RMR Group Inc. used in calculating basic EPS 6,256 7,964 Effect of dilutive securities: Add back: income attributable to unvested participating securities 81 78 Add back: net income attributable to noncontrolling interest 7,903 10,250 Add back: income tax expense 2,484 3,054 Less: income tax expense assuming redemption of noncontrolling interest’s Class A Units for Class A Common Shares (1) (4,983) (6,064) Net income used in calculating diluted EPS $ 11,741 $ 15,282 Denominators: Common shares outstanding 16,605 16,485 Less: unvested participating securities (201) (160) Weighted average common shares outstanding - basic 16,404 16,325 Effect of dilutive securities: Add: assumed redemption of noncontrolling interest’s Class A Units for Class A Common Shares 15,000 15,000 Add: incremental unvested shares 9 — Weighted average common shares outstanding - diluted 31,413 31,325 Net income attributable to The RMR Group Inc. per common share - basic $ 0.38 $ 0.49 Net income attributable to The RMR Group Inc. per common share - diluted $ 0.37 $ 0.49 (1) Income tax expense assumes the hypothetical conversion of the noncontrolling interest, which results in estimated tax rates of 29.8% and 28.4% for the three months ended December 31, 2022 and 2021, respectively.

Net Income Attributable to RM_2

Net Income Attributable to RMR Inc. (Tables)	3 Months Ended
	Dec. 31, 2022
Net Income Attributable to RMR Inc.
Schedule of net income attributable to parent	Net income attributable to RMR Inc. for the three months ended December 31, 2022 and 2021, is calculated as follows: Three Months Ended December 31, 2022 2021 Income before income tax expense $ 16,724 $ 21,346 RMR Inc. franchise tax expense and interest income (74) 167 Net income before noncontrolling interest 16,650 21,513 Net income attributable to noncontrolling interest (7,903) (10,250) Net income attributable to RMR Inc. before income tax expense 8,747 11,263 Income tax expense attributable to RMR Inc. (2,484) (3,054) RMR Inc. franchise tax expense and interest income 74 (167) Net income attributable to RMR Inc. $ 6,337 $ 8,042

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended
	Dec. 31, 2022 real_estate_investment_trust company shares
Related Party Transaction [Line Items]
Number of managed trusts | real_estate_investment_trust	4
Number Of Publicly Traded Real Estate Operating Companies | company	2
RMR LLC
Related Party Transaction [Line Items]
Ownership percentage	52.50%
Class B membership units
Related Party Transaction [Line Items]
Membership units (in shares)	1,000,000
Class A Common Stock | Class A membership units
Related Party Transaction [Line Items]
Membership units (in shares)	15,604,980
Capital Unit Redeemable Class A Units | ABP Trust
Related Party Transaction [Line Items]
Membership units (in shares)	15,000,000
Capital Unit Redeemable Class A Units | ABP Trust | RMR LLC
Related Party Transaction [Line Items]
Ownership percentage	47.50%

Revenue Recognition - Business

Revenue Recognition - Business Management Agreements with Managed Equity REITs (Details) - Managed Equity REITs - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
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%
Maximum threshold amount for calculating the business management fees	$ 250,000,000
Business management fees as a percentage of average invested capital above the threshold limit	0.50%
Minimum threshold amount for calculating the business management fees	$ 250,000,000
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%
Aggregate base business management fees	$ 21,373,000	$ 23,654,000
Contingent incentive business management fee percentage	12%
Aggregate incentive business management fees			$ 0	$ 0

Revenue Recognition - Other Man

Revenue Recognition - Other Management Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Managed Operating Companies
Related Party Transaction [Line Items]
Business management fee percent based on management agreements	0.60%
Perpetual Capital
Related Party Transaction [Line Items]
Aggregate business management fees	$ 10,578	$ 7,971

Revenue Recognition - Property

Revenue Recognition - Property Management Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue Recognition [Abstract]
Property management fee percent based on gross collected rents	3%
Property management fee percent based on the cost of construction	5%
Aggregate property management fees	$ 16,597	$ 13,219
construction supervision fees	$ 5,686	$ 3,233

Revenue Recognition - Advisory

Revenue Recognition - Advisory Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Total revenues	$ 250,740	$ 181,568
Tremont Advisors
Related Party Transaction [Line Items]
Incentive fee percentage condition 1	20%
Incentive fee percentage condition 2	7%
Tremont Advisors | Minimum
Related Party Transaction [Line Items]
Advisory fee percentage based on aggregate principal amounts of loan originate	0.50%
Tremont Advisors | Maximum
Related Party Transaction [Line Items]
Advisory fee percentage based on aggregate principal amounts of loan originate	1%
Advisory services
Related Party Transaction [Line Items]
Total revenues	$ 1,091	1,118
Advisory services | Tremont Advisors
Related Party Transaction [Line Items]
Business management fee percent based on management agreements	1.50%
Total revenues	$ 1,091	1,118
Management services
Related Party Transaction [Line Items]
Total revenues	48,548	44,897
Tremont Advisors | Management services
Related Party Transaction [Line Items]
Total revenues	$ 0	$ 53

Equity Method Investments (Deta

Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022
Schedule of Equity Method Investments [Line Items]
Equity method investments accounted for under the fair value option	$ 43,373		$ 49,114
Unrealized (loss) gain on equity method investments accounted for under the fair value option	(5,314)	$ 1,196
Distributions from equity method investments	427	0
SEVN
Schedule of Equity Method Investments [Line Items]
Unrealized (loss) gain on equity method investments accounted for under the fair value option	376	58
Distributions from equity method investments	427	0
SEVN | Level 1 | Recurring basis
Schedule of Equity Method Investments [Line Items]
Equity method investments accounted for under the fair value option	15,526		15,577
TA
Schedule of Equity Method Investments [Line Items]
Unrealized (loss) gain on equity method investments accounted for under the fair value option	(5,690)	$ 1,138
TA | Level 1 | Recurring basis
Schedule of Equity Method Investments [Line Items]
Equity method investments accounted for under the fair value option	$ 27,847		$ 33,537
Tremont Reality Capital | SEVN
Schedule of Equity Method Investments [Line Items]
Number of shares owned (in shares)	1,708,058
Ownership percentage	11.60%
RMR LLC | TA
Schedule of Equity Method Investments [Line Items]
Number of shares owned (in shares)	621,853
Ownership percentage	4.10%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense	$ 2,484	$ 3,054
Federal income tax expense	1,820	2,244
State income tax expense	$ 664	$ 810

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Rate (Details)	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income taxes computed at the federal statutory rate	21%	21%
State taxes, net of federal benefit	3.10%	3.10%
Permanent items	0.70%	0.30%
Net income attributable to noncontrolling interest	(9.90%)	(10.10%)
Total	14.90%	14.30%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Schedule of assets and liabilities measured at fair value
Equity method investment	$ 43,373	$ 49,114
Recurring basis | Level 1
Schedule of assets and liabilities measured at fair value
Current portion of due from related parties related to share based payment awards	6,908	7,516
Long term portion of due from related parties related to share based payment awards	18,209	14,557
Current portion of employer compensation liability related to share based payment awards	6,908	7,516
Long term portion of employer compensation liability related to share based payment awards	18,209	14,557
Recurring basis | Level 1 | SEVN
Schedule of assets and liabilities measured at fair value
Equity method investment	15,526	15,577
Recurring basis | Level 1 | TA
Schedule of assets and liabilities measured at fair value
Equity method investment	$ 27,847	$ 33,537

Related Person Transactions - N

Related Person Transactions - Narrative (Details)	Dec. 31, 2022
ALR
Related Party Transaction [Line Items]
Ownership percentage (less than)	6.10%
SEVN
Related Party Transaction [Line Items]
Ownership percentage (less than)	13.40%
TA
Related Party Transaction [Line Items]
Ownership percentage (less than)	5%
DHC
Related Party Transaction [Line Items]
Ownership percentage (less than)	5%
ILPT
Related Party Transaction [Line Items]
Ownership percentage (less than)	5%
OPI
Related Party Transaction [Line Items]
Ownership percentage (less than)	5%
SVC
Related Party Transaction [Line Items]
Ownership percentage (less than)	5%

Related Person Transactions - R

Related Person Transactions - Revenues from Related Parties (Details) - USD ($) $ in Thousands			3 Months Ended
	Jun. 29, 2022	Dec. 23, 2021	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Total revenues from related parties			$ 250,740	$ 181,515
Revenues from unrelated parties			0	53
Total revenues			250,740	181,568
DHC | Joint Venture With Institutional Investor
Related Party Transaction [Line Items]
Percentage of ownership sold	10%	35%
Ownership percentage	10%	20%
Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			49,639	45,962
Revenues from unrelated parties			0	53
Total revenues			49,639	46,015
Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			201,101	135,553
Revenues from unrelated parties			0	0
Total revenues			201,101	135,553
Perpetual Capital
Related Party Transaction [Line Items]
Total revenues from related parties			223,698	167,955
Perpetual Capital | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			41,998	41,748
Perpetual Capital | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			181,700	126,207
Managed Equity REITs
Related Party Transaction [Line Items]
Total revenues from related parties			214,190	159,179
Managed Equity REITs | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			35,452	35,874
Managed Equity REITs | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			178,738	123,305
DHC
Related Party Transaction [Line Items]
Total revenues from related parties			58,328	44,328
DHC | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			6,456	9,125
DHC | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			51,872	35,203
ILPT
Related Party Transaction [Line Items]
Total revenues from related parties			19,756	11,195
ILPT | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			9,020	4,515
ILPT | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			10,736	6,680
OPI
Related Party Transaction [Line Items]
Total revenues from related parties			105,743	81,251
OPI | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			10,208	10,564
OPI | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			95,535	70,687
SVC
Related Party Transaction [Line Items]
Total revenues from related parties			30,363	22,405
SVC | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			9,768	11,670
SVC | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			20,595	10,735
SEVN
Related Party Transaction [Line Items]
Total revenues from related parties			2,228	3,388
SEVN | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			1,091	1,118
SEVN | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			1,137	2,270
ALR
Related Party Transaction [Line Items]
Total revenues from related parties			1,361	1,230
ALR | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			1,264	1,145
ALR | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			97	85
TA
Related Party Transaction [Line Items]
Total revenues from related parties			5,919	4,158
TA | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			4,191	3,611
TA | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			1,728	547
Private Capital
Related Party Transaction [Line Items]
Total revenues from related parties			27,042	13,560
Private Capital | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			7,641	4,214
Private Capital | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			19,401	9,346
Sonesta
Related Party Transaction [Line Items]
Total revenues from related parties			2,641	1,814
Sonesta | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			2,126	1,814
Sonesta | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			515	0
Other private entities
Related Party Transaction [Line Items]
Total revenues from related parties			24,401	11,746
Other private entities | Total management and advisory services revenues
Related Party Transaction [Line Items]
Total revenues from related parties			5,515	2,400
Other private entities | Total reimbursable costs
Related Party Transaction [Line Items]
Total revenues from related parties			$ 18,886	$ 9,346

Related Person Transactions - A

Related Person Transactions - Amount Due from Related Parties (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022
Related Party Transaction [Line Items]
Accounts receivable	$ 25,948	$ 21,084
Reimbursable costs	112,330	102,294
Total	138,278	123,378
Perpetual Capital
Related Party Transaction [Line Items]
Accounts receivable	21,318	19,299
Reimbursable costs	101,546	94,554
Total	122,864	113,853
Managed Equity REITs
Related Party Transaction [Line Items]
Accounts receivable	19,302	17,295
Reimbursable costs	84,851	81,165
Total	104,153	98,460
DHC
Related Party Transaction [Line Items]
Accounts receivable	4,917	8,098
Reimbursable costs	12,896	14,148
Total	17,813	22,246
ILPT
Related Party Transaction [Line Items]
Accounts receivable	3,498	3,235
Reimbursable costs	9,066	13,717
Total	12,564	16,952
OPI
Related Party Transaction [Line Items]
Accounts receivable	6,544	335
Reimbursable costs	53,206	47,943
Total	59,750	48,278
SVC
Related Party Transaction [Line Items]
Accounts receivable	4,343	5,627
Reimbursable costs	9,683	5,357
Total	14,026	10,984
SEVN
Related Party Transaction [Line Items]
Accounts receivable	1,844	1,768
Reimbursable costs	1,148	1,262
Total	2,992	3,030
ALR
Related Party Transaction [Line Items]
Accounts receivable	86	112
Reimbursable costs	526	492
Total	612	604
TA
Related Party Transaction [Line Items]
Accounts receivable	86	124
Reimbursable costs	15,021	11,635
Total	15,107	11,759
Private Capital
Related Party Transaction [Line Items]
Accounts receivable	4,630	1,785
Reimbursable costs	10,784	7,740
Total	15,414	9,525
Sonesta
Related Party Transaction [Line Items]
Accounts receivable	702	127
Reimbursable costs	234	290
Total	936	417
Other private entities
Related Party Transaction [Line Items]
Accounts receivable	3,928	1,658
Reimbursable costs	10,550	7,450
Total	$ 14,478	$ 9,108

Related Person Transactions - L

Related Person Transactions - Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
ABP Trust and Managed REIT
Related Party Transaction [Line Items]
Lease expense, rental expense	$ 1,433	$ 1,506

Related Person Transactions - T

Related Person Transactions - Tax Related Payments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 4,255	$ 2,179
ABP Trust | RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 3,839	1,979
ABP Trust | Up C Transaction
Related Party Transaction [Line Items]
Tax receivable agreement, percent of payment	85%
Liability related to tax receivable agreement	$ 25,583
Current portion of liability related to tax receivable agreement	2,275
ABP Trust and Managed REIT | RMR LLC
Related Party Transaction [Line Items]
Tax distributions	$ 8,094	$ 4,158

Related Person Transactions - P

Related Person Transactions - Purchase of SEVN Shares (Details) - SEVN - Tremont Reality Capital - USD ($) $ in Thousands	May 11, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Number of shares purchased (in shares)	882,407
Purchase price	$ 9,469
Ownership percentage		11.60%

Related Person Transactions - S

Related Person Transactions - Separation Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Separation costs	$ 438	$ 0
Former Nonexecutive Officer
Related Party Transaction [Line Items]
Cash severance costs	380
Equity severance costs	$ 58

Shareholders_ Equity - Addition

Shareholders’ Equity - Additional Information (Details) $ / shares in Units, $ in Thousands				3 Months Ended
	Jan. 12, 2023 USD ($) $ / shares shares	Nov. 17, 2022 USD ($)	Nov. 18, 2021 USD ($)	Dec. 31, 2022 USD ($) vesting_installment shares	Dec. 31, 2021 USD ($)
Class of Stock [Line Items]
Equity based compensation expense				$ 561	$ 621
Unvested shares outstanding (in shares) | shares				199,740
Vesting 2023
Class of Stock [Line Items]
Shares vesting (in shares) | shares				73,820
Vesting 2024
Class of Stock [Line Items]
Shares vesting (in shares) | shares				58,160
Vesting 2025
Class of Stock [Line Items]
Shares vesting (in shares) | shares				42,680
Vesting 2026
Class of Stock [Line Items]
Shares vesting (in shares) | shares				25,080
Class A Common Stock | 2016 Omnibus Equity Plan
Class of Stock [Line Items]
Number of annual installments | vesting_installment				5
Shares repurchased (in shares) | shares				895
Shares repurchased during period				$ 25
Class A and B-1 common shares
Class of Stock [Line Items]
Value of dividends		$ 6,642	$ 6,264	6,642	6,264
Class A and B-1 common shares | Subsequent Event
Class of Stock [Line Items]
Dividends declared (in usd per share) | $ / shares	$ 0.40
Value of dividends	$ 6,641
Membership Units | RMR LLC
Class of Stock [Line Items]
Value of dividends		10,114	9,446	10,114	9,446
Membership Units | RMR LLC | RMR, Inc
Class of Stock [Line Items]
Value of dividends		5,314	4,946	5,314	4,946
Membership Units | RMR LLC | ABP Trust
Class of Stock [Line Items]
Value of dividends		$ 4,800	$ 4,500	$ 4,800	$ 4,500
Membership Units | Subsequent Event | RMR LLC
Class of Stock [Line Items]
Shares owned (in shares) | shares	16,603,262
Membership Units | Subsequent Event | RMR LLC
Class of Stock [Line Items]
Dividends declared (in usd per share) | $ / shares	$ 0.32
Value of dividends	$ 10,113
Membership Units | Subsequent Event | RMR LLC | RMR, Inc
Class of Stock [Line Items]
Value of dividends	5,313
Membership Units | Subsequent Event | RMR LLC | ABP Trust
Class of Stock [Line Items]
Value of dividends	$ 4,800
Membership Units | Subsequent Event | ABP Trust | RMR LLC
Class of Stock [Line Items]
Shares owned (in shares) | shares	15,000,000

Shareholders_ Equity - Distribu

Shareholders’ Equity - Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended
	Jan. 12, 2023	Nov. 17, 2022	Nov. 18, 2021	Dec. 31, 2022	Dec. 31, 2021
Class A and B-1 common shares
Class of Stock [Line Items]
Dividends paid (in usd per share)		$ 0.40	$ 0.38	$ 0.40	$ 0.38
Value of dividends		$ 6,642	$ 6,264	$ 6,642	$ 6,264
Class A and B-1 common shares | Subsequent Event
Class of Stock [Line Items]
Value of dividends	$ 6,641
Dividends declared (in usd per share)	$ 0.40
Membership Units | RMR LLC | Subsequent Event
Class of Stock [Line Items]
Shares owned (in shares)	16,603,262
RMR LLC | Membership Units
Class of Stock [Line Items]
Dividends paid (in usd per share)		$ 0.32	$ 0.30	$ 0.32	$ 0.30
Value of dividends		$ 10,114	$ 9,446	$ 10,114	$ 9,446
RMR LLC | Membership Units | Subsequent Event
Class of Stock [Line Items]
Value of dividends	$ 10,113
Dividends declared (in usd per share)	$ 0.32
RMR LLC | RMR, Inc | Membership Units
Class of Stock [Line Items]
Value of dividends		5,314	4,946	5,314	4,946
RMR LLC | RMR, Inc | Membership Units | Subsequent Event
Class of Stock [Line Items]
Value of dividends	$ 5,313
RMR LLC | ABP Trust | Membership Units
Class of Stock [Line Items]
Value of dividends		$ 4,800	$ 4,500	$ 4,800	$ 4,500
RMR LLC | ABP Trust | Membership Units | Subsequent Event
Class of Stock [Line Items]
Value of dividends	$ 4,800
ABP Trust | Membership Units | RMR LLC | Subsequent Event
Class of Stock [Line Items]
Shares owned (in shares)	15,000,000

Per Common Share Amounts - Addi

Per Common Share Amounts - Additional Information (Details) - Class A membership units	3 Months Ended
	Dec. 31, 2022 shares
Class of Stock [Line Items]
Antidilutive securities (in shares)	15,000,000
Conversion ratio	1

Per Common Share Amounts - Sche

Per Common Share Amounts - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerators:
Net income attributable to The RMR Group Inc.	$ 6,337	$ 8,042
Less: income attributable to unvested participating securities	(81)	(78)
Net income attributable to The RMR Group Inc. used in calculating basic EPS	6,256	7,964
Add back: income attributable to unvested participating securities	81	78
Add back: net income attributable to noncontrolling interest	7,903	10,250
Add back: income tax expense	2,484	3,054
Income tax expense assuming redemption of noncontrolling interest’s Class A units for Class A common shares	(4,983)	(6,064)
Net income used in calculating diluted EPS	$ 11,741	$ 15,282
Denominators:
Common shares outstanding (in shares)	16,605	16,485
Unvested participating securities (in shares)	(201)	(160)
Weighted average common shares outstanding - basic (in shares)	16,404	16,325
Assumed redemption of noncontrolling interest’s Class A units for Class A common shares (in shares)	15,000	15,000
Add: Incremental unvested shares (in shares)	9	0
Weighted average common shares outstanding - diluted (in shares)	31,413	31,325
Net income attributable to The RMR Group Inc. per common share - basic (in dollars per share)	$ 0.38	$ 0.49
Net income attributable to The RMR Group Inc. per common share - diluted (in dollars per share)	$ 0.37	$ 0.49
Effective tax rate	29.80%	28.40%

Net Income Attributable to RM_3

Net Income Attributable to RMR Inc. (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net Income Attributable to RMR Inc.
Income before income tax expense	$ 16,724	$ 21,346
RMR Inc. franchise tax expense and interest income	(74)	167
Net income before noncontrolling interest	16,650	21,513
Net income attributable to noncontrolling interest	(7,903)	(10,250)
Net income attributable to RMR Inc. before income tax expense	8,747	11,263
Income tax expense attributable to RMR Inc.	(2,484)	(3,054)
RMR Inc. franchise tax expense and interest income	74	(167)
Net income attributable to The RMR Group Inc.	$ 6,337	$ 8,042