RMR - Earnings call transcript Q4 2021

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Operator

Good day and welcome to RMR's Fiscal Fourth Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Michael Kodesch. ahead. go Please

Michael Kodesch

about from and the prohibited as contains actual of company. statements today, Today's Officer, thank fiscal forward-looking retransmission the we and provide consent call conference made joining and fourth revise Chief session. RMR's conference meaning President call statements moment, or followed just November Good is question-and-answer they call the call. of XX, conference securities you quarterly Litigation results other call. forward-looking that of Financial and are company Portnoy; no Securities XXXX CEO, of based today's materially results today's by the Reform forward-looking to the Jordan. prior With quarter XXXX differ may In of of and any details Act and obligation a will morning of expectations those Private on undertakes Adam for Matt and These me are would revision the like statements recording results a the publicly RMR's to without laws. written I to our business The within project. note that today's and conference XXXX in release beliefs on

not Additional our on found our information differences filings place those Exchange concerning in reliance which factors Investors undue forward-looking can be statements. website cautioned that is with are and contained to could upon cause www.rmrgroup.com. Commission the any Securities at

I the adjusted like earnings to the net now, EBITDA, over EBITDA adjusted of margin income with Accepted call per adjusted be calculation income, Accounting earnings accordance call we turn may And share, earnings Reconciliation U.S. income, including can during discuss net adjusted adjusted adjusted and share, per in our found to Principles to addition, non-GAAP would net Adam. of release. in EBITDA Generally this In numbers determined adjusted and EBITDA, adjusted margin.

Adam Portnoy

note joining for strong pleased financially. thank RMR yet you, fiscal report you that the Thank us we all finished to high I'm another this and Michael, as a delivered morning. on quarter year

are a we year-over-year also acquisition logistics This at which are and was million, will net businesses EBITDA a is our the industrial XX% on e-commerce. basis. by of of per combination by immediately RMR which to share, quarter, represents The $X.XX accretive quarter A it is year. guidance, Adjusted RMR's acquisition reported represents significantly the XX% whose to high-end AUM, that debt. through expected Investment compared increase largest This $XX.X this was to properties of company. but to be adjusted announced a venture tenants alignment driven of income Monmouth be Not of $X ever portfolio joint and largely with last acquisition ILPT, ILPT end will single managed RMR's increase managed and announced quarter clients, Corporation. shareholders. Monmouth occupied one by a grow transaction equity funded the transaction an ILPT only Subsequent highlights a XXX Monmouth billion Class Estate of Real owns our a

this investors. private equity does raise to and transaction venture For fund a for example, ILPT equity with not from to come plan common institutional will this joint forming transaction

out current can scale our result, infrastructure. RMR business with a also success this quickly capabilities how the had the and transaction As RMRs capital highlights building demonstrates private its fundraising with

estate relationships and commercial our from comes operational Our real expertise, client world-class our further ability private capital to expand excellence, service.

of the leasing delivered another quarter, pandemic activity. strong related quarter organization This our headwinds, again despite

of saw encouraging in year square arranged compared XX% XXXX, of levels pre-pandemic increase we over million fiscal XX.X feet X.X of almost a and tenants leases impressively, leasing generated space strategic average leasing arranged fiscal clients, years. arranged average the prospective our the trailing of on term we a XX% estate square sequentially. square utilize weighted More have OPI, from XX% feet behalf at tenants XX-month feet an which lease of XX of which above office OPI to we million year during trends decisions. As almost XXX,XXX increase is XXXX. Notably, increasingly At making as we real leases and started quarter, their is

Pines, the of With a is going million California, space for are to portfolio XXX% its leased and now we OPI’s in variant cash remain in expected Delta opportunities life there $XXX redevelopment significant generate demand Much double are well. also as waning, optimistic science on DHC’s returns, cash redevelopment will forward. trajectory office like asset that positive Torrey digit on which

We are currently OPI in to foot advancing million this life in to plans to Washington excess generate is capital returns Seattle, redevelopment $XXX in property plans invest which use. square to convert stabilized in OPI’s XX%. project, expected XXX,XXX of science

best-in-class DHC’s management DHC, during new entered of Turning well regional is now believe improve to We diverse COVID-XX and for lows unlock quarter, and within living SHOP a star to value DHC the as Operationally positioned agreements pandemic. portfolio, its started the of to portfolio. improve transitioning has from today, operators. to group communities this performance experience DHC five all senior from

these demographic. living We leads from Specifically, remain the benefit XX% second the future. quarter October. the in encouraging volumes same-property the drive tour sector, living in giving will managed also shop will occupancy its communities senior optimistic It with materially for believe from and Star consecutive demand industry sequentially growing signs quarter occupancy Five senior sales rapidly and of a increasing growth experienced regarding increasing target during

the the capital hotel expenditures to and effort the EBITDA improving been Turning improved leverage, hotel demand. April process on in overall update leisure quality improve portfolio reduce its future has and to since of portfolio, and XX an within an extended a on selling to perspective, travel performance slowly its SVC’s From basis strong operational demand, liquidity. monthly positive efforts business elevated lower due stay of SVC, in continues SVC repositioning and hotels is

improve portfolio. plans the across operational of is assets the primary lodging today Sonesta, operator on performance SVC’s executing its to

managed rate RevPAR and this hotels basis. hotel achieved from comparable activity increased percentage on results XX%, occupancy the over average disruption by XX% increase XX.X% quarter their three Sonesta, almost quarter Delta increased the These quarter saw a average despite variant. were sequential points to For in daily

With increases market, dry transitional environment. access greater Trust on Lastly, the Seven larger, Tremont bridge commercial diversified approved in RMR rate expanded to Seven available Mortgage The September XX more to a their and interest loans, middle Mortgage REIT Hills an Trust merger and expected strength. floating with capital current significant it focus ahead, create created completed Hills’ on and capital base, well-positioned Realty Trust. merger leaves mortgage financial powder rate,

Seven $XXX level is in since six of representing loans closed XXXX. Hills originations, quarter new in originations This which quarterly million public the going highest

dividend the Jordan, remain Financial expand now special ended $XXX our focused in to Chief on hiring We family In turn markets RMR sourcing our look investors, in advisors, Matt of the months. who over in-house well with I'll Following cash in private to to will and financial the capital announced progress capital coming quarter. additional this a investment Officer, initiatives from high-net September, support million forward review foundations, capital an the special resource our and call the we capitalized growth to effort, continued dividend, $X Despite establish private on registered nearly results of debt. offices, share announcing quarter for worth our no we endowments. targeted the to per team this have recently business. we

Matt Jordan

Thanks Adam. Good morning, everyone.

The for headline continue strong year-over-year metric. sequential recorded results increases across quarter's were and in of every and operating quarter. many to This the metrics. in key guidance which line also financial majority our demonstrate momentum our We with again of

discuss first XXXX quarter, the annual transaction. we'll half to close of calendar and I and I'd generate results Monmouth our the incremental for the expected Monmouth rate expectations is Before in to next run touch revenues. like on

to ultimate are the joint much and amounts ultimately of. raised how properties So is are disposed subject venture capital how many

incremental While historical investments in our will substantially overhead there people, be and technology costs. minimize processes will these costs,

and We definitive earnings Monmouth expect fees on next on incremental our more costs call. have any to related guidance

to the and revenues straight revenues quarter’s expectations to next growth fifth reaching increase management Turning results management on our quarter with million quarter client $XX.X attributable a construction to our revenue is this at property fees sequential management increased quarter, recent tied and acquisitions, increase expanded activities Companies. redevelopment service Operating of REIT This increased Managed and $X.X oversight advisory fees for our a for basis. from million,

be Looking next are based that expect be to flat Managed Equity increases to revenues. will declines construction by that ahead we in seasonal offset enterprise quarter, average Operating revenues that upon Companies values and are Managed management REITs October

accrue to it fees, As OPI incentive for an incentive continues XXXX. relates to calendar fee

highlighted on benchmarked SNL the S&P our call, we our discontinued last indices historically we that against. earnings Global REITs As

had the would to earned annual the transition applicable MSEI of REIT. $X with Managed been agreed million. we of Equity result, to October measurement If a have a the of fee for the indices Equity we approximately incentive period, prospectively REITs XX end Managed boards subsector an As each

Turning down Cash to primarily investments, and cash our third-party increase related was million inflation of role the hotel annual to $X.X filled. and projected due expectations expect being X, largely quarter, due was effective $X $XX of increased in lower million for million approximately quarter, and open compensation to million living the the After compensation to to for sequentially headcount quarter. quarter. this merit positions October construction. sequentially, bonus of expenses be D&A we approximately than $XX were our an senior strategic was costs considering next increases timing that expanded

to oversaw oversight, this construction last XX% relates it and in million from our construction expanded $XX As increase we quarter. quarter, almost

almost chain volumes As there’ll $X.X expand per additional $XXX These quarter XXXX. calendar this we are expect and quarter to we supply to almost construction third-party Construction to incremental $XX million possible estimates some share our per hit disruption. XXXX, fiscal costs on management resources. then for supplement increase XXXX. next calendar in construction million construction revenues as quarter conservative volumes reflect look will color be to further turn I projections fee million $X into to we quarter, internal fees million and expect, next in in our

– XXXX, calendar cost increased ahead approximately Looking fiscal quarter, approximately to G&A be XXX million quarter we next to XXXX. $X.X in million and expect $X.X per to

to relates our settle it XX.X%. expect As XXXX we for to rate, fiscal our at tax income tax rate

to $XX growth Operator, open the our concludes That to of capital a remarks. $XX cost our a well-positioned on expect fiscal to to As and point focus with with please line you per adjusted adjusted includes tailwinds allocation XX help share formal deduction believe projecting pursue summary, We earnings favorable a strategies compensation EBITDA range In are million quarter. us offset leaves limitation. our of business. executive $X.XX we continued from per to capital operating inflation some associated from to balance range the $X.XX the to basis we sheet with year million share range current private expected next of questions? the would reduction

Operator

Bryan first now the We Instructions] from Riley And go session. will Please question-and-answer question the Maher ahead. FBR. B. with begin [Operator comes

Bryan Maher

Good morning, when day, ends the the when Thanks said all Matt, being up Adam. anticipate color. kept the you by at What what JV? ILPT? me and questions Two this of for Adam, ends ends MNR morning. would in done, acquisition up One end being on all and and that up for sold

Adam Portnoy

Sure. question, to sort partners with of how out. can Bryan. in two JV. think sort one sort or could probably cases JV portfolio going shake I I know shake it’s ILPT Yes. We it for Thanks of One, entire there’s retaining precisely the with could two tell the extreme. a that two, base ways all more co-investment that of a up end you two That’s or different don’t out. in

by balance alignment we’ve about to is into and significant important of leverage still with the forward go accretive depending either no the The thing able ILPT. the it of depends raised shakes We it That’s and to $X.X longer-term, very where be I another may out. X- fact on it And much call we the sheet. and the probably ILPT. $X It’s of RMR sort of remains we case, to equity fairly on ends may the We of the make for we transaction all other of not benchmark. from we ILPT it two additional that part it’s X-times interest into your creative shakes assets well. $X.X sizably of question, sheet, partial sense that capital to essentially for highlight sort but alluded those that And only over in In relationships partner JV. in goes billion. highlights, up equity balance is either portfolio there there will also debt-to-EBITDA closing, it – and ILPT sort portfolio accretive longer-term that’s where interest we deal the bringing the a accretive shrink Monmouth the equity years. additional to JV on or had the out in not in third-party have – leverage – it full billion investment high of equity will sort and of will were or this structured it. how it in sell portfolio we’ve sort couple ILPT one able we billion that building the move in just for – it do from was be of bring – If any to are and It’s between platform and and/or to that this this. would sort sort us raise of case, of to the where think But sort highlights success between have to in with I thing the that as have, out. could partners is one it probably think capital, RMR very partner. be post-closing partner any for the think was around strength find sort share try raising a this lined issuance those last in on we we’re of extreme today JV how that’s The plans keep a

just a great it’s it’s for transaction a lot sort as good way, out. lot RMR, So positives win-win a shake how I to – positives of transaction, – a going exactly a of I to there’s ILPT, It’s matter of positives at think for it’s either for really both. of it really it’s a look

Bryan Maher

do deploying is process of any adjusted your managed this? they’ve discussions returns And Is viewing appetite you. see simple and size to fairly what above how better their Fund, simply do MNR. maybe RMR beyond we know what Wealth to deals, And you into in Sovereign with more risk you industries similar through other not they gotten capital certain since deals, And would – there and characterize relative it a REITs? suspect across of of that type other is these it’s might that the are

Adam Portnoy

and Funds would Yes. States continue generally estate say the especially and certain to robust appetite Sovereign commercial is pretty invest to Wealth I from industrial. real in in United in around the sectors,

we’re have what fact this think get this certainly a with deal our with permanent helped the ways grow to that that this – going providers, successful at equity Yes, the a with of ground for deals be there couple – well. sovereigns so the are the at announced joint company I able to to of with think going do far us to and capital off was REITs capital relationship And sort like ILPT, providers, continue the we not had I I’d RMR. REITs. venture transactions I think going sovereigns to call as get is deal be

going focused sectors work. out very they yes, think on be of put they’re different generally work. industrial office, appetite to a of ways, With money going sectors classes, to to that within to might I even have their I different be in of there’s I’d surprised to say work specials grow regards we’re asset to to money think appetite this to lot in multifamily putting you put money way. retail,

that a areas gives they’re downtown work little office put living the for an office senior place it to probably money the only is their appetites hotels, feel they’re towers, probably little probably their think in, we’re general money put within a area work. but to involved sector So like. today a shy probably to to Those shy the you is where are that’s what some I

Bryan Maher

Adam. you, Thank

Operator

The Morgan go next question Stanley. comes Kamdem from with Please ahead. Ronald

Ronald Kamdem

the to Maybe much a If capital evaluating partners, of with sticking deal. are make capital sense – would this color any give of on how markets what if and factors? sort decide deal Is your you industrials provide just it much how it just Is ILPT less more sources? participate in just within could – your they is this to quality? deal? that want? you the private uptake their that deal? they of of this are own Is what us Hey, conversations Thanks. on just What

Adam Portnoy

Yes.

in you started the very if almost into most the thank that they there’s for question. So, – were – to we’re speaking, went you all XXXX, partners last across They’re the institutions generally board. talking

If at on underweight institutions’ investments into to everybody steroids wanting this there commercial became we just the as almost allocations real increase the pandemic. from estate, were in you That industrial, pre-pandemic look got all industrial. is

And so exposure there’s even to more their desire to increase industrial.

are I of $XX other we set actively lot a buildings and $XXX but were that bidder – of transactions returns at very the known we there the to ILPT would lot were of better to at level. I successful think for – the got The we we ways, they I argue us ground way core real ultimately In rated. looking portfolio million. when get what’s There’s is transaction transaction outbid It’s is industrial was also because look a the lease than of Monmouth, think about portfolio. to that industrial, quality our million. regards which eight million and we way assets. about bidding grade look it’s to high at amount offices announced industrial We to were us. in where about transactions almost The at average talking meaning just we’ve how actually, real number transaction. on multiple mean, with would where to perspective, broken years. with that And core XXX% partners we’re million because had are about press years, were markets. that ILPT us retail. $XX really attractive It’s relationships can also it’s going the estate, that an talked could $XXX Very think super people bidders from the sub it the on age the on wanted the at – the type sort discount been the industrial the the core over up have the leaned you with a almost is the of and what we’re sector. and close this them of of also They the investment, very them. different trade look – thinking And written at that we portfolio of because nine about today. things a for I allowed I transactions up, XX% buy some they We country. sell XX Monmouth the and organized a are estate of it, confident win of some and in we a investment average call with industrial feel almost bought good market we it things we for of the around about We they term leased. they have appropriately type working sense really wholesale And you high we’re

if real are up these them on we than up we going have a the we’re rates we transaction of trade path we to end higher based for seen allocated selling rates cap credit rates, if with markets the lower quality X%. – lower price $X worst assets have what down at assets purchase optimistic at into in this and pretty quality some to going might sell that we actually we here, price lower estate with cap cap meaning We’re billion,

transaction. that all we that the think talking I sort this partners partners played role in a we’re to of to factors – are those So regarding talking the

one an they are direct feel everybody’s and industrial you asked syndicators. you, excited under direct buy And not part about of the again, I these think we’re this question, large last transaction. is portfolio. it’s to opportunity your the if in To talking capital. to answer very is This allocated capital

capital, with that to the potentially dealing come talking intermediaries, of It’s capital manager also We’re is intermediary wealth with we’re some we that And not of same actual of direct we’re talk talking that dealing not to and – lined of most dealing are itself. to the into the of with talking then the provider is a transaction we’re capital the with provider actual characterization the sort that up. capital. that sovereign ultimate the syndicators, dealing capital, not investor

Ronald Kamdem

just going decide, is level, sell? that talked second I of mostly geographic from obvious to And there to to route, the about – just one billion sort wise, assets. so the of Great. what assets ones this was you you anywhere if, extent just which know, my candidates keep, which that sheet, on was the sales sort curious do to sell? $X.X you how then just, goes go Are how you which high I sell it that which or on you $X presentation billion balance parsing, that think of ones extent about the keep, of what’s to assets

Adam Portnoy

are this really we going our a selling, portfolio with idea the great being entered to obviously that working which think still question finalized thing a through process we but It’s a is yet. high but we’re we think properties haven’t –people and question. cute, The Sure. this portfolio way your of about with I’m the hard would whole It’s look, – transaction quality. in

portfolio, the portfolio. like the we a that when the so within assets, view relative quality sell talk about is, basis assets lower general on And is but selling we’d within to

me numbers, bought buildings three buildings whole portfolio’s there’s four are that worth probably at cap, for there’s half. a some some So, the but being and not on a a worth and specifically quote like if and four these half example,

portfolio that is the the selling we of within in the to little the lesser to migrate quality going be We’re going think portfolio. towards the a four, – majority more about probably

be and So more rate. the of properties half the cap that might four a at

Now all them. we’ll portfolio, that the that put just do what of better we probably on because individual market the sense out in basis on being a go market. small with said, honestly if sales. that the believe an we’re than gives We value or we the we’re sort think how looking of the I you seeing that portfolio But for at potential that’s

Ronald Kamdem

super If sort touched sneak in what cost, color more are terms housing, on the there. you about it, just in you of senior on any helpful. we of one because maybe That’s I occupancy could this and seen Thanks data, we’ve just obviously from labor labor seeing pickup shortages, heard

Adam Portnoy

Sure.

we what industry. Within throughout senior We issues the our to living. large different community labor to partly company addressing those prevailing There sort portfolio markets. open of positions that run the about the competitors? is some fill a experiencing a because clearly leaders in things don’t obviously size that, the oversee the markets, see star sort inflation the that by filling are to several living increasing they’ve to you try if in organization. we wages. But wages to senior is is in it sort discretion on even I the portfolio. market. – It’s trying five out regions been same What throughout only a in of more team of not addressing labor within it’s We real. wage business, fits terms shortages They’re are – that have labor of your wage hear hotel a shortages I mean, necessary think increase of in one portfolio have in depends more flexibility all providing to doing all and the in

large, across run cross just of a sort of of that a a We across And in seeing senior it’s we’re pervasive, but board number same large number industries. sort large story the that have the living, stops the This of also is truck employees. not

Ronald Kamdem

Thank Helpful. you.

Operator

comes Sullivan ahead. BTIG. The Jim Please next question with go from

Jim Sullivan

indicated capital with investor transaction. one the also the with I'm wealth for sovereign the you indicate continuing prior think disclosed Did Adam, sovereign had you the that sure wealth just initiatives. definite you. on had on questions have not have JV – private ILPT you investor you've this, Thank I structured may but business done whether ILPT? some you

Adam Portnoy

if they the have adventure. tell them are I'm we've you disclosed but involved with prior happy done and sure with it, that in investor. ILPT we that, joint sovereign Sure. not Yes. us I'm business before to Yes,

a with they Yes. history long have So us.

Jim Sullivan

Yes.

Okay, group good. putting have? comment Thanks. an should there of together come a group is a And kind sourcing some one. target I thirdly Number vehicle is – kind last the there part do be shape the maybe quarter, was capital I but for I sort, that And you the that about this pockets you for, we that question, to specific for expect? going capital what your private open-ended interested – of And quarter fund guess capital internally together, example, put different in group that will of this this private sourcing is incremental after a as wonder capital a well. amount two you a is of of question part three raising kind really have of to of group that two, number you would like cost raise? what that group then building

Adam Portnoy

Yeah.

capital, going we're opportunities private there's sovereign pretty of source So billion going way. north your specific We investors bullish well don't feel of dollars. a forward, that channels well. wealth $X capital question, this taking raised public significant three capital sort there out but we on We of could be to to multi-billions in funds the I in the actually private unless amounts get have than able raise going from Jim we think away to this as wouldn't of markets I be number part one think of raise. target thanks, being from other answer to other the

resource no ceiling all. The consists much pretty internally. today there's the so not be incremental capital, dedicated And but will of cost, high billions. to the it's we it It of in amount that one real very certainly at have hopes

resources group gains think see of the grow. that of you'll As success, more number I sort

I I – this you're seeing believe, don't think dollars – me to let don't going a I raise. of we of put way. cost the significant start significant adding amount a before term think us see amount

it's their the what if to And more going it's as costs increase sort have group, that going incremental costs you understand the of for way. will front-end So, success to I loaded they will mean. probably be be but go, – as along not

with not we I'm are a an capital structured In that have they're of terms yes, specific meaning fund, open-end very of we out going couple vehicles vehicles that of permanent focused say, to the the like get the vehicles. today. about the they're approaching market too vehicles, on

they basis. do of a covered in over such we’re science not about as for that vehicles sectors the permanent do office an areas the they’re buildings. of but some call, there’s think the be could in what several the prospects, appetite industrial, set in which the called asset retail a lot organization, It first provide service a sort in also a though. brushstroke liquidity, open-end the lease we – time. each can some years pretty it that life well. we think structuring within focused the tenant being buildings retail quite been bad look, We interests So, terms with up investment. ability And it’s out it’s allow is has retail pretty of single it’s it said of or good net your about the which sectors capital classes, redeem but own years. sort done to pandemic, retail limited long-term I way growth large It’s own in actually sizable lockup pretty medical fund. pretty it’s as on lease But feel badly, portfolio not, like in but through of the the And space office their then space. for permanent earlier you about it’s investors on events the oriented net retail, liquidity It’s capital but there’s the of on And of of have we has terms

expand area could that an into. that So could we be

more of lot we a – geared a could are of areas have have So – we that couple up of handful take market. vehicles based gotten are far. initial we sort have investors vehicles out different testing so pretty reaction feedback platform we to getting or some than I that to positive it those handful a of with think the we we on from and a And we yes, call a take

the So success may have we it. pretty about we optimistic feel with

Jim Sullivan

of that – I’m put will it in to you that’s as before the family we start RMR cetera? the given et be rates, product well just for market market game the with as on expect either the before manage liquidity that liquidity balance to or And as operators offices, sourced you product would the directly were the skin any available sheet, curious, to

Adam Portnoy

them get vehicles is about – that’s some short I sheet, yes, think I be of we being think on might into as I as answer the liquidity really, Yes, co-investment as about balance our it that’s going. where these the used primarily

simultaneously with advance come at don’t It it of way would sort from sort view in party lined simultaneously, investment in would the the As how think would as terms these be third comes – a the of be in we from the as the come our would we’re – of timing sort market in. sort in third the about come of I up time perspective, probably just comes same of vehicles them. in. They to parties. thinking I don’t think the capital money of. money the the an co-investment when would

So that’s we’re thinking about way the it.

Jim Sullivan

Okay. looking talked quarters about this the right find now, new instead fit. platform or platform me, are of been to but been that, you for the Then private idea equity haven’t several you that platform? has Is to private acquisition for still a able finally equity acquire

Adam Portnoy

We’ve Yes. about Sure. talked it.

we’ve right, had probably fair couple about is amount been quarters, a years of talking a where now know You’re about of, – don’t certainly many We’ve is success. it. trying it’s if Jim. instead focus it’s we’ve talked to but for of I our

private I think, capital we’re and around more success the have the growing quarters it. organically in capabilities in coming to going months

universe clearly the focused how I unraveled to is issues. focus they else two I When platform. different we businesses and founders platform, ended focused, acquiring actively; hunting is. wanted a exit Essentially It us. social say to, done to with got different so We were principle, to just partners. issues. on scoured anybody a identifying do were the advisors all firms. was decided did three road not about actively don't with for do deal that It's not that we and it, sort reaching economics they with different on and over working our firms, partners over a want pretty and third-party three not to the potential this, much down and were out agreement wasn't of know reached social where they didn't doing So We with of were We say with so three just for had us we of anybody. the where deals a years They very deal the help times up it overpriced.

So apples, make to we we, And energy after from of three we happened it not sort really bites around walked as after summer, which sort reached of the back on said, agreement, much spent two years, us and happen. to, different proactive at this three third a had we tried sheet had be of sort we M&A. focused should term stepped away probably agreed one,

folks those for we've seek in quarter, a just we years, change, going last were that have out the know a lot really and advisors retention all met us being of that's That partners. third-party So not the set any sort we're of actively last the we we helping of are of meaning We there. people, don't out so lot on two type selling that a to going us, fact in groups. in a reached work to just to they to us knew It's has that active that we It's the us for interesting approached and talked before, not don't they many we they out reached because by but not and that I had think were out group approached they probably indicated it's the marketplace. transaction.

group I indicative think is there. to folks of there. of People they of we're it we're was sort the reached out out a know – very small

like seeking to just us, to be We'd I it inquiry, reverse our going We're have more to it's do think not I own. than it's think it. it. we'll continue to out more to come adverse M&A. to us of going sort on evaluate

Jim Sullivan

Thanks Okay. that Very good. for answer

Operator

Kenneth [Operator next Lee question from Instructions] RBC Capital The with comes Market. Please ahead. go

Kenneth Lee

Hi, taking thanks for question. my

the announcement outlined. or the that talk based how Whether on on there; that JV could differ the still on the monist the on the one for Thanks. you balance assets scenarios just ILPT RMR just potentially retain economics could two Just broadly sheet?

Matt Jordan

to it know fee given based as clearly the Adam pretty over from wide, months as gross Ken, million outlined $X rate, give highlighted Hey, but to that facts we'll we to but $XX the see next before the next all ballpark our we could clarity low it variables, have prepared on a I just And be few as in the range as high run we our million. the as call, range is today as think remarks, today. is as you more provide,

Kenneth Lee

could the impact further supply follow-up construction And helpful. revenues chain. upon elaborate prepared you seeing potential if from just that? remarks some talked you Thanks. Wondering about just then around Very Great. one that and

Matt Jordan

the elsewhere. different anything wanted it's numbers quoted, clear to we, hearing think in the seeing don't hedged you're be we've think what a news those just we or than I I bit. in that I

product those Our jobs the seeing and the of we're seeing to some delays you I'm and the hope we're we're as is exceed construction in getting giving we, doing. price the And inflation those but on into late those just beat make numbers reflect subject There's in numbers. can we the XXXX into but that change, out $XXX many we quarter we're to calendar is obviously so variables million per clear to forecast just XXXX. wanted hoping nonetheless ranges,

Kenneth Lee

helpful. Very it. again. Thanks Got

Operator

question comes Please ahead. go with Sullivan Jim from The again BTIG. next

Jim Sullivan

center for The question terms there about existing what in give that projects to specific Thanks site you – for a previously you've us another center just location? follow-up Nashville here. allowing densification site if plans your talked And and travel are an Nashville. travel former in one around if a as update in could very an maybe I wonder Sure. of or, is

Adam Portnoy

Sure.

we say are site, that Nashville the that the days, we a I of sort approvals have from relatively early around round would city. gotten – project Specifically, broad is, is still, first

got are I process you large mixed available large in million think stage. interest tell at think it site. a is it'd figure the upwards a square X high use. it of just phase call level, could a could redevelopment. anchoring you of four news that out of now feet in that XX-acre could The terms to about is that can that from as of It's of be basically lot be we how city and It's first as we're for trying the of is, are I stage both figure first What be, out, blocks the obviously development interested are good been at office and project. trying tenants what in there's retail, I to

XXXX a a is it its well be is talking that we get earliest, before XXXX would But project late not kicking-off that actual or is sometime, construction project at think going. into I progressing. about into until it that, could really

work and is the the for lot Seaport like only very we river next that a of on call, is, bullish a in going got growing bullish clearly Nashville's listening And but the ago really We're nothing When Boston. a to to you go the that very lot district, market. over mix so planned about, national in good look it's there but that's about see a pretty of area analogous an across Boston and the a Generally, in banks XX it's East in feel about the for we it. side closest what's it's feels a you us almost XX, the here you Bank about positive the and it to similar lots. in the that there feel play. you of there. years and today here lot Nashville to And market. on large East a downtown continuing lot It's East projects. for that It are of and We very this if of not Bank. talk on second on Titans what's a the you use do where the at prospects happening Bank. We market there's parcel, the river Boston, different arguably, and was at, parking in redevelopment we well-developed analogy looked investors feel to down very bunch very these attributes, very, development development parcel maybe And see Boston's being to there actually is

Jim Sullivan

Thanks. Okay.

Operator

any concludes closing This Portnoy over turn now back session. remarks. question-and-answer our to for Adam I'll conference the

Adam Portnoy

for you Thank joining all us concludes that our today. Operator, call.

Operator

Thank The presentation. for you today's conference concluded. now attending is

may now disconnect. You

The RMR Group Inc. (RMR) 16 Nov 212021 Q4 Earnings call transcript