The RMR Group Inc. (NASDAQ:RMR) Declares Quarterly Dividend of $0.45

Key Points

• $0.45 quarterly dividend declared (annualized $1.80) with shareholders of record and ex-dividend date on April 21 and payment on May 14, implying a 11.0% yield.
• Dividend sustainability is a concern: the company’s current payout ratio is 123.3%, and analysts’ expected EPS of $1.32 next year would imply a ~136.4% payout, meaning earnings likely won’t cover the dividend.
• Stock snapshot: shares at $16.39 with a $525.5M market cap and P/E of 11.9; RMR reported $0.20 EPS (beating estimates) but revenue of $180.4M missed consensus.

The RMR Group Inc. (NASDAQ:RMR - Get Free Report) announced a quarterly dividend on Thursday, April 9th. Shareholders of record on Tuesday, April 21st will be paid a dividend of 0.45 per share by the financial services provider on Thursday, May 14th. This represents a c) dividend on an annualized basis and a dividend yield of 11.0%. The ex-dividend date of this dividend is Tuesday, April 21st.

The RMR Group has raised its dividend by an average of 0.0%annually over the last three years and has increased its dividend annually for the last 1 consecutive years. The RMR Group has a dividend payout ratio of 123.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect The RMR Group to earn $1.32 per share next year, which means the company may not be able to cover its $1.80 annual dividend with an expected future payout ratio of 136.4%.

The RMR Group Stock Performance

Shares of NASDAQ:RMR traded up $0.27 during trading hours on Thursday, reaching $16.39. The stock had a trading volume of 118,494 shares, compared to its average volume of 179,272. The RMR Group has a 1 year low of $13.48 and a 1 year high of $18.09. The firm's 50 day moving average is $16.28 and its 200-day moving average is $15.73. The stock has a market capitalization of $525.46 million, a price-to-earnings ratio of 11.88 and a beta of 0.93.

The RMR Group (NASDAQ:RMR - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The financial services provider reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.02. The RMR Group had a net margin of 3.52% and a return on equity of 4.03%. The company had revenue of $180.42 million for the quarter, compared to the consensus estimate of $214.10 million. Analysts forecast that The RMR Group will post 1.51 EPS for the current year.

About The RMR Group

The RMR Group, Inc NASDAQ: RMR is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.

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