The RMR Group Inc. (NASDAQ:RMR) Q1 2024 Earnings Conference Call February 8, 2024 10:00 AM ET

Company Participants

Kevin Barry - Director, Investor Relations

Adam Portnoy - President & Chief Executive Officer

Matt Jordan - Chief Financial Officer

Conference Call Participants

Bryan Maher - B. Riley Securities

Tyler Batory - Oppenheimer

Ronald Kamdem - Morgan Stanley

Operator

Good morning, and welcome to the RMR Group Fiscal First Quarter 2024 earnings call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Kevin Barry, Senior Director of Investor Relations. Please go ahead.

Kevin Barry

Good morning, and thank you for joining RMR's first quarter of fiscal 2024 conference call. With me on today's call our President and CEO. Adam Portnoy, the Chief Financial Officer, Matt Jordan.

In just a moment, we will provide details about our business and our quarterly results, followed by a question-and-answer session. I would like to note that the recording and retransmission of today's conference call is prohibited without the prior written consent of the company.

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on RMR's beliefs and expectations as of today, February 8, 2024, and actual results may differ materially from those that we project. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements made in today's conference call.

Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission, which can be found on our website at www.rmrgroup.com. Investors are cautioned not to place undue reliance upon any forward-looking statements. In addition, we may discuss non-GAAP numbers during this call, including adjusted net income, adjusted earnings per share, distributable earnings, adjusted EBITDA and adjusted EBITDA margin. A reconciliation of net income determined in accordance with US generally accepted accounting principles to adjusted net income, adjusted earnings per share, distributable earnings, adjusted EBITDA and the calculation of adjusted EBITDA margin can be found in our financial results.

I will now turn the call over to Adam.

Adam Portnoy

Thanks, Kevin. And thank you all for joining us this morning. Before providing an update on our first quarter results, let me first discuss the macro commercial real estate environment. There is no question the commercial real estate has been under pressure since the Federal Reserve began raising interest rates in early 2022. The higher cost of capital has resulted in significant headwinds to property values and a deterioration in capital markets activity.