Please note that this event is being recorded. I would now like to turn the conference over to Matt Murphy, Manager of Investor Relations. Please go ahead, sir. Good afternoon, and thank you for joining RMR's Third Quarter Fiscal 2025 Conference Call. With me on today's call are President and CEO Adam Portnoy and Chief Financial Officer Matt Jordan. In just a moment, they will provide details about our business and quarterly results, followed by a question and answer session. I would also 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, August 6, 2025, 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 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, and adjusted EBITDA. A reconciliation of net income determined in accordance with U.S. generally accepted accounting principles to these non-GAAP figures can be found in our financial results. I will now turn the call over to Adam. Thanks, Matt, and thank you all for joining us this afternoon. Yesterday, we reported third-quarter results that were in line with our expectations, highlighted by adjusted net income of $0.28 per share, distributable earnings of $0.43 per share, and adjusted EBITDA of $20.1 million. Despite ongoing economic uncertainty, we have remained focused on the strategic initiatives of our managed REITs and RMR 's private capital business. For the managed REITs, these initiatives have included deleveraging actions through a combination of asset sales and accretive refinancings. We have been pleased with the public market reactions to these initiatives, as the share prices of certain of our REITs, most notably DHC and ILPT, have increased substantially year to date. Further, as a demonstration of the alignment of interests we have with our clients, these share price improvements have also resulted in our client companies accruing potential incentive fees this past quarter, which could result in a payment to RMR at year-end that is in excess of $17 million. While potential incentive fees are subject to change, this is encouraging for RMR and its shareholders at this point in the calendar year. As it relates to our private capital initiatives, this aspect of our platform now totals over $12 billion. We continue to engage with investors regarding our platform's capabilities and the real estate strategies we are fundraising for and/or investing in, which includes retail, residential, credit, and select development opportunities. Within the retail sector, a sector in which we have continued conviction, we are sourcing opportunities to accumulate a portfolio of value-added multi-tenant retail assets of approximately $100 million in gross asset value as a means to build a track record in this sector. Our first investment, a $21 million community shopping center located outside of Chicago, closed this past quarter. We plan to leverage our in-house retail team to execute the value-added business plan at this property, which is primarily focused on capital improvements to enhance the curb appeal of the center and strategic leasing. Upon execution of this value-added business plan, we expect to generate mid-teens returns. In terms of our residential and credit platforms, each of these sectors continues to benefit from market tailwinds, which is illustrated by each having robust pipelines of approximately $1 billion in possible deals. On the residential side, we anticipate closing two value-added acquisitions in August for an all-in cost of $147 million. One is a 266-unit property near Raleigh, North Carolina, and the other is a 275-unit property near Orlando, Florida. These two properties, along with the two properties we acquired in a joint venture earlier this year in Florida, as well as our currently owned multifamily asset in Denver, will be the seed properties for our recently launched RMR Residential Enhanced Growth Venture. While it is early in the fundraising process, our conviction around the residential sector remains supported by decelerating supply growth and favorable migration trends, both of which will drive rent growth and occupancy gains for well-positioned assets, particularly across the Sunbelt. This venture is targeting returns in the mid to high teens. The investments we've made using our balance sheet, such as our value-added retail and residential acquisitions, are part of our continued strategy to diversify our client base and grow our private capital AUM. While the fundraising environment remains challenging, we are confident in our ability to grow private capital AUM over the long term. To that end, this past quarter, Mary Smendzuik joined RMR as a Senior Vice President and Head of Capital Formation. Mary has a successful track record of raising institutional capital, and we believe she will expand the sources of capital available to our various strategies. Turning to a few notable updates in our public capital clients, DHC posted solid second-quarter results with almost all financial measures beating consensus estimates. DHC 's strong results continue to be led by their shop segment, which saw the same property cash basis NOI increase 18.5% year- over- year. This growth was a direct result of strong sector fundamentals, the strategic capital deployed across the portfolio over the last several years, and our active asset management. DHC has also been successful in selling assets at attractive valuations in an effort to delever. At SVC, results were in line with consensus expectations, with RevPAR across SVC 's hotel portfolio increasing 40 basis points year- over- year and outpacing the industry by 90 basis points, despite meaningful revenue displacement from renovation activity during the quarter. SVC continues to benefit from the stable cash flows of its triple net lease assets, which are anchored by SVC's $3.3 billion investment, and travel centers, which are leased to investment grade BP through 2033. SVC has also made significant progress with its hotel sales, with 114 hotels now earmarked for sale in the second half of 2025, with over $900 million currently under binding agreement. ILPT's results were highlighted by continued strong operating results and ILPT's refinancing of $1.2 billion of floating rate debt, with new five-year fixed rate debt at a weighted average interest rate of 6.4%. The refinancing and continued strength of ILPT's industrial portfolio helped support the decision of ILPT's board to increase its dividend to $0.05 per share per quarter. Lastly, OPI continues to face headwinds associated with its nationwide portfolio of office properties. OPI, along with its advisors, continues to explore all options to address its upcoming debt obligations. To conclude, we are pleased with the progress the company has made over the past quarter, assisting our clients with their financial and strategic objectives. We continue to believe RMR operates a durable business model supported by clients with a nationwide portfolio of real estate spanning multiple commercial real estate sectors. Our perpetual capital clients provide RMR with stability while also allowing us to pursue new growth initiatives to drive revenue and earnings growth. We look forward to updating you on our progress in the coming quarters. With that, I'll now turn the call over to Matt Jordan, Executive Vice President, and our Chief Financial Officer. Thanks, Adam, and good afternoon, everyone. As Adam highlighted earlier, this quarter we reported adjusted net income of $0.28 per share, adjusted EBITDA of $20.1 million, and distributable earnings of $0.43 per share, all of which were in line with our expectations. Recurring service revenues were approximately $44 million, a sequential quarter decrease of approximately $1.5 million, driven primarily by lower property management fees at RMR Residential as managed assets realized their respective business plans, which was partially offset by seasonal improvements in Sonesta-related management fees. Next quarter, we expect service revenues to increase to approximately $45 million based on favorable trends in the enterprise values of our managed REITs, as well as construction and property management fees that are expected to remain consistent with this past quarter. Turning to expenses, recurring cash compensation was $38.6 million this quarter, a decline of approximately $3.5 million sequentially, which reflects the impact of recent cost containment measures. Looking ahead to next quarter, we expect cash compensation to remain at this level. As it relates to equity-based compensation, with our fiscal year-end approaching, RMR share awards to employees are expected to occur in September. Based on historical grants, we expect approximately $600,000 in incremental equity compensation next quarter. Recurring G&A this quarter was $9.5 million, a sequential quarter decrease of $1.2 million as we continue to minimize discretionary spending. We expect recurring G&A to remain at these levels. As it relates to the upcoming Sunbelt residential acquisitions, we expect these assets to generate incremental adjusted EBITDA of approximately $900,000 next quarter. In aggregate, our owned real estate is expected to generate adjusted EBITDA of approximately $2.2 million next quarter. Interest expense this past quarter was $1.1 million. Given that our two pending residential acquisitions will each use leverage to fund their respective purchases, interest expense next quarter is expected to increase to $1.7 million. It is worth noting that as RMR uses its balance sheet to acquire real estate as part of our strategic growth initiatives, certain financial metrics, like adjusted earnings per share, will be adversely impacted by expenses RMR has not historically incurred, such as depreciation and interest expense. Accordingly, we believe cash flow measures such as adjusted EBITDA and distributable earnings are becoming more relevant when comparing our results to prior periods and/or other alternative asset managers. Aggregating the collective assumptions I've outlined, next quarter we expect adjusted EBITDA to be approximately $20.5 million, distributable earnings to be between $0.44 and $0.46 per share, and adjusted earnings per share to be between $0.21 and $0.23 per share. In closing, after giving consideration to the cash outlay for our upcoming residential acquisitions and annual bonuses that are paid each September, we expect to end the fiscal year with approximately $60 million of cash and no borrowings on our $100 million line of credit. That concludes our prepared remarks. Operator, please open the line for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Our first question today will come from Tyler Batory with Oppenheimer. Please go ahead. Good afternoon. Thank you. Mostly big-picture questions from me. My first one, on the fundraising environment specifically on the private capital side, sounds like it's still a little bit challenging out there. Conditions are maybe a little bit tough, but I'm not sure if you're seeing any green shoots more recently. I'm not sure if there's some optimism around lower interest rates and perhaps that could contribute to a more constructive backdrop for raising capital on that side. Sure, Tyler, thanks for that question. Yes, you're correct that the fundraising environment continues to be overall challenging, especially for private capital. I would say it is improving. I think it is, we have had, by just judging sort of meetings with potential providers of capital, it's ramped up a lot this year compared to last year. As I look out over the next six months, I expect us to continue to see that ramp up. I do think we're starting to see some thawing. I think it's just conjecture, but I think you're right. The possibility of lower interest rates may be moving some folks off the sidelines. There's also a lot of groups we talk to, pension plans, insurance, even some sovereigns, that have a lot of capital tied up that hasn't been returned to them. We're starting to see a little bit of thawing in the transaction market as well. As more money is returned to these, call it direct capital providers, I think it's easier for them then to allocate more money out. Things are overall still challenging. There's no question of that. It will take time to raise capital and obviously probably longer than we would like to raise capital, but it is improving, if that's your question. It is improving. Okay, perfect. There are a couple of questions on the residential side and the RMR Residential Enhanced Growth Venture that you just discussed. Can you expand on that a little bit more in terms of the mechanics, the rationale, how that's going to work? I'm assuming all of the residential properties that you've done so far and then the two deals that are still upcoming, I'm assuming that all of those are going to fold into that venture, but I just wanted to be clear just kind of what's going on with that. Yes, you basically have it correct, Tyler. What we're trying to do is take effectively five assets, three of which are wholly owned, two of which are in joint ventures, and taking, let's say, our GP interest in those, and including those GP interests for two of those assets with the three wholly owned assets. It is five assets in total, and taking that out to market. In total, RMR, when you look at all five, direct assets, GP investments, it's just under $100 million of equity that we've invested in those five assets, whether it be direct, wholly owned, or JVs and GP interests. We're taking that group of assets out to market as sort of a seeded portfolio. One of the ways we think we can distinguish ourselves or differentiate ourselves in this market, and we hear this from investors quite a bit, so we somewhat tailored this to what we heard from investors over the last several months and quarters, is they are less inclined to fund a blind pool. Not saying they won't, but less inclined and a lot more open to underwriting, you know, committed capital, meaning they want to be able to put their money to work day one. I think there is a little bit of a, you read this in the popular press quite a bit, there's a lot of money that's been committed that's not working. I think as investors think about deploying capital and funds like ourselves or others, they are much more open or like the idea of being able to invest in something where the money immediately works. By seeding the portfolio with $100 million of effectively equity investments, that allows them to effectively buy out the majority or the vast majority of what we've already invested. Take replace us, let's say, as the equity holder in the venture, we will likely retain some piece as the GP, let's call it 5%- 10% of the venture, somewhere around there. You use that as the seed of venture, which will eventually go on and make more acquisitions. Hopefully, on top of this $100 million, our hope is that maybe we can put a venture together that in the beginning will be another $300 million of equity that gets us to about $1 billion of buying power. We then will put that to work, and that might roll to the next fund eventually. Really, it's eventually you get to the point where you're hopefully raising fully discretionary, closed-end funds that are focused, let's say, on residential investing. To pull up that a little bit, that same business model, that same strategy is a lot of what we're doing in the credit side because we have a couple of loans on our balance sheet and we're trying to do the same thing. We talk about what we're doing on the retail side around value-added multi-tenant retail. We're trying to build up the portfolio to again provide seed investments for hopefully a venture, which will then lead to a larger pool of capital we're managing. Hopefully, that makes sense and answers your question. Yes, that's very good detail. That's all the question I have for now, so I appreciate it. Thank you. If you would like to ask a question, please press star then one. Our next question will come from Mitch Germain with Citizens. Please go ahead. Thank you. Adam, I might have missed it. Do you have sizing of what you're looking to fundraise on the residential side? Yes, it would be out. Our hope is to do about $300 million of equity. Again, we've seeded it with just under $100 million of assets that would go into the venture day one. The goal would be for that venture about $300 million. On the credit side, we're also out with a venture about the same size, $300 million, that's been seeded. It's about just under $70 million has been seeded there. The same strategy. Okay, great. You referenced a $1 billion pipeline, but I suspect you're probably not going to act on that, though you might look at something on the credit side. It seems like on the multifamily side, until that fundraising really begins and you start to see the fruits of some of those efforts, you're probably not going to act on any of those acquisitions yet. Is that the way to kind of think about it? Not exactly, Mitch. We probably won't act on them to put them on our balance sheet as wholly owned assets. That's fine. We'd be very open, and we could continue to do joint venture deals where we come in as the GP and fund a sliver of the equity. I think we'll still be active in acquiring residential while we're in this fundraising mode, but there'll just be a lot more joint ventures is what we'll be doing. Mitch, this is Matt, just to add in, I think it's really important when we're out fundraising, the capital partners see a very active and current pipeline. To Adam's point, they want to know you can deploy capital quickly. Keeping that pipeline fresh is critical to our residential team. Can you align the interests of those LP investors with fund investors? How does that, or they would be separate from the fund going forward? Those would be, I mean, likely separate. Those would be very, very general terms. Many of our LPs in our joint ventures are other asset managers, private equity firms that we partner with. I think the likely investor in our funds would not be other asset managers. They would be more like traditional pension plans, insurance companies, sovereign wealth funds. It is a different investor group we're approaching for each type of deal. Gotcha. Just a couple more from me. The performance of RMR Residential, I guess you kind of characterize it, Matt, as business plan conclusion or something? Is this an appropriate run rate? What is truly driving the change in terms of what your service revenues are, your advisory revenues are quarter over quarter? Yeah, look, their business plan is value-add. The normal cycle is three to five years. What we acquired was this, you know, when we bought the CARROLL platform, you had a series of assets, say $5.5 billion, that were in various stages of their life cycle. We're seeing some of those assets realize their full potential and the respective LPs, you know, initiating a sales transaction. AUM to some degree is shrinking, which means our service revenues are shrinking. In the current fundraising environment, that flywheel has not refilled itself. Right now, this is kind of our run rate for the near term until the fundraising environment returns to closer to normal levels. Okay. That's super helpful. I think you said $2.2 million run rate for acquisitions, EBITDA. Am I wrong on that? I apologize. Yes. Okay. That's from the EBITDA contribution. From the acquisition. From our owned. Yeah. For our three owned pieces of real estate, Lowery, the Denver deal we did last summer, and the two deals that are pending. Okay. Wait, that's just on the multifamily side, or help me out. Correct. Okay, and then you have the retail asset, and then you have the credit asset. When you kind of put all that together. The credit assets are on a separate line. That's the loan, you know, the loans are presented separately. You have the retail, which is in that $2.2 million. I apologize. Okay. It's multifamily and retail. Okay, great. I apologize, I got a lot of questions here. Last one for me is just, I listen, this is a pretty complicated corporate structure. I know it's not straightforward, but maybe if you can provide some perspective and insight on the dividend. I recognize, you know, kind of your view toward coverage, but it's not so direct when you're looking at the analysis, and I know a lot of it is in the footnotes and the complications around the structure, but maybe you can provide some, you know, kind of a quick rationale as to how we should be thinking about the dividend and coverage here. Fair question, Mitch, and it's one we get regularly from investors. I believe two or three quarters ago, we added a slide, page 12, to our results that I'm happy to summarize that really speaks to how the dividend is funded and how we get comfortable when we say our dividend is well covered. The dividend is funded through two different sources. You have RMR LLC, which is the operating business. $0.32 of our $0.45 dividend is coming from the operating business. When we think about the operating business and the distributable earnings that the operating partnership generates, we look at that coverage ratio at 74%. At the same time, $0.13 of our dividend is also coming from RMR Inc., the holding company. RMR Inc., and this is why we bifurcated our balance sheet, is sitting on $22 million of cash. That $22 million is also, it has no other purpose than basically to help fund the dividend because it can't be used in the operating business. When we look at, and this is what we try and articulate, that $22 million at a $0.13 level per quarter has over three years of life to it. We're hoping over that three-year period, LLC's contribution to the dividend simultaneously increases and minimizes the need for the $0.13. In the near term, we feel really good about the $0.45 dividend based on the contribution from the operating partnership as well as the monies at Inc. We try to spell that out in visual form on page 12 of our results package. Yeah, okay. That monies that, I think it's about $120 million or so, give or take, that balance doesn't change though, meaning it's only going to shrink over time, correct? Based on what we do for strategic growth initiatives, the Inc. balance, the $22 million will slowly. I'm sorry, the $22 million balance in Inc. My bad, I was looking at the $121 million in RMR LLC. I'm sorry about that. The amount that's in Inc., that $22 million, that's just going to shrink over time. That doesn't get replenished, correct? It does get replenished. That's what takes three plus years to burn it down because every quarter we're making, RMR LLC has to make tax distributions to its various members, and its members are ABB Trust and RMR Inc. There are tax distributions going to each of the members. In the case of RMR Inc., it's going up to RMR Inc. at a rate that is higher than what it needs to pay for its federal obligation as a C corp. There is some leakage that's continuing to add to the cash at RMR Inc. over time. Yes, it will bleed down over three plus years, but it's going to take a while because we're simultaneously adding some incremental money every quarter because we're distributing cash taxes at about 37%, and their C corp rate is lower than that. Okay, three plus years at current economics, but as the LLC contribution grows, that three plus years becomes four plus years or more. I gotcha. It could, and that's when we continually with the Board look at our dividend levels because we don't want that RMR Inc. level, the cash to get too big. Gotcha. Okay, I appreciate that. Our next question will come from John Massocca with B. Riley Securities. Please go ahead. Good afternoon. Maybe continuing to talk about the RMR Residential contribution or deduction that came in the quarter, I guess why wouldn't we expect that to maybe continue going forward, right? If they're seeing a little bit of a reduction in AUM as things get redistributed back to investors, is that a trend that should continue? I guess why would it stay steady at the current level? We have very active relationships with our LP partners and have line of sight into where they may feel an asset has maximized value. When we look out 12 to 18 months, we don't see a lot of pending sales transactions coming. That could be because we obviously know where the business plans stand and/or there might have been a recent refinancing in an asset where the partner is in this now for the long haul. We feel the AUM, which now sits at about $4.6 billion at RMR Residential across just under 60 assets, should not materially move in the next 9 to 12 months. Okay, that makes sense. Thinking about the growth side, in terms of the retail investments, how big, I mean, do you think that portfolio needs to get to about the size where the kind of the on-balance sheet and JV multifamily portfolio is before you similarly went out and tried to kind of look for additional sources of capital, or does it need to be larger or smaller? I'm just kind of thinking what's kind of the timeline to get that into a similar place as the residential growth vehicle? Yeah, John, I think the short answer is generally yes. Think about $100 million of cash at RMR to grow the retail portfolio. We would probably, in terms of timing, I mean, this is in a matter of quarters, not years, the way I'd measure it. I think we would probably, it's not going to take us years to deploy that. It's going to take quarters, though, multiple quarters to get there. Okay. Thinking ahead, would there be a view to creating maybe additional platforms, or do you think trying to build up both of these two vehicles and, obviously, all the other activity going on, but build up those two vehicles on the private side is going to be the focus here in the next couple of years, or could there be multiple new similar types of vehicles being seeded and trying to capital raise off those? Right now, we got three strategies that are being, we're seeding and trying to raise money. We're at three strategies that are seeded, two of which we're trying to raise money. We have obviously the residential and multifamily. We have credit. Both of those are seeded and we're trying to raise money. The third one is the retail side, which you're right. We're not really going to market yet with that strategy, but I imagine coming in the future, we will. The other areas that we are open currently is there's a lot of potential development activity that we could be seeding and/or participating in some ventures around real estate development activities. That's probably a little longer out. That's maybe the fourth leg of that table as I look out today. I think as we look today, that's probably where those are sort of the strategies. To answer your question more generally, we're trying to demonstrate a track record in a few sectors, and hopefully we're successful in raising money. Then we take that same formula and use it to other sectors that are attractive in the marketplace. Let's say two, three years from now, you know, industrial might be a lot more attractive to folks, and we could maybe seed a value-added industrial portfolio. That's not something on the table today, but that's something to give you an example of what we could continue to do. That is what we're trying to like to build as a business and to try to help jumpstart the capital raise. Yes, it could be other verticals and other sectors we'll focus on. I think that's one of the advantages of RMR, obviously the fact that we're in almost every sector of commercial real estate and have a sizable portfolio. We just do commercial real estate, right? We're not a multi-platform diversified asset manager. We're an alternative asset manager that just does real estate. I think that really does distinguish us or differentiate us, and it is appealing to investors. Okay. Just quick detail on the modeling side. As we think about the kind of potential incentive fee payout that you talked about in prepared remarks, is that assuming, you know, the maximum incentive fee from DHC and ILPT at this point? Yes. Okay, that's it for me. Thank you very much. This will conclude our question and answer session. I'd like to turn the conference back over to Adam Portnoy, President and Chief Executive Officer, for any closing remarks. Thank you all for joining our call today. Institutional investors should contact RMR Investor Relations if you'd like to schedule a meeting with management. Operator, that concludes our call. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.