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    Bryan Maher • B. Riley Securities

    Bryan Maher's questions to RMR Group Inc (RMR) leadership

    Bryan Maher's questions to RMR Group Inc (RMR) leadership • Q4 2024

    Question

    Bryan Maher inquired about the deployment of RMR's cash balance for private capital initiatives, the market receptivity for syndicating equity stakes in new ventures like RMR Residential, and the strategic trade-off between near-term base management fee reductions from managed REIT asset sales and the potential for long-term incentive fees.

    Answer

    CEO Adam Portnoy confirmed that a significant portion of cash is available for seeding new investments and that while the fundraising environment is improving, the cycle remains elongated. He anticipates RMR will retain less than a 20% stake in these ventures. Portnoy also explained that deleveraging the managed REITs is the top priority, believing that improved stock performance will eventually lead to higher enterprise value-based fees, offsetting declines from asset sales. CFO Matt Jordan added that only $5-$10 million in cash is needed for daily operations.

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    Bryan Maher's questions to Global Net Lease Inc (GNL) leadership

    Bryan Maher's questions to Global Net Lease Inc (GNL) leadership • Q3 2024

    Question

    Bryan Maher from B. Riley Securities sought details on the increase in cost synergies to $85 million, the future pace of the asset disposition program, and management's perspective on when the market will recognize the company's execution with a higher valuation.

    Answer

    CEO Michael Weil and CFO Christopher Masterson attributed the synergy beat to the roll-off of transition costs and a thorough review of G&A expenses. Weil confirmed the disposition strategy will continue into 2025 to further reduce leverage, expressing confidence that sustained execution will eventually close the stock's valuation gap.

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    Bryan Maher's questions to Global Medical REIT Inc (GMRE) leadership

    Bryan Maher's questions to Global Medical REIT Inc (GMRE) leadership • Q3 2024

    Question

    Bryan Maher asked for the specific states of the newly acquired asset portfolio, the stock price at which equity issuance becomes accretive for 9% cap rate deals, the criteria for selecting assets for disposition, and for clarification on rent collection from Steward Healthcare at the Beaumont facility.

    Answer

    CIO Alfonzo Leon declined to disclose the states of the new acquisition for confidentiality reasons during due diligence. CFO Robert Kiernan stated that equity issuances for 9% cap rate deals can be accretive at a stock price of $9.50 and above. Leon explained that dispositions are driven by a variety of factors, including optimal pricing, asset size, location, and managing future renewal risk. Kiernan confirmed that while rent for March-May 2024 was not collected from Steward, a claim has been filed in bankruptcy court.

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    Bryan Maher's questions to Diversified Healthcare Trust (DHC) leadership

    Bryan Maher's questions to Diversified Healthcare Trust (DHC) leadership • Q3 2024

    Question

    Bryan Maher of B. Riley Securities inquired about DHC's financing strategy, including the terms and scale of GSE agency debt versus other lenders. He also questioned the use of cash for debt buybacks, the persistent increase in SHOP portfolio costs, the operational and financial impact of recent hurricanes, and sought clarity on the overall valuation per unit for the entire SHOP portfolio.

    Answer

    CFO and Treasurer Matthew Brown detailed the financing efforts, noting a ~$106 million formal quote with terms around 60% LTV and 6-6.5% interest rates. He attributed higher SHOP costs to ~$2.5 million in non-recurring items like an insurance deductible and hurricane remediation. President and CEO Christopher Bilotto added that slower top-line occupancy growth was a major factor and was hesitant to provide a single valuation for the SHOP portfolio, instead pointing to a range from $55k-$65k per unit for assets being sold to over $150k per unit for recently sold stabilized properties.

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    Bryan Maher's questions to Industrial Logistics Properties Trust (ILPT) leadership

    Bryan Maher's questions to Industrial Logistics Properties Trust (ILPT) leadership • Q3 2024

    Question

    Bryan Maher of B. Riley Securities inquired about the specifics of the new interest rate cap, including the trade-off between its cost and the higher strike rate. He also asked for a more granular timeline for leasing the vacant properties in Hawaii and Indianapolis, questioned the potential outcomes of the American Tire Distributors Chapter 11 filing, and probed the potential impact on leverage if the Mountain JV were to be deconsolidated. Finally, he commented on the investor desire for a modest dividend increase.

    Answer

    Chief Financial Officer and Treasurer, Tiffany Sy, explained that the new interest rate cap has a higher strike rate of 2.78% due to strong collateral performance, which saved $17 million in upfront costs by deferring interest payments. President and Chief Operating Officer, Yael Duffy, projected the Indianapolis vacancy would be leased in the first half of 2025 and the Hawaii parcel in the second half of 2025. Regarding American Tire, Ms. Duffy noted they are current on rent and expect no changes, referencing their previous bankruptcy where they did not reject the same leases. Ms. Sy declined to provide specific figures on the potential JV deconsolidation, citing multiple factors.

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