The RMR Group Inc. (NASDAQ:RMR) Q1 2023 Earnings Call Transcript

And so that’s what we’re seeing. We know it’s going to slowdown. We just don’t know by how much and we’re planning. It’s going to slow down quite a bit and hope that it’s not quite as bad as we planned for. In my prepared remarks, we talked about how we’re very focused, at OPI, for example, our largest portfolio of office buildings, dealing with our 2023, 2024 and even 2025 lease expirations. That’s a real big focus for the company. And we have varying views on where those leases are going to shake out. And it’s hard to know precisely where we sit today. It’s going to shake out, but at a macro level, yes, it’s going to be lower occupancy, there will be rent roll downs on a general basis. But the whole industry is sort of facing that. We just don’t have a good sense by how much.

And that’s what — and I don’t think anyone in the industry really knows precisely where it’s going to be. Which, by the way, conversely presents opportunities at the same time because when the marketplace is so negative and sort of assumes the worst, as we get further along into 2023 and into 2024, especially as there’s so much debt that comes due in the industry around office buildings, it does present an interesting opportunity, not just for ourselves, but others in the marketplace that might take a slightly contrarian view for certain office properties, very specifically. There may be sort of caught in the downdraft of the industry, but might be great assets you can buy at a good price. So that’s the converse, the opportunity — the other side of the corn, let’s say, to the downturn in what’s going on in office.

Ronald Kamdem: Helpful. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Adam Portnoy for any closing remarks.

End of Q&A:

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

Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.