v3.26.1
Revenue Recognition
 9 Months Ended
Jun. 30, 2026
Revenue Recognition [Abstract]  
Revenue Recognition Revenue Recognition
Revenues from services we provide are recognized as earned over time as the services provided represent performance obligations that are satisfied over time. Substantially all revenues are earned from related parties.
Management Agreements
We are party to a business management and a property management agreement with each Managed Equity REIT. We also may earn annual incentive business management fees from the Managed Equity REITs under the business management agreements, with the exception of OPI. We earn management fees from the Private Capital clients pursuant to management agreements with ABP Trust regarding AlerisLife and Sonesta and from certain other Private Capital clients, as prescribed in the applicable management agreements. Tremont is primarily compensated pursuant to its management agreement with SEVN and may also earn an incentive fee under that agreement.
The following table summarizes the fees we earned pursuant to our management agreements with the Managed Equity REITs and SEVN:
Three Months Ended June 30,Nine Months Ended June 30,
2026202520262025
Base business management revenues$20,802 $19,476 $60,125 $59,453 
Property management revenues10,091 9,211 29,163 27,527 
Construction supervision revenues1,142 1,158 3,517 5,619 
Incentive business management revenues90 229 23,715 316 
Advisory services revenues1,343 1,115 3,869 3,360 
$33,468 $31,189 $120,389 $96,275 
Amendment to Business Management Agreement with SVC — Effective in January 2026, RMR LLC and SVC amended their business management agreement to replace the benchmark index used in the calculation of incentive business management fees. Pursuant to this amendment, for periods beginning on or after January 1, 2026, the MSCI U.S. REIT Diversified Index will be used to calculate benchmark returns per share for purposes of determining any incentive business management fee payable by SVC to RMR LLC, and for periods ending prior to January 1, 2026, the MSCI U.S. REIT/Hotel & Resort REIT Index will continue to be used.
Amendment to Management Agreements with OPI — In June 2026, we entered into an amended and restated business management agreement and an amended and restated property management agreement with OPI. For further information regarding our amended and restated management agreements with OPI and associated fees, see Note 3, Related Person Transactions.
The following table summarizes the fees we earned pursuant to our management agreements with the Private Capital clients:
Three Months Ended June 30,Nine Months Ended June 30,
2026202520262025
Base business management revenues$5,264 $7,216 $15,367 $20,602 
Property management revenues6,134 5,198 16,627 18,460 
Construction supervision revenues660 465 1,886 1,628 
$12,058 $12,879 $33,880 $40,690 
Reimbursable Costs — We determined we control the services provided by third parties for certain of our clients and therefore account for the cost of these services and the related reimbursement revenue on a gross basis. These revenues include reimbursements for the cost of services our employees provide pursuant to our property management agreements, awards of common shares by our clients directly to certain of our officers and employees and certain other reimbursable expenses.
Other Revenues
We may also enter into arrangements or agreements that earn certain other revenues, such as acquisition fees and carried interest revenues.
Acquisition fee revenues are recognized in management services in our condensed consolidated statements of comprehensive income. We recognized $579 for the three and nine months ended June 30, 2026 and $664 for the three and nine months ended June 30, 2025.
We did not recognize any carried interest revenues for the three or nine months ended June 30, 2026 and 2025.