Repositioning Of The REITs Should Help The Share Price Of RMR


RMR's repositioning in three of the client companies will help the share price of the managed REITs. The higher the share price of those REITs, the higher RMR's revenues.
While I think an acquisition would be the quickest way to enter the multifamily segment, I think RMR will not obtain favorable terms. Instead, they should go organic.
By going organic, RMR could redeploy most of its cash on hand to repurchase 17.5% of its shares.
I recommend buying RMR with a target price of $86.
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