Nice write up. The Hawaii industrial portfolio is very compelling. But I think I have to take a pass on ILPT. Your assessment of RMR makes this a no-go: "They are one of the best-known, worst-actors in the REIT space..." I think management must be aligned with shareholders.
Thanks. Very reasonable line in the sand to draw. This view does help create the opportunity. Any professional (as well as amateurs like myself who’ve spent a lot of time on REITs) is going to feel stupid pitching an RMR stock and will look very bad if it doesn’t go well… Hence it’s cheap today, which might (hopefully will) change once it’s a “dividend stock” that attracts retail investors.
Management are aligned primarily with growing the size of the business but are somewhat incentivized to see the share price do well. They earn a performance fee based on share price performance vs. an index of US industrial REITs with a 3-year look back. They are already well in the money in 2026 but I think there’s a “make hay while the sun is shining” dynamic given the 3yr lookback, low starting base after they nearly bankrupted the company and tanked the stock price, and the broader REIT market is doing OK but has not been super strong… Really strong share price appreciation over the next 12 months will be great for those performance fees!
Really interesting article! Will be following what mngmt does during the next qrtrs .
Thanks for sharing
Nice write up. The Hawaii industrial portfolio is very compelling. But I think I have to take a pass on ILPT. Your assessment of RMR makes this a no-go: "They are one of the best-known, worst-actors in the REIT space..." I think management must be aligned with shareholders.
Thanks. Very reasonable line in the sand to draw. This view does help create the opportunity. Any professional (as well as amateurs like myself who’ve spent a lot of time on REITs) is going to feel stupid pitching an RMR stock and will look very bad if it doesn’t go well… Hence it’s cheap today, which might (hopefully will) change once it’s a “dividend stock” that attracts retail investors.
Management are aligned primarily with growing the size of the business but are somewhat incentivized to see the share price do well. They earn a performance fee based on share price performance vs. an index of US industrial REITs with a 3-year look back. They are already well in the money in 2026 but I think there’s a “make hay while the sun is shining” dynamic given the 3yr lookback, low starting base after they nearly bankrupted the company and tanked the stock price, and the broader REIT market is doing OK but has not been super strong… Really strong share price appreciation over the next 12 months will be great for those performance fees!