The problem is the mgt ... and it is clear of the record
Portnoy's RMR also manages a couple of other notable REITs. These include Government Properties Income Trust (GOV), FIve Star Quality Care (FVE), Select Income REIT (SIR), Senior Housing Properties Trust (SNH), Hospitality Properties Trust (HPT). With the exception of CWH, thanks to the recent run up, the five RMR managed REITs have underperformed the market over the last five years.
Yep, they sure do know how to underperform. I can only imagine why my post from Sept. 24th was deleted, so here it is again.-----I suppose FVE's P/E might look tempting to some. The problem comes at earnings time, when these guys consistently underwhelm.. Instead of fixing old problems, they seem eager to grow the company by periodically issuing more shares to purchase more problems. After all of this dilution, it's disappointing to see the stock is still below the IPO price of 7, which was well over a decade ago. Perhaps the biggest turn off is the incestuous relationship with RMR, which also has it's hands in the pockets of several other companies. Check out the article about RMR and the Portnoy's in Barrons a few months back and you'll get the idea. FVE is a public company operating as an ATM for a wealthy family. Capitalism can be ugly when unchecked.