You may be fritz or Portnoy which is it?
The bottom line, is not the fees, but the conflict of interest.
RMR has virtually never done anything to help shareholders that does not directly help RMR.
They will not let this cash cow die.
It may be time for a law suit against RMR for fiduciary negligance. It does not matter if they say there may be some conflict of interest.
We need a court to 1. Remove the Board they are not independant.
2. Terminate RMRs contracts with CWH.
3. Sell the shares of GOV and SIR to buy back stock, or provide the shares to the stock holders.
4. Pay a large penalty for the neglagence.
Let's, for the sake of argument, accept that RMR for CWH is the same as G&A for other REITs. When a REIT is not meeting its FFO targets, indeed when it halves the dividend on the common shares for this reason, shouldn't it also cut G&A? When was the last time RMR cut the fees it charges? If you can cite such an occasion in the last 3 years, I'll give your argument some credibility.
The G&A for rmr may or may not be the same as that of other companies. But what is different from other companies is the .5% override it collects on the acquisition cost of the properties it acquires for cwh. And that amounts to some $38m +/- ANNUALLY that the shareholders pay rmr apparently for their special expertise in acquiring property. That is $.40/share that goes into rmrs pocket right off the top. It would be interesting to find out which other reits, other than the rmr managed reits, pay this kind on an override, if any.
The fees are obviously legal because they are disclosed in the financial statements. It takes a lot of work to read thru these reports and not too many people are willing to pay the price. In this case the price got very expensive for some folks.
IMO-when you are dealing with WALL STREET-BUYER BEWARE.
Who owns the majority of shares in the stock..if it's independent shareholders, you have a good chance to dump the entire family. Family owns very little according to the records for insiders. The balance I'm sure is funds and the small people. Now the question is, can we find and is it worth the time to get a lawyer on a contingency ?