REITs is a classical example of reflexivity. REITs rely on the mercy of the capital market to grow. When a REIT's share price goes down, its cost of capital goes up, which makes it less likely to access to the capital market to fund growth. You can see that REITs like O keeps getting bigger and bigger because of the low cost of capital coming from the steady increasing of share price. SNH has no growth because its share price keeps going down, which makes it harder to grow and the share price goes down more. In other words, the loss in share price is actually caused by the shareholders themselves.
Currently, SNH has a yield of 10%. Even it has no growth because it cannot access the capital market, it is still a solid 10% yielder. It is hard to imagine it can get lower because its payout ratio is low enough that the money not paid out can be used for reducing debt or make some small acquisitions to counter the increase in interest expense if the interest rate goes up. On the other hand, if the sentiment changes for the stock, it can go up 60-70% to be a 6% yielder easily. The upside is much higher than the downside, so it is no brainer to hold it
I think finance yahoo confuses you. There is no RMR shares for now. When you search for RMR in finance yahoo, you actually get "RMR Real Estate Income Fund (RIF)", and the symbol is actually RIF. You can try finance google and others to find out.
As far as I can tell from RMR's S1, each share was worth about $10 when the transaction took place ($ paid by the managed reits divided by the number of shares they got in return). It is probably a little bit lower by now.
What I feel satisfied is the purchase price the managed REITs paid for RMR group. It earns about $23 million annualized. The managed REITs paid 172 million for half of the interest of RMR group, so the P/E is 15 (172/(23/2)), seems fair enough.
The problem for the distribution is that I will get roughly one share of RMR per 100 shares of SNH (the precise conversion is 0.0111 of a Class A Common Share for every one SNH common share held). Each RMR share is roughly $10 (the managed REITs paid $172 million to get 15 million shares). Unless you have a very large holdings of the managed REITs, you will be getting RMR shares which you have to hold it for a long time, or the selling commission fee will be consisted of large portion of the value of the RMR shares you get...