01. The RMR Group Inc. (NASDAQ:RMR)
Upside Potential: 47%
Average Analyst Share Price Target: $24.00
Forward P/E Ratio: 11.20
Topping our list of seven best real estate stocks to buy now is The RMR Group Inc. (NASDAQ:RMR). If you're looking for a smart pick in the real estate sector, The RMR Group Inc. (NASDAQ:RMR) is one to watch. With a forward P/E ratio of just 11.20 and a potential upside of 47% based on the average analyst price target of $24.00 versus its current price of $16.32 as of June 18, RMR stands out as a value driven investment in a market full of uncertainty.
Founded in 1986 and based in Newton, MA, The RMR Group Inc. (NASDAQ:RMR) is not your traditional real estate company. Instead of owning properties directly, it manages a diverse portfolio of real estate assets, including REITs and operators, on behalf of institutional and public clients. This asset light model gives RMR a steady stream of recurring management fees, providing stability even when broader real estate markets get choppy.
In Q2 2025, The RMR Group Inc. (NASDAQ:RMR) reported adjusted net income of $0.28 per share and distributable earnings of $0.40 per share. While slightly below expectations, the company is still producing solid cash flows, and its dividend remains comfortably covered with a payout ratio of about 79%. With no corporate debt and $137 million in cash, RMR is financially well positioned to capitalize on future opportunities.
RMR is actively expanding its private capital business, which has already grown from zero to over $12 billion in AUM in under five years. Recent acquisitions, including $196 million in South Florida residential communities and a $21 million value add retail center near Chicago, showcase RMR’s focus on strategic, high return investments in markets with strong demographic tailwinds like the Sunbelt.
On top of that, the company continues to support strong performance across its managed REITs. For example, DHC’s senior housing portfolio grew NOI by 49%, and SVC’s hotel RevPAR outpaced the industry, despite renovation disruptions. These results reflect RMR’s operational expertise and value adding approach.
Even amid macroeconomic uncertainty, The RMR Group Inc. (NASDAQ:RMR) is proving resilient with a diversified client base, strong execution, and long term growth potential. With nearly 70% of its AUM backed by perpetual capital, RMR offers a stable platform for future expansion.
For investors seeking exposure to real estate without the volatility of direct property ownership, The RMR Group Inc. (NASDAQ:RMR) presents an attractive mix of value, yield, and upside potential, making it one of the best real estate stocks to buy now.
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