Leases

As Lessor

Rental income from our operating leases, including any payments derived by index or market-based indices, if any, is recognized on a straight line basis over the lease term once we have determined that the collectability of substantially all of the lease payments is probable. We do not include in our measurement of our lease receivables certain variable payments, including payments determined by changes in the index or market-based indices after the inception of the lease, certain tenant reimbursements and other income until the specific events that trigger the variable payments have occurred.

We recorded rental income of $8,273 and $1,604 for the fiscal years ended September 30, 2025 and 2024, respectively. Prepaid and other current assets included $13 of straight line rent receivables as of September 30, 2025.

The following table summarizes the future contractual lease payments due from our tenants as of September 30, 2025:


Fiscal Year	Amount
2026	$	10,583
2027	1,468
2028	1,158
2029	640
2030	343
Thereafter	845
Total	$	15,037

None of our tenants had exercisable rights to terminate their leases before the stated terms of their leases expire.

As Lessee

We enter into operating leases, as the lessee, for office space and vehicles and determine if an arrangement is a lease at inception of the arrangement. Operating lease liabilities and right of use assets are recognized on our consolidated balance sheet for leases with an initial term greater than 12 months based on the present value of the future minimum lease payments over the lease term using our estimated incremental borrowing rate. Operating lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term. When additional payments are based on usage or vary based on other factors, they are expensed when incurred as variable lease expense. Certain leases include lease and non-lease components, which we account for as a single lease component. Minimum lease payments for leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. As of September 30, 2025, we had 61 leases that expire at various dates through 2033, with a weighted average remaining lease term of 4.3 years and a weighted average discount rate of 4.0%.

For the fiscal years ended September 30, 2025, 2024 and 2023, the components of operating lease costs were as follows:


	Fiscal Year Ended September 30,
	2025		2024		2023
Fixed rent expense (1)	$	6,970	$	6,636	$	6,272
Variable lease payments	1,277		1,158		907
Total cash portion of rent expense	8,247		7,794		7,179
Non-cash straight line rent expense	(291)		(380)		(345)
Total operating lease costs	$	7,956	$	7,414	$	6,834

(1)Includes expense for leases with an initial term of 12 months or less of $5 and $76 for the fiscal years ended September 30, 2024 and 2023, respectively.

The following table presents the undiscounted cash flows on an annual fiscal year basis for our operating lease liabilities as of September 30, 2025:


Fiscal Year	Amount
2026	$	6,431
2027	6,030
2028	5,267
2029	4,485
2030	2,880
Thereafter	232
Total lease payments (1)	25,325
Less: imputed interest (1)	(2,040)
Present value of operating lease liabilities	23,285
Less: current portion of operating lease liabilities	(5,603)
Operating lease liabilities, net of current portion	$	17,682

(1) Excludes $235 of lease payments for signed leases that have not yet commenced.

As of September 30, 2025, $17,311 of total lease payments and $1,271 of imputed interest are for our principal executive offices, which are leased from an affiliate of ABP Trust pursuant to a lease agreement that expires in 2030.

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

RMR GROUP INC. Leases Disclosure

About Leases Disclosures

Other Available Disclosures