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NAS, yes, agreed. A quick call with management and study of their contracts is all the diligence you need to know how it'll play out. To their credit they're honest (except when they re-IPO the
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<p>NAS, yes, agreed. A quick call with management and study of their contracts is all the diligence you need to know how it'll play out. To their credit they're honest (except when they re-IPO the Hawaiian assets -- in those processes they point to NAV), and also to their credit, they did partial internalizations with RMR and now you can make economic bets that will profit from this dynamic by buying RMR (it was stupid cheap in the teens, but not sure what it's worth now).</p>
<p>With regards to the stock performance incentive, it's perverse in some sense that over long periods of time these will occasionally have outperformance periods that will enable RMR to capture a bunch of the market cap, but over an infinite period RMR will ultimately capture all of the market cap using a monte carlo simulation. The clock is right about 25% of the time here (that is they're likely to underperform, but 25% of the time just timing and starting point will make their promotes pay off).</p>
<p>Lesson I've learned on this complex is to play the game and it's a fools sport to hate the players or hope that the rules are finally changed. </p>
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