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• GEC provided a corporate update on its achievements in FY25 including the sale of SSCC, record performance in its student housing portfolio, and successful project financing and development progress.
• GEC remains well positioned to transition to a student housing pure-play and take advantage of the supply shortage in British Columbia.
• The Company has a large cash balance following the divestiture and strong development plans with a group of elite partners.
This morning, Global Education Communities Corp. (GEC:TSX, GECSF:OTCQB) provided a summary of its corporate activities and key achievements for FY25. This includes the sale of Sprott Shaw College (SSCC), record performance in student housing, and successful project financing and development progress with its partners. We recently initiated coverage on GEC, read the report here. We are maintaining our BUY rating and our $1.00/share target price.
Strategic Divestiture of Sprott Shaw College
On August 8th, GEC completed the sale of Sprott Shaw College, receiving net proceeds of ~$35M. This allowed GEC to improve its balance sheet while focusing the business on the student housing portfolio. GEC retained its language colleges, which will continue to serve as a valuable source of student residents. We estimate that the asset was sold for 8x EBITDA and generated a 3x return.
Record Performance in Student Housing
Management indicated that the student housing sector remains resilient, and as of August 31st, the student housing portfolio had a near-zero vacancy rate. This comes on the back of a large student population in British Columbia, with over 500K domestic and international students. Additionally, there is a strong market for short-term international students for language studies and summer programs, which are not capped by federal government policies.
Successful Project Financing & Development Progress
GEC successfully obtained approximately $178.8M in CMHC-sponsored mortgages in FY25, including financing for two towers and the construction financing for GEC Oakridge. The Company's overall financing costs declined in Q4/25 from Q3/25, and the balance sheet will be supported by the recent cash windfall.
GEC: Making Solid Advancements
What you need to know:• GEC provided a corporate update on its achievements in FY25 including the sale of SSCC, record performance in its student housing portfolio, and successful project financing and development progress.
• GEC remains well positioned to transition to a student housing pure-play and take advantage of the supply shortage in British Columbia.
• The Company has a large cash balance following the divestiture and strong development plans with a group of elite partners.
This morning, Global Education Communities Corp. (GEC:TSX, GECSF:OTCQB) provided a summary of its corporate activities and key achievements for FY25. This includes the sale of Sprott Shaw College (SSCC), record performance in student housing, and successful project financing and development progress with its partners. We recently initiated coverage on GEC, read the report here. We are maintaining our BUY rating and our $1.00/share target price.
Strategic Divestiture of Sprott Shaw College
On August 8th, GEC completed the sale of Sprott Shaw College, receiving net proceeds of ~$35M. This allowed GEC to improve its balance sheet while focusing the business on the student housing portfolio. GEC retained its language colleges, which will continue to serve as a valuable source of student residents. We estimate that the asset was sold for 8x EBITDA and generated a 3x return.
Record Performance in Student Housing
Management indicated that the student housing sector remains resilient, and as of August 31st, the student housing portfolio had a near-zero vacancy rate. This comes on the back of a large student population in British Columbia, with over 500K domestic and international students. Additionally, there is a strong market for short-term international students for language studies and summer programs, which are not capped by federal government policies.
Successful Project Financing & Development Progress
GEC successfully obtained approximately $178.8M in CMHC-sponsored mortgages in FY25, including financing for two towers and the construction financing for GEC Oakridge. The Company's overall financing costs declined in Q4/25 from Q3/25, and the balance sheet will be supported by the recent cash windfall.
Underlying
GLOBAL EDUCATION COMMUNITIES CORP
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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