Report
FREE
• GEC has completed the divestiture of its remaining Canadian educational assets, becoming a pure-play student housing developer and operator.
• The Company will retain its Global Education Alliance recruitment subsidiary, ensuring a direct student pipeline into its growing portfolio.
• GEC’s three flagship development projects (GEC Oakridge, GEC Langara, and the Education Mega Center) are progressing well and are expected to generate gross annual rental revenue exceeding $46.7M once stabilized.
Yesterday, after market close, Global Education Communities Corp. (GEC:TSX, GECSF:OTCQB) announced the completion of its divestiture of the remaining Canadian educational assets, including SSLC Language College and Vancouver International College (VIC), effective February 28th. This marks a transformative milestone for GECC, as it completed its strategic pivot to a pure play student housing developer and operator, with its $674M construction roadmap. We view this update as a strong positive, as the educational assets had declining revenue in recent years, and the margins are slim. Conversely, the student housing segment continues to steadily grow based on rent increases and development progress, and is posting >70% gross margins. This will also support multiple expansion in our view. Since there were no numerical figures on the disposition, we will await further information and our discussion with management before updating our model. We are maintaining our BUY rating and our $1.00/share target price on GEC.
The Company will retain its Global Education Alliance (GEA) recruitment subsidiary, which operates a network of over 2,000 agents globally and has been built over the past decade. GEA provides a direct channel to funnel domestic and international students into GECC’s Metro Vancouver housing portfolio, a meaningful competitive advantage as the Company scales its housing operations.
GEC: Pure-Play Student Housing Pivot Complete
What you need to know:• GEC has completed the divestiture of its remaining Canadian educational assets, becoming a pure-play student housing developer and operator.
• The Company will retain its Global Education Alliance recruitment subsidiary, ensuring a direct student pipeline into its growing portfolio.
• GEC’s three flagship development projects (GEC Oakridge, GEC Langara, and the Education Mega Center) are progressing well and are expected to generate gross annual rental revenue exceeding $46.7M once stabilized.
Yesterday, after market close, Global Education Communities Corp. (GEC:TSX, GECSF:OTCQB) announced the completion of its divestiture of the remaining Canadian educational assets, including SSLC Language College and Vancouver International College (VIC), effective February 28th. This marks a transformative milestone for GECC, as it completed its strategic pivot to a pure play student housing developer and operator, with its $674M construction roadmap. We view this update as a strong positive, as the educational assets had declining revenue in recent years, and the margins are slim. Conversely, the student housing segment continues to steadily grow based on rent increases and development progress, and is posting >70% gross margins. This will also support multiple expansion in our view. Since there were no numerical figures on the disposition, we will await further information and our discussion with management before updating our model. We are maintaining our BUY rating and our $1.00/share target price on GEC.
The Company will retain its Global Education Alliance (GEA) recruitment subsidiary, which operates a network of over 2,000 agents globally and has been built over the past decade. GEA provides a direct channel to funnel domestic and international students into GECC’s Metro Vancouver housing portfolio, a meaningful competitive advantage as the Company scales its housing operations.
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
Other Reports on these Companies
Other Reports from Atrium Research Corporation
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.