GECC Provides Year-end Review
Global Education Communities Corp. (GECC) provided a year-end review for 2024, highlighting both achievements and challenges. The company faced headwinds including high interest rates, construction costs, and international student limits. Despite these challenges, GECC secured fixed-interest loans to reduce costs and saw domestic enrollment growth in its educational division.
Notable developments include: GEC Living's domestic tenant base increased from 17% to 44%, the sale of GEC Granville Hotel for $70M, and the operation of eight buildings with nearly 1,300 beds in Metro Vancouver. The company completed over $148 million in mortgages and refinancing, with an additional $214 million pending approval.
For 2025, GECC plans to streamline educational divisions, commence construction at GEC Oakridge, increase capital base at GEC Education Mega Center, and pursue various refinancing and development initiatives.
Global Education Communities Corp. (GECC) ha fornito una revisione di fine anno per il 2024, evidenziando sia i successi che le sfide. L'azienda ha affrontato venti contrari come tassi di interesse elevati, costi di costruzione e limiti agli studenti internazionali. Nonostante queste difficoltà, GECC ha garantito prestiti a tasso fisso per ridurre i costi e ha constatato una crescita delle iscrizioni domestiche nella sua divisione educativa.
Tra i progressi notevoli ci sono: la base di inquilini nazionali di GEC Living è aumentata dal 17% al 44%, la vendita del GEC Granville Hotel per 70 milioni di dollari, e l'operazione di otto edifici con quasi 1.300 letti nella Metro Vancouver. L'azienda ha completato oltre 148 milioni di dollari in mutui e rifinanziamenti, con ulteriori 214 milioni in attesa di approvazione.
Per il 2025, GECC prevede di snellire le divisioni educative, iniziare la costruzione presso GEC Oakridge, aumentare la base di capitale al GEC Education Mega Center e perseguire varie iniziative di rifinanziamento e sviluppo.
Global Education Communities Corp. (GECC) presentó una revisión de fin de año para 2024, destacando tanto logros como desafíos. La compañía enfrentó vientos en contra, incluidos altos tipos de interés, costos de construcción y limitaciones de estudiantes internacionales. A pesar de estos retos, GECC aseguró préstamos a interés fijo para reducir costos y vio un crecimiento en la matrícula nacional en su división educativa.
Desarrollos notables incluyen: la base de inquilinos nacionales de GEC Living aumentó del 17% al 44%, la venta del GEC Granville Hotel por 70 millones de dólares, y la operación de ocho edificios con cerca de 1,300 camas en Metro Vancouver. La empresa completó más de 148 millones de dólares en hipotecas y refinanciamientos, con 214 millones adicionales pendientes de aprobación.
Para 2025, GECC planea optimizar las divisiones educativas, comenzar la construcción en GEC Oakridge, aumentar la base de capital en el GEC Education Mega Center y perseguir diversas iniciativas de refinanciamiento y desarrollo.
Global Education Communities Corp. (GECC)는 2024년 연말 리뷰를 제공하며 성과와 도전을 강조했습니다. 이 회사는 높은 금리, 건설 비용 및 유학생 제한과 같은 어려움에 직면했습니다. 이러한 도전에도 불구하고 GECC는 비용 절감을 위한 고정금리 대출을 확보하였고 교육 부문에서 국내 등록자가 증가했습니다.
주목할 만한 발전 사항으로는: GEC Living의 국내 세입자 비율이 17%에서 44%로 증가했으며, GEC Granville Hotel이 7천만 달러에 판매되었고, 메트로 밴쿠버에서 거의 1,300개의 침대를 가진 8개 건물의 운영이 이뤄졌습니다. 이 회사는 1억 4천800만 달러 이상을 담보 대출 및 재융자로 완료하였으며, 추가로 2억 1천400만 달러가 승인 대기 중입니다.
2025년에는 GECC가 교육 부문을 간소화하고, GEC Oakridge에서 건설을 시작하며, GEC Education Mega Center의 자본 기반을 증가시키고, 다양한 재융자 및 개발 이니셔티브를 추진할 계획입니다.
Global Education Communities Corp. (GECC) a fourni un bilan de fin d'année pour 2024, mettant en avant à la fois les réussites et les défis. L'entreprise a fait face à des vents contraires, tels que des taux d'intérêt élevés, des coûts de construction et des limites sur les étudiants internationaux. Malgré ces défis, GECC a obtenu des prêts à taux fixe pour réduire les coûts et a observé une croissance des inscriptions nationales dans sa division éducative.
Parmi les développements notables figurent : la base de locataires nationaux de GEC Living a augmenté de 17 % à 44 %, la vente du GEC Granville Hotel pour 70 millions de dollars, et l'exploitation de huit bâtiments avec près de 1 300 lits dans la région de Vancouver. L'entreprise a réalisé plus de 148 millions de dollars en hypothèques et refinancements, avec 214 millions de dollars supplémentaires en attente d'approbation.
Pour 2025, GECC prévoit de rationaliser les divisions éducatives, de commencer la construction au GEC Oakridge, d'augmenter la base de capital au GEC Education Mega Center et de poursuivre diverses initiatives de refinancement et de développement.
Global Education Communities Corp. (GECC) hat einen Jahresrückblick für 2024 vorgelegt, der sowohl Erfolge als auch Herausforderungen hervorhebt. Das Unternehmen hatte mit Gegenwind zu kämpfen, darunter hohe Zinsen, Baukosten und Beschränkungen bei internationalen Studierenden. Trotz dieser Herausforderungen sicherte sich GECC Festzinsdarlehen zur Kostensenkung und verzeichnete ein Wachstum der Inlandsimmatrikulation in seiner Bildungsabteilung.
Bemerkenswerte Entwicklungen sind: der Inlands-Mieteranteil von GEC Living stieg von 17 % auf 44 %, der Verkauf des GEC Granville Hotels für 70 Millionen Dollar und der Betrieb von acht Gebäuden mit fast 1.300 Betten in Metro Vancouver. Das Unternehmen hat über 148 Millionen Dollar an Hypotheken und Refinanzierungen abgeschlossen, mit weiteren 214 Millionen Dollar, die auf Genehmigung warten.
Für 2025 plant GECC, die Bildungsabteilungen zu optimieren, den Bau in GEC Oakridge zu beginnen, die Kapitalbasis im GEC Education Mega Center zu erhöhen und verschiedene Refinanzierungs- und Entwicklungsinitiativen zu verfolgen.
- Sale of GEC Granville Hotel for $70M improving liquidity
- Domestic tenant base growth from 17% to 44%
- Completed $148M in mortgages and refinancing
- Near-zero vacancy at GEC King Edward
- Addition of 284 beds with GEC Kingsway opening
- CMHC approval for $121M financing for GEC Oakridge
- Decline in international student enrollment
- High interest rates and construction costs impacting operations
- 9-month renovation period for GEC Viva affecting revenue
- Challenging credit market conditions
- Government-imposed international student limits affecting enrollment
VANCOUVER, BC / ACCESSWIRE / December 9, 2024 / Global Education Communities Corp. ("GECC" or the "Company") (TSX:GEC)(OTCQX International:GECSF) is pleased to provide the following synopsis on its business and corporate finance activities in 2024.
"Fiscal 2024 has been a productive year despite challenges such as high interest rates, high construction costs, government-imposed international student limits, and a tight credit market," commented Toby Chu, Chairman, President and CEO. "GECC undertook several initiatives to address these challenges."
Overview:
We secured short term fixed interest loans, gradually replacing various loans funded by CMHC to reduce interest cost.
Our school's domestic enrollment grew healthily while international enrollment declined. More focus has shifted to the domestic market and those international students already in-country.
Our domestic tenant base at GEC® Living, a division of Global Education City Holdings Inc., grew approximately
150% , from17% to44% . Domestic students took over vacancies vacated by international students.
Summary of GEC® Living's development milestones in 2024:
GEC® Granville Hotel was sold for
$70M in November 2023 to increase liquidity and reduce financing costs.GEC® Langara purchased land in December 2023, approved for a 10-storey development. As a result of the provincial government's Bill 42 Transit Oriented Area development policy, application has been made for approval to an increase in the size of the building to 26 storeys.
GEC® King Edward, which commenced operation in June 2023, has achieved near-zero vacancy.
Stabilized and increased rental incomes were achieved at GEC® Burnaby, GEC® King Edward, GEC® Pearson, and GEC® Marine Gateway.
GEC® Viva, which was under renovation for 9 months in 2024, is now fully operational with limited vacancies.
GEC® Kingsway commenced operation in September 2024, with an additional 284 beds added to our portfolio.
Eight buildings are fully operational, operating nearly 1,300 beds in Metro Vancouver.
GEC® Oakridge received its demolition permit in December 2024 and will start demolition in January 2025.
GEC Education Mega Center® completed its DP Amendment and submitted it to the City of Surrey for approval.
GEC® CyberCity is in discussions with a major hotel chain that is interested in establishing a presence in Richmond, BC.
Investment and cooperation agreements relating to GEC® Oakridge were executed with Pomerleau Capital of Montreal, Quebec.
Corporate Finance Activities in late 2023 and during 2024:
GEC® King Edward completed a CMHC take-out mortgage at reduced interest rates.
GEC® Oakridge received CMHC approval for
$121 million for construction and take-out financing.GEC® Burnaby and GEC® Pearson submitted mortgage refinancing applications to CMHC in October 2024.
In summary, GECC subsidiaries completed over
$148 million of mortgages and refinancing across the portfolio, with$214 million pending approval in late 2024 or early 2025.
Looking ahead into 2025, GECC plans to undertake the following activities:
Continue to streamline the educational divisions through cost reductions, re-focus on its market segments and add new programs.
Commence construction at GEC® Oakridge.
Increase the capital base of GEC Education Mega Center®, seek CMHC financing, and commence construction.
Refinance GEC® Burnaby and GEC® Pearson.
Complete the development application at GEC® Langara to increase density and capacity.
Stabilize the occupancy rate for GEC® Kingsway, which commenced operations in September 2024.
Add new properties through the GEC® MLPP initiative (Master Lease Partnership Program).
About GECC:
GECC is one of Canada's largest education and student housing investment companies focused on the domestic and global education market since 1994. In fiscal 2024, GECC serviced over 12,500 domestic and international students through its educational, rental housing and recruitment subsidiaries.
GECC operates business and language colleges, student-centric rental apartments, recruitment centres and corporate offices at 40 locations in Canada and abroad. Its education subsidiaries include Sprott Shaw College Corp. (established in 1903), Sprott Shaw Language College, Vancouver International College, and CIBT School of Business & Technology Corp. GECC offers over 150 educational programs in healthcare, business management, e-commerce, cyber-security, hotel management, emergency paramedic, and language training through these schools.
GECC owns Global Education City Holdings Inc. ("GECH"), an investment holding and development company focused on education-related real estate, such as student-centric rental apartments and education super-centres. In fiscal 2024, GECH held nine projects comprising 14 buildings in operations and different stages of development under the GEC® brand in Metro Vancouver. GECH provided accommodation services to 95 partner schools serving students arriving from across Canada and 79 countries. The total portfolio and development budget under the GEC® brand exceeds
GECC also owns Global Education Alliance Inc. ("GEA") and Irix Design Group Inc. ("IRIX"). GEA recruits international students for elite kindergartens, primary and secondary schools, colleges and universities in North America. Irix is a leading design and advertising company based in Vancouver, Canada. Visit us online and watch our corporate video at www.GEChq.com.
For more information, contact:
Toby Chu
Chairman, President & CEO
Global Education Communities Corp.
Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: info@GEChq.com
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information (the "forward-looking statements") about the Company and its plans. Forward-looking statements are statements that are not historical facts. Forward-looking statements in this news release include, without limitation, the Company's business plans for 2025. The forward-looking statements are subject to various risks, uncertainties and other factors (collectively, the "Risks") that could cause GECC's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. The Risks include, without limitation, customary risks of the construction industry, unexpected delays or requirements of the applicable municipalities, a failure of the federal government to implement to remove the Goods and Services Tax on the construction of new rental apartments and the risk factors identified in the Company's management's discussion and analysis for the fiscal year ended August 31, 2024. Forward-looking statements are based on the beliefs, opinions and expectations of GECC's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.
SOURCE: Global Education Communities Corp
View the original press release on accesswire.com
FAQ
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