Heraldo de Madrid - GECC Reports Financial Results for Fiscal Year Ended August 31, 2024

The following table presents selected financial data from the 2024 Financial Report with comparisons to the fiscal year ended August 31, 2023 (" Fiscal 2023 "). All figures are in thousands of Canadian dollars, except share and per share data, unless otherwise noted.

1. See section titled "Non-IFRS Financial Measures" for more information on each non-IFRS specified financial measure. Gross margins reflected in the table above and referenced below as "Margins".

2. Percentage change amounts reflect the relative change in the current period amount in comparison with the prior period amount, where the numerator is the amount increased (decreased) and the denominator is the prior period amount.

The following table reconciles these non-IFRS measures to the most directly comparable IFRS measure disclosed in the Annual Financial Statements, which is net income (loss).

1. Interest income not associated with operations which is a component of interest and other income, net included in Note 20 to the Annual Financial Statements.

2. Includes amortization of agency fees which is a component of educational direct costs and included in Note 9 to the Annual Financial Statements.

3. Associated with gain on sale of GEC® Granville.

4. Included in finance costs within Note 19 to the Annual Financial Statements.

"We are pleased to report that GECC continued to demonstrate steady growth in Fiscal 2024 despite total gross revenue appearing to be 2% lower than in the previous year," commented Toby Chu, Chairman, President and CEO of GECC. "It is important to note when comparing the Fiscal 2024 and Fiscal 2023 revenues that GEC Granville Hotel was sold in November 2023, with only two months of hotel revenue being included in 2024 Financial Report as compared to a full year of hotel revenue being included in the 2023 Financial Report, resulting in $6.562 million of rental revenue differences. After adjusting for the hotel revenue, rental income increased by $2.683 million in Fiscal 2024 compared to Fiscal 2023, a robust 12.6% growth year over year. The rental revenue growth was primarily due to the commencement of operations of GEC ^® King Edward in the fourth quarter of Fiscal 2023 and higher rental rates across all rental properties, which was partly offset by reduced occupancy at GEC ^® VIVA which began significant renovations from the 8 ^th to 17 ^th floors for nine months in Fiscal 2024. Net income attributable to GECC shareholders was $1.095 million or $0.02 per share.

"In 2024, the federal government implemented measures to control the number of international students entering Canada. As a result, our international colleges experienced a 10% (or $1.389 million) decline in revenue in Fiscal 2024 as compared to Fiscal 2023. At the same time, our domestic enrollment experienced a 6% (or $2.536 million) increase in revenue in Fiscal 2024 as compared to Fiscal 2023. Despite the international student slowdown, our domestic tenant base at GEC ^® grew from 17% to 44%. All GEC ^® operating properties were at near-full capacity."

Toby added, "Due to Metro Vancouver's low vacancy rate, all levels of government are taking action to increase rental housing supply. In June 2023, the federal government of Canada announced legislation to remove the Goods and Services Tax on the construction of new rental apartments, which, if implemented, will provide substantial cost savings in connection with our current projects. The provincial government also implemented the Transit Oriented Area policy (Bill 47), allowing higher density and reduced parking for developments within 800 meters of major transit hubs and subway stations. Canada Mortgage and Housing Corporation also implemented low-interest financing programs to incentivize market rental and student housing developments. These incentives significantly reduced the construction cost of our new developments."

Key Operational Highlights in Fiscal 2024:

• Domestic enrollment increases offset the decrease in international enrollment.

• Our student recruitment division, GEA, achieved a robust growth of 13%.

• Strong growth in rental revenue factored in the sale of GEC® Granville hotel, which was sold in the first quarter of Fiscal 2024.

• The tenant demographic shifted to substantially domestic students from international students.

• GEC® King Edward's first full fiscal year of operations, and the start of operations at GEC® Kingsway, in Fiscal 2024, gradually replacing the GEC® Granville hotel revenue.

• GEC® EMC and ESC property valuations were lower than last year due to recent adverse market conditions involving under-development lands.

• Most of the GEC® operating properties increased in value due to strong cash flow and occupancy rates.

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. 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 $1.3 billion.

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.

In fiscal 2024, GECC serviced over 12,500 domestic and international students through its educational, rental housing and recruitment subsidiaries.

For more information, contact:

Toby Chu
Chairman, President & CEO
Global Education Communities Corp.

Investor Relations Contact: 1-604-871-9909 extension 319 or | Email: [email protected]

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 federal government's plan to remove the Goods and Services Tax on the construction of new rental apartments which, if implemented, will enable the Company to achieve substantial cost savings. 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 MD&A forming part of the 2024 Financial Report. 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.

NON-IFRS FINANCIAL MEASURES

The Company has included certain non-IFRS financial measures throughout this document including: (a) Earnings before Interest, Taxes, Depreciation and Amortization (" EBITDA "); (b) Adjusted EBITDA which is EBITDA adjusted for the gain (loss) on change in fair value of the Company's investment properties, the gain (loss) on change in fair value of derivative instruments, one-off gains from sale of property and equipment, and loss from impairment of intangible assets; and (c) Gross Profit (" Gross Profit ") which is the difference between revenue and direct costs of sales. These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with the IFRS Accounting Standards. Management uses EBITDA and Adjusted EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Management uses Gross Profit to assess how efficiently the Company generates profit from the sale of goods or services. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company's financial performance. These non-IFRS financial measurements have not been presented as an alternative to net income (loss) or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measures have been provided throughout the Company's MD&A, as applicable, filed under the Company's profile on www.sedarplus.ca .

SOURCE: Global Education Communities Corp

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