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| Statement |
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| I am extremely pleased with great strides we have made towards achieving these goals so far in fiscal 2024 |
| We will seek to accelerate the momentum at these core businesses and are pleased with continued solid performance from both during the quarter |
| With a robust pipeline of new properties and open requirements from significant tenants, we remain confident of continued growth at Monomoy REIT and BTS through fiscal 2024 |
| It increases GEG's basis for earning fees from GECC, giving the company the ability to add significant recurring asset management fee revenue and the potential to earn incentive fee revenue on this incremental capital |
| Management is focused on raising third-party capital in the fund, providing another opportunity to grow our AUM and enhance recurring fee revenue |
| These investments made alongside other capital partners serve as a testament to GEG utilizing its strong liquid balance sheet to scale existing businesses, launch new fund products and deploy capital into new platform opportunities |
| Along with growing our recurring revenue, we believe that GEG's investments in these vehicles will deliver a strong return |
| In addition to these key strategic developments, GEG had a solid fiscal second quarter of 2024 |
| GECC remains well positioned to continue paying GEG incentive fees moving forward as we see the results of the successful portfolio repositioning efforts |
| GECC once again had a solid quarter |
| Our results demonstrate our commitment to repositioning Great Elm in the alternative asset management space by growing our core businesses and launching new products |
| In review of continuing operations, quarter-to-date revenues grew 50% year-over-year to $2.8 million, driven by increased fee-paying assets under management related to GECC and Monomoy and the recognition of incentive fees from GECC for the third consecutive quarter, generating approximately $0.7 million during the fiscal second quarter |
| Additionally, Monomoy made great strides during the quarter as the REIT acquired three properties with in-place leases deploying $4 million of capital, amended nine existing tenant leases for meaningful term extensions and executed five-year renewal options on two properties with a key tenant |
| We generated total revenue of $2.8 million, a 50% increase from the prior year period and adjusted EBITDA of $0.6 million, up from $0.1 million from the prior year period |
| I'd like to conclude by reflecting upon the three goals we have consistently outlined in recent quarters, enhance our financial performance, broaden our platform, and increase our AUM |
| AUM of $655 million as of December 31, 2023, was up 2% from the prior quarter-end and up 6% from the prior year quarter-end, while fee-paying AUM grew to $461 million, up 2% quarter-to-date and up 5% from prior year quarter-end |
| We will remain steadfast in pursuing opportunities to expand our business and invest capital in new platform opportunities that offer attractive risk-adjusted returns |
| We continue to grow our fee-paying assets under management on both a sequential quarter and year-over-year basis |
| In addition, our build-to-suit business continued to make meaningful progress on its two construction projects in Florida and Mississippi |
| Reflecting on our two anchor fee-paying vehicles, Monomoy and GECC, we have increased both fee revenue and AUM across both platforms |
| Adjusted EBITDA for the quarter was $0.6 million, up from $0.1 million generated in the prior year period |
| Net asset value at GECC grew to $12.99 per share as of December 31, post-calendar 2023, with a 30% return on equity |
| Additionally, NII continues to exceed the regularly quarterly dividend and GECC declared a special dividend in December |
| During the fiscal second quarter, our book value remained steady at $2.25 per share, which is why we intend to repurchase shares in the open market as part of our $10 million common stock repurchase program approved in November 2023 |
| Most importantly, the investment structure embedded in this transaction provides a template for future capital raising and investment opportunities |
| Jason Reese Thank you again for joining us today |
| Additionally, we continue to evaluate multiple strategic M&A opportunities in our promising pipeline |
| Jason Reese Welcome, everyone, and thank you for joining us |
| We thank you for joining |
| Adam Yates Good morning, everyone |
| Statement |
|---|
| For the quarter, Great Elm Group generated a net loss from continuing operations of $0.2 million compared to net income from continuing operations of $29.7 million in the prior year period |
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