Star Metro - GECC Reports F2026 Q2 Financial Results

The following table presents selected financial data from the Q2 2026 Financial Report with comparisons to the period ended February 28, 2025 ("Q2 2025"). All figures are in thousands of Canadian dollars, except share and per-share data, unless otherwise stated.

⁽¹⁾ See the section titled "Non-IFRS Financial Measures" for more information on each non-IFRS specified financial measure.
⁽²⁾ Percentage change amounts reflect the relative change in the individual balance with the impact (negative or positive) on net income.

"Our second quarter financial results for fiscal year 2026 were marked by the successful divestiture of the Company's legacy educational assets and a steady increase in student housing revenue," commented Toby Chu, Chairman, President and Chief Executive Officer of GECC. The following is a summary of the Company's financial results for the six months ended February 28, 2026 ("2026 YTD"):

2026 YTD Financial Highlights:

• Rental revenue increased by 12% from $8.608 million to $9.652 million.

• EBITDA from continuing operations increased by 4,941% from $0.125 million to $6.251 million.

• Net income was $3.417 million.

• Earnings per share (EPS) attributable to GECC shareholders: $0.02 per share.

• Total assets: $376.153 million.

• Total liabilities: $227.359 million.

• Asset divestiture: The Company completed the sale of SSLC Language College and VIC Vancouver International College on February 28, 2026, for $2 million, following the divestment of Sprott Shaw College for cash proceeds of $35 million, net of all adjustments, during fiscal year 2025.

Strategic Realignment: GEC® Living & GEC® Development

With the divestiture of its education services, GECC is transitioning its corporate focus toward its high-performing real estate portfolio. Starting in Q3 2026, the Company will debut an enhanced financial reporting format designed to provide stakeholders with an easy-to-understand view of its core operations versus its long-term development pipeline.

"The legacy format mixed education revenue and active development costs, which often obscured the true profitability of our housing business," said Mr. Chu. "Our new segmented reporting in the coming quarters will allow investors to see the immediate strength of our rental income separately from our long-term value creation in construction."

To improve clarity, GECC will report future financial results across three distinct pillars starting Q3 2026:

1. Dedicated Student Housing (GEC® Living): Income and expenses will be isolated to illustrate the segment's standalone profitability and operational margins.

2. Segmented Construction & Development: Development projects will be reported separately. This prevents the significant costs associated with long-term projects from distorting the current operating margins of completed, revenue-generating properties.

3. Consolidated Supporting Services: Non-core revenues-including student recruitment, marketing, and corporate finance-will be grouped under "Supporting Services" to reflect their role in supporting the core housing business.

About GECC:

For over 32 years, GECC has been a leading player in Canada's education and student housing sectors. Following the strategic divestiture of its domestic college assets in 2025 and 2026, GECC has evolved into a premier pure-play student housing developer and operator. Serving nearly 10,000 domestic and international students annually, GECC's global footprint spans student housing communities, recruitment centers, and corporate offices across Canada and abroad.

Student Housing & Education Super-Centres

Under the flagship GEC® Living brand, GECC is the largest off-campus student housing provider in Western Canada. The company specializes in developing and managing student-centric rental apartments and has pioneered the "Education Super-Centre" concept-integrated hubs that combine academic space with high-density housing. The GEC® portfolio, comprising both operational assets and a robust development pipeline, represents a combined value and development budget exceeding $1 billion. With 1,300 operational beds and approximately 2,500 additional beds in the development pipeline, GEC® provides essential housing solutions to students from 95 schools across Metro Vancouver, representing 79 countries worldwide. Website: www.gecliving.com

Academic Division and Supporting Services

Formerly the parent company of Sprott Shaw College, SSLC Language College and Vancouver International College, GECC successfully divested these entities in 2025 and 2026 to focus on its student housing real estate business. The company's current academic division continues through CIBT School of Business & Technology Corp., maintaining a feeder and bridge between institutional education and student-centric infrastructure.

GECC maintains a vertically integrated ecosystem to ensure high occupancy and brand consistency across its portfolio: Global Education Alliance (GEA): A premier student recruitment agency that connects international students with top-tier North American institutions and streamlines their placement into GEC® housing. Irix Design is a Vancouver-based media and communications firm that serves as GECC's internal marketing and design department, ensuring seamless execution of the company's global brand strategy.

Visit GECC online at www.GEChq.com to explore our services and watch our corporate video. Check out our video library on YouTube.com: https://www.youtube.com/gecliving

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 benefits from the planned changes to the Company's financial reporting segments. 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. 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, and gain from legal settlement. 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 IFRS. 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. 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

View the original press release on ACCESS Newswire

V.Jackson--SMC