Great Elm Group Inc (GEG) 2025 Q3 法說會逐字稿

Ladies and gentlemen, greetings and welcome to the Great Elm Group fiscal 2025 third quarter conference call.

女士們、先生們，大家好，歡迎參加 Great Elm Group 2025 財年第三季電話會議。

(Operator Instructions)

（操作員指示）

It is now my pleasure to introduce your host, Adam Yates, Managing Director. Please go ahead.

現在我很高興向大家介紹您的主持人、董事總經理亞當耶茨 (Adam Yates)。請繼續。

Good morning, everyone.

大家早安。

Thank you for joining us for Great Elm Group's fiscal third quarter 2025 earnings conference call. As a reminder, this conference call is being recorded on Thursday, May 8, 2025.

感謝您參加 Great Elm Group 2025 財年第三季財報電話會議。提醒一下，本次電話會議將於 2025 年 5 月 8 日星期四錄製。

If you would like to be added to our distribution list, you can email geginvestorrelations@greatelmcap.com or you can sign up for alerts directly on our website www.greatelmgroup.com. The slide presentation accompanying today's conference call and webcast can be found on our website under events and presentations. A link to the webcast is also available on our website, as well as in the press release that was disseminated to announce the quarterly results.

如果您想加入我們的通訊錄，可以發送電子郵件至 geginvestorrelations@greatelmcap.com，或直接在我們的網站 www.greatelmgroup.com 上訂閱提醒。今天電話會議和網路直播的幻燈片簡報可在我們網站的「活動和簡報」欄位下找到。我們的網站以及為宣布季度業績而發布的新聞稿中也提供了網路直播的連結。

Today's conference call includes forward-looking statements. And we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Great Elm Group does not undertake to update its forward-looking statements unless required by law.

今天的電話會議包括前瞻性陳述。我們也請您參考 Great Elm Group 向美國證券交易委員會提交的文件，以了解可能導致實際結果與這些聲明有重大差異的重要因素。除非法律要求，否則 Great Elm Group 不承諾更新其前瞻性聲明。

In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under financial information, and select SEC filings.

此外，在今天的電話會議中，管理階層將參考某些非公認會計準則財務指標。我們的收益報告中包含了與最具可比性的財務指標的對帳。若要取得我們的 SEC 文件的副本，請造訪 Great Elm Group 網站的財務資訊部分，然後選擇 SEC 文件。

Today's comments do not constitute an offer to sell or a solicitation of an offer to buy interest in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.

今天的評論並不構成出售要約或購買 Great Elm 或其附屬公司管理的任何投資工具的權益的要約邀請。任何此類要約或招攬均須根據該投資工具的適用要約文件進行。

On the call, today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nichole Milz, COO; and Keri Davis, CFO. I will now turn the call over to Jason Reese, CEO.

今天參加電話會議的有執行長 Jason Reese、總裁兼總法律顧問 Adam Kleinman、營運長 Nichole Milz 和財務長 Keri Davis。現在我將電話轉給執行長 Jason Reese。

Welcome, everyone, and thank you for joining us today. We delivered a solid fiscal third quarter 2025 marked by significant year over year growth in both assets under management and revenues across our businesses. This momentum reflects our continued evolution into a streamlined alternative asset management business and strengthens our position to expand our core credit and real estate platforms as we execute on our long-term growth strategy.

歡迎大家，感謝你們今天的到來。我們在 2025 財年第三季取得了穩健的業績，管理資產規模和各項業務收入均較去年同期大幅成長。這一勢頭反映了我們向精簡的另類資產管理業務的持續發展，並加強了我們在執行長期成長策略過程中擴大核心信貸和房地產平台的地位。

Among our recent highlights in February, we launched Monomoy Construction Services, an integrated full-service construction business with the strategic acquisition of Greenfield CRE, a leading construction management company which was combined with our existing Monomoy BTS construction management business. We continue to grow our assets under management, increasing our fee-paying AUM by 15% on a year over year basis. We generated total revenue of $3.2 million growing 15% year over year. We closed on the land purchase for our third build to sue property and made meaningful progress on our fourth project.

我們二月份的亮點之一是，我們透過策略性收購領先的建築管理公司 Greenfield CRE，推出了 Monomoy 建築服務，這是一家提供全方位服務的綜合建築公司，並與我們現有的 Monomoy BTS 建築管理業務合併。我們持續增加管理的資產，收費管理資產規模年增 15%。我們的總收入為 320 萬美元，年增 15%。我們完成了第三次建造起訴房產的土地購買，並在第四個項目上取得了重大進展。

We continued to repurchase shares at a meaningful discount to book value, executing on our $20 million buyback program, and we ended the quarter in a strong fiscal position with approximately $32 million in cash available to facilitate continued growth across our asset management platforms.

我們繼續以低於帳面價值的大幅折扣回購股票，執行了 2000 萬美元的回購計劃，並且我們在本季度結束時財務狀況良好，擁有約 3200 萬美元的現金，可促進我們資產管理平台的持續增長。

Diving into the corridor in more detail, fee-paying assets under management continued to grow and reached approximately $565 million representing a 15% increase over the prior year period. Primarily driven by our BDC Great Elm Capital Corp, which raised approximately $147 million through equity and debt issuances in calendar 2024.

更詳細了解該走廊，管理的付費資產持續成長，達到約 5.65 億美元，比去年同期成長 15%。主要由我們的 BDC Great Elm Capital Corp 推動，該公司在 2024 年透過發行股票和債券籌集了約 1.47 億美元。

Notably, GEG has participated in three equity raises at GECC with a combined investment of approximately $12 million facilitating an increase in fee paying AUM at GECC of over 40%. GECC also delivered strong results to kick off the first quarter of 2025, generating record total investment income of $12.5 million driven by cash flows from its CLO JB with net investment income that exceeded its recently increased quarterly distribution.

值得注意的是，GEG 已參與 GECC 的三次股權融資，總投資額約為 1,200 萬美元，推動 GECC 的付費 AUM 成長超過 40%。GECC 在 2025 年第一季也取得了強勁的業績，在 CLO JB 現金流的推動下，創造了創紀錄的 1250 萬美元總投資收入，淨投資收入超過了最近增加的季度分配。

Notably, it was also the highest cash income quarter in the company's history, a testament to the strategic portfolio enhancements undertaken in the last two years. As you may have seen this week, GECC launched an at the market offering to sell common shares at Nav or Better, which we expect will provide an additional avenue for growth in assets under management.

值得注意的是，這也是該公司歷史上現金收入最高的季度，證明了過去兩年進行的策略性投資組合增強。正如您本周可能看到的，GECC 推出了一項市場發行，以資產淨值或更好的價格出售普通股，我們預計這將為管理資產的成長提供額外的途徑。

Overall, GECC's recent successes further reinforce our growth strategy. The increased capital base expands our fee paying AUM, driving both higher recurring management fees and incentive fee potential. Notably, our base management fees from GECC grew over 40% year over year to $1.3 million and GECC is well positioned to pay meaningful fees in the coming quarters.

整體而言，GECC 最近的成功進一步強化了我們的成長策略。增加的資本基礎擴大了我們的付費 AUM，從而推動了更高的經常性管理費和激勵費潛力。值得注意的是，我們從 GECC 獲得的基本管理費年增超過 40%，達到 130 萬美元，而 GECC 有能力在未來幾季支付可觀的費用。

We're very pleased with the performance of GECC, marked by continued portfolio growth and increased cash distributions. GECC continues to deliver significant value to shareholders by expanding and diversifying its portfolio while leveraging its institutional quality infrastructure.

我們對 GECC 的表現非常滿意，其特點是投資組合持續成長和現金分配增加。GECC 透過擴大和多樣化其投資組合併利用其機構品質基礎設施，繼續為股東帶來巨大價值。

Shifting to our other products, Great Elm Credit Income Fund, a private credit fund, has delivered returns on invested capital of approximately 13.9% net of fees since inception through March 2025. With these returns and track record, we're favorably positioned for future growth in the fund.

轉向我們的其他產品，私人信貸基金 Great Elm Credit Income Fund 自成立以來至 2025 年 3 月，扣除費用後的投資資本回報率約為 13.9%。憑藉這些回報和業績記錄，我們為基金未來的成長做好了準備。

Meanwhile, our real estate business, Monomoy, continues to execute, and we're pleased to have closed on the land purchase for a third built to suit property, which we expect to complete during the calendar year. We also made meaningful progress on our fourth project as we progress through our growing pipeline of opportunities. Looking ahead, we anticipate continued profitability across the monomoy platform as we remain committed to executing on these development projects to drive profitability and deliver value for both our tenants and shareholders.

同時，我們的房地產業務 Monomoy 繼續運營，我們很高興完成了第三處定制房產的土地購買，預計將於年內完成。隨著我們不斷拓展機遇，我們的第四個項目也取得了有意義的進展。展望未來，我們預計 Monomoy 平台將繼續獲利，因為我們將繼續致力於執行這些開發項目，以提高獲利能力並為我們的租戶和股東創造價值。

Further, building on strategic growth initiatives, in February, we significantly expanded our real estate capabilities through the acquisition of Greenfield CRE, a leading construction management company, and a long-standing partner of Monomoy.

此外，在策略性成長計畫的基礎上，我們於 2 月收購了領先的建築管理公司、Monomoy 的長期合作夥伴 Greenfield CRE，顯著擴展了我們的房地產能力。

Greenfield has deep knowledge of our development projects, a strong understanding of our tenant needs and expectations, and a proven track record of delivering on Monomoy's high standards. In connection with this transaction, we launched monomoy Construction Services, or MCS, and combined the assets of Greenfield with the assets of our monomoy BTS construction management consulting business.

Greenfield 對我們的開發項目有著深入的了解，對我們的租戶需求和期望有著深刻的理解，並且在滿足 Monomoy 高標準方面有著良好的記錄。與此交易相關，我們推出了 Monomoy 建築服務公司（MCS），並將 Greenfield 的資產與我們的 Monomoy BTS 建築管理顧問業務的資產合併。

MCS meaningfully bolsters our real estate platform by creating a fully integrated full-service construction vertical to serve our existing asset management entities. Our close relationship with the Greenfield team has made for a seamless integration with monomoy. MCS also expands our owner rep consulting services with third parties, a majority of which are sourced from existing relationships within the monomoy ecosystem.

MCS 透過創建一個完全整合的全方位服務建築垂直行業來服務我們現有的資產管理實體，從而顯著增強了我們的房地產平台。我們與 Greenfield 團隊的密切關係實現了與 monomoy 的無縫整合。MCS 也透過第三方擴展了我們的業主代表諮詢服務，其中大部分來自 Monomoy 生態系統內的現有關係。

This adds accretive revenue opportunities and enhances operational efficiencies through the economies of scale, delivering revenue and operational synergies from greenfield acquisition. With a large backlog and existing civil engineering and land planning talent, we are now able to offer an expanded range of services and fortify our overall real estate value proposition to our investors and clients.

這增加了增值收入機會，並透過規模經濟提高了營運效率，從綠地收購中實現了收入和營運協同效應。憑藉大量積壓訂單和現有的土木工程和土地規劃人才，我們現在能夠提供更廣泛的服務，並加強我們向投資者和客戶展示的整體房地產價值主張。

Additionally, Monomoy REIT continues to execute and maintain solid activity throughout the quarter. We acquired a property for approximately $3 million during the quarter and continue to maintain a strong pipeline of transaction opportunities and open requirements from our tenants.

此外，Monomoy REIT 在整個季度繼續執行並保持穩健的活動。我們在本季以約 300 萬美元的價格收購了一處房產，並繼續保持強大的交易機會和來自租戶的開放需求。

Outside of our core businesses, we've made significant progress in repurchasing GEG shares under our $20 million buyback program. Through May 6, 2025, we have repurchased approximately $4.8 million shares for $8.7 million at an average cost of $1.84 per share, representing approximately a 15% discount to the quarter in book value per share of $2.14.

在我們的核心業務之外，我們在 2000 萬美元的回購計劃下回購 GEG 股份方面取得了重大進展。截至 2025 年 5 月 6 日，我們已以 870 萬美元的價格回購了約 480 萬美元的股票，平均成本為每股 1.84 美元，較本季每股帳面價值 2.14 美元約有 15% 的折扣。

Before Kerry reviews our financial results in more detail, I would like to note that the net loss in the quarter was primarily driven by unrealized losses related to our investments in CoreWeave and GECC shares. Both marked the lower quarter end amid broader market volatility. We remain highly confident in these investments and fully expect the losses to reverse over time as market conditions stabilize.

在 Kerry 更詳細地回顧我們的財務表現之前，我想指出，本季度的淨虧損主要是由於我們對 CoreWeave 和 GECC 股票的投資相關的未實現損失造成的。在更廣泛的市場波動下，這兩個季度的業績都出現下滑。我們對這些投資仍然充滿信心，並完全預期隨著市場狀況的穩定，損失將隨著時間的推移而扭轉。

While uncertainty can drive asset price volatility in the near term, it can also create very attractive entry points into investment opportunities. Our strong liquidity position with approximately $32 million of cash at quarter end, puts us in an advantageous position when market volatility presents. In addition, unique investments like the convertible preferred financing will be provided for core weave prior to its public listing. And the private fund managed by Stone Ridge Asset Management, a best in class reinsurance manager, are a testament to the strength of our sourcing capabilities.

雖然不確定性會在短期內推動資產價格波動，但它也能創造非常有吸引力的投資機會切入點。我們擁有強大的流動性狀況，季度末擁有約 3200 萬美元的現金，這使我們在市場波動時處於有利地位。此外，核心編織在上市前還將獲得可轉換優先融資等獨特投資。由一流的再保險管理公司 Stone Ridge Asset Management 管理的私募基金證明了我們採購能力的強大。

Both through our experienced board of directors and our network of investment partners more broadly. Our ample liquidity combined with our unique sourcing capabilities enables us to support future growth initiatives across our alternative asset management platform.

透過我們經驗豐富的董事會和更廣泛的投資夥伴網絡。我們充足的流動性加上我們獨特的採購能力使我們能夠支援整個另類資產管理平台的未來成長計畫。

In closing, we're pleased with the performance of our credit and real estate businesses this quarter. The acquisition of Greenfield CRA strengthens our real estate capabilities while providing revenue and cost synergies, and GECC's continued growth demonstrates our momentum and credit. As always, we remain focused on our core objectives, enhancing financial performance, expanding our platform, and growing AUM.

最後，我們對本季信貸和房地產業務的表現感到滿意。收購 Greenfield CRA 增強了我們的房地產能力，同時提供了收入和成本協同效應，而 GECC 的持續成長證明了我們的發展勢頭和信譽。像往常一樣，我們始終專注於我們的核心目標，提高財務業績，擴展我們的平台，並增加 AUM。

Looking ahead, we will continue to evaluate strategic opportunities to expand our businesses and add a creative differentiated product offering with attractive risk adjusted return profiles. With that, I'll turn it over to Keri.

展望未來，我們將繼續評估擴大業務的策略機遇，並增加具有吸引力的風險調整回報特徵的創新差異化產品。說完這些，我就把話題交給 Keri。

Thank you, Jason. I will provide a brief overview of the quarter and of course welcome all of you to review our filings in greater detail or reach out to our team with any questions.

謝謝你，傑森。我將簡要介紹本季度的情況，當然也歡迎大家更詳細地查看我們的文件或就任何問題聯繫我們的團隊。

Fiscal third quarter revenues grew 15% to $3.2 million from the prior year period, primarily driven by increased revenue from real estate project management fees and rental income, as well as increased management fees from GECC attributable to fee paying AUM growth.

第三財季營收較去年同期成長 15% 至 320 萬美元，主要原因是房地產專案管理費和租金收入增加，以及 GECC 管理費因付費 AUM 成長而增加。

AUM and fee-paying AUM totaled approximately $768 million and $565 million respectively, up 12% and 15% respectively from the prior year quarter end. Ron Group generated net loss of $4.5 million for the quarter as compared to net loss of $2.9 million for the prior year period. The net loss was primarily driven by unrealized losses related to certain investment positions marked down at quarter end, which we expect to reverse over time as market conditions stabilize.

AUM 和付費 AUM 總計分別約為 7.68 億美元和 5.65 億美元，較去年同期末分別成長 12% 和 15%。Ron Group 本季淨虧損 450 萬美元，去年同期淨虧損 290 萬美元。淨虧損主要是由於季度末減記的某些投資頭寸相關的未實現損失所致，我們預計隨著市場狀況穩定，這種損失將逐漸扭轉。

Adjusted EBITDA for the quarter was $0.5 million compared to $1.2 million in the prior year period. As of March 31st, we had approximately $32 million in cash on our balance sheet to deploy across our growing alternative asset management platform. Please refer to slide six that provides an overview of our financial position and highlights our book value per share of approximately $2.14.

本季調整後 EBITDA 為 50 萬美元，去年同期為 120 萬美元。截至 3 月 31 日，我們的資產負債表上有約 3,200 萬美元的現金，可用於部署我們不斷成長的另類資產管理平台。請參閱第六張投影片，其中概述了我們的財務狀況並強調了我們的每股帳面價值約為 2.14 美元。

This concludes my financial review of the quarter. With that, we will turn the call over to the operator to open for questions.

我對本季的財務回顧到此結束。接下來，我們將把電話轉給接線員，以便回答問題。

Thank you. Ladies and gentlemen, we will now be conducting a question and answer session.

謝謝。女士們、先生們，我們現在將進行問答環節。

(Operator Instructions)

（操作員指示）

As there are no questions, I would now like to hand the conference over to Jason Reese, Chief Executive Officer for closing comments.

由於沒有問題，我現在想將會議交給執行長 Jason Reese 進行總結發言。

Thank you again for joining us today. We look forward to speaking with you in the future.

再次感謝您今天加入我們。我們期待將來與您交談。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation.

感謝您的參與。