Great Elm Group Inc (GEG) 2026 Q3 法說會逐字稿

Greetings, and welcome to Great Elm Group Fiscal 2026 third quarter conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Great Elm Group 2026 財政年度第三季財報電話會議。(接線員指示) 提醒各位，本次會議將被錄音。

I would now like to turn the conference over to your host, Adam Yates, Managing Director. Thank you. You may begin.

現在我想把會議交給本次主持人、董事總經理 Adam Yates。謝謝。您可以開始了。

Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal 2026 third quarter earnings conference call. As a reminder, this conference call is being recorded on Thursday, May 7, 2026. If you would like to be added to our distribution list, you can e-mail geginvestorrelations@greatelmcap.com or you can sign up for alerts directly on our website, www.greatelmgroup.com.

各位早安。感謝各位參加 Great Elm Group 2026 財政年度第三季財報電話會議。提醒各位，本次電話會議於 2026 年 5 月 7 日（週四）錄音。若您希望加入我們的資訊發送名單，可寄電子郵件至 geginvestorrelations@greatelmcap.com，或可直接在我們的網站 www.greatelmgroup.com 訂閱提醒。

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.

今日電話會議與網路直播所搭配的簡報投影片，可在我們網站的「Events and Presentations」中找到。網站上亦提供網路直播連結，且該連結也包含在為公告季度業績而發布的新聞稿中。

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.

今日電話會議包含前瞻性陳述；我們請您參閱 Great Elm Group 向美國證券交易委員會（SEC）提交的文件，其中載有可能導致實際結果與這些陳述存在重大差異的重要因素。除非法律要求，Great Elm Group 不承擔更新其前瞻性陳述之義務。

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，在今日會議中，管理層將提及若干非 GAAP 財務衡量指標。與最可比財務衡量指標的調節表已包含於我們的財報新聞稿中。如需取得我們向 SEC 提交文件的副本，請至 Great Elm Group 網站的「Financial Information」並選擇「SEC filings」。

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.

今日評論不構成對出售或徵求購買由 Great Elm 或其關聯方管理之任何投資工具之權益的要約或要約徵求。任何此類要約或徵求僅會依據該投資工具之適用募集文件提出。

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

今天參與電話會議的有：執行長 Jason Reese；總裁兼總法律顧問 Adam Kleinman；營運長 Nichole Milz；以及財務長 Keri Davis。

I will now turn the call over to Jason Reese, CEO.

現在我把電話會議交給執行長 Jason Reese。

Thank you, Adam. Good morning, and thank you for joining us today. This quarter, Great Elm made meaningful progress advancing our strategic initiatives, while operating against a challenging backdrop.

謝謝你，Adam。各位早安，感謝今天加入我們。本季在充滿挑戰的環境下，Great Elm 在推進我們的策略性計畫方面取得了實質進展。

Fiscal third quarter 2026 was marked by heightened volatility across the BDC sector, driven by broader concerns around private credit quality. GECC, our public BDC, was not insulated from that volatility. Our reported results reflect approximately $9.8 million of unrealized losses primarily related to our holdings in GECC common stock and related SPVs. Despite these noncash mark-to-market losses, our balance sheet remains strong with over $45 million of cash and equivalents. This liquidity provides us with significant flexibility to support our growth initiatives and pursue attractive opportunities as we move forward.

2026 財政年度第三季，BDC 產業波動顯著加劇，主因是市場對私募信貸品質的更廣泛疑慮。我們的上市 BDC——GECC——也未能免於該等波動影響。我們的已公告結果反映約 980 萬美元的未實現損失，主要與我們持有的 GECC 普通股及相關 SPV 的部位有關。儘管存在這些非現金的按市價評價損失，我們的資產負債表仍然穩健，現金及約當現金超過 4,500 萬美元。這些流動性為我們在推進成長計畫並把握具吸引力的機會方面提供了相當大的彈性。

In this environment, we continue to build momentum across our alternative asset management platform. In March, I assumed the role of Executive Chairman of GECC at an important inflection point for the company. On May 4, I was appointed CEO. The company was established to create income and protect and grow NAV.

在此環境下，我們持續在另類資產管理平台上累積動能。3 月，我在公司重要轉折點出任 GECC 的執行董事長。5 月 4 日，我被任命為執行長。公司成立的宗旨是創造收益並保護與成長淨資產價值（NAV）。

In the near term, I'm reprioritizing. We will protect and grow NAV first and secondarily create income. We will accomplish this by strengthening oversight, protecting shareholder value and reinforcing accountability across the platform. We are already making tangible progress across each of these efforts.

短期內，我正在重新排序優先事項。我們將以保護並成長 NAV 為第一優先，其次才是創造收益。我們將透過強化監督、保護股東價值，並在整個平台上強化問責來達成。我們已在上述各項工作上取得具體進展。

At GECC, we took decisive steps during the quarter to strengthen the balance sheet and improve overall portfolio quality. We substantially delevered the capital structure by calling and repurchasing all near-term funded debt, and GECC will soon have no debt maturities until 2029. This eliminates near-term refinancing risk and enhances our ability to deploy capital in a disciplined and opportunistic manner.

在 GECC，我們於本季採取果斷措施以強化資產負債表並提升整體投資組合品質。我們透過提前贖回並回購所有近期到期的已動用債務，大幅降低資本結構槓桿；GECC 很快將在 2029 年之前都不會有到期債務。這消除了短期再融資風險，並提升我們以審慎且把握機會的方式部署資本的能力。

We also advanced our portfolio rotation strategy, exiting select investments and increasing portfolio quality by redeploying capital into predominantly senior secured positions. As a result, first lien investments now comprise nearly 75% of GECC's corporate credit portfolio, the highest level in recent history.

我們也推進投資組合輪動策略，退出部分投資，並將資本重新部署至以優先擔保部位為主，以提升投資組合品質。因此，第一順位擔保（first lien）投資目前約占 GECC 企業信貸投資組合的 75%，為近年來最高水準。

Additionally, we are expanding our proprietary sourcing effort. During the quarter, we closed 3 transactions sourced through institutional partners. We closed another proprietary private investment in April and expect to close on an additional investment in the near future. Our focus remains on rigorous underwriting, enhanced portfolio diversification and increasing cash-generative secured credit investments. We believe these actions position GECC for an improved trajectory with durable performance.

此外，我們正在擴大自有案源開發工作。本季我們完成了 3 筆透過機構合作夥伴取得的交易。我們於 4 月另完成一筆自有的私募投資，並預期在不久的將來再完成一筆額外投資。我們的重點仍在於嚴謹的承作審查、提升投資組合分散度，以及增加可產生現金流的擔保信貸投資。我們相信，這些行動將使 GECC 走向更佳的發展軌跡，並帶來具韌性的績效表現。

Within our private credit strategy, the Great Elm Credit Income Fund, which we launched in November '23, began an orderly wind down last quarter. We offered third-party investors an early redemption option and all have since exited the fund, leaving Great Elm Group's approximately $7 million investment at quarter end. The fund generated a net return of over 20% from inception through March 31, '26.

在我們的私募信貸策略方面，我們於 2023 年 11 月推出的 Great Elm Credit Income Fund 已於上季開始有序清算。我們向第三方投資人提供提前贖回選項，且目前皆已退出該基金，使得截至本季末僅剩 Great Elm Group 約 700 萬美元的投資。該基金自成立至 2026 年 3 月 31 日的淨報酬率超過 20%。

In real estate, Great Elm Real Estate Ventures delivered another strong quarter driven by continued execution across the Monomoy platform. Monomoy CRE generated approximately $1 million of investment and property management fees in the quarter, growing more than 20% from the prior year period. Monomoy REIT closed on 5 acquisitions in the quarter, deploying approximately $28 million and surpassing its full year 2025 acquisition activity.

在房地產方面，Great Elm Real Estate Ventures 受惠於 Monomoy 平台持續落實執行，交出另一個表現強勁的季度。Monomoy CRE 本季產生約 100 萬美元的投資與物業管理費用，較去年同期成長逾 20%。Monomoy REIT 本季完成 5 項收購，投入約 2,800 萬美元，並超越其 2025 全年收購活動水準。

Monomoy BTS delivered a third development property in Florida to an investment-grade tenant with rent commencing in March. During the quarter, the team also advanced its fourth design-build project in Texas following the land acquisition. The real estate platform continues to build a robust pipeline of additional build-to-suit opportunities, spurred by its strong execution track record and high tenant satisfaction. Lastly, Monomoy Construction Services completed its fourth full quarter of operations, adding $0.7 million in total revenue.

Monomoy BTS 在佛羅里達州向一名投資級租戶交付第三個開發物業，租金自 3 月起開始計收。本季，團隊亦在完成土地收購後，推進其在德州的第四個設計—建造（design-build）專案。在強勁的執行紀錄與高租戶滿意度的帶動下，該房地產平台持續建立更多量身訂做（build-to-suit）機會的穩健案源管線。最後，Monomoy Construction Services 完成其營運的第四個完整季度，新增總營收 70 萬美元。

Outside of our core platform, our CoreWeave-related investment continues to perform well with cumulative distributions of $6.8 million to date, exceeding our initial $5 million investment. We continue to see upside potential based on current trading levels, and we are encouraged by CoreWeave's recent stock price rebound and successful capital raises.

在核心平台之外，我們與 CoreWeave 相關的投資持續表現良好，迄今累計分配金額為 680 萬美元，已超過我們最初 500 萬美元的投資。基於目前的交易水準，我們仍看見上行潛力，且我們對 CoreWeave 近期股價反彈與成功募資感到鼓舞。

Turning to capital allocation. We believe our shares remain materially undervalued and continue to prioritize share repurchases accordingly. Our Board recently approved a $15 million increase in our stock repurchase program, bringing the total authorization to $40 million. This marks our 10th consecutive quarter of share repurchases, underscoring both our conviction in the business and our commitment to enhancing shareholder value. During the quarter, we repurchased approximately 1.4 million shares or over 4% of shares outstanding at an average price of $2.04 per share.

接著談資本配置。我們認為公司股價仍被顯著低估，因此持續優先進行庫藏股回購。董事會近期核准將股票回購計畫增加 1,500 萬美元，使總核准額度達到 4,000 萬美元。這是我們連續第 10 個季度進行股票回購，凸顯我們對業務的信心，以及提升股東價值的承諾。本季我們以每股平均 2.04 美元回購約 140 萬股，約占流通在外股數的 4% 以上。

Through May 4, we have repurchased approximately 7.8 million shares at an average price of $2 per share, representing $15.6 million deployed since inception. This leaves approximately $24.4 million of remaining capacity, and we intend to remain active under the program at current valuation levels.

截至 5 月 4 日，我們已以每股平均 2 美元回購約 780 萬股，自計畫啟動以來累計投入 1,560 萬美元。目前尚餘約 2,440 萬美元的可用額度，我們打算在目前估值水準下持續積極執行該計畫。

As we enter the fourth quarter of our fiscal year, we remain focused on growing fee-paying AUM, scaling our alternative credit and real estate businesses and sourcing new investment opportunities.

隨著我們進入本會計年度第四季，我們仍專注於提升收費型資產管理規模（AUM）、擴大我們的另類信貸與房地產業務，並尋找新的投資機會。

Looking ahead, we seek to expand our platform and add accretive differentiated investment solutions with attractive risk-adjusted return profiles.

展望未來，我們將致力於擴展平台，並新增具增益效果且差異化的投資解決方案，提供具吸引力的風險調整後報酬特性。

With that, I'll now turn the call over to our CFO, Keri Davis.

接下來，我將把電話會議交給我們的財務長 Keri Davis。

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

謝謝你，Jason。我將簡要概述本季表現；當然，也歡迎各位查閱我們的申報文件以取得更多細節，或如有任何問題與我們團隊聯繫。

Fiscal third quarter revenue was $3.4 million compared to $3.2 million in the prior year period, a 7% increase, driven primarily by growth in MCS construction management fees. Estimated fee-paying AUM and AUM were $528 million and $744 million, respectively, as of March 31, 2026. These figures represent a decrease of 7% and 3%, respectively, compared to the prior year period.

本會計年度第三季營收為 340 萬美元，較去年同期的 320 萬美元增加 7%，主要由 MCS 工程管理費用成長所帶動。截至 2026 年 3 月 31 日，估計收費型 AUM 與 AUM 分別為 5.28 億美元與 7.44 億美元。相較去年同期，這兩項數據分別下降 7% 與 3%。

We reported a net loss of $13.5 million for the quarter compared to a net loss of $4.5 million a year ago. The change was primarily driven by $9.8 million of unrealized losses, including consolidated funds, the majority of which were associated with the company's investments in GECC common stock and related SPVs.

本季我們報告淨損 1,350 萬美元，去年同期淨損為 450 萬美元。變動主要來自 980 萬美元的未實現損失（包含合併基金），其中大部分與公司對 GECC 普通股及相關特殊目的載體（SPV）的投資有關。

Adjusted EBITDA for the quarter was negative $1.6 million compared to positive $0.5 million in the prior year period. As of March 31, 2026, we held approximately $45.5 million of cash and cash equivalents on our balance sheet to deploy across our growing alternative asset management platform.

本季調整後 EBITDA 為負 160 萬美元，去年同期為正 50 萬美元。截至 2026 年 3 月 31 日，我們資產負債表上持有約 4,550 萬美元的現金及約當現金，可用於投入我們持續成長的另類資產管理平台。

Please refer to the earnings release and our Form 10-Q for a more detailed summary of our financial position.

請參閱新聞稿與我們的 Form 10-Q，以取得更詳細的財務狀況摘要。

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

以上為我對本季財務的說明。接下來，我們將把電話會議交給接線員，開放提問。

(Operator Instructions)

(接線員指示)

There are no questions at this time. At this point, I'd like to turn the call back over to Jason Reese for closing comments.

目前沒有提問。此時，我想把電話會議交回給 Jason Reese 作結語。

Thank you again for joining us today. We remain confident in the strategic direction of our business. Our credit and real estate platforms continue to execute, and with the strength of our balance sheet. We are taking disciplined actions to position the platform for long-term success. We look forward to keeping you updated on our progress. Thank you for your time and continued support.

再次感謝各位今天參與。我們對公司業務的策略方向仍充滿信心。我們的信貸與房地產平台持續落實執行，並憑藉我們資產負債表的強勁實力，我們正採取嚴謹且有紀律的行動，以使平台具備長期成功的定位。我們期待持續向各位更新我們的進展。感謝各位的時間與持續支持。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的電話會議到此結束。您現在可以掛斷電話線，並感謝您的參與。