Great Elm Group, Inc. Q4 FY2024 earnings call

• BDC Capital Raises: GECC raised over $90 million in capital from February to July 2024 through multiple transactions, including equity raises at NAV and public note offerings, with improved financing rates.
• REIT Activities: Monomoy REIT deployed capital, amended leases, achieved rental rate increases, and refinanced debt.
• BTS Milestones: First property sale in June 2024, second property sale expected in fiscal 2025, third project in development, and a robust build-to-suit pipeline.
• New Products: Launch of GECIF and Construction Management business, with GECIF having a solid start and Construction Management showing initial positive demand.
• Financial Results: Fiscal fourth quarter 2024 revenues tripled to $9 million, AUM increased, net loss from continuing operations was $0.6 million, and adjusted EBITDA was $1.2 million.

BDC (Great Elm Capital Corp): Raised over $90 million in fresh capital from February to July 2024, with fee-paying assets under management growing nearly 30% year-over-year. Received $2.3 million of dividend income in fiscal year 2024. In fiscal fourth quarter 2024, GECC had a successful quarter, raised ample capital, expanded into CLOs, and generated $2.7 million in incentive fees for Great Elm Group.

Monomoy REIT: Over the last 12 months, deployed $25 million of capital to acquire 13 existing properties, amended 16 existing tenant leases for meaningful term extensions and expansion projects, executed renewal options at 12 properties with key tenants, entered into four new leases, and approximately 70% of the portfolio saw rental rate increases. Also, successfully refinanced a sizable debt facility without material impact to annual debt service.

Monomoy BTS: Had a milestone fourth quarter of fiscal 2024 with the first property sale in June 2024 realizing a gain on sale of over $1 million. Expect continued profitability in fiscal 2025 with the sale of the second property in the first half of the year and beginning development on the third contracted design-build project. The build-to-suit pipeline remains robust with approximately 30 specifications entering 2025.

Great Elm Credit Income Fund (GECIF): Launched in November 2023, has a solid start to build a performance track record and plans to raise capital in fiscal 2025.

Monomoy BTS Construction Management: Launched last quarter, began earning fees in fiscal 2024 with initial positive demand and growth prospects.

• BDC is well positioned to generate attractive risk-adjusted returns for shareholders and raise further capital in fiscal 2025.
• Monomoy BTS expects continued profitability in fiscal 2025 with the sale of the second property and start of development on the third project.
• Plan to raise capital for GECIF in fiscal 2025.

• Unrealized losses from the $9 million investment in SPVs, marked to a material lesser value creating unrealized losses, but management believes these are temporary and will reverse as SPVs receive distributions from the BDC.
• Market and regulatory risks that could affect BDC and REIT operations.