What you need to know: • GEC reported Q1 financial results, including $7.6M in revenue (+2% YoY), below our estimate of $8.4M and adjusted EBITDA of $2.5M (33% margin), above our estimate of $1.3M. • The strong profitability was driven by 63% gross margins (vs. 60% expected), a $1.8M YoY decline in G&A, and a $2.2M YoY decline in finance costs (due to the lower debt levels). • 67% of revenue came in from the rental segment, signifying the shift in focus away from education and into student housing. Yesterday, after market close, Global Education Communities Corp. (GEC:TSX, GECSF:OTCQB) reported Q1 financial results (ending November 30th) that were mixed relative to our expectations, but objectively solid. Revenue slightly missed our estimates, while profitability largely beat. The quarter demonstrates that GEC has exited its transitory phase after selling SSC, and can begin to reap the rewards of its new focus on student housing. We are maintaining our BUY rating and our $1.00/share target price. Key Highlights • Revenue for Q1 came in at $7.6M (+2% YoY), vs. our estimate of $8.4M. This was comprised of $5.1M in rental revenue, which was up 14% YoY due to a full quarter contribution from GEC Kingsway and GEC VIVA. The education segment saw continued weakness, coming in at $1.8M compared to $2.5M in Q1/25. • Gross margin was 63%, above our modelled 60%, as the rental segment posted 76% gross margin, the education segment posted 27% gross margin, and the weighting is now being shifted to the former. • Adjusted EBITDA for the quarter came in at $2.5M (33% margin), handsomely beating our estimate of $1.3M. G&A expenses decreased by $1.8M YoY due to lower professional fees, and finance costs decreased by $2.2M YoY due to lower debt levels. Adjusted EBITDA also benefited from a $1.1M gain on the fair value of investment properties. • Net income was $0.7M compared to our expectation of ($0.7M), as GEC also benefited from $2.1M in other income. • The Company ended the quarter with $2.4M in cash and $205.3M in debt. The IFRS value of GEC’s properties is now $307.3M.