Global Education Communities Corp.
GEC’s Pure-Play Pivot: Exits Education, Doubles Down on Student Housing
Published: Aug 18, 2025
Author: FRC Analysts
*Global Education Communities Corp. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Sector: N/A | Industry: Student Housing
Ticker Symbols: GEC.TO – TSX
Report Highlights
- We are resuming coverage on GEC following a two-year pause. Earlier this month, GEC divested its Sprott Shaw College (SSC) subsidiary for $35M, or $0.52/share. The deal reflects a 517% ROI since acquisition, and a revenue multiple of 0.85x, in line with industry peers.
- GEC is transitioning into a pure-play student housing company, building on over a decade of housing experience, and 30+ years in education. Following the SSC sale, GEC’s new annualized revenue run rate is expected to be $30M+ (previously $70M), with employee headcount reduced from 650 to 170.
- Compared to multi-family, student housing is a specialized asset class with generally higher rent per square foot, and higher yields for investors.
- Management is focused on building a stable, high-quality rental portfolio aimed at an eventual sale to a large institutional buyer. Rental assets offer inflation-protected income, strong demographic support, and low volatility—making them attractive to pension funds and institutions.
- GEC’s current portfolio includes 14 student housing buildings in Greater Vancouver — eight operational and six in the pipeline — totaling over 4,200 beds and an estimated build-out value of $1.4B.
- The operating projects have potential to generate ~$20M in revenue, and ~$14M in NOI, or ~$12K in NOI per bed annually. As of 2024, they were appraised at $244M. These properties serve students from over 95 institutions, and 70+ countries, with Canadian students making up more than 40% of residents.
- The development portfolio includes six buildings across four projects, totaling 2,988 beds, projected to generate $48M in annual NOI. Based on a 4% cap rate, we value these assets at $1.2B upon completion.
- While reduced immigration targets and cuts to international student permits pose challenges for education providers, GEC is buffered by a strong base of Canadian students. Vacancies for affordable units below $1,750/month, GEC’s target market, remain critically low at under 1%. With rental supply projected to lag long-term demand, and Vancouver remaining a top destination for both domestic and international students, we maintain a positive outlook on the city’s student housing market. To our knowledge, GEC has no direct competitors in Western Canada.
- Relative to REITs, GEC is trading at 6x forward revenue and 8x forward EBITDA vs sector averages of 12x and 20x, respectively, a 56% discount.



Divestment of Sprott Shaw College
Fundamental Research Corp. Equity Rating Scale:
Fundamental Research Corp. Equity Rating Scale (ratings are not a recommendation to acquire, dispose of, or take no action regarding a security; the definition of our ratings are explained below):
- Buy – Fair value is 12% above the current market price; or risk and reward is favorable
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- Suspended or Rating N/A – Coverage and ratings suspended until more information can be obtained from the company regarding recent events.
Fundamental Research Corp. – Risk Rating Scale:
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Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp.
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Annual fees ranging from $15,000 to $30,000 have been paid to FRC by Global Education Communities Corp. to commission this report and research coverage including update reports. This fee creates a potential conflict of interest which readers should consider. FRC takes steps to mitigate conflicts including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. The issuer has agreed to a minimum coverage term and coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time.
The distribution of FRC’s ratings are as follows: BUY (71%), HOLD (3%), SELL / SUSPEND (26%). Global Education Communities Corp.
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