Q4 2024 Great Elm Group Inc Earnings Call
Greetings and welcome to the Great Elm group fiscal fourth quarter 'twenty 'twenty four earnings conference call.
Operator: Greetings.
Operator: Welcome to the Great Elm Group's fiscal 4th quarter of 2024 earnings conference call. This time, our participants are in listen-only mode.
Speaker Change: At this time, all participants are in listen only mode.
Operator: A question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded.
Speaker Change: A question and answer session will follow the formal presentation.
Speaker Change: If anyone today should require operator assistance during the conference. Please press star zero from your telephone keypad.
Speaker Change: Please note that this conference is being recorded.
Adam Yates: I'll now turn the conference over to Adam Yates, Managing Director. Adam, you may now begin.
Speaker Change: I'll now turn the conference over to Adam Yates Managing director, Adam You May now begin.
Adam Yates: Good morning, everyone. Thank you for joining us for Great Elm Group's fiscal 4th quarter of 2024 earnings conference call. As a reminder, this conference call is being recorded on Friday, August 30th, 2024.
Adam Yates: Good morning, everyone.
Speaker Change: Thank you for joining us for great Elm groups fiscal fourth quarter 2024 earnings conference call.
Speaker Change: As a reminder, this conference call is being recorded on Friday August 32024.
Adam Yates: If you would like to be added to our distribution list, you can email geginvestorrelations at gradeelmocat.com, where you can sign up for alerts directly on our website, www.gradelmgroup.com. A 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.
Speaker Change: If you'd like to be added to our distribution list you can email G. G investor relations at Great Elm capped dot com or you can sign up for alerts directly on our website Www dot great group Dot com.
Speaker Change: The slide presentation accompanying today's conference call and webcast can be found on our web site under events and presentations link.
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.
Speaker Change: 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.
Adam Yates: Today's conference call includes 4th looking statements, and we ask that you refer to Gradeelmgroup's filings with the SEC for important factors that could cause actual results to differ materially from these statements. Gradeelm Group does not undertake to update its 4th looking statements unless required by law.
Speaker Change: Great. One group does not undertake to update its forward looking statements unless required by law.
Adam Yates: In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliation to the most comparable financial measures is included in our earnings release.
Speaker Change: 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.
Adam Yates: To obtain copies of our SEC filings, please visit Gradeelm Group's website under Financial Information and select SEC filings.
Speaker Change: To obtain copies of our SEC filings. Please visit great Elm group's website under financial information and select SEC filings.
Adam Yates: On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nicole Mills, DOO; and Kerry Davis, CFO.
Jason Reid: On the call today, we have Jason Reid, CEO, Adam Kleinman, President and General Counsel, Nicole Mills D O L and carry Davis CFO I will now turn the call over to Jason Reece C E O.
Jason Reese: I will now turn the call over to Jason Reese, CEO. Welcome, everyone, and thank you for joining us today. This year, 2024 was a defining year for Gradeelm. Our management team was able to focus on growing a streamlined, pure play asset management business and driving shareholder value. Looking back, we delivered an excellent fiscal 2024, as we were able to improve profitability, expand our platform businesses, and particularly grow our assets on the management.
Jason Reid: Welcome everyone and thank you for joining us today.
Speaker Change: Fiscal year 'twenty 'twenty four wasn't defining year for Greg.
Speaker Change: Our management team was able to focus on growing extremely I'd sure like asset management business and driving shareholder value.
Speaker Change: Looking back we delivered an excellent fiscal 'twenty 'twenty four as we were able to improve profitability expand our platform businesses and who we grow our assets under management.
Jason Reese: I would like to highlight several key milestone achievements this fiscal year. Most notably, our BDC, Gradeelm Capital Corp, raised over $90 million in fresh capital from February to July 2024. Significantly growing e-paying assets on the management by nearly 30% on prior year. This growth was accomplished through a series of capital raises made possible by an innovative structure that provided $36 million of equity capital for GDC. First, in February, GDC raised $24 million of equity capital to Gradeelm Strategic Partnership 1 LLC. G&G supported this capital raise by investing $6 million, along with an institutional investor's $18 million investment in the SPV, which in turn invested in $24 million of new GECC common. GECC continue to utilize the structure as a template for a second equity capital raise in June.
Speaker Change: I would like to highlight several key milestone achievements this fiscal year.
Speaker Change: Most notably our BDC, great Elm capital Corp, raised over $90 million and fresh capital from February and July 2024.
Speaker Change: Significantly growing E paying assets under management by nearly 30% from prior year.
Speaker Change: This growth was accomplished through a series of capital raised is made possible by an innovative structure that provided $36 million of equity capital G. C C.
Speaker Change: First in February GEC, she raised $24 million of equity capital two great strategic partnership with one L. L C.
<unk> supported this capital raised by investing $6 million, along with an institutional investors $18 million investment in the S. P. J.
Speaker Change: Which in turn invested $24 million of U G.
Speaker Change: Common shares.
Speaker Change: Net asset value.
Speaker Change: G C C continuing to utilize the structure as a template for a second equity capital raised in June.
Jason Reese: In this transaction, GECC raised $12 million capital at Nav via Prosper P-coldings LLC. GG made a $3 million investment into the SPV alongside a $9 million investment from other institutional investors. We were able to raise capital at these SPVs due to our strategic relationships with sophisticated institutional investors and GECC's continued improved performance. We continue to work with our strategic partners to further enhance their relationship with Gradout, which we believe would provide additional benefits over time for both parties. Additionally, in April, GECC completed an underweight public offering of $34.5 million of five-year notes at a more than 50 basis point spread improvement as compared to GECC's August 23 note issuance.
Speaker Change: And this transaction G E C C raised $12 million of capital it now be a prosper peak holdings L. L C.
Speaker Change: Gene Gene made a 3 million dollar of investment into B S. P V alongside the $9 million investment from other institutional investors.
Speaker Change: We were able to raise capital at these S. T v's due to our strategic relationships with sophisticated institutional investors and G. She sees continued improved Cook watch.
Speaker Change: We continue to work with our strategic partners to further enhance the relationship with great All which we believe will provide additional benefits overtime for both parties.
Speaker Change: Additionally in April G E C suite completed an underwritten public offering of 30.
Speaker Change: <unk> 34, and a half a million dollars of five year notes at a more than 50 basis point spread improvement as compared to GEC shoes August 23 note issuance.
Speaker Change: G. C. C. Subsequently issued an additional $22 million in notes through a registered direct offering to an institutional investor in July.
Jason Reese: GECC subsequently issued an additional $22 million of notes through a registered direct offering to an institutional investor in July. Accomplishing these capital raises at Nav and improved financing rates were a huge success for Gradout Group and clear evidence of our commitment to further scale GECC. These capital raises are integral to our business as we expand GECC's ability to earn fee revenue from GECC, providing both substantial, recurrent asset management fee revenue and potential incentive fee revenue from the incremental capital. In addition, G&G continues to maintain a material direct investment in GECC and received $2.3 million of dividend income in fiscal year 24, inclusive of a special dividend paid in December 23.
Speaker Change: Accomplishing these capital raises at Nab and improved financing rates.
Speaker Change: We're a huge success for great Umpqua and clear evidence of our commitment to further scale G E C C.
Speaker Change: These capital raises are integral to our business and expand <unk> ability to earn fee revenue from GE, you see shake providing both substantial recurring asset management fee revenue and potential incentive fee revenue from the incremental capital.
Speaker Change: In addition, <unk> continues to maintain a material direct investment in G. D. C C and received $2 $3 million in dividend income in fiscal year 'twenty four.
Speaker Change: We should have a special dividend paid in December 'twenty three.
Jason Reese: Looking ahead, we believe our BDC is well positioned to generate attractive risk-adjusted returns for shareholders and to lease further capital in fiscal 2025. It should be noted that the financial accounting rules guide us to mark our 9 million dollar investment in the SDGs to a material lesser value, creating unrealized losses. These unrealized losses contributed $3.8 million to an overall net loss of $0.9 million per year. We believe the unrealized losses are temporary and will reverse over time as the SPV receives distributions from the BDC.
Speaker Change: Looking ahead, we believe our BDC is well positioned to generate attractive risk adjusted returns for shareholders and to reach further capital in fiscal 'twenty to 'twenty five.
Speaker Change: It should be noted that the financial accounting rules guide us to Mark our 9 million bond investment in the S. T d's to a material lesser value, creating unrealized losses. These unrealized losses contributed $3 8 million dollar store overall net loss of $9 million for the year.
Speaker Change: We believe the unrealized losses are temporary and will reverse over time as the S. T V's received distributions from the BBC.
Jason Reese: Our real estate platform continues to expand over the past year. Monomoid BTS had a milestone fourth quarter of fiscal 24 near and completion on our two inaugural properties, including our first property selling June, where we realized the gain on sale of over $1 million in a significant IRR. We expect continued profitability in fiscal 2025 as the team focuses on selling its second property in the first half of the year and begins development on its third contracted design-build product. Project. The built-to-shoot pipeline remains robust with approximately 30 specifications in 2025. We will continue to execute on these development opportunities to further enhance profits at GEG and create value for both our tenants and shareholders.
Our real estate platform continues to expand over the past year mom with Bts are the milestone fourth quarter of fiscal 'twenty four nearing completion on our two inaugural properties, including our first property sell engine, where we realized a gain on sale of over $1 million and it's significantly higher.
Speaker Change: There are.
Speaker Change: We expect continued profitability in fiscal 2025 as the team focuses on selling our second property in the first half of the year and begins development on its third contracted design build project.
The build to suit pipeline remains robust with approximately 30 specifications entering 2025, we will continue to execute on these development opportunities.
Speaker Change: Further enhanced profits a G E G and create value for both our tenants and shareholders.
During fiscal 'twenty for Great Elm launched complimentary products and businesses to expand its alternative credit and real estate platform offerings.
Jason Reese: During fiscal 24, Gradom launched complimentary products and businesses to expand its alternative credit and real estate platform offerings. Back in November 23, we launched the Gradom Credit Income Fund for G-SIF. I am pleased to report that after the first eight months of the fund, we have a solid start to building a strong, marketable performance crop record, and we plan to raise capital for G-SIF in fiscal 25. Additionally, the last quarter, in response to tenant demand, we launched Monomoy BTS Construction Management, a consulting business that enables clients to utilize our experience scheme for overseeing in-house construction projects through own representative services.
Speaker Change: I can November 'twenty, three we launched the grade on credit income fund for G. SIB.
Speaker Change: I'm pleased to report that after the first eight months of the funds we have a solid start to building a strong marketable performance track record.
Speaker Change: We plan to raise capital, but you said in fiscal 'twenty five.
Speaker Change: Additionally, last quarter in response to pent up demand once motto mortgage payoffs instruction knowledge.
Speaker Change: Our consulting business that enables clients to utilize our experienced team overseeing in house construction projects.
Speaker Change: Representative services, we began earning fees from this business in fiscal 'twenty four and are encouraged by the initial demand and growth prospects.
Jason Reese: We began earning fees from this business in fiscal 24 and are encouraged by the initial demand in growth prospects.
Jason Reese: Outside of our core business, in fiscal fourth quarter, G-G invested $5 million in a 10% preferred financing for co-reviewed. The revolutionary cloud AI startup backed by other best-in-class institutional investors including Magnetart and Blackstone. This investment is a testament to the strength of our social capabilities with a board of directors and our broader sickest-to-giving network that give us a seat at the table in planning and management opportunities.
Outside of our core business in fiscal fourth quarter G. N G invested $5 million and a 10% preferred financing for Colby.
Speaker Change: At least you know cloud AI start up Boston by other best in class institutional investors, including monoclonal and Blackstone.
Speaker Change: This investment is it possible the strength of our sourcing capabilities or our board of directors and our Florida sophisticated network. Thank you.
Speaker Change: Give us a seat at the table and cutting edge investment opportunities.
Speaker Change: Alongside these significant true teaching developments, great on group experienced a strong fiscal fourth quarter and 2024.
Jason Reese: Alongside these significant strategic developments, G-G is a strong fiscal fourth quarter in 2024. We continue to grow our fee-paying assets under management on both a sequential quarter and Eurobeater basis. Including the net proceeds from G-G EC's July capital raise, fee-paying AUM and AUM increased 22% and 17% Eurobeater, respectively. We generate the total revenue of $9 million, tripling revenue from a prior year period, and adjusted the amount of $1.2 million compared to $1.1 million for the prior year period. We ending the quarter and the year with nearly $60 million in cash and marketable securities deployed across our growing alternative asset management platform.
Speaker Change: We continue to grow our fee paying assets under management on both a sequential quarter and year over year basis.
Speaker Change: The net proceeds from GE. He sees July capital raise he can't hear you and <unk>, AUM increased 22% and 17% year over year, respectively.
Speaker Change: We generated total revenue of $9 million tripling, our revenue from the prior year period, and adjusted EBITDA of $1 $2 million compared to $4 million for the prior year period.
Speaker Change: We ended the quarter and the year nearly $60 million in cash and marketable securities to deploy across our growing alternative asset management platform.
Jason Reese: We improved our capital structure by opportunistically re-purchasing over $4 million crucible of our 5% convertible notes at 47% of face value and re-purchasing 1.2 million shares of G-G common stock in the market for $2.1 million as part of our stock re-purchased program. We are pleased with the continued performance of our credit and real estate protocols in the fiscal fourth quarter and seek to further accelerate the momentum at these few businesses.
Speaker Change: We improved our capital structure Opportunistically repurchasing over $4 million principle of our 5% convertible notes at 47% of face value and repurchasing one 2 million shares of <unk> common stock in the market from $2 $1 million.
Speaker Change: As part of our stock repurchase program.
Speaker Change: We were pleased with the continued performance of our credit and real estate protocols in the fiscal fourth quarter and shoot to further accelerate the momentum of these two businesses.
G. C. C had another successful quarter, one was an ample capital and substantially increasing the scale of the platform.
Jason Reese: G-GCC had another successful quarter while raising ample capital and substantial increase in the scale of the platform. In April, G-GCC further expanded its reach into CLOs, forming a strategic joint venture with an institutional partner to make investment in CLOs and related warehouse facilities. The JD is beginning to receive sizable distributions from CLL investments, and we expect it will be a source of increasing income at GDCC in the coming quarters. GDCC's performance at fiscal 2024 supported the payment of incentive fees to GUEJ, totaling $2.7 million over the last 12 months. GDCC remains well-positioned to continue delivering fee revenues to GUEJ given its successful portfolio requisitioning and recent expansion into CLL products.
Operator: Greetings. Welcome to the Great Elm Group's fiscal 4th quarter of 2024 earnings conference call. This time, our participants are in listen only mode.
Speaker Change: In April J E. T. C. Further expanded its reach into clo's, forming a strategic joint venture with an institutional partner to make investments in CLO and related warehouse facilities.
Operator: A question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded.
Speaker Change: The JV is beginning to see sizeable distributions from our CLO investments and we expect it will be a source of increasing income.
Adam Yates: I'll now turn the conference over to Adam Yates, managing director. Adam, you may now begin. Good morning, everyone. Thank you for joining us for Great Elm Group's fiscal 4th quarter of 2024 earnings conference call. As a reminder, this conference call is being recorded on Friday, August 30th, 2024. If you would like to be added to our distribution list, you can email geginvestorrelations at gradeelmocat.com, where you can sign up for alerts directly on our website, www.gradelmgroup.com.
Speaker Change: You see in the coming quarters.
G. She she's performance in fiscal 'twenty 'twenty four supported the payment of incentive fees to G E G totaling $2 $7 million over the last 12 months.
Speaker Change: G C. She remains well positioned to continue delivering fee revenues G. Given its successful portfolio repositioning and the recent expansion to CLO products.
Jason Reese: Combined, these initiatives should provide increased fee revenue at can be as the BDC scales.
Speaker Change: Combined these initiatives should drive increased fee revenue that can be as the BDC scouts.
Adam Yates: A 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. Today's conference call includes 4th looking statements and we ask that you refer to gradeelmgroup's filings with the SEC for important factors that could cause actual results to differ materially from these statements.
Jason Reese: Minemore REAP could upsolve performance over fiscal 2024. Over the last 12 months, the REAP deployed $25 million of capital to require 13 existing properties, among the 16 existing tenant releases from meaningful term extensions and expansion projects, executed renewal options at 12 properties with key tenants and entered into 4 new releases. Also, approximately 70% of the REAP's portfolio, so rental rate increases from value-added services, lease-winder rules, and contractual step-ups, driving property management fee growth. Lastly, Minemore successfully reached an incisable debt facility without any material impacted annual debt service and freed up an additional $10 million of birth capital.
Speaker Change: Mine the more we put up solid performance over fiscal 2024 over the last 12 months the week deploy $25 million of capital to acquire 13 existing properties.
Speaker Change: 16 existing tenant leases for meaningful term extensions and expansion projects executed a renewal options at 12 properties with key tenants and entered into four new leases.
Adam Yates: Gradeelm group does not undertake to update its 4th looking statements unless required by law. In addition, during today's call, management will refer to certain non-gap financial measures. Reconciliation to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Gradeelm Group's website under financial information and select SEC filings.
Speaker Change: Also approximately 70% of the routes portfolio, so rental rate increases from value added services lease renewals and contractual step ups driving property management fee growth.
Lastly, monomer and successfully refinanced a sizeable debt facility without any material impact due to annual debt service.
Adam Yates: On the call today, we have Jason Reese, CEO, Adam Kleinman, President and General Counsel, Nicole Mills, DOO, and Kerry Davis, CFO.
Freed up an additional $10 million.
Capital.
Jason Reese: As referenced earlier, our bill to suit business achieved the meaningful milestone with our first property sale. The anticipated sale of our second property in fiscal 2025 are 30 crafted projects under development and a meaningful pipeline of new projects for extremely encouraged by GUEJ's future growth potential with BPS and construction management, and our opportunity for creating shareholder value with this business in fiscal 2025 and beyond.
Speaker Change: As referenced earlier, our Gogo soup business achieved a meaningful milestone with our first property shop.
Jason Reese: I will now turn the call over to Jason Reese, CEO. Welcome, everyone, and thank you for joining us today. This year, 2024 was a defining year for Gradeelm. Our management team was able to focus on growing a streamlined, pure play asset management business and driving sureholder value. Looking back, we delivered an excellent fiscal 2024, as we were able to improve profitability, expand our platform businesses and particularly grow our assets on the management.
Speaker Change: But it's all of our second property in fiscal 2025, our third contracted project under development in a meaningful pipeline of new projects. We're extremely encouraged by junior genes future growth potential with Bts and construction management opportunities to create shareholder value with this business in fiscal 2025 and beyond.
Speaker Change: I'd like to conclude by.
Jason Reese: I'd like to conclude by revisiting the three driving goals we consistently outlined: enhance our financial performance, expand our platform, and grow our assets under management, and I'm truly pleased with our achievements toward our goals in fiscal 2024. After divesting our non-core businesses in fiscal 2023, our accomplishments underscore a commitment to reposition Gradome in the alternative asset management space by growing out core alternative credit and real estate businesses and adding accrued differentiated products. Additionally, we continue to actively evaluate multiple strategic initiatives. Moving ahead, we remain steadfast in pursuing opportunities to expand our businesses and allocate capital to promising new platform opportunities offering attractive risk-adjusted returns.
Speaker Change: Visiting the three driving goals, we've consistently outlined in.
Speaker Change: Enhance our financial performance.
Jason Reese: I would like to highlight several key milestone achievements this fiscal year. Most notably, our BDC, Gradeelm Capital Corp, raised over $90 million in fresh capital from February and July, 2024. Significantly growing e-paying assets on the management by nearly 30% on prior year. This growth was accomplished through a series of capital raises made possible by an innovative structure that provided $36 million of equity capital for GDC. First, in February, GDC raised $24 million of equity capital to Gradeelm Strategic Partnership 1 LLC.
Speaker Change: And our platform and grow our assets under management.
I'm extremely pleased with our achievements towards our goals in fiscal 'twenty four.
Speaker Change: Divesting, our noncore businesses in fiscal 'twenty through our accomplishments underscore our commitment to reposition great home in the alternative asset management space by growing our core alternative credit and real estate businesses, and adding accretive differentiated products. Additionally, we continue to actively evaluate.
Speaker Change: Multiple strategic initiatives.
Speaker Change: Moving ahead, we remain steadfast in pursuing opportunities to expand our businesses and allocate capital to promising new platform opportunities offering attractive risk adjusted returns.
Jason Reese: We are very excited about the future of Gradome, and we are well positioned to accelerate our growth in fiscal 2025.
Speaker Change: We're very excited about the future of grade out and we are well positioned to accelerate our growth in fiscal 2025 with that I'll turn it over to Karen.
Jason Reese: G&G supported this capital raise by investing $6 million, along with an institutional investors 18 million dollar investment in the SPV, which in turn invested in $24 million of new GECC common GECC continue to utilize the structure as a template for a second equity capital raise in June. In this transaction, GECC raised $12 million capital at Nav via Prosper P-coldings LLC. GG made a $3 million investment into the SPV alongside a $9 million investment from other institutional investors.
Kerry Davis: With that, I'll turn it over to Kerry. Thank you, Jason. I'll 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. Fiscal 4th quarter revenues tripled year-over-year to $9 million, driven by the Monomoi BTS property sale. AUM of $727 million as of June 30, 2024, was up 6% from the prior quarter end and up 14% from the prior year end. While fee paying AUM grew to $524 million, up 6% quarter to date, and up 17% from the prior year end.
Karen: Thank you Jason I'll 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 actually him with any questions.
Karen: Fiscal fourth quarter revenues tripled year over year to $9 million driven by the property itself.
Karen: AUM of $727 million as of June 32024 was up 6%.
Karen: Quarter end and up 14% from the prior year and well.
Karen: Our fee paying AUM grew to $524 million up 6% quarter to date and up 17% from the prior year end.
Kerry Davis: Including the net proceeds from GEC's July capital raise, AUM was $749 million, up 9% from March 31, and 17% from the prior year quarter end, and B paying AUM was $546 million, up 11% from March 31, and 22% from the prior year quarter end.
Karen: Including the net proceeds from J E T think July capital raise.
Jason Reese: We were able to raise capital at these SPVs due to our strategic relationships with sophisticated institutional investors and GECC's continued improved performance. We continue to work with our strategic partners to further enhance their relationship with Gradout, which we believe would provide additional benefits over time for both parties. Additionally, in April, GECC completed an underweight public offering of $34.5 million of five-year notes at a more than 50 basis point spread improvement as compared to GECC's August 23 note issuance.
AUM was $749 million up 9% from March 31, and 17% from the prior year quarter and in fee paying AUM was $546 million.
Karen: 11% from March 31, and 22% from the prior year quarter end.
Kerry Davis: Great Elm Group generated a net loss from continuing operations of $0.6 million for the quarter, as compared to a $5.3 million loss for the prior year period. As previously mentioned, this quarter's loss includes $1.1 million in unrealized loss on Great Elm's investment in Proxper Peak Holdings LLC. Adjusted EBITDA for the quarter was $1.2 million, compared to $0.4 million in the prior year period.
Speaker Change: Great off group generated a net loss from continuing operations of <unk> $6 million for the quarter as compared to $5 $3 million locked for the prior year period.
Speaker Change: We mentioned this quarter glasses.
Speaker Change: $1.1 million in unrealized block on Gradovs investment proper peak holdings LLC.
Jason Reese: GECC subsequently issued an additional $22 million of notes through a registered direct offering to an institutional investor in July. Accomplishing these capital raises at Nav and improved financing rates were a huge success for Gradout Group and clear evidence of our commitment to further scale GECC. These capital raises are integral to our business as we expand GECC's ability to earn fee revenue from GECC, providing both substantial, recurrent asset management fee revenue and potential incentive fee revenue from the incremental capital. In addition, G&G continues to maintain a material direct investment in GECC and received $2.3 million of dividend income in fiscal year 24, inclusive of a special dividend paid in December 23.
Speaker Change: Adjusted EBITDA for the quarter with $1.2 million compared to zero point $4 million in the prior year period.
Kerry Davis: As of June 30, we had approximately $58 million with combined cash and marketable securities on our balance sheets deployed across our growing alternative asset management platforms. Please refer to slide 7 that provides an overview of our financial position and highlights our book value per share of approximately $2.6.
As of June 30th we had approximately $58 million of combined cash and marketable securities on our balance sheet deploy across our growing alternative asset management platform. Please.
Speaker Change: Please refer to slide seven provides an overview of our financial position and highlight that book value per share of approximately $2.
Kerry Davis: This concludes my financial review of the quarter.
Speaker Change: This concludes my financial review of the quarter with that we will turn the call over to the operator to open for questions.
Operator: With that, we will turn the call over to the operator to open for questions. Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question at this time, you may press scar 1 from your telephone keypad, and a confirmation tone to indicate your line is in the question queue. You may press star 2 if you'd like to withdraw your question from the queue. For this participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please. We pull for questions.
Speaker Change: Thank you well now be conducting a question and answer session.
Speaker Change: If you'd like to ask a question at this time you May press star one from your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: You mean, if I start to feel like to withdraw your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment. Please we poll for questions. Thank you.
Operator: Thank you. Once again, you may press star 1 at this time. Thank you.
Jason Reese: Looking ahead, we believe our BDC is well positioned to generate attractive risk-adjusted returns for shareholders and to lease further capital in fiscal 2025. It should be noted that the financial accounting rules guide us to mark our 9 million dollar investment in the SDGs to a material lesser value creating unrealized losses. These unrealized losses contributed $3.8 million to an overall net loss of $0.9 million per year. We believe the unrealized losses are temporary and will reverse over time as the SPV is received distributions from the BDC.
Speaker Change: Once again, you May press star one at this time.
Speaker Change: Thank you.
Jason Reese: At this time, I'll turn the floor back over to Jason Reese for closing remarks. Thank you again for joining us today, and we look forward to speaking with you in the future.
Speaker Change: At this time I'll turn the floor back over to Jason Rice.
Jason Rice: For closing remarks.
Speaker Change: Yeah.
Thank you again for joining us today, and we look forward to speaking with you in the future.
Speaker Change: Yeah.
Operator: This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: This will conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.
Operator: Never.
Jason Reese: Our real estate platform continues to expand over the past year. Monomoid BTS had a milestone fourth quarter of fiscal 24 near and completion on our two inaugural properties, including our first property selling June, where we realized the gain on sale of over $1 million in a significant IRR. We expect continued profitability in fiscal 2025 as the team focuses on selling its second property in the first half of the year and begins development on its third contracted design build product. Project. The built-to-shoot pipeline remains robust with approximately 30 specifications in 2025. We will continue to execute on these development opportunities to further enhance profits at GEG and create value for both our tenants and shareholders.
Jason Reese: During fiscal 24, Gradom launched complimentary products and businesses to expand its alternative credit and real estate platform offerings. Back in November 23, we launched the Gradom Credit Income Fund for G-SIF. I am pleased to report that after the first eight months of the fund, we have a solid start to building a strong, marketable performance crop record and we plan to raise capital for G-SIF in fiscal 25. Additionally, the last quarter in response to tenant demand, we launched Monomoy BTS Construction Management, a consulting business that enables clients to utilize our experience scheme for overseeing in-house construction projects through own representative services. We began earning fees from this business in fiscal 24 and are encouraged by the initial demand in growth prospects.
Speaker Change: Okay.
Jason Reese: Outside of our core business, in fiscal fourth quarter, G-G invested $5 million in a 10% preferred financing for co-reviewed. The revolutionary cloud AI startup backed by other best-in-class institutional investors including Magnetart and Blackstone. This investment is a testament to the strength of our social capabilities with a board of directors and our broader sickest-to-giving network that give us a seed of the table in planning and management opportunities.
Jason Reese: Alongside these significant strategic developments, G-G is a strong fiscal fourth quarter in 2024. We continue to grow our fee-paying assets under management on both a sequential quarter and Eurobeater basis. Including the net proceeds from G-G EC's July capital raise, fee-paying AUM and AUM increased 22% and 17% Eurobeater respectively. We generate the total revenue of $9 million tripling revenue from a prior year period and adjusted the amount of $1.2 million compared to $1.1 million for the prior year period.
Jason Reese: We ending the quarter and the year with nearly $60 million in cash and marketable securities deployed across our growing alternative asset management platform. We improved our capital structure by opportunistically re-purchasing over $4 million crucible of our 5% convertible notes at 47% of face value and re-purchasing 1.2 million shares of G-G common stock in the market for $2.1 million as part of our stock re-purchased program. We are pleased with the continued performance of our credit and real estate protocols in the fiscal fourth quarter and seek to further accelerate the momentum at these few businesses.
Jason Reese: G-GCC had another successful quarter while raising ample capital and substantial increase in the scale of the platform. In April, G-GCC further expanded its reach into CLOs, forming a strategic joint venture with an institutional partner to make investment in CLOs and related warehouse facilities. The JD is beginning to receive sizable distributions from CLL investments, and we expect it will be a source of increasing income at GDCC in the coming quarters. GDCC's performance at fiscal 2024 supported the payment of incentive fees to GUEJ, totaling $2.7 million over the last 12 months. GDCC remains well-positioned to continue delivering fee revenues to GUEJ given its successful portfolio requisitioning and recent expansion into CLL products. Combined, these initiatives should provide increased fee revenue at can be as the BDC scales.
Jason Reese: Minemore REAP could upsolve performance over fiscal 2024. Over the last 12 months, the REAP deployed $25 million of capital to require 13 existing properties, among the 16 existing tenant releases from meaningful term extensions and expansion projects, executed renewal options at 12 properties with key tenants and enter into 4 new releases. Also, approximately 70% of the REAP's portfolio, so rental rate increases from value-added services, lease-winder rules, and contractual step-ups, driving property management fee growth. Lastly, Minemore successfully reached an incisable debt facility without any material impacted annual debt service and freed up an additional $10 million of birth capital.
Jason Reese: As referenced earlier, our bill to suit business achieved the meaningful milestone with our first property sale. The anticipated sale of our second property in fiscal 2025 are 30 crafted projects under development and a meaningful pipeline of new projects for extremely encouraged by GUEJ's future growth potential with BPS and construction management, and our opportunity for creating shareholder value with this business in fiscal 2025 and beyond.
Jason Reese: I'd like to conclude by revisiting the three driving goals we consistently outlined, enhance our financial performance, expand our platform, and grow our assets under management, and truly pleased with our achievements toward our goals in fiscal 2024. After divesting our non-core businesses in fiscal 2023, our accomplishments underscore a commitment to reposition Gradome in the alternative asset management space by growing out core alternative credit and real estate businesses and adding accrued differentiated products. Additionally, we continue to actively evaluate multiple strategic initiatives. Moving ahead, we remain steadfast in pursuing opportunities to expand our businesses and allocate capital to promising new platform opportunities offering attractive risk-adjusted returns.
Jason Reese: We are very excited about the future of Gradome, and we are well positioned to accelerate our growth in fiscal 2025.
Kerry Davis: With that, I'll turn it over to Kerry. Thank you, Jason. I'll 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, fiscal 4th quarter revenues tripled year-over-year to $9 million driven by the Monomoi BTS property sale. AUM of $727 million as of June 30, 2024 was up 6% from the prior quarter end, and up 14% from the prior year end.
Kerry Davis: While fee paying AUM grew to $524 million, up 6% quarter to date, and up 17% from the prior year end. Including the net proceeds from GEC's July capital raise, AUM was $749 million, up 9% from March 31, and 17% from the prior year quarter end, and B paying AUM was $546 million, up 11% from March 31, and 22% from the prior year quarter end.
Kerry Davis: Great Elm Group generated a net loss from continuing operations of $0.6 million for the quarter as compared to $5.3 million loss for the prior year period. As previously mentioned, this quarter's loss includes $1.1 million in unrealized loss on great Elm's investment in proxper peak holdings LLC. Adjusted EBITDA for the quarter was $1.2 million, compared to $0.4 million in the prior year period. As of June 30, we had approximately $58 million with combined cash and marketable securities on our balance sheets deployed across our growing alternative asset management platforms. Please refer to slide 7 that provides an overview of our financial position and highlights our book value per share of approximately $2.6.
Kerry Davis: This concludes my financial review of the quarter.
Operator: With that, we will turn the call over to the operator to open for questions. Thank you. We'll now be conducting a question and answer session.
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Jason Reese: At this time, I'll turn the floor back over to Jason Reese for closing remarks. Thank you again for joining us today, and we look forward to speaking with you in the future.
Operator: This will conclude today's conference.
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