WALTHAM, Mass., June 24, 2021 (GLOBE NEWSWIRE) – Great Elm Group, Inc. (“GEG” or “Great Elm”) (NASDAQ: GEG), a diversified holding company, today announced that it has sold all from its ownership interest in two Class A office buildings located in Fort Myers, Florida (collectively, the “Real Estate Company”) to an affiliate of Monomoy Properties, LLC (“Monomoy”), a private REIT focused on industrial properties managed by Imperial Capital Asset Management, LLC, for a cash payment of $ 4.6 million. In accordance with the terms of the transaction, GEG invested the proceeds of the sale in newly issued participations of Monomoy. GEG acquired the real estate business in March 2018 for $ 2.7 million.
“This is an excellent transaction for GEG,” said Peter A. Reed, President and CEO of GEG. “This improves our overall capitalization as debt associated with real estate activities will no longer be included in GEG’s financial statements, resulting in consolidated operating and leverage ratios that more closely reflect our current operating activities. “
Mr. Reed added, “Additionally, this transaction is beneficial from both a strategic and risk management perspective as it diversifies our holdings from a single location real estate asset to holdings in a diversified portfolio of Industrial Property REITs, with the added benefits of cash. cash flow to the business generated by ongoing dividend payments and improved liquidity.
Details and additional information regarding the transaction, including pro forma financial information, are available in a current report on Form 8-K filed today by GEG with the Securities and Exchange Commission.
About Great Elm Group, Inc.
Great Elm Group, Inc. (NASDAQ: GEG) is a publicly traded holding company that operates in two lines of business: investment management and operating companies. The Great Elm Group, Inc. website is located at www.greatelmgroup.com.
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Statements in this press release that are “forward-looking” statements involve risks and uncertainties which may, individually or collectively, have an impact on the matters described herein. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and such differences may be material. For more information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please refer to the documents filed by Great Elm with the Securities and Exchange Commission (“SEC”), including including its most recent annual report on Form 10-K and reports on Form 10-Q and 8-K. Additional information relating to the financial condition and results of operations of Great Elm is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.
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