Elme Communities Announces Second Quarter 2025 Results
BETHESDA, Md., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Elme Communities (the "Company" or "Elme") (NYSE:ELME), a multifamily REIT, reported financial and operating results today for the quarter ended June 30, 2025:
Financial Results
Three months ended June 30,
2025
2024
Net loss per diluted share
$
(0.04
)
$
(0.04
)
Core FFO per diluted share
0.24
0.23
Operational Highlights
Same-store multifamily NOI increased by 4.5% compared to the prior year quarter
Same-store Average Effective Monthly Rent Per Home increased 1.4% compared to the prior year quarter
Effective blended Lease Rate Growth was 1.3% for our Same-Store Portfolio during the quarter, comprised of effective new Lease Rate Growth of (3.3)% and effective renewal Lease Rate Growth of 4.9%
Retention was 62% during the quarter, in line with expectations
Same-store multifamily Average Occupancy was 94.7% during the quarter, up 0.2% compared to the prior year quarter
Balance Sheet
Available liquidity was $330 million as of June 30, 2025, consisting of availability under the Company's revolving credit facility and cash on hand
Annualized second quarter Net Debt to Adjusted EBITDA ratio was 5.6x
The Company has a strong balance sheet with only $125 million of debt maturing before 2028 and no secured debt
Strategic Review Update
On August 4, 2025, Elme announced that it had entered into a Purchase and Sale Agreement with Cortland Partners, dated August 1, 2025 (the "Purchase Agreement"), providing for the sale of 19 multifamily communities for approximately $1.6 billion. Also on August 4, 2025, the Board of Trustees announced that it has approved a voluntary plan of sale and liquidation providing for the sale of Elme Communities' remaining assets and the liquidation and dissolution of Elme (the "Plan of Sale and Liquidation").
Second Quarter Operating Results
Multifamily same-store NOI - Same-store NOI increased 4.5% compared to the corresponding prior year period driven primarily by higher rental revenue and fee and ancillary income. Average occupancy for the quarter increased 0.2% from the prior year period to 94.7%.
Other same-store NOI - The Other same-store portfolio is comprised of one asset, Watergate 600. Other same-store NOI decreased by 7.3% compared to the corresponding prior year period due to lower occupancy. Watergate 600 was 82.3% occupied and leased at quarter end.
2025 Guidance
Given the announced portfolio sale transaction and adoption of the Plan of Sale and Liquidation, the Company is withdrawing it's prior 2025 guidance and assumptions and does not expect to issue new guidance for 2025 or 2026.
Dividends
On July 3, 2025, Elme Communities paid a quarterly dividend of $0.18 per share.
On August 4, 2025, Elme Communities announced that its Board of Trustees has declared a quarterly dividend of $0.18 per share to be paid on October 3, 2025 to shareholders of record on September 17, 2025.
Presentation Webcast and Conference Call Information
The Second Quarter 2025 Earnings Call is scheduled for Wednesday, August 6, 2025 at 10:00 A.M. Eastern Time. There will also be a webcast presentation. Conference Call access information is as follows:
USA Toll Free Number:
1-888-506-0062
International Toll Number:
1-973-528-0011
Conference ID:
990450
The instant replay of the Earnings Call will be available until Wednesday, August 20, 2025. Instant replay access information is as follows:
USA Toll Free Number:
1-877-481-4010
International Toll Number:
1-919-882-2331
Conference ID:
52639
The replay of the call will also be available on the Investors section of Elme Communities' website at www.elmecommunities.com. Online playback of the webcast will be available following the Conference Call.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
Note: Elme Communities' press releases and supplemental financial information are available on the Company website at www.elmecommunities.com or by contacting Investor Relations at (202) 774-3200.
Forward-Looking and Cautionary Statements
Certain statements in our earnings release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Elme to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Additional factors which may cause the actual results, performance, or achievements of Elme to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements include, but are not limited to: the satisfaction or waiver of the conditions to closing the sale of a 19-asset portfolio by Elme to an affiliate of Cortland Partners, LLC (the "Portfolio Sale Transaction") pursuant to the Purchase and Sale Agreement; the possibility that Elme's shareholders do not approve the Portfolio Sale Transaction and/or plan of sale and liquidation (the "Plan of Sale and Liquidation" and together with the Portfolio Sale Transaction, the "Proposed Transactions") or that other conditions to the closing on all 19 of the properties included in the Portfolio Sale Transaction are not satisfied or waived at all or on the anticipated timeline; unanticipated difficulties or expenditures relating to the Proposed Transactions; changes in the amount and timing of the total liquidating distributions, including as a result of unexpected levels of transaction cost, delayed or terminated closings, liquidation costs or unpaid or additional liabilities and obligations; the inability to close our proposed new debt financing on the terms or timeline or for the amount anticipated; fees associated with the repayment of our existing indebtedness; the possibility of converting to a liquidating trust or other liquidating entity; the ability of our board of trustees to terminate the Plan of Sale and Liquidation, whether or not approved by shareholders; the response of our residents, tenants and business partners to the announcement of the Proposed Transactions; potential difficulties in employee retention as a result of announcement of the Proposed Transactions; the occurrence of any event, change or other circumstances that could give rise to the termination of the Portfolio Sale Transaction; the outcome of legal proceedings that may be instituted against Elme, its trustees and others related to the Proposed Transactions; the risk that disruptions caused by or relating to the Proposed Transactions will harm Elme's business, including current plans and operations; risks relating to the market value of Elme's common shares, including following approval of the Proposed Transactions by our shareholders; risks associated with third party contracts containing consent and/or other provisions that may be triggered by the Proposed Transactions; restrictions during the pendency of the Portfolio Sale Transaction that may impact Elme's ability to pursue certain business opportunities or strategic transactions; general risks affecting the real estate industry and local real estate markets (including, without limitation, the market value of Elme's properties and potential illiquidity of Elme's remaining real estate investments); whether or not the sale of one or more of Elme's properties may be considered a prohibited transaction under the Internal Revenue Code of 1986, as amended; Elme's ability to maintain its status as a real estate investment trust for U.S. federal income tax purposes; the occurrence of any event, change or other circumstances that could give rise to the termination of one or both of the Proposed Transactions; the risks associated with ownership of real estate in general and our real estate assets in particular; general economic and market developments and conditions; and volatility and uncertainty in the financial markets.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect Elme's businesses in the "Risk Factors" section of Elme's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by Elme from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. While forward-looking statements reflect Elme's good faith beliefs, they are not guarantees of future performance. Elme undertakes no obligation to update its forward-looking statements or risk factors to reflect new information, future events, or otherwise.
This Earnings Release also includes certain forward-looking non-GAAP information. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.
CONTACT:
Amy Hopkins
Vice President, Investor Relations
E-Mail:
ELME COMMUNITIES AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
OPERATING RESULTS
2025
2024
2025
2024
Revenue
Real estate rental revenue
$
62,099
$
60,103
$
123,592
$
119,616
Expenses
Property operating and maintenance
14,624
13,996
28,799
27,460
Real estate taxes and insurance
8,038
7,986
15,857
16,241
Property management
2,256
2,175
4,502
4,393
General and administrative
7,689
6,138
16,918
12,334
Depreciation and amortization
23,560
23,895
46,799
48,838
56,167
54,190
112,875
109,266
Real estate operating income
5,932
5,913
10,717
10,350
Other income (expense)
Interest expense
(9,498
)
(9,384
)
(18,958
)
(18,878
)
Other income
—
—
—
1,410
(9,498
)
(9,384
)
(18,958
)
(17,468
)
Net loss
$
(3,566
)
$
(3,471
)
$
(8,241
)
$
(7,118
)
Net loss
$
(3,566
)
$
(3,471
)
$
(8,241
)
$
(7,118
)
Depreciation and amortization
23,560
23,895
46,799
48,838
NAREIT funds from operations
$
19,994
$
20,424
$
38,558
$
41,720
Leasing commissions capitalized
(4
)
—
(4
)
—
Recurring capital improvements
(3,203
)
(2,144
)
(6,120
)
(4,915
)
Straight-line rents, net
86
25
166
40
Non-real estate depreciation & amortization of debt costs
1,269
1,259
2,540
2,429
Amortization of lease intangibles, net
(167
)
(163
)
(336
)
(325
)
Amortization and expensing of restricted share and unit compensation
1,740
1,045
3,113
2,135
Adjusted funds from operations
$
19,715
$
20,446
$
37,917
$
41,084
