Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]

Company has entered into purchase and sale agreements covering three of the remaining 10 properties expected to close in first quarter 2026Continues to target completing all remaining sales by mid-year 2026Updates range of total estimated liquidating distributions to $17.02 - $17.47 per share (including the initial $14.67 per share distribution paid in January 2026) BETHESDA, Md., Jan. 23, 2026 (GLOBE NEWSWIRE) -- Elme Communities (“Elme” or the “Company”) (NYSE: ELME) today provided an update regarding the ...

BETHESDA, Md., Jan. 21, 2026 (GLOBE NEWSWIRE) -- Elme Communities (NYSE:ELME) announced the income tax treatment of its 2025 dividend distributions. This information represents final income allocations. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Elme Communities dividend distributions. Beginning in 2018, Ordinary Taxable Income Per Share is equal to the 199A dividend that was created by the 2017 Tax Cuts and Jobs Act. Dividend Paid DateGross ...

Investors tracking large moves in the stock market likely came across Elme Communities ( ELME ) on Thursday as shares of the REIT appeared to plunge over 80%. However, this decline was due to a significant special dividend as the company is exitingOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just l ...

Elme Communities leverages decades of experience to create value through strategic property management and redevelopment initiatives in the Washington Metro area. Its focus on diversified asset types and prime locations provides a competitive edge in attracting and retaining tenants in one of the nation's most dynamic real estate markets.As of Wednesday, shares were priced at $17.41, up 10% over the past year and well underperforming the S&P 500, which is 12% in the same period.According to a Securities and ...

Core Points - Elme Communities has announced a special liquidating distribution of $14.67 per share, to be paid on January 7, 2026, to shareholders of record as of December 22, 2025 [1][2] - This distribution follows the completion of the sale of Elme's 19-property portfolio on November 12, 2025, and is part of a voluntary Plan of Sale and Liquidation approved by shareholders [2][6] Distribution Details - The Special Dividend is more than 25% of the price of Elme's common shares, leading to the NYSE advising that shares will trade with "due bills" from December 22, 2025, to January 7, 2026 [3][4] - Investors must hold shares through the payment date to be eligible for the Special Dividend, with the record date being used for due bill tracking [4][5] Tax Implications - Information regarding the expected U.S. federal income tax consequences of the Special Dividend and additional liquidating distributions is summarized in the Definitive Proxy filed on September 24, 2025 [6] Company Overview - Elme Communities is a multifamily real estate investment trust that owns and operates apartment homes in the Washington, DC metro and the Atlanta metro [7]

Core Viewpoint - Elme Communities has completed the sale of 19 multifamily communities to Cortland Partners for $1.6 billion, marking a significant step in its Plan of Sale and Liquidation approved by shareholders [1][2]. Group 1: Portfolio Sale Details - The portfolio sale was finalized after receiving shareholder approval on October 30, 2025 [1]. - The sale is part of a broader strategy to liquidate all of the Company's assets, including nine remaining multifamily properties and Watergate 600 [2]. Group 2: Financial Arrangements - Following the portfolio sale, Elme entered into a loan agreement with Goldman Sachs for a senior secured term loan of $520 million, maturing on November 9, 2026, with a possible one-year extension [3]. - The term loan will be repaid using the net proceeds from the sales of the properties securing the loan [3]. Group 3: Shareholder Returns - Elme plans to return net proceeds from the portfolio sale and part of the new term loan to shareholders through an initial special liquidating distribution estimated between $14.50 and $14.82 per common share [4]. - The initial distribution is expected to be declared later this year and paid in January 2026, pending Board approval [4]. - Additional distributions may occur at the Board's discretion following future asset sales [4]. Group 4: Management's Focus - The Company aims to maximize shareholder value by monetizing remaining assets and plans to complete all remaining sales by June 2026 [5].

Core Points - The special meeting of Elme Communities was called to order by the Lead Independent Trustee, Benjamin Butcher [1] - The meeting's rules and technical support information were provided to participants [2] - All members of the Board of Trustees and executive officers were present, highlighting the leadership strength of Elme Communities [3]

Financial Performance - For the three months ended September 30, 2025, the net loss was $123.5 million, a significant increase of 4,058.7% compared to a net loss of $3.0 million in the same period of 2024[100] - Net operating income (NOI) decreased by 2.1% to $38.0 million in the 2025 Quarter from $38.8 million in the 2024 Quarter[100] - NAREIT Funds From Operations (FFO) dropped by 50.1% to $10.2 million in the 2025 Quarter compared to $20.5 million in the 2024 Quarter[100] - Net loss for the 2025 Quarter was $123.5 million, a significant increase of 4,058.7% compared to a net loss of $3.0 million in the 2024 Quarter[109] - Total net operating income (NOI) for the 2025 Quarter decreased by $0.8 million, or 2.1%, to $38.0 million from $38.8 million in the 2024 Quarter[109] - Residential revenue from same-store properties increased by $1.3 million, or 2.2%, to $57.7 million in the 2025 Quarter compared to $56.4 million in the 2024 Quarter[110] - Net cash provided by operating activities decreased by 12.4% to $61,935,000 in 2025 from $70,739,000 in 2024[154] - For the nine months ended September 30, 2025, NAREIT FFO was $48.796 million, down 21.5% from $62.224 million in 2024[160] - The company reported real estate impairment of $109.981 million for the nine months ended September 30, 2025, with no impairment reported in 2024[160] Occupancy and Revenue - The average occupancy for residential same-store properties decreased to 94.4% in the 2025 Quarter from 95.2% in the 2024 Quarter[101] - Average occupancy for same-store residential properties decreased to 94.4% in the 2025 Quarter from 95.2% in the 2024 Quarter, a decline of 0.8%[111] - Residential expenses as a percentage of residential revenue increased to 39.4% in the 2025 Quarter from 36.9% in the 2024 Quarter[112] - Residential revenue from same-store properties for the 2025 Period increased by $5.6 million, or 3.3%, to $172.4 million compared to $166.8 million in the 2024 Period[122] - Real estate expenses from same-store properties increased by $2.8 million, or 4.5%, to $64.4 million for the 2025 Period compared to $61.6 million in the 2024 Period[126] Debt and Financing - The company entered into a Purchase Agreement for a Portfolio Sale Transaction valued at approximately $1.61 billion[94] - The company plans to repay all outstanding amounts under its credit facilities and notes concurrently with the consummation of the Portfolio Sale Transaction[98] - A commitment for debt financing of $520 million has been secured, contingent on the closing of the Portfolio Sale Transaction[99] - The company has no debt maturities scheduled until 2026, indicating a stable capital structure in the near term[104] - The company has no debt maturities until 2026 and only $361 million of scheduled debt maturities prior to 2029[135] - The total unsecured fixed-rate debt outstanding as of September 30, 2025, was $525 million, with a weighted average interest rate of 4.9%[163] - The company has a variable rate debt of $186 million, with a variable interest rate of 5.3%[163] - Interest payments for the unsecured fixed-rate debt for 2025 are projected to be $1.803 million, increasing to $18.189 million in 2026[163] - The company has entered into interest rate swap arrangements to hedge against interest rate fluctuations, with a total notional amount of $225 million as of September 30, 2025[165] - The fair value of interest rate swap contracts as of September 30, 2025, was $(315,000), indicating a liability position[165] Expenses and Impairments - General and administrative expenses rose by $7.7 million, or 121.3%, primarily due to higher professional fees related to proposed transactions[115] - Real estate impairment charge of $111.7 million was recorded in the 2025 Quarter, compared to no impairment in the 2024 Quarter[121] - The company incurred a real estate impairment charge of $111.7 million during the 2025 Period[132] Compliance and Governance - As of September 30, 2025, the company was in compliance with the covenants related to its Amended Credit Agreement, 2023 Term Loan, and unsecured notes[147] - The company has authorized the issuance of 150 million common shares, with 88.2 million shares outstanding as of September 30, 2025[148] - The company suspended its dividend reinvestment program in September 2025, meaning dividends will not be automatically reinvested during the suspension period[151] Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $2.2 million and a borrowing capacity of $300 million, resulting in a total liquidity position of $302.2 million[135] - The weighted average interest rate for the line of credit decreased to 5.4% in 2025 from 6.3% in 2024, despite higher average borrowings of $183.1 million in 2025 compared to $166.2 million in 2024[133] Tax Legislation - Recent tax legislation may impact the company, including a permanent extension of the 20% deduction for qualified REIT dividends[105] Investment Activity - There were no significant investment transactions during the 2025 Period[103] - The company expects to invest approximately $28.0 - $33.0 million in its existing portfolio of operating assets, including $14.0 - $18.0 million for major capital expenditures[138]

Financial Performance - Elme Communities reported a net loss per diluted share of $1.40 for Q3 2025, compared to a loss of $0.03 in Q3 2024[4]. - For the three months ended September 30, 2025, Elme Communities reported a net loss of $123.514 million compared to a net loss of $2.970 million for the same period in 2024[24]. - The company reported a net loss of $131.8 million for the nine months ended September 30, 2025, compared to a net loss of $10.1 million in the same period of 2024, reflecting a significant increase in losses[47]. - The company reported a net loss of $131,755,000 for the nine months ended September 30, 2025, compared to a net loss of $10,088,000 for the same period in 2024[50]. Revenue and Income Metrics - Real estate rental revenue for Q3 2025 was $62.1 million, an increase from $61.1 million in Q3 2024[20]. - Real estate rental revenue for the nine months ended September 30, 2025, was $185.7 million, up from $180.7 million in the same period of 2024, representing a growth of 0.6%[47]. - Total rental and other property revenues for the nine months ended September 30, 2025, reached $172,377, a 3.3% increase compared to $166,790 for the same period in 2024[57]. - The total Net Operating Income (NOI) for the nine months ended September 30, 2025, was $116.900 million, compared to $114.712 million in 2024[24]. - Same-store multifamily NOI decreased by 1.8% year-over-year, primarily due to higher operating expenses[7]. Funds from Operations - Core FFO per diluted share was $0.22, slightly down from $0.23 in the prior year[4]. - The NAREIT FFO (Basic) for the three months ended September 30, 2025, was $0.12, a decrease from $0.23 in 2024[25]. - Core funds from operations for the three months ended September 30, 2025, were $19.497 million, down from $20.664 million in 2024[25]. - Funds from operations (FFO) for the nine months ended September 30, 2025, were $48,796,000, down 21.6% from $62,224,000 for the same period in 2024[50]. Assets and Liabilities - Total assets as of September 30, 2025, were $1.686 billion, down from $1.846 billion as of December 31, 2024[23]. - The total liabilities increased to $777.680 million as of September 30, 2025, compared to $763.684 million at the end of 2024[23]. - Total liabilities as of September 30, 2025, were $777,680,000, an increase of 3.2% from $754,186,000 on September 30, 2024[49]. - Total shareholders' equity decreased to $908,905,000 as of September 30, 2025, down from $1,098,690,000 on September 30, 2024, a decline of 17.3%[49]. Debt and Liquidity - Available liquidity as of September 30, 2025, was $321 million, consisting of cash and availability under the revolving credit facility[7]. - Year-to-date Net Debt to Adjusted EBITDA ratio was 5.7x, with only $125 million of debt maturing before 2028[7]. - The total long-term debt outstanding as of September 30, 2025, was $709.329 million, with a weighted average interest rate of 4.9%[71]. - The average interest rate on total debt is 4.9%, with scheduled principal payments totaling $711 million[77]. - The company has a revolving credit facility of $500 million that matures in July 2028, with two six-month extension options[78]. Dividends - The company paid a quarterly dividend of $0.18 per share on October 3, 2025, but does not intend to declare future dividends if the liquidation plan is approved[10]. - The company declared a common dividend per share of $0.54 for the nine months ended September 30, 2025, unchanged from the same period in 2024[51]. - The total dividends declared for the nine months ended September 30, 2025, amounted to $47.8 million[85]. Operating Metrics - Average occupancy for the same-store multifamily portfolio was 94.4%, down 0.8% from the prior year[7]. - The average effective monthly rent per home increased by 1.1% to $1,921 in Q3 2025 from $1,900 in Q3 2024[57]. - Total same-store operating expenses for Q3 2025 were $22,644, reflecting a 9.1% increase from $20,759 in Q3 2024[59]. - The operating margin for same-store properties remained stable at 63% for both Q3 2025 and Q3 2024[56]. Impairment and Charges - The company recognized an impairment charge of $111.7 million during the quarter related to properties not included in the portfolio sale[9]. - Real estate impairment for the three months ended September 30, 2025, was $111.719 million, with no impairment recorded in the same period of 2024[24]. - Real estate impairment for depreciable assets was reported at $109,981,000 for the nine months ended September 30, 2025[50]. Community and Property Details - The total multifamily communities consist of 9,374 apartment homes with an average occupancy of 94.6% and an ending occupancy of 94.1%[62]. - The Riverside Apartments in Alexandria, VA, contributed 13% to the total portfolio NOI, with an ending occupancy of 95.0%[62]. - The Elme Druid Hills community in Atlanta, GA, had an average occupancy of 93.5% and an ending occupancy of 93.4%[62]. - The Elme Marietta community experienced a fire on March 24, 2024, resulting in 24 down units, with 15 units placed back into service by September 30, 2025[64].