Elme Communities (ELME) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Amy Hopkins - Vice President, Investor RelationsPaul McDermott - President and CEOTiffany Butcher - Executive VP & COOSteven Freishtat - Executive VP & CFOCooper Clark - VP - Equity ResearchAnn Chan - Senior Associate Operator Good day, and welcome to the Elm Communities First Quarter twenty twenty five Earnings Conference Call. As a reminder, today's call is being recorded. And at this time, I would like to turn the ...

Elme Communities (ELME) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Amy Hopkins - Vice President, Investor RelationsPaul McDermott - President and CEOTiffany Butcher - Executive VP & COOSteven Freishtat - Executive VP & CFOCooper Clark - VP - Equity ResearchAnn Chan - Senior Associate Operator Good day, and welcome to the Elm Communities First Quarter twenty twenty five Earnings Conference Call. As a reminder, today's call is being recorded. And at this time, I would like to turn the ...

Financial Data and Key Metrics Changes - The company reported same store revenue growth of 3.9% and NOI growth of 5.5% year over year, driven by stronger rent growth in the Washington Metro portfolio and favorable real estate tax appeals in Atlanta [15][16] - The annualized net debt to adjusted EBITDA was 5.6 times during the first quarter, with over 60% of total capacity available on the line of credit and no secured debt [16] Business Line Data and Key Metrics Changes - Same store multifamily occupancy averaged 94.8% during Q1, up 50 basis points year over year, with a 1.9% same store blended lease rate growth during the quarter [11] - The initial estimated blended rate growth for April is 2.6%, indicating a typical upswing heading into the spring leasing season [11] Market Data and Key Metrics Changes - In the Washington Metro area, annual supply peaked at 2.2% annual net inventory growth in Q1 2025, below the national average of 2.9%, with projections for a decline to 1.8% by Q4 2025 and further to 1.1% by Q4 2026 [7][8] - Northern Virginia's private sector job growth was two and a half times that of the broader Washington Metro Region over the past four years, positioning the company favorably [6] Company Strategy and Development Direction - The Board of Trustees is overseeing a formal evaluation of strategic alternatives to maximize shareholder value, initiated from a position of strength [9][10] - The company is focused on enhancing its multifamily REIT performance and profitability while navigating the current volatility in capital markets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the portfolio and business, despite a fluctuating macro environment, and highlighted the ongoing success of the value-add renovation pipeline [16] - The company anticipates that improvement in bad debt will contribute more significantly to revenue growth in 2025 than initially expected [15] Other Important Information - The company completed 88 renovations during the quarter with an ROI of approximately 18%, aiming to complete over 500 full renovations in 2025 [13] - The managed WiFi program is expected to generate additional NOI of $600,000 to $800,000 in 2025 from the initial seven communities, with further upside anticipated from future phases [14] Q&A Session Summary Question: Insights on the multifamily transaction market in DC - Management noted that the living sector is performing well with continued capital flows and active lenders, indicating a competitive environment with cap rates ranging from 4.25% to 5.25% depending on the buyer profile [19][22] Question: Addition of Ron to the Board and its timing - The strategic review process was initiated last year, and Ron's addition to the Board was part of a refreshment process aimed at maximizing shareholder value [23][24] Question: Acceleration of the WiFi initiative income - The rollout of the Managed WiFi initiative has progressed faster than anticipated, allowing for quicker income generation as the spring leasing season approaches [28][29]

Core Viewpoint - Elme (ELME) reported quarterly funds from operations (FFO) of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, marking a 4.35% surprise [1] Financial Performance - The company achieved revenues of $61.49 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.61% and showing an increase from $59.51 million year-over-year [2] - Over the last four quarters, Elme has exceeded consensus revenue estimates three times [2] Stock Performance and Outlook - Elme shares have increased approximately 2% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The future performance of Elme's stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] Estimate Revisions - The current consensus FFO estimate for the upcoming quarter is $0.24 on revenues of $61.6 million, and for the current fiscal year, it is $0.95 on revenues of $247.63 million [7] - The estimate revisions trend for Elme is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Residential industry, to which Elme belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Investor Presentation May 2025 This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Elme Communities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the securities law of any such jurisdiction. If Elme Communities were to conduct an offering of securities in the future, it will be made under an effective regi ...

CONTACT: 7550 Wisconsin Ave, Suite 900 Amy Hopkins Bethesda, MD 20814 Vice President, Investor Relations Tel 202-774-3253 E-Mail: ahopkins@elmecommunities.com Fax 301-984-9610 www.elmecommunities.com May 1, 2025 Elme Communities Announces First Quarter 2025 Results Strong Same-store NOI and Occupancy Growth Operating Initiatives Driving Higher Fee Income Solid Rental Rate Growth Elme Communities (the "Company" or "Elme") (NYSE: ELME), a multifamily REIT, reported financial and operating results today for th ...

Strong Same-store NOI and Occupancy Growth Operating Initiatives Driving Higher Fee Income Solid Rental Rate Growth BETHESDA, Md., May 01, 2025 (GLOBE NEWSWIRE) -- Elme Communities (the “Company” or “Elme”) (NYSE: ELME), a multifamily REIT, reported financial and operating results today for the quarter ended March 31, 2025: Financial Results Three months ended March 31, 2025 2024 Net loss per diluted share$ (0.05) $<td style="padding-left: 0 ; pad ...

BETHESDA, Md., April 07, 2025 (GLOBE NEWSWIRE) -- Elme Communities (the “Company” or “Elme”) (NYSE:ELME), a value-oriented multifamily owner and operator, will release first quarter earnings results after market close on Thursday, May 1, 2025. A conference call to discuss these results will be conducted on Friday, May 2, 2025, at 10:00 am ET. There will also be a webcast presentation with slides. Conference call and webcast access information is as follows: USA Toll Free Number:888-506-0062International Tol ...

Group 1 - Elme Communities, previously known as Washington REIT, has undergone a significant transformation since April 2021, shifting its focus from retail and office properties to other asset classes [2] - The company is now positioned to offer sustainable portfolio income, diversification, and inflation hedging through its income-producing asset classes [1] Group 2 - The article emphasizes the importance of due diligence for investors, encouraging them to draw their own conclusions before making investment decisions [4][5]

Core Viewpoint - Elme Communities has appointed Ron D. Sturzenegger as an independent trustee to its Board of Trustees, enhancing the Board's expertise and commitment to shareholder value [1][3][5] Board Composition - Following the appointment of Mr. Sturzenegger, the Board now consists of eight trustees, with seven being independent [1][3] - The Board aims to regularly refresh its composition to maximize value for shareholders [3] Ron D. Sturzenegger's Background - Mr. Sturzenegger has over 30 years of experience in finance and real estate, previously serving as Managing Director and Global Head of Real Estate, Gaming and Lodging Investment Banking at Bank of America [2][7] - He currently holds positions on the Boards of several funds, including KBS REIT III and various StepStone Private Funds [2][7] Strategic Initiatives - Mr. Sturzenegger will serve on the transaction committee of the Board, which is overseeing a formal evaluation of strategic alternatives [3] - The Company has entered into a cooperation agreement with Argosy-Lionbridge Management, LLC, a shareholder, to enhance corporate governance practices [4][5] Corporate Governance - Elme Communities is opting out of the Maryland Unsolicited Takeover Act (MUTA) to improve its corporate governance [5] - The cooperation agreement includes customary standstill and voting provisions [5] Company Overview - Elme Communities is a multifamily real estate investment trust (REIT) that operates approximately 9,400 apartment homes and 300,000 square feet of commercial space in the Washington, DC and Atlanta metro areas [12]