Core Insights - The real estate sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key momentum indicator, with stocks considered oversold when the RSI is below 30 [1] Company Summaries - Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR) is listed among the major oversold players in the real estate sector [3] - Zillow Group Inc (NASDAQ:Z) has an RSI value of 26.7, indicating it is oversold, and its stock price has decreased by approximately 21% over the past month, reaching a 52-week low of $53.61 [4] - Zillow's stock closed at $54.97 after a 1.8% increase on the last trading day [4]

Core Insights - The real estate sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically when the RSI is below 30 [1] - Major oversold stocks in the real estate sector include Wheeler Real Estate Investment Trust Inc (NASDAQ:WHLR) and Zillow Group Inc (NASDAQ:Z) [2][3] - Zillow Group's stock has decreased approximately 21% over the past month, with an RSI value of 26.7, indicating it is oversold [4] Group 2: Stock Performance - Zillow Group's shares closed at $54.97 after a 1.8% increase on the last trading day [4] - The company is set to release its fourth-quarter and full-year 2025 financial results on February 10 [4]

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]

Core Viewpoint - Elme Communities is actively progressing with its liquidation plan, having entered into agreements for the sale of three properties and targeting completion of all sales by mid-2026, with estimated liquidating distributions ranging from $17.02 to $17.47 per share [1][6]. Marketing and Sale Process - The company has entered into two purchase and sale agreements for three properties, expecting gross proceeds of approximately $155 million, with closings anticipated in the first quarter of 2026 [2]. - The ongoing marketing process for the remaining seven properties aims to finalize sales by mid-2026, with specific properties targeted for contract by mid-May [3]. Financial Updates - Following the sale of a 19-property portfolio for $1.6 billion and a $520 million term loan, an initial liquidating distribution of $14.67 per share was paid to shareholders [5]. - The estimated additional liquidating distributions are projected to be between $2.35 and $2.80 per share, leading to a total estimated distribution of $17.02 to $17.47 per share, a decrease from previous estimates [6][8]. Personnel Matters - The company announced the resignation of two trustees and its CFO as part of downsizing efforts related to the liquidation process, with a focus on maintaining a lean operational structure [12][13].

Core Viewpoint - Elme Communities has announced the income tax treatment of its 2025 dividend distributions, providing final income allocations for shareholders [1]. Dividend Distribution Summary - The gross dividend paid per share for each distribution in 2025 is $0.18000 [2]. - The taxable income per share for each distribution is $0.03688, which is consistent across all four distributions [2]. - The total gross dividend for 2025 amounts to $0.72000, with a total taxable income of $0.14752 [2]. - The Section 199A dividends per share also total $0.14752, indicating a 20.488% taxable income ratio [2]. - The non-dividend distribution per share totals $0.57248, representing 79.512% of the total gross dividend [2]. Company Overview - Elme Communities operates as a multifamily real estate investment trust, focusing on apartment homes in the Washington, DC metro and Atlanta metro areas [3].

Core Viewpoint - Elme Communities (ELME) experienced a significant stock price decline of over 80%, attributed to a substantial special dividend as the company is exiting its current operations [1] Company Summary - Elme Communities is a Real Estate Investment Trust (REIT) that is undergoing a transition, leading to the drastic stock price movement [1] - The special dividend is a key factor in the stock's volatility, indicating a strategic shift in the company's operations [1]

Core Insights - Elme Communities is focused on strategic property management and redevelopment in the Washington Metro area, leveraging its experience to create value through diversified asset types and prime locations [1] - As of Wednesday, shares of Elme Communities were priced at $17.41, reflecting a 10% increase over the past year, although this performance lags behind the S&P 500's 12% increase during the same period [1] Investment Position - DSC Meridian Capital LP reported a new position in Elme Communities, acquiring 543,081 shares valued at $9.2 million as of September 30, representing about 1.9% of its overall assets under management [2] Operational Performance - Elme Communities is navigating a transition, with shares approximately 60% below mid-2000s levels, indicating years of underperformance [3] - The company's same-store multifamily occupancy averaged 94.4% in the third quarter, with average effective monthly rent per home increasing by 1.1% year over year [3] Financial Metrics - Core FFO for the quarter was $0.22 per diluted share, remaining flat from the previous year, highlighting stable cash flow despite rising expenses [4] - Elme Communities has $321 million in available liquidity and no secured debt, providing financial flexibility [4] Strategic Moves - The company sold 19 multifamily communities for approximately $1.6 billion in November, which may indicate a shift towards a liquidation value thesis rather than a traditional REIT investment approach [4] - The potential for patient investors lies in the bounded downside risk and the importance of execution over mere rent growth [4]

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]