Financial Results - Elme Communities reported a net loss per diluted share of $(0.04) for the quarter ended June 30, 2025, consistent with the same period in 2024 [1] - Core Funds From Operations (FFO) per diluted share increased to $0.24 from $0.23 year-over-year [1] Operational Highlights - Same-store multifamily Net Operating Income (NOI) increased by 4.5% compared to the prior year quarter, driven by higher rental revenue and fee income [8][9] - Average occupancy for the same-store multifamily portfolio was 94.7%, up 0.2% from the prior year [8][9] - Retention rate for leases was 62%, aligning with expectations [8] Strategic Review Update - Elme announced a Purchase and Sale Agreement with Cortland Partners for the sale of 19 multifamily communities for approximately $1.6 billion [4] - The Board of Trustees approved a voluntary plan of sale and liquidation for the remaining assets of Elme Communities [4] Balance Sheet - As of June 30, 2025, Elme had available liquidity of $330 million, consisting of cash and availability under its revolving credit facility [8] - The annualized Net Debt to Adjusted EBITDA ratio was 5.6x, indicating a strong balance sheet with only $125 million of debt maturing before 2028 [8] Dividends - Elme Communities paid a quarterly dividend of $0.18 per share on July 3, 2025, and declared another dividend of $0.18 per share to be paid on October 3, 2025 [10]

Core Viewpoint - Elme Communities has entered into a Purchase and Sale Agreement with Cortland Partners to sell a 19-asset portfolio for $1.6 billion, initiating a plan for voluntary liquidation and asset sales to maximize shareholder value [1][2][3] Financial Distributions - The company plans to make total upfront distributions to shareholders of approximately $14.68 to $15.00 per share, assuming the completion of the Cortland Portfolio Transaction [1][6] - Additional liquidating distributions are estimated to be approximately $2.90 to $3.50 per share from the sale of remaining assets [1][6] Transaction Details - The Portfolio Sale Transaction is expected to close in the fourth quarter of 2025, pending shareholder approval and customary closing conditions [1][11] - The company will market its remaining nine multifamily assets and Watergate 600 for sale within the next 12 months [2][11] Strategic Review Process - The decision to proceed with the sale and liquidation followed a comprehensive evaluation of strategic alternatives, including engagement with over 80 potential counterparties [3][11] - The Board of Trustees unanimously determined that the sale to Cortland and subsequent asset sales would yield the highest value for shareholders compared to other options [3][11] Future Operations - Following the completion of the Portfolio Sale Transaction, the company expects to suspend regular quarterly distributions and focus on liquidating distributions from future asset sales [10][11] - The company has received a debt commitment of $520 million from Goldman Sachs Bank USA to finance assets not included in the Portfolio Sale Transaction [9] Market Presence - The transaction marks Cortland's significant expansion in the greater Washington, D.C. area and Georgia, enhancing its portfolio and operational capabilities [3][4]

Group 1 - Elme Communities will release its second quarter earnings results on August 5, 2025, after market close [1] - A conference call to discuss the earnings results is scheduled for August 6, 2025, at 10:00 am ET [1] - Instant replay of the conference call will be available until August 20, 2025, at 11:59 pm ET [1] Group 2 - Elme Communities is a multifamily real estate investment trust focused on providing quality, affordable homes in the Washington, DC metro and the Sunbelt [2] - The company aims to serve a deep, solid, and underserved base of mid-market demand, building long-term value for shareholders [2]

Industry Overview - The Zacks REIT and Equity Trust - Residential industry includes companies that own, develop, and manage various residential properties, generating revenues by renting spaces to tenants [3] - The demand for student housing is closely tied to enrollment growth at educational institutions, making it a key driver for this market segment [3] Current Market Dynamics - Strong rental demand is supported by a resilient labor market, demographic trends driving household formation, and rising homeownership costs making renting more attractive [1][4] - Residential REITs are leveraging technology to enhance tenant experience and improve operational efficiency [5] - Economic uncertainty and regional oversupply of apartments are creating challenges, potentially dampening consumer confidence and affecting renter affordability [2][6][7] Performance Metrics - The REIT and Equity Trust - Residential industry has underperformed the broader Zacks Finance sector and the S&P 500 over the past year, returning 0.5% compared to the S&P 500's increase of 9.6% [11] - The industry is currently trading at a forward 12-month price-to-FFO ratio of 16.46, above the Finance sector's forward P/E of 16.11 but below the S&P 500's forward P/E of 21.89 [14] Future Outlook - The industry is positioned in the top 38% of around 250 Zacks industries, indicating robust near-term prospects [8][9] - Analysts are gaining confidence in the growth potential of the industry, as reflected in upward revisions of funds from operations (FFO) per share estimates [10] Investment Opportunities - Veris Residential focuses on Class A multifamily properties in high-demand Northeast markets, with upward revisions in FFO per share estimates suggesting growth potential [19][21] - Elme Communities targets value-oriented multifamily assets in supply-constrained markets, with a projected net operating income upside in 2025 [23][24][25] - NexPoint Residential Trust offers exposure to middle-income multifamily assets in high-growth Sunbelt markets, with upward revisions in FFO per share estimates indicating strong performance [26][27][28]

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] - 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 the first quarter, up 50 basis points year over year [11] - The company achieved 1.9% same store blended lease rate growth during the quarter, with an initial estimated blended rate growth for April at 2.6% [11] Market Data and Key Metrics Changes - In the Washington Metro area, annual supply peaked at 2.2% annual net inventory growth, below the national average of 2.9%, with new construction starts down over 70% from their peak [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 [6] Company Strategy and Development Direction - The company is undergoing a formal evaluation of strategic alternatives to maximize shareholder value, initiated from a position of strength [9] - The managed WiFi program is expected to generate additional NOI of $600,000 to $800,000 in 2025, with potential for $1,500,000 to $2,000,000 annually once fully integrated [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the portfolio and business, despite a volatile macro environment [16] - The company anticipates improvement in bad debt to 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% and plans to complete over 500 full renovations in 2025 [13] - Eviction delays in Atlanta are decreasing, supported by improved processing efficiency and legislative changes [12] 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, observing cap rates ranging from 4.25% to 5.25% depending on buyer profiles [20][22] Question: Addition of Ron to the Board and its timing - The strategic review was initiated last year, and Ron was seen as an appropriate candidate for the Board due to his skills and operating history [24][25] Question: Acceleration of the WiFi initiative income - The rollout of the Managed WiFi initiative has progressed faster than anticipated, allowing for quicker income generation [30] - There will be associated expenses, but they are expected to be less significant compared to the income generated [31] Question: Shift in revenue composition and guidance - Management confirmed that while the first quarter exceeded expectations, guidance remains unchanged as the busy leasing season approaches [34]

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] - 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 the first quarter, up 50 basis points year over year, with a 1.9% same store blended lease rate growth [11] - The managed WiFi program is expected to generate an additional NOI of $600,000 to $800,000 in 2025 from the initial seven communities, with potential to reach $1,500,000 to $2,000,000 annually once fully integrated by mid-2026 [13][14] Market Data and Key Metrics Changes - In the Washington Metro area, annual supply peaked at 2.2% annual net inventory growth, below the national average of 2.9%, with projections to decline to 1.1% by Q4 2026, the lowest level since 2012 [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, indicating strong employment fundamentals [6] Company Strategy and Development Direction - The company is undergoing a formal evaluation of strategic alternatives to maximize shareholder value, initiated from a position of strength as a multifamily REIT [9][10] - The company is focused on enhancing its value-add renovation pipeline and platform initiatives to ensure resilient performance despite macroeconomic fluctuations [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the portfolio and business, despite potential economic slowdowns and employment losses [5][16] - The company anticipates that improvements in bad debt recovery 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%, and plans to complete over 500 full renovations in 2025 [13] - The company is closely monitoring forward-looking demand indicators and plans to adjust pricing strategies accordingly [12] 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 market with cap rates ranging from 4.25% to 5.25% depending on buyer profiles [19][22] Question: Addition of Ron to the Board and its timing - Management explained that the decision for a strategic review was made last year, and Ron's addition to the Board was part of an ongoing refreshment process to maximize shareholder value [24][25] Question: Acceleration of the WiFi initiative income - Management indicated that the rollout of the Managed WiFi initiative is progressing faster than anticipated, allowing for quicker income generation, although there will be associated expenses [29][31] Question: Shift in revenue composition and guidance - Management confirmed that while there is a strong first quarter performance, guidance remains unchanged as the busy leasing season is just beginning, with more leases to be turned over [32][34]

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]

Portfolio Overview - Elme Communities owns approximately 9,400 apartment homes, with 75% located in the Washington Metro area and 25% in the Atlanta Metro area[18] - The company anticipates an operational upside of $2.4 million to $2.6 million in 2025[18] - 79% of the apartment portfolio is classified as B Value-Add, while 10% is Class B, 7% is Class A-, and 4% is Class A[18] Financial Performance and Guidance - Elme Communities projects Core FFO per diluted share to be between $0.91 and $0.97 in 2025[47] - Same-store multifamily revenue growth is expected to range from 2.1% to 3.6% in 2025[47] - Same-store multifamily NOI growth is projected to be between 1.5% and 3.5%[47] - Other same-store NOI, consisting of Watergate 600, is expected to range from $11.5 million to $12.25 million[47] Market Dynamics and Strategy - Elme submarkets are expected to have a lower annual net inventory growth of 2.1% compared to the US average of 2.9% and Sunbelt markets average of 3.8%[56,58] - The company targets Class B rents priced below 95% of the market median to minimize competition with new deliveries in both Washington and Atlanta metros[85,88] - Elme's renovation pipeline includes approximately 3,000 units, with an expected spend of ~$8.6 million in 2025 and an ROI of approximately 18% in Q1 2025[40,44]

First Quarter 2025 Results & Outlook [Financial and Operational Highlights](index=2&type=section&id=Financial%20and%20Operational%20Highlights) Elme Communities reported a net loss of $0.05 per diluted share, with Core FFO per diluted share increasing to $0.24, driven by strong operational performance Q1 2025 Financial Results per Diluted Share | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss per diluted share | $(0.05) | $(0.04) | | Core FFO per diluted share | $0.24 | $0.23 | - The CEO noted that while federal workforce reductions are a factor, the company's focus on mid-market rents and its strong presence in Northern Virginia are expected to support resilient performance[4](index=4&type=chunk) - Same-store multifamily NOI increased by **5.5%** year-over-year[5](index=5&type=chunk) - Same-store multifamily Average Occupancy rose by **0.5%** to **94.8%** year-over-year[5](index=5&type=chunk) - Effective blended Lease Rate Growth was **1.9%**, driven by **5.0%** growth on renewals, offset by a **(2.0)%** decline on new leases[5](index=5&type=chunk) - The company maintained a strong balance sheet with **$324 million** in available liquidity and an annualized Net Debt to Adjusted EBITDA ratio of **5.6x**[5](index=5&type=chunk) [Strategic Review & 2025 Guidance](index=3&type=section&id=Strategic%20Review%20%26%202025%20Guidance) The Board initiated a strategic review to maximize shareholder value, while the company reiterated its full-year 2025 Core FFO per diluted share guidance - The Board of Trustees has initiated a formal review to evaluate strategic alternatives for the company, which is currently ongoing[6](index=6&type=chunk) Full Year 2025 Guidance (in millions) | Metric | Guidance Range | | :--- | :--- | | **Core FFO per diluted share** | **$0.91 - $0.97** | | Same-store multifamily Revenue growth | 2.1% - 3.6% | | Same-store multifamily Expense growth | 2.75% - 4.25% | | Same-store multifamily NOI growth | 1.5% - 3.5% | | Other same-store NOI (Watergate 600) | $11.5 - $12.25 | | G&A, net of core adjustments | $25.25 - $26.25 | | Interest expense | $37.35 - $38.35 | 2025 Guidance Reconciliation: Net Loss to Core FFO per Share | | Low | High | | :--- | :--- | :--- | | Net loss per diluted share | $(0.17) | $(0.11) | | Real estate depreciation and amortization | 1.05 | 1.05 | | NAREIT FFO per diluted share | 0.88 | 0.94 | | Core adjustments | 0.03 | 0.03 | | **Core FFO per diluted share** | **$0.91** | **$0.97** | [Dividends](index=4&type=section&id=Dividends) Elme Communities declared a quarterly dividend of $0.18 per share, payable on July 3, 2025, to shareholders of record as of June 17, 2025 - The Board of Trustees declared a quarterly dividend of **$0.18 per share**[11](index=11&type=chunk) - The dividend will be paid on July 3, 2025, to shareholders of record on June 17, 2025[11](index=11&type=chunk) Financial Statements and Key Data [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Elme reported Q1 2025 total real estate rental revenue of $61.5 million, with a net loss of $4.7 million, primarily due to higher general and administrative expenses Q1 2025 Statement of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Real estate rental revenue | $61,493 | $59,513 | | Total Expenses | $56,708 | $55,076 | | Real estate operating income | $4,785 | $4,437 | | Interest expense | $(9,460) | $(9,494) | | **Net loss** | **$(4,675)** | **$(3,647)** | Per Share Data | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (Diluted) | $(0.05) | $(0.04) | | NAREIT FFO (Diluted) | $0.21 | $0.24 | | Dividends paid | $0.18 | $0.18 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Elme's total assets were $1.83 billion, with total liabilities at $764.4 million and total equity at $1.06 billion Balance Sheet Highlights (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate held for investment, net | $1,778,889 | $1,796,014 | | Cash and cash equivalents | $6,396 | $6,144 | | **Total assets** | **$1,827,579** | **$1,845,762** | | Notes payable, net | $523,061 | $522,953 | | Line of credit | $182,000 | $176,000 | | **Total liabilities** | **$764,378** | **$763,684** | | **Total equity** | **$1,063,201** | **$1,082,078** | [Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)](index=10&type=section&id=Funds%20From%20Operations%20(FFO)%20and%20Adjusted%20Funds%20From%20Operations%20(AFFO)) In Q1 2025, NAREIT FFO was $18.6 million, while Core FFO increased to $21.6 million and Core AFFO reached $21.2 million Q1 2025 FFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(4,675) | $(3,647) | | Real estate depreciation and amortization | 23,239 | 24,943 | | **NAREIT FFO** | **18,564** | **21,296** | | Other non-operating expenses | 3,041 | — | | Gain on land easements | — | (1,410) | | **Core FFO** | **$21,605** | **$19,886** | Q1 2025 AFFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | NAREIT FFO | $18,564 | $21,296 | | Recurring capital improvements | (2,917) | (2,771) | | Other adjustments | 2,555 | 2,113 | | **AFFO** | **18,202** | **20,638** | | Other non-operating expenses | 3,041 | — | | Gain on land easements | — | (1,410) | | **Core AFFO** | **$21,243** | **$19,228** | Portfolio Analysis [Same-Store Multifamily Operating Results](index=20&type=section&id=Same-Store%20Multifamily%20Operating%20Results) Same-store multifamily NOI grew **5.5%** to **$36.5 million** in Q1 2025, driven by revenue growth and improved average occupancy of **94.8%** Q1 2025 Same-Store Multifamily Performance vs. Q1 2024 | Region | Revenue % Chg | Expense % Chg | NOI % Chg | Avg Occupancy % | Avg Rent % Chg | | :--- | :--- | :--- | :--- | :--- | :--- | | Virginia | 4.5% | 0.4% | 6.5% | 96.5% | 3.5% | | DC / Maryland | 2.0% | 2.2% | 1.9% | 94.9% | 1.9% | | Georgia | 3.6% | 2.4% | 4.6% | 90.6% | (4.4)% | | **Total** | **3.9%** | **1.2%** | **5.5%** | **94.8%** | **1.7%** | - Sequentially, total same-store NOI increased by **2.3%** from Q4 2024, largely due to a significant **11.2%** decrease in operating expenses in the Georgia portfolio[60](index=60&type=chunk) - Blended lease rate growth for the quarter was **1.9%**, composed of a **5.0%** increase on renewals and a **(2.0)%** decrease on new leases[57](index=57&type=chunk) [Same-Store Operating Expenses - Multifamily](index=22&type=section&id=Same-Store%20Operating%20Expenses%20-%20Multifamily) Total same-store operating expenses increased by **1.2%** year-over-year in Q1 2025, driven by controllable expenses but offset by lower real estate taxes Q1 2025 Same-Store Operating Expense Changes (YoY) (in thousands) | Expense Category | Q1 2025 | % Change vs Q1 2024 | | :--- | :--- | :--- | | Controllable operating expenses | $9,685 | 5.5% | | Real estate taxes | $5,878 | (7.3)% | | Utilities | $3,747 | 4.6% | | Insurance | $1,236 | 3.7% | | **Total same-store operating expenses** | **$20,546** | **1.2%** | [Schedule of Properties](index=23&type=section&id=Schedule%20of%20Properties) Elme's portfolio includes 9,374 multifamily homes with **94.8%** average occupancy and the Watergate 600 office property, which is **82.3%** leased - The total multifamily portfolio comprises **9,374 apartment homes** with an average occupancy of **94.8%** for Q1 2025[65](index=65&type=chunk) - A fire at the Elme Marietta property on March 24, 2024, has left **24 units** unavailable. These units are expected to be back in service by the end of Q4[67](index=67&type=chunk) Office Property - Watergate 600 | Property | Net Rentable SF | Leased % | Ending Occupancy % | % of Total Portfolio NOI | | :--- | :--- | :--- | :--- | :--- | | Watergate 600 | 300,000 | 82.3% | 82.3% | 8% | Capital Analysis [Adjusted EBITDA](index=26&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 increased to **$31.3 million**, primarily driven by higher operating income and adjustments for non-operating expenses Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(4,675) | $(3,647) | | Interest expense | 9,460 | 9,494 | | Real estate depreciation and amortization | 23,239 | 24,943 | | Other non-operating expenses | 3,041 | — | | Other adjustments | 199 | (1,299) | | **Adjusted EBITDA** | **$31,264** | **$29,491** | [Long Term Debt Analysis](index=27&type=section&id=Long%20Term%20Debt%20Analysis) As of March 31, 2025, Elme's total unsecured debt was **$705.1 million** with a **4.9%** weighted average interest rate and a well-staggered maturity profile Debt Composition as of March 31, 2025 (in thousands) | Debt Type | Balance Outstanding | Weighted Avg. Interest Rate | | :--- | :--- | :--- | | Fixed rate bonds | $398,212 | 4.5% | | Term loan | $124,849 | 5.8% | | Credit facility | $182,000 | 5.3% | | **Total** | **$705,061** | **4.9%** | Future Debt Maturities (in thousands) | Year | Total Debt | | :--- | :--- | | 2025 | $— | | 2026 | $125,000 | | 2027 | $— | | 2028 | $232,000 | | Thereafter | $350,000 | | **Total** | **$707,000** | - The company is in compliance with all its unsecured public and private debt covenants, with significant headroom on key metrics such as leverage and debt service coverage[84](index=84&type=chunk) [Capitalization and Dividend Payout Ratios](index=30&type=section&id=Capitalization%20and%20Dividend%20Payout%20Ratios) As of March 31, 2025, Elme's total market capitalization was **$2.24 billion**, with a debt to market capitalization ratio of **0.31:1** and a Core FFO dividend payout ratio of **75.0%** Market Capitalization as of March 31, 2025 (in thousands) | Metric | Value | | :--- | :--- | | Equity Market Capitalization | $1,533,932 | | Total Debt | $705,061 | | **Total Market Capitalization** | **$2,238,993** | | Total Debt to Market Capitalization | 0.31 : 1 | Q1 2025 Dividend Payout Ratios | Basis | Payout Ratio | | :--- | :--- | | Payout Ratio (Core FFO basis) | 75.0% | | Payout Ratio (Core AFFO basis) | 75.0% | Definitions [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like NAREIT FFO, Core FFO, AFFO, Core AFFO, NOI, and Adjusted EBITDA to clarify operating performance and dividend capacity - **NAREIT FFO:** Calculated as net income excluding gains/losses from property sales, real estate impairments, and real estate depreciation and amortization[33](index=33&type=chunk) - **Core FFO:** Adjusts NAREIT FFO for items not indicative of operating portfolio performance, such as gains/losses on debt extinguishment, acquisition-related expenses, and costs from the strategic review[32](index=32&type=chunk) - **NOI:** Defined as real estate rental revenue less direct real estate operating expenses, used for assessing property-level performance[35](index=35&type=chunk) [Other Definitions](index=13&type=section&id=Other%20Definitions) Key operational metrics defined include Average Occupancy, Lease Rate Growth, and Same-store Portfolio, providing clarity on performance analysis - **Average Occupancy:** Based on the average daily occupied apartment homes as a percentage of total apartment homes[37](index=37&type=chunk) - **Lease Rate Growth:** The average percentage change in rent for a new or renewed lease compared to the prior lease, with the 'blended' rate being a weighted average of new and renewal growth[41](index=41&type=chunk) - **Same-store Portfolio:** Includes properties owned for the entirety of the years being compared, excluding properties under development, redevelopment, or those recently acquired or sold[45](index=45&type=chunk)