Group 1 - Elme Communities announced the income tax treatment of its 2024 dividend distributions, encouraging shareholders to consult personal tax advisors for specific tax implications [1] - The total dividend distribution for 2024 is $0.72000 per share, with a breakdown of ordinary taxable income per share at $0.07644 and non-taxable return of capital at $0.56764 [2] - The company operates approximately 9,400 apartment homes and 300,000 square feet of commercial space, focusing on providing quality, affordable homes to mid-market demand [3] Group 2 - The ordinary taxable income per share for each dividend payment in 2024 is $0.01911, with a consistent gross dividend of $0.18000 per share across all payment dates [2] - Elme Communities aims to build long-term value for shareholders by enhancing the quality and service of its multifamily real estate offerings [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ FORM 10-Q ___________________________________________________ Large Accelerated Filer ☒ Accelerated Filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...

Financial Data and Key Metrics Changes - The company tightened its 2024 core FFO per share guidance range to $0.92 to $0.94, maintaining a midpoint of $0.93 [28] - Same-store multifamily NOI growth assumption was tightened to range from 1% to 1.5% [28] - Annualized net debt to adjusted EBITDA was 5.6x at quarter end, in line with targeted range [30] Business Line Data and Key Metrics Changes - The Washington Metro communities showed stronger than expected performance, with occupancy growth driven by Northern Virginia [17] - Atlanta experienced slower than expected improvement, with occupancy in the low-90s range [50][72] - Effective blended lease rate growth for the same-store portfolio was 2.1%, with renewal lease rate growth of 4.5% and new lease rate growth of negative 1.5% [19] Market Data and Key Metrics Changes - Demand remained strong in the Washington Metro and Atlanta Metro regions, with absorption at its highest since Q4 2021 [8] - In-migration in Atlanta is expected to increase by over 20% by year-end 2024 compared to 2023 [10] - Supply dynamics in Washington Metro are favorable, with low competition and annual net inventory growth of 1.8% [12] Company Strategy and Development Direction - The company is focusing on smart home technology, fee strategies, and payroll savings to achieve targeted NOI and FFO upside [25] - Expansion into Sunbelt markets is favored, with a focus on job creation, wage growth, and in-migration [62] - The company is rolling out managed Wi-Fi across its portfolio, expecting significant recurring NOI in the coming years [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Washington Metro portfolio's growth in 2025, anticipating improvement in Atlanta's performance due to favorable supply/demand dynamics [32][33] - Bad debt levels are expected to remain flat year-over-year for 2024, with improvements anticipated in 2025 [38][67] - The company is prioritizing occupancy over rate growth in the current market environment [71] Other Important Information - The company completed renovations on 188 units in Q3, generating an average ROI of approximately 17% [24] - The company published its ESG report, highlighting its commitment to efficiency goals and resident health and wellness [31] Q&A Session Summary Question: Current status of bad debts in Atlanta and expectations for 2025 - Bad debt was approximately 2% of revenue in October, with normalized levels in Washington D.C. below 1% [35] - Improvements in eviction processing and proactive resident engagement are expected to reduce bad debt moving into 2025 [36][38] Question: Factors affecting occupancy in Atlanta - Occupancy issues are attributed to both eviction timelines and elevated supply deliveries [39] - Concessions in Atlanta were offered on about 58% of new leases, averaging approximately 12 days [43] Question: Expectations for occupancy and lease rates in the DMV - Occupancy in Washington Metro is expected to trend down slightly but remain strong, averaging over 96% [48] - New lease rate growth in the DMV is expected to be between 0% and negative 3% [49] Question: Capital expenditures outlook - CapEx is expected to maintain or slightly increase due to ongoing renovation initiatives and managed Wi-Fi rollout [65] Question: Expansion into new markets - The company is looking to expand into Sunbelt markets, focusing on job creation and wage growth [62]

Elme (ELME) came out with quarterly funds from operations (FFO) of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share. This compares to FFO of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -4.17%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.23 per share when it actually produced FFO of $0.23, delivering no surprise.Over the last four quarters, the company ...

| --- | --- | --- | --- | --- | |-------|----------------------|--------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Earnings Release and | Supplemental Information | | | | | | | | | | | | | | | | | | | | | 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 November 4, 2024 Elme Communities Announces Third Quarter 2024 ...

BETHESDA, Md., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Elme Communities (the “Company”) (NYSE: ELME), a multifamily REIT with communities in the Washington, DC metro area and the Atlanta metro area, reported financial and operating results today for the quarter ended September 30, 2024: Financial Results Net loss was $3.0 million, or $0.03 per diluted shareNAREIT FFO was $20.5 million, or $0.23 per diluted shareCore FFO was $20.7 million, or $0.23 per diluted shareNet Operating Income (NOI) was $38.8 million Oper ...

Elme (ELME) has been on a downward spiral lately with significant selling pressure. After declining 5.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

BETHESDA, Md., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Elme Communities ("Elme") (NYSE:ELME), a value-oriented multifamily owner and operator, will release third quarter earnings results after market close on Monday, November 4, 2024. A conference call to discuss these results will be conducted on Tuesday, November 5, 2024, 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: 888-506-0062 International Toll Numbe ...

Investors might want to bet on Elme (ELME) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The power of a ch ...

Financial Data and Key Metrics Changes - The company tightened its 2024 core FFO per share guidance range to $0.91 to $0.95, maintaining a midpoint of $0.93 [13] - Same-store multifamily NOI growth assumption was raised to a range of 0.75% to 1.75% for 2024, driven by stronger-than-expected performance in the Washington Metro portfolio [13][14] - Interest expense for the year is expected to range from $37.5 million to $38.25 million, reflecting fewer rate cuts than initially anticipated [14] Business Line Data and Key Metrics Changes - Effective blended lease rate growth for the same-store portfolio increased to 3.2% in Q2, with renewal lease rate growth at 5.4% and new lease rate growth at 0.2% [8] - Same-store average occupancy increased to 94.6% in Q2, with ending occupancy rising to 95.5% [9] - In Atlanta, occupancy averaged 89.5% during the quarter, improving to 90.6% in July [10] Market Data and Key Metrics Changes - The Washington Metro remains a top-performing apartment market, with deliveries peaking and net inventory ratios normalizing in the low single digits [3][4] - In Atlanta, absorption rates are nearly 60% higher than pre-pandemic levels, with a declining supply overhang [4][5] - The rent-to-income ratio for new leases was 23% in Q2, down from 24% a year ago, indicating a positive credit trend [5] Company Strategy and Development Direction - The company focuses on maintaining affordable rent levels for underserved segments of the rental market while enhancing the Class B living experience [6] - Renovations are a key growth driver, with an identified pipeline of nearly 3,300 homes representing over 35% of the portfolio [11] - The launch of Elme Resident Services aims to streamline operations and enhance efficiencies across resident account management and collections [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing growth in the second half of the year, setting the stage for 2025 [4] - The company anticipates improved demand relative to supply through 2025, with favorable dynamics forecasted for 2026 and 2027 [5] - Management noted that bad debt in the Atlanta portfolio is currently at 6.6%, with expectations for improvement due to legislative changes and internal initiatives [17][19] Other Important Information - The company has entered into a new four-year $500 million revolving credit facility, enhancing its liquidity position [14] - The operational initiatives are on track to achieve an additional $1.7 million to $1.9 million of NOI and FFO in 2024 [13] Q&A Session Summary Question: What is the bad debt situation in Atlanta? - Management reported that bad debt in the Atlanta portfolio is currently at 6.6%, with expectations for improvement due to legislative changes and internal initiatives [17][19] Question: How is same-store revenue shaping up relative to expectations? - Management indicated that revenue is expected to be in the 2.5% to 3% range for 2024, driven by improving trends in bad debt [20][21] Question: What are the occupancy expectations for Atlanta? - Management expects occupancy in Atlanta to remain in the low 90% range through year-end, with gradual improvement anticipated [24] Question: What are the returns on renovations? - The company reported an average ROI of approximately 17% on renovations, with plans for over 475 full renovations this year [11][26] Question: What is the current state of the investment market? - Management noted that the investment market is flat year-over-year, with potential sellers hesitant due to rate cut prospects and upcoming elections [27] Question: How are supply and demand assumptions reflected in the new guidance? - Stronger-than-expected performance in the Washington, D.C. market is driving the new guidance, with continued strength in new leasing and occupancy [36][38]