Group 1 - Elme (ELME) reported quarterly funds from operations (FFO) of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.24 per share a year ago, representing an FFO surprise of -4.17% [1] - Over the last four quarters, Elme has surpassed consensus FFO estimates just once, while it posted revenues of $61.26 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.13% compared to $58.85 million a year ago [2] - The current consensus FFO estimate for the coming quarter is $0.23 on $61.25 million in revenues, and for the current fiscal year, it is $0.95 on $247.64 million in revenues [7] Group 2 - The sustainability of Elme's stock price movement will depend on management's commentary on the earnings call and the trends in estimate revisions [3][4] - The estimate revisions trend for Elme is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The REIT and Equity Trust - Residential industry, to which Elme belongs, is currently in the bottom 22% of Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Financial Performance - Net loss for Q4 2024 was $3.0 million, or $0.03 per diluted share, while full-year net loss was $13.1 million, or $0.15 per diluted share[4]. - Core FFO for Q4 2024 was $20.7 million, or $0.24 per diluted share, and for the full year 2024, it was $81.8 million, or $0.93 per diluted share[4]. - NAREIT funds from operations (FFO) for Q4 2024 were $20.608 million, compared to $20.990 million in Q4 2023, a decrease of 1.8%[22]. - The net loss for Q4 2024 was $3,015,000, an improvement from a net loss of $3,105,000 in Q4 2023, and the total net loss for the twelve months ended December 31, 2024, was $13,103,000 compared to $52,977,000 in 2023, showing a significant reduction in losses[31]. - Funds from operations (FFO) for the twelve months ended December 31, 2024, were $82,832,000, compared to $77,833,000 in 2023, reflecting an increase of 6.4%[58]. - The company reported a net loss of $13,103,000 for the twelve months ended December 31, 2024, an improvement from a net loss of $52,977,000 in the previous year[77]. Revenue and Income Metrics - Real estate rental revenue for Q4 2024 was $61.264 million, up from $58.852 million in Q4 2023, representing a 2.4% increase[22]. - Real estate rental revenue for the twelve months ended December 31, 2024, was $241,935,000, an increase from $227,911,000 for the same period in 2023, representing a growth of 6.9%[54]. - Total revenue for Q4 2024 was $54,326,000, representing a 5.2% increase compared to Q4 2023's $51,660,000[65]. - Total rental and other property revenues for the twelve months ended December 31, 2024, reached $223,638,000, up from $209,311,000 in 2023, indicating an increase of 6.8%[62]. Operational Metrics - Same-store multifamily NOI increased by 1.7% in Q4 2024 and by 1.4% for the full year 2024 compared to the prior year[4]. - Net operating income (NOI) for Q4 2024 was $38.522 million, slightly down from $38.598 million in Q4 2023[28]. - Net Operating Income (NOI) for the same-store properties for the twelve months ended December 31, 2024, was $135,200,000, compared to $133,331,000 in 2023, reflecting a year-over-year increase of 1.4%[62]. - The operating margin for same-store properties was 63% for the twelve months ended December 31, 2024, slightly down from 64% in 2023[62]. Occupancy and Retention - Same-store retention rate improved to 68% in Q4 2024, up 3% year-over-year, while the average occupancy was 95.0%[4]. - Average occupancy rate for the total portfolio was 94.8% in 2024, slightly down from 95.2% in 2023[67]. - The company’s same-store communities had an ending occupancy of 95.4%, contributing 88% to the total portfolio NOI[70]. Debt and Liquidity - Available liquidity as of December 31, 2024, was approximately $330 million, consisting of revolving credit facility availability and cash on hand[4]. - The annualized fourth quarter Net Debt to Adjusted EBITDA ratio was 5.7x, with only $125 million of debt maturing before 2028[10]. - Total long-term debt outstanding as of December 31, 2024, was $698,953,000, with a weighted average interest rate of 4.7%[79]. - The company has a $125,000,000 term loan maturing on January 10, 2026, which was extended in Q4 2024[79]. - The credit facility balance was $176,000,000 as of December 31, 2024, with an average interest rate of 5.7%[85]. Dividends - A quarterly dividend of $0.18 per share was declared to be paid on April 3, 2025[13]. - The company paid dividends of $0.18 per share for both Q4 2024 and Q4 2023[24]. - The company maintained a common dividend per share of $0.72 for the twelve months ended December 31, 2024, consistent with the previous year[58]. - Total dividends declared for the twelve months ended December 31, 2024, amount to $63,601,000, with a common dividend declared per share of $0.72[94]. Strategic Initiatives - The Board of Trustees has initiated a formal evaluation of strategic alternatives to maximize shareholder value[5]. - The company is undergoing a strategic transformation from the commercial sector to the residential sector, incurring Transformation Costs, which include internal costs and consulting fees[50]. - The company categorizes its properties into different classes (Class A, A-, B Value-Add, and B) based on various factors, which helps in evaluating the performance of its portfolio[41]. Asset Management - Total assets decreased to $1.845 billion as of December 31, 2024, from $1.900 billion as of December 31, 2023[27]. - Total liabilities increased to $763.684 million in 2024 from $745.678 million in 2023[27]. - The company reported a total of $1.796 billion in net real estate held for investment as of December 31, 2024, down from $1.847 billion in 2023[27]. - The company reported no real estate impairment in 2024, contrasting with a $41,860,000 impairment recorded in 2023, indicating a positive shift in asset valuation[31].

Core Insights - Elme Communities has initiated a formal evaluation of strategic alternatives to maximize shareholder value, working with independent financial and legal advisors [4][5][7] - The company has transformed into a multifamily REIT and expanded its footprint, yet its shares continue to trade at a discount compared to private market valuations [5][6] - Elme Communities reported a net loss of $3.0 million for Q4 2024, with Core FFO of $20.7 million, reflecting a focus on improving performance and profitability [6][19] Financial Highlights - For Q4 2024, same-store multifamily NOI increased by 1.7% year-over-year, while average effective monthly rent per home rose by 1.9% [6][19] - The company reported a full-year net loss of $13.1 million for 2024, with Core FFO of $81.8 million, indicating a year-over-year improvement in operational metrics [6][19] - Available liquidity was approximately $330 million as of December 31, 2024, with a strong balance sheet showing only $125 million of debt maturing before 2028 [6][19] 2025 Guidance - Elme expects Core FFO for 2025 to range from $0.91 to $0.97 per fully diluted share, with same-store multifamily revenue growth projected between 2.1% and 3.6% [8][9] - The company anticipates same-store multifamily expense growth of 2.75% to 4.25% and NOI growth of 1.5% to 3.5% for 2025 [9][10] - Key assumptions for 2025 include strong demand trends in the Washington Metro portfolio and improving credit trends in Atlanta [8][9] Dividend Information - Elme Communities declared a quarterly dividend of $0.18 per share, to be paid on April 3, 2025, to shareholders of record on March 19, 2025 [11]

Group 1 - Elme Communities will release its fourth quarter earnings results on February 13, 2025, after market close [1] - A conference call to discuss the earnings results is scheduled for February 14, 2025, at 10:00 am ET [1] - The company provides a toll-free number for the conference call and webcast access information [1] Group 2 - Elme Communities is a multifamily real estate investment trust focused on the Washington, DC metro and the Sunbelt regions [2] - The company aims to provide quality, affordable homes to a mid-market demand that is underserved [2] - Elme Communities is committed to building long-term value for its shareholders through enhanced quality and service [2]

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 ...

Financial Results - The company reported a net loss of $3.0 million, or $0.03 per diluted share for the quarter ended September 30, 2024 [1] - NAREIT FFO was $20.5 million, or $0.23 per diluted share, while Core FFO was $20.7 million, also at $0.23 per diluted share [1] - Net Operating Income (NOI) was $38.8 million [1] Operational Highlights - Same-store multifamily NOI increased by 2.3% compared to the prior year quarter [2] - Effective blended Lease Rate Growth for the Same-Store Portfolio was 2.1%, with new Lease Rate Growth at (1.5)% and renewal Lease Rate Growth at 4.5% [2] - Average Effective Monthly Rent Per Home increased by 2.4% compared to the prior year quarter [2] - Same-store Retention improved to 66%, up 5% from the prior year quarter [2] - Average Occupancy for same-store multifamily was 95.2%, down 0.2% from the prior year quarter [2] Liquidity Position - Available liquidity was approximately $337 million as of September 30, 2024 [3] - The annualized third quarter Net Debt to Adjusted EBITDA ratio was 5.6x [3] - The company has $125 million of debt maturing before 2028 and no secured debt [3] Guidance - The company tightened its Core FFO guidance range for 2024 to $0.92 to $0.94 per fully diluted share [5] - Same-store multifamily NOI growth is now expected to range from 1.0% to 1.5% [6] - Non-same-store multifamily NOI is expected to range from $5.35 million to $5.75 million [6] - Other same-store NOI is expected to range from $12.5 million to $12.75 million [6] Dividends - On October 3, 2024, the company paid a quarterly dividend of $0.18 per share [9] - A quarterly dividend of $0.18 per share has been declared to be paid on January 6, 2025 [9] Company Overview - Elme Communities is a multifamily real estate investment trust (REIT) operating approximately 9,400 apartment homes in the Washington, DC metro and Atlanta metro regions [11] - The company focuses on providing quality, affordable homes to middle-income renters [11]