Elme munities(US:ELME)2025-02-13 21:18Financial 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].