Elme munities(US:ELME)2025-02-14 21:03Capital Improvements and Sustainability - The company is committed to ongoing capital improvements to maintain and increase property value and income, with major renovations discussed in the Management's Discussion and Analysis section[30]. - In 2024, the company completed recertification of eight properties using the BREEAM In-Use Assessment, demonstrating its commitment to sustainable practices[32]. - The company aims for net zero carbon operation by 2050 and joined the U.S. Department of Energy Better Climate Challenge in 2023 to align greenhouse gas emission reduction goals[33]. Employee Development and Well-being - The company employs 255 individuals, with 188 in community management functions, reflecting its focus on internalizing management operations[41]. - The company supports employee growth through ongoing training and development opportunities, including financial support for industry-specific training[42]. - The company has implemented a wellness program that encourages employees to improve their physical, mental, and financial well-being[45]. - The company is committed to diversity, equity, inclusion, and accessibility, promoting an environment where all employees feel comfortable being their authentic selves[47]. Financial Risk Management - The principal financial market risk faced by the company is interest rate risk, primarily related to refinancing long-term fixed-rate obligations[247]. - The company uses interest rate swap arrangements to mitigate exposure to variability in future cash flows due to changes in interest rates[247]. - The company has a total unsecured fixed rate debt principal of $525 million, with interest payments totaling $104.842 million over the debt maturities[249]. - The interest rate on the unsecured fixed rate debt ranges from 4.1% to 5.7%, with an average rate of 4.7%[249]. - The company has $176 million in unsecured variable rate debt, with a variable interest rate of 5.3%[249]. - The company entered into interest rate swap arrangements to hedge against interest rate fluctuations, with a notional amount of $75 million at a fixed rate of 3.677%[250]. - As of December 31, 2024, the fair value of the interest rate swap contracts was $(913,000), compared to $1.234 million as of December 31, 2023[250]. - The company exercised a one-year extension option on a $125 million term loan, extending its maturity to January 10, 2026[249]. - The company aims to minimize credit risk by dealing with major, creditworthy financial institutions for its derivative instruments[249]. - The company’s debt obligations primarily support general corporate purposes, including real estate acquisitions and working capital needs[250]. - The company has two interest rate swaps effective from January 10, 2025, with fixed rates of 4.719% and 4.720%[250]. - The company monitors the credit ratings of counterparties to minimize credit risk concentration[249].