Elme munities(US:ELME)2025-10-23 20:17Financial Performance - Elme Communities reported a net loss per diluted share of $1.40 for Q3 2025, compared to a loss of $0.03 in Q3 2024[4]. - For the three months ended September 30, 2025, Elme Communities reported a net loss of $123.514 million compared to a net loss of $2.970 million for the same period in 2024[24]. - The company reported a net loss of $131.8 million for the nine months ended September 30, 2025, compared to a net loss of $10.1 million in the same period of 2024, reflecting a significant increase in losses[47]. - The company reported a net loss of $131,755,000 for the nine months ended September 30, 2025, compared to a net loss of $10,088,000 for the same period in 2024[50]. Revenue and Income Metrics - Real estate rental revenue for Q3 2025 was $62.1 million, an increase from $61.1 million in Q3 2024[20]. - Real estate rental revenue for the nine months ended September 30, 2025, was $185.7 million, up from $180.7 million in the same period of 2024, representing a growth of 0.6%[47]. - Total rental and other property revenues for the nine months ended September 30, 2025, reached $172,377, a 3.3% increase compared to $166,790 for the same period in 2024[57]. - The total Net Operating Income (NOI) for the nine months ended September 30, 2025, was $116.900 million, compared to $114.712 million in 2024[24]. - Same-store multifamily NOI decreased by 1.8% year-over-year, primarily due to higher operating expenses[7]. Funds from Operations - Core FFO per diluted share was $0.22, slightly down from $0.23 in the prior year[4]. - The NAREIT FFO (Basic) for the three months ended September 30, 2025, was $0.12, a decrease from $0.23 in 2024[25]. - Core funds from operations for the three months ended September 30, 2025, were $19.497 million, down from $20.664 million in 2024[25]. - Funds from operations (FFO) for the nine months ended September 30, 2025, were $48,796,000, down 21.6% from $62,224,000 for the same period in 2024[50]. Assets and Liabilities - Total assets as of September 30, 2025, were $1.686 billion, down from $1.846 billion as of December 31, 2024[23]. - The total liabilities increased to $777.680 million as of September 30, 2025, compared to $763.684 million at the end of 2024[23]. - Total liabilities as of September 30, 2025, were $777,680,000, an increase of 3.2% from $754,186,000 on September 30, 2024[49]. - Total shareholders' equity decreased to $908,905,000 as of September 30, 2025, down from $1,098,690,000 on September 30, 2024, a decline of 17.3%[49]. Debt and Liquidity - Available liquidity as of September 30, 2025, was $321 million, consisting of cash and availability under the revolving credit facility[7]. - Year-to-date Net Debt to Adjusted EBITDA ratio was 5.7x, with only $125 million of debt maturing before 2028[7]. - The total long-term debt outstanding as of September 30, 2025, was $709.329 million, with a weighted average interest rate of 4.9%[71]. - The average interest rate on total debt is 4.9%, with scheduled principal payments totaling $711 million[77]. - The company has a revolving credit facility of $500 million that matures in July 2028, with two six-month extension options[78]. Dividends - The company paid a quarterly dividend of $0.18 per share on October 3, 2025, but does not intend to declare future dividends if the liquidation plan is approved[10]. - The company declared a common dividend per share of $0.54 for the nine months ended September 30, 2025, unchanged from the same period in 2024[51]. - The total dividends declared for the nine months ended September 30, 2025, amounted to $47.8 million[85]. Operating Metrics - Average occupancy for the same-store multifamily portfolio was 94.4%, down 0.8% from the prior year[7]. - The average effective monthly rent per home increased by 1.1% to $1,921 in Q3 2025 from $1,900 in Q3 2024[57]. - Total same-store operating expenses for Q3 2025 were $22,644, reflecting a 9.1% increase from $20,759 in Q3 2024[59]. - The operating margin for same-store properties remained stable at 63% for both Q3 2025 and Q3 2024[56]. Impairment and Charges - The company recognized an impairment charge of $111.7 million during the quarter related to properties not included in the portfolio sale[9]. - Real estate impairment for the three months ended September 30, 2025, was $111.719 million, with no impairment recorded in the same period of 2024[24]. - Real estate impairment for depreciable assets was reported at $109,981,000 for the nine months ended September 30, 2025[50]. Community and Property Details - The total multifamily communities consist of 9,374 apartment homes with an average occupancy of 94.6% and an ending occupancy of 94.1%[62]. - The Riverside Apartments in Alexandria, VA, contributed 13% to the total portfolio NOI, with an ending occupancy of 95.0%[62]. - The Elme Druid Hills community in Atlanta, GA, had an average occupancy of 93.5% and an ending occupancy of 93.4%[62]. - The Elme Marietta community experienced a fire on March 24, 2024, resulting in 24 down units, with 15 units placed back into service by September 30, 2025[64].