Elme Communities Completes Sale of 19 Multifamily Communities for $1.6 Billion

Core Viewpoint - Elme Communities has completed the sale of 19 multifamily communities to Cortland Partners for $1.6 billion, marking a significant step in its Plan of Sale and Liquidation approved by shareholders [1][2]. Group 1: Portfolio Sale Details - The portfolio sale was finalized after receiving shareholder approval on October 30, 2025 [1]. - The sale is part of a broader strategy to liquidate all of the Company's assets, including nine remaining multifamily properties and Watergate 600 [2]. Group 2: Financial Arrangements - Following the portfolio sale, Elme entered into a loan agreement with Goldman Sachs for a senior secured term loan of $520 million, maturing on November 9, 2026, with a possible one-year extension [3]. - The term loan will be repaid using the net proceeds from the sales of the properties securing the loan [3]. Group 3: Shareholder Returns - Elme plans to return net proceeds from the portfolio sale and part of the new term loan to shareholders through an initial special liquidating distribution estimated between $14.50 and $14.82 per common share [4]. - The initial distribution is expected to be declared later this year and paid in January 2026, pending Board approval [4]. - Additional distributions may occur at the Board's discretion following future asset sales [4]. Group 4: Management's Focus - The Company aims to maximize shareholder value by monetizing remaining assets and plans to complete all remaining sales by June 2026 [5].