Financial Results - Elme Communities reported a net loss per diluted share of $1.40 for the quarter ended September 30, 2025, compared to a loss of $0.03 in the same quarter of 2024 [1] - Core Funds From Operations (FFO) per diluted share was $0.22, slightly down from $0.23 in the prior year [1] Operational Highlights - Same-store multifamily Net Operating Income (NOI) decreased by 1.8% year-over-year, primarily due to higher operating expenses [7][8] - Average occupancy for the same-store multifamily portfolio was 94.4%, down 0.8% compared to the prior year [7][8] - The average effective monthly rent per home increased by 1.1% compared to the prior year [7] Balance Sheet - As of September 30, 2025, available liquidity was $321 million, consisting of cash on hand and availability under the revolving credit facility [7] - The year-to-date Net Debt to Adjusted EBITDA ratio was 5.7x, with only $125 million of debt maturing before 2028 [7] Portfolio Sale and Liquidation Plan - Elme has entered into a Purchase and Sale Agreement for the sale of 19 multifamily communities for approximately $1.6 billion [4] - The Board of Trustees approved a voluntary plan of sale and liquidation, subject to shareholder approval at a special meeting on October 30, 2025 [4] Impairments - The company recognized an impairment charge of $111.7 million related to several properties not included in the Portfolio Sale Transaction, due to estimated cash flows being less than their carrying values [9] Dividends - On October 3, 2025, Elme paid a quarterly dividend of $0.18 per share, but does not intend to declare future dividends if the Plan of Sale and Liquidation is approved [10]

Financial Data and Key Metrics Changes - The company reported blended net rental growth of 3.9%, significantly outperforming the national market [3] - Core FFO per share increased to $0.20 for the quarter, up $0.03 from the previous quarter [16] - Year-to-date Core FFO is $0.52 per share, compared to $0.49 at the same time last year [16] - Net income available to common shareholders was $0.80 per fully diluted share, reflecting substantial gains from sales during the quarter [16] - The company raised its Core FFO guidance for the second consecutive quarter to $0.67 to $0.68 per share, representing a year-over-year growth of 12% to 13% [22] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [12] - Average revenue per home increased to $4,255, over a 40% premium compared to peers [12] - Same store NOI growth was 1.6% year-to-date, with a decline of 2.7% for the quarter compared to last year [17] - New lease net blended rental growth for the Jersey City waterfront portfolio was 6% during the quarter [14] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to an influx of new supply [5] - New York City led the nation in rental growth at 4.8%, supported by favorable supply-demand dynamics [6] - The broader New York metro area averaged rental growth of 2.3%, with the Jersey City waterfront maintaining low vacancy levels and rental growth of almost 3% [7] Company Strategy and Development Direction - The company is focused on monetizing select non-strategic assets, raising its sales target from $500 million to $650 million [3][4] - The strategy includes reducing net debt to EBITDA, aiming to deleverage to below 8 times by the end of 2026 [4] - The company is investing in innovative technologies to enhance operational efficiency and customer experience [14] Management's Comments on Operating Environment and Future Outlook - Management noted that softening labor markets, declining consumer sentiment, and more stringent immigration policies could present headwinds to the sector [5] - The company expressed confidence in its ability to maintain strong performance despite broader market challenges [12] - Management highlighted the importance of continued operational excellence and disciplined financial management to maximize shareholder value [22] Other Important Information - The company improved its GRESB score to 90, maintaining a five-star rating and ranking first in its peer group [10] - The company disposed of four smaller non-strategic multifamily assets for a combined $387 million, reflecting an average cap rate of 5.1% [9] Q&A Session Summary Question: Follow-up on same store guidance ranges - Management explained that Q3 same store NOI growth was an anomaly due to the resetting of non-controllable expenses and expects to remain within the guidance range for Q4 [27][29] Question: Visibility into rental revenue and renewal rates - Management confirmed strong visibility into renewals, with only about 0.5% of NOI outstanding to renew, and renewal rates settling around 4% to 5% [31] Question: Leverage target and future focus - Management indicated that the focus will be on executing the extended plan while continuing operational improvements, with potential for further amendments to the plan [34][35] Question: Buyer pool for disposed assets - Management noted a broader buyer pool for smaller assets, while larger assets still face a thinner buyer pool [36][38] Question: Disposition guidance and asset sales - Management explained that the increase in disposition guidance reflects improved market conditions and ongoing evaluation of alternatives to create shareholder value [42][53]

Financial Data and Key Metrics Changes - The company reported blended net rental growth of 3.9%, significantly outperforming the national market, with core FFO per share of $0.20, an increase of $0.03 from the previous quarter [3][5] - Core FFO guidance was raised for the second consecutive quarter to $0.67-$0.68, reflecting a 12.5% increase compared to 2024 [5][23] - Net income available to common shareholders was $0.80 per fully diluted share, compared to a loss of $0.10 in the prior year [17] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [12] - Average revenue per home increased to $4,255, representing over a 40% premium compared to peers [13] - Same store NOI growth was 1.6% year-to-date, with a decrease of 2.7% for the quarter compared to last year [18] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to an influx of new supply [6] - New York City led the nation in rental growth at 4.8%, supported by limited supply and strong demand [7] - The broader New York metro area averaged rental growth of 2.3%, with the Jersey City waterfront maintaining low vacancy levels and rental growth of almost 3% [8] Company Strategy and Development Direction - The company is focused on monetizing select non-strategic assets, having sold or entered contracts for $542 million, raising the target to $650 million [3][4] - The strategy aims to strengthen the balance sheet and reduce net debt to EBITDA, which has decreased by 15% to 10x [3][22] - The company is exploring a wider range of financing strategies to reduce the cost of capital over time [4] Management's Comments on Operating Environment and Future Outlook - Management noted potential headwinds from softening labor markets, declining consumer sentiment, and stricter immigration policies [6] - The company anticipates continued outperformance relative to peers, driven by strategic asset sales and operational efficiencies [4][23] - Management expressed confidence in achieving the same store NOI guidance of 2%-2.8% for the year [23] Other Important Information - The company improved its GRESB score to 90, maintaining a five-star rating and ranking first in its peer group [11] - The company’s properties primarily attract affluent young urban professionals with an average household income of over $480,000 [15] Q&A Session Summary Question: Follow-up on same store guidance ranges - Management explained that Q3 same store NOI growth was impacted by non-controllable expenses and expects to remain within guidance for Q4 due to low expense growth in previous quarters [28][29] Question: Visibility into rental revenue - Management confirmed strong visibility into renewals, with only 0.5% of NOI outstanding to renew, and renewal rates settling around 4%-5% [30][31] Question: Leverage target and future focus - Management indicated that the focus will be on executing the current plan while continuing operational improvements, with potential for further amendments to the plan [34][35] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, while larger assets see a thinner buyer pool, primarily consisting of value-add and opportunistic buyers [36][37] Question: Disposition guidance and asset sales - Management explained that the increase in disposition guidance reflects improved market conditions and ongoing evaluation of alternatives to create shareholder value [41][52] Question: Stock repurchases framework - Management stated that while there is significant value in the company, the priority is currently on deleveraging rather than stock repurchases [43][45] Question: Pricing on asset sales - Management confirmed that the pricing on sold assets met expectations, with a blended cap rate of around 5.1% [50]

Financial Data and Key Metrics Changes - The company reported a blended net rental growth of 3.9%, significantly outperforming the national market [3] - Core FFO per share increased to $0.20 for the quarter, up $0.03 from the previous quarter, and guidance for the year was raised to $0.67 to $0.68, reflecting a 12.5% increase over 2024 [5][22] - Net income available to common shareholders was $0.80 per fully diluted share, compared to a loss of $0.10 in the prior year [17] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [12] - Average revenue per home increased to $4,255, representing over a 40% premium compared to peers [12] - Occupancy rate was 95.8% excluding Liberty Towers, and overall occupancy was 94.7% [13] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to new supply [5] - New York City led the nation in rental growth at 4.8%, with limited supply driving robust demand [6] - The Jersey City waterfront maintained low vacancy levels and rental growth of almost 3%, reflecting strong demand [8] Company Strategy and Development Direction - The company is focused on monetizing non-strategic assets, raising its sales target from $500 million to $650 million [3][4] - The strategy includes reducing net debt to EBITDA, aiming to reach below 8 times by the end of 2026 [4] - Continued investment in technology to enhance operational efficiency and customer experience [15] Management's Comments on Operating Environment and Future Outlook - Management noted potential headwinds from softening labor markets and declining consumer sentiment [5] - The company anticipates that the New York City demand-supply imbalance will continue to fuel sustained demand for housing [9] - Management expressed confidence in achieving the same store NOI guidance of 2% to 2.8% for the year [23] Other Important Information - The company improved its GRESB score to 90, maintaining a five-star rating and ranking first in its peer group [11] - Year-to-date controllable expenses grew by only 1.9%, well below inflation [15] Q&A Session Summary Question: Follow-up on same store guidance ranges - Management explained that Q3 same store NOI growth was impacted by non-controllable expenses and expressed confidence in staying within guidance for Q4 [28][29] Question: Visibility into rental revenue and expirations - Management confirmed limited exposure in Q4 and strong visibility into renewals, with renewal rates around 4% to 5% [30][32] Question: Leverage target and future focus - Management indicated that the focus will remain on executing the current plan while evaluating operational initiatives [34] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, while larger assets have a thinner buyer pool [36] Question: Disposition guidance and asset sales - Management clarified that the increase in sales guidance reflects improved market conditions and ongoing evaluations of asset sales [40][50] Question: Share repurchase framework - Management stated that while share buybacks are seen as valuable, the priority is currently on deleveraging [42][44] Question: Transaction market activity - Management observed early signs of renewed interest from Core Plus Capital, indicating a potential shift in market dynamics [51][52]

Financial Data and Key Metrics Changes - The company reported blended net rental growth of 3.9%, significantly outperforming the national market, with core FFO per share of $0.20, an increase of $0.03 from the previous quarter [3][16] - Core FFO year-to-date is $0.52 per share, compared to $0.49 at the same time last year [16] - Net income available to common shareholders was $0.80 per fully diluted share, reflecting substantial gains from sales during the quarter versus a loss of $0.10 for the prior year [16] Business Line Data and Key Metrics Changes - Same store blended net rental growth rate was 3.9% for the quarter, with 3.6% growth in new leases and 4.3% in renewals [11] - Average revenue per home increased to $4,255, over 40% premium compared to peers [11] - Occupancy rate was 95.8% excluding Liberty Towers, and overall occupancy was 94.7% [12] Market Data and Key Metrics Changes - The national multifamily market remains structurally undersupplied, but demand has weakened in select markets due to new supply [4][5] - New York City led the nation in rental growth at 4.8%, supported by limited supply [5] - The Jersey City Waterfront maintained low vacancy levels and rental growth of almost 3% [7] Company Strategy and Development Direction - The company is focused on monetizing select non-strategic assets, raising the sales target from $500 million to $650 million [3][4] - The strategy aims to enhance optionality and explore a wider range of financing strategies, potentially reducing the cost of capital [4] - Continued divestment of non-strategic assets is expected to strengthen the balance sheet and drive earnings growth [3][4] Management's Comments on Operating Environment and Future Outlook - Management noted that softening labor markets and declining consumer sentiment could present headwinds to the sector [5] - The company raised core FFO guidance for the second consecutive quarter to $0.67 to $0.68 per share, reflecting robust year-over-year growth of 12% to 13% [21][22] - The outlook remains positive, with expectations of continued operational performance and strategic asset sales [22] Other Important Information - The company improved its GRESP score by one point to 90, maintaining a five-star rating and ranking first in its peer group [10] - The company has reduced net debt to EBITDA by 15% since the beginning of the year to 10 times [3][20] Q&A Session Summary Question: Follow-up on store guidance ranges - Management explained that Q3 same store NOI growth was an anomaly due to non-controllable expenses and expects to remain within guidance range for Q4 [25][26] Question: Visibility into rental revenue - Management confirmed strong visibility into renewals with only 5% of NOI outstanding to renew, and renewal rates are expected around 4% to 5% [27] Question: Leverage target and future focus - The focus remains on executing the current plan while continuing operational improvements, with potential for further amendments in the future [31][32] Question: Buyer pool for asset sales - Management noted a broader buyer pool for smaller assets, but larger sales have seen a thinner buyer pool [33] Question: Disposition guidance and asset sales - The increase in sales guidance reflects both improved market conditions and the evaluation of additional assets for sale [39][52]

Core Insights - Veris Residential, Inc. reported a significant improvement in financial performance for Q3 2025, with net income per diluted share of $0.80 compared to a loss of $(0.10) in Q3 2024 [2][28] - The company achieved a Core FFO per diluted share of $0.20, up from $0.17 in the same quarter last year, and raised its guidance for Core FFO per share to a range of $0.67 to $0.68 for 2025 [2][10] - The company has successfully executed $542 million in non-core asset sales year-to-date, exceeding its initial target and raising the disposition target to $650 million [4][10] Financial Performance - For the three months ended September 30, 2025, total property revenue increased by 2.2% year-over-year to $68.87 million, while controllable expenses rose by 5.7% [7][30] - Same Store NOI decreased by 2.7% for the quarter but increased by 1.6% year-to-date [7][10] - The company reported a Same Store blended rental growth rate of 3.9% for the quarter and 3.5% year-to-date [10] Operational Highlights - The company achieved a Same Store occupancy rate of 94.7%, up from 93.3% in the previous quarter [6][10] - Veris Residential sold four multifamily properties and one land parcel during Q3, generating $406 million in gross proceeds [8][10] - The company utilized asset sale proceeds to reduce debt by $394 million during the quarter, lowering its Net Debt-to-EBITDA (Normalized) to 10.0x [10][12] Strategic Initiatives - The company is on track to achieve a Net Debt-to-EBITDA (Normalized) of approximately 9.0x upon the anticipated sale of Harborside 8/9 [10] - Veris Residential was recognized as a 2025 Regional Listed Sector Leader and Top Performer by GRESB for its sustainability efforts [10][19] - The company amended its $500 million credit facility to introduce a leverage-based pricing grid, which is expected to enhance financial flexibility [15][16] Dividend Information - The company declared a dividend of $0.08 per share, payable on October 10, 2025 [17][30] - The dividend represents an increase from $0.07 per share in the same period last year [30] Guidance - The company maintained its operational guidance for 2025, projecting Same Store revenue growth between 2.2% and 2.7% [17] - The updated guidance for Core FFO per share reflects a positive adjustment due to one-time tax appeal refunds recognized in Q3 [10][17]

Core Insights - The multifamily sector is experiencing leadership changes with several firms promoting executives and adding new roles to enhance their operational capabilities Group 1: Fogelman - Fogelman appointed Kristy Heuberger as president of investment management and promoted Justin Marshall to president of property services [2][3] - Heuberger will lead the investment management platform, overseeing transactions, portfolio management, asset management, capital formation, and investor relations [3] - Marshall, previously COO, will manage property operations, construction management, and client relations for managed assets [4] Group 2: Grubb Properties - Grubb Properties promoted Todd Williams to president and Harold A. "Skip" Schwartz III to chief investment officer [5] - Williams, who joined Grubb in 2005, will oversee construction, development, and operations teams [5] - Schwartz will focus on expanding partnerships with institutional investors and lead client relations teams in capital formations and asset management [7] Group 3: Waterton - Waterton hired Sean Jacobson as senior vice president of portfolio management [8] - Jacobson will be responsible for multifamily investment strategies and portfolio diversification within the firm's value-add fund platform [8] - He previously held significant roles in real estate investment management, including director of real estate at NexPoint Real Estate Advisors [9]

Core Insights - The Atlanta apartment sales market is showing signs of improvement, driven by record deliveries and demand in 2023 and 2024 [2] - Notable transactions include the sale of Town Laurel Crossing and Manor Barrett, with a total acquisition financing of $352.8 million arranged by Walker & Dunlop [2][3] - Greenwood Star Holdings has also made acquisitions in the Atlanta area, purchasing Parkside Apartments for $31.5 million and Creekside Apartments for $15.5 million, both at significant discounts to comparable sale prices [4][5] Transaction Details - Town Laurel Crossing consists of 360 units located in the Exchange at Gwinnett shopping district, while Manor Barrett has 347 units in the Town Center Commercial District in Kennesaw, Georgia [3] - The acquisition financing for Town Laurel Crossing and Manor Barrett was facilitated by Freddie Mac [3] - Greenwood Star Holdings acquired Parkside Apartments at a 23% discount and Creekside Apartments at a 35% discount to their comparable sale prices [5] Market Conditions - The Atlanta area is experiencing high occupancy rates, with mortgage payments being more than double the monthly rent payments at the acquired properties [6] - Doraville, a submarket of Atlanta, is noted for its resilient fundamentals and competitive rental housing environment [7] - Greenwood Star believes that the properties are well-positioned to deliver significant value to investors due to their integrated property management capabilities and favorable financing terms [7]

Core Perspective - Grant Cardone emphasizes the importance of focusing on income growth rather than frugality for achieving wealth, stating that financial independence is created by growth, not restraint [1][4] Investment Philosophy - Cardone advocates for the use of leverage in investing, distinguishing between "bad debt" for consumer goods and "good debt" for financing assets, demonstrating that debt can be a tool for wealth creation [2] - He warns against letting cash sit idle, labeling it as "trash," and encourages investment in income-producing assets instead of traditional savings accounts [4] Branding and Visibility - Cardone highlights the significance of visibility and personal branding in achieving financial success, asserting that recognition is essential for attracting wealth [3]

Core Insights - Overall mid- and high-rise sales in August decreased by 3% to $5.9 billion, while individual trades increased by 39% year-over-year, driven by the sale of 800 Fifth Avenue in New York City for $810 million [3] - Garden property sales fell by 13% year-over-year to $6.5 billion, mainly due to a decline in portfolio sales [3] - Apartment transactions remain below pre-Federal Reserve rate hike levels, with a noted slowdown in real estate transactions since early 2022 [4] Investment Interest - Institutional equity sources, including insurance companies, opportunity funds, endowments, and pension funds, are showing strong interest in multifamily deals due to favorable future supply-demand dynamics [5] - The recent 25 basis point cut in the Federal Reserve's benchmark interest rate has been positively received, with hopes for further reductions to stimulate sales [5][6] Sales Volume and Trends - Apartment sales volume decreased by 8% year-over-year to $12.5 billion in August, while individual property sales rose by 11% year-over-year to $11.2 billion [7] - Portfolio activity saw a significant decline of 64% year-over-year in August, dropping to $1.3 billion, which negatively impacted overall sales [7] - The Real Capital Analytics commercial property price indexes for multifamily properties increased by 0.2% year-over-year, contrasting with a 6% annual decline a year ago, while cap rates have remained stable at 5.5% since August 2024 [7]