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Elme Communities Announces Ongoing Liquidation Activities
Elme Communities has announced ongoing liquidation activities and is no longer appropriate for the S&P SmallCap 600.
Elme Updates Liquidation Status, Expects to Sell Three Properties for $155 Million
On Friday after market close, the company provided an update regarding the status of ongoing liquidation activities under the Company's Plan of Sale and Liquidation, approved by Elme shareholders on October 30, 2025, stating: "As of January 23, 2026, the Company has entered into two purchase and sale agreements, which are no longer subject to ongoing inspection periods, pursuant to which it expects to sell three of its remaining properties - Elme Sandy Spring and Elme Marietta located in Georgia and Elme Watkins Mill located in Maryland - to various buyers for aggregate gross proceeds of approximately $155 million. The closing of each of these transactions is expected to occur later in the first quarter of 2026, subject to satisfaction of customary closing conditions, including, in the case of the Maryland property, regulatory requirements related to the sale of multifamily properties in Montgomery County, Maryland. The marketing and sale process with respect to the Company's remaining seven properties remains ongoing. The Company currently expects to finalize the sales of the two remaining Maryland properties, the one remaining Georgia property and Watergate 600, Elme's only office property, in the first quarter or early second quarter of 2026. The Company also expects to commence a formal marketing process for Riverside Apartments later this month and to continue the marketing process for the two D.C. properties, with a goal to have these three remaining properties under contract by mid-May. Elme continues to target completion of the sale of all 10 remaining properties by mid-year 2026." Shares of Elme are down 20% in early Monday trading at $2.35.
Elme Communities announces special liquidating distribution of $14.67 per share
Elme Communities announced that its Board of Trustees has approved a special liquidating distribution of $14.67 per share. The Special Dividend will be paid on January 7, 2026 to shareholders of record at the close of business on December 22, 2025. This Special Dividend represents the company's initial special liquidating distribution following the previously announced completion of Elme's 19-property portfolio sale on November 12, 2025, and takes into account, among other things, net proceeds from a new term loan also entered into on November 12, 2025, repayment of all of the company's other indebtedness, payment of costs and expenses related to the transactions, and establishments of escrows and reserves in connection with the new term loan. The Special Dividend is being made in accordance with the company's voluntary Plan of Sale and Liquidation previously approved by its shareholders.
Elme Communities completes strategic review process, enters PSA with Cortland
Elme Communities has completed its previously announced formal evaluation of strategic alternatives to maximize shareholder value. After an extensive evaluation of strategic alternatives available, the company has entered into a Purchase and Sale Agreement with an affiliate of Cortland Partners, a vertically integrated, multifamily real estate investment, development, and management company, under which Cortland will acquire a 19-asset portfolio from Elme for $1.6B in cash, subject to certain adjustments. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions including the receipt of approval from the company's shareholders. The Portfolio Sale Transaction is not contingent on the receipt of financing by Cortland. In connection with the PSA, the Elme Board of Trustees approved a plan of sale and liquidation. The Plan of Sale and Liquidation contemplates the voluntary liquidation and dissolution of the company by the sale or disposition of all the company's remaining assets. The sale of the 19-asset portfolio in the Portfolio Sale Transaction would be the first step in the Plan of Sale and Liquidation. Elme intends to market for sale its remaining nine multifamily assets, as well as Watergate 600. The Plan of Sale and Liquidation is subject to approval from the company's shareholders. The company intends to commence the marketing and sale of its remaining assets in the near future with a view toward completing these asset sales within the next 12 months.
Elme Communities sees FY24 FFO 92c-94c
"For FY24, same-store multifamily NOI growth is now expected to range from 1.0% to 1.5% Non-same-store multifamily NOI is now expected to range from $5.35 million to $5.75 million"We continue to experience solid demand across our Washington Metro portfolio, resulting in a 0.6% sequential improvement in same-store occupancy," said Paul T. McDermott, President and CEO. "In Atlanta, while we are achieving strong retention and renewal rates, our third quarter performance reflects the combined impacts of elevated supply and slower than expected improvement in bad debt. Looking ahead to 2025, we expect to deliver meaningful improvement in our Atlanta performance due to lower bad debt and we anticipate increasingly favorable supply/demand dynamics thereafter.""We are pleased with the strong performance from our Washington Metro portfolio and how our teams have effectively managed operating expenses," said Steven Freishtat, Executive Vice President and CFO. "However, progress on reducing bad debt across our Atlanta portfolio was slower than anticipated for the quarter.." said the company...As a result, we are tightening our guidance range while reiterating the midpoint of Core FFO guidance." The Company is tightening its Core FFO guidance range for 2024 to $0.92 to $0.94 per fully diluted share.
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