Elme Communities (ELME) investor relations material

Executive summary

• Entered a definitive agreement to sell 19 multifamily assets for $1.6 billion in cash, with closing expected in Q4 2025 pending shareholder approval and customary conditions.

• Board approved a plan of sale and liquidation for remaining assets, aiming for full liquidation and dissolution within 12 months of closing.

• Over 80 potential counterparties were contacted during the strategic review, with the chosen path expected to deliver the greatest value.

• All prior 2025 guidance withdrawn due to the pending sale and liquidation plan.

• Net loss for Q2 2025 was $3.6 million, mainly due to higher general and administrative and interest expenses.

Financial highlights

• Q2 2025 revenue rose to $62.1 million from $60.1 million year-over-year.

• NOI for Q2 2025 was $39.4 million, up from $38.1 million in Q2 2024; same-store multifamily NOI grew 4.5% year-over-year.

• Net loss per diluted share was $(0.04) for Q2 2025, unchanged from Q2 2024.

• Core FFO per diluted share was $0.24, up from $0.23 year-over-year.

• Quarterly dividend of $0.18 per share declared, to be paid on 10/03/2025.

Outlook and guidance

• Portfolio sale and liquidation plan expected to close in Q4 2025, subject to shareholder approval and customary conditions.

• Initial special distribution to shareholders estimated at $14.5–$14.82 per share after the transaction closes.

• Additional distributions from remaining asset sales estimated at $2.9–$3.5 per share, totaling $17.58–$18.5 per share including the regular dividend.

• Asset sales process for remaining properties to begin in Q3, targeting completion within 12 months.

• Upon closing, all outstanding debt will be repaid and regular quarterly distributions are expected to be suspended.