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Elme Communities
(NYSE:ELME)
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Rating:44Neutral
Price Target:
$1.50
▲(0.67% Upside)
Action:Reiterated
Date:07/25/26
The score is held down primarily by weak financial performance (persistent losses and a sharp 2025 deterioration) and bearish technicals (price below key moving averages with negative MACD). Valuation provides limited offset—high yield but negative earnings—and corporate events add uncertainty as liquidation proceeds have been revised downward and key asset-sale execution risk remains.
Positive Factors
Cash-generation resilience
Consistent positive operating and free cash flow, including through the 2025 stress year, indicates the portfolio still produces real cash to service debt, cover property expenses and fund wind-down activities. That cash resilience supports debt paydown and liquidating distributions during liquidation.
Negative Factors
Persistent net losses and 2025 collapse
A multi-year history of net losses and a dramatic 2025 income statement breakdown (zero revenue and a very large loss) signal structural operational or non-recurring impairments that weaken the company’s ability to generate accounting profits and complicate any plan to restore recurring earnings post-liquidation.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash-generation resilience
Consistent positive operating and free cash flow, including through the 2025 stress year, indicates the portfolio still produces real cash to service debt, cover property expenses and fund wind-down activities. That cash resilience supports debt paydown and liquidating distributions during liquidation.
Read all positive factors
Elme Communities Key Performance Indicators (KPIs)
Elme Communities (ELME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.95M
Dividend Yield6.82%
Average Volume (3M)1.69M
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth3.10%
EPS Growth-900.13%
CountryUS
Employees255
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-1.75
Shares Outstanding88,857,880
10 Day Avg. Volume1,785,568
30 Day Avg. Volume1,685,824
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)6.42
Price to Sales (P/S)0.00
P/FCF Ratio24.63
Enterprise Value/Market Cap<0.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.11
Revenue Forecast (FY)$67.06M
Elme Communities Business Overview & Revenue Model
Company Description
Elme Communities is a prominent owner and operator of distinctive real estate assets strategically located throughout the Washington D.C. metropolitan region. Leveraging a foundation built on decades of deep experience, specialized expertise, and ...
How the Company Makes Money
Elme Communities makes money primarily by earning rental income from its multifamily apartment portfolio. The core revenue stream is monthly rent paid by residents under lease agreements, which is recognized as rental revenue. In addition to base ...
Elme Communities Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Elme's strategic decision to maximize shareholder value through asset sales, resulting in significant special distributions. While the company has achieved solid financial performance and maintained a strong market position, it faces challenges due to market conditions affecting its cost of capital and requires a lengthy process to complete asset sales.Positive Updates
Strategic Alternatives Review Completion
Elme has completed a strategic alternatives review, resulting in a definitive agreement to sell a portfolio of 19 assets to Cortland for $1.6 billion in cash, expected to maximize shareholder value.
Negative Updates
Market Challenges and Cost of Capital
Despite successes, the current market environment has made it difficult for Elme to lower its cost of capital to scale accretively.
Read all updates
Q2-2025 Updates
Positive
Negative
Strategic Alternatives Review Completion
Elme has completed a strategic alternatives review, resulting in a definitive agreement to sell a portfolio of 19 assets to Cortland for $1.6 billion in cash, expected to maximize shareholder value.
Read all positive updates
Company Guidance
In the Elme Communities Second Quarter 2025 Earnings Conference Call, guidance was primarily focused on their strategic alternatives review process and resulting transactions. Elme announced a definitive agreement to sell a portfolio of 19 assets to Cortland for $1.6 billion in cash, expected to close in the fourth quarter, pending shareholder approval. In addition, Elme plans to sell its remaining assets, aiming to complete these sales over the next 12 months. The company intends to return net proceeds from these sales to shareholders through special distributions, estimated between $17.58 and $18.50 per share. The initial special distribution, post-Cortland transaction, is projected to be between $14.50 and $14.82 per share, with further distributions from remaining asset sales estimated at $2.90 to $3.50 per share. These distributions include the company's quarterly dividend of $0.18 per share. The guidance reflects Elme's strategic focus on maximizing shareholder value amid a challenging market environment.Elme Communities Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 241.94M | 227.91M | 209.38M | 169.15M |
| Gross Profit | -76.60M | 144.37M | 139.97M | 127.94M | 102.24M |
| EBITDA | -44.05M | 120.67M | 66.40M | 85.79M | 76.48M |
| Net Income | -154.16M | -13.10M | -52.98M | -30.87M | -21.79M |
Balance Sheet | |||||
| Total Assets | 2.11B | 1.85B | 1.90B | 1.87B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 6.14M | 5.98M | 8.39M | 233.60M |
| Total Debt | 520.00M | 698.95M | 679.35M | 552.36M | 496.95M |
| Total Liabilities | 1.88B | 763.68M | 745.68M | 608.82M | 558.93M |
| Stockholders Equity | 238.91M | 1.08B | 1.15B | 1.26B | 1.32B |
Cash Flow | |||||
| Free Cash Flow | 62.24M | 95.03M | 84.26M | 71.47M | 89.11M |
| Operating Cash Flow | 62.24M | 95.24M | 84.67M | 73.21M | 89.16M |
| Investing Cash Flow | -26.99M | -43.74M | -146.22M | -241.16M | 702.17M |
| Financing Cash Flow | -34.97M | -51.43M | 60.24M | -56.42M | -565.40M |
Elme Communities Technical Analysis
Negative
1.49
Price Trends
1.69
Negative
1.88
Negative
2.18
Negative
Market Momentum
>-0.01
Negative
49.67
Neutral
23.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELME, the sentiment is Negative. The current price of 1.49 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.69, and below the 200-day MA of 2.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELME.
Elme Communities Risk Analysis
Elme Communities disclosed 29 risk factors in its most recent earnings report. Elme Communities reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Elme Communities Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $1.18B | 119.24 | 0.77% | 7.14% | 13.04% | -47.32% | |
60 Neutral | $1.20B | -14.61 | -5.39% | ― | 0.70% | -17.55% | |
51 Neutral | $804.43M | -1.57 | -18.64% | ― | 2.54% | 54.94% | |
44 Neutral | $143.95M | -0.93 | -40.59% | 7.41% | 3.10% | -900.13% | |
43 Neutral | $881.24M | -4.40 | -9.32% | 4.82% | -1.08% | -37.72% |
* Real Estate Sector Average
ELME
Elme Communities
1.62
-0.91
-36.07%
HPP
Hudson Pacific Properties
13.90
-4.93
-26.18%
PDM
Piedmont Office
9.48
1.77
22.96%
DEA
Easterly Government Properties
24.79
4.51
22.23%
JBGS
JBG Smith Properties
11.48
-7.35
-39.03%
Elme Communities Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Elme Communities Updates Liquidation Plan and Distribution Outlook
Negative
Jul 24, 2026
On July 23, 2026, Elme Communities’ subsidiary agreed to sell Riverside Apartments in Alexandria, Va., a 1,222-unit community with related land, to FPA Multifamily for $250 million, with closing targeted by September 14, 2026, subject to an ...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Elme Communities Faces Setback as Riverside Sale Collapses
Negative
Jun 24, 2026
On June 17, 2026, Elme Communities’ planned $280 million sale of the 1,222-unit Riverside Apartments complex in Alexandria, Va., collapsed when the buyer terminated the purchase agreement during the extended inspection period, triggering a r...
Business Operations and StrategyM&A Transactions
Elme Communities Agrees to Sell Elme Bethesda Property
Negative
May 28, 2026
On May 27, 2026, Elme Bethesda Owner LLC, a subsidiary of Elme Communities, agreed to sell the 193-unit Elme Bethesda apartment community in Bethesda, Maryland, to CAPREIT Acquisition Corporation for $59 million, with a $1 million earnest money de...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Elme Communities Updates Liquidation Progress and Distribution Outlook
Negative
May 11, 2026
On May 11, 2026, Elme Communities reported that it has sold five properties in 2026, including four multifamily assets and its remaining office building, for about $252.7 million, and has signed purchase and sale agreements for four of its remaini...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.