Elme Communities (ELME) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: 4.16%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 3.10%
• EPS Growth: -900.13%
• Country: US
• Employees: 255
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.40
• Shares Outstanding: 88,161,160
• 10 Day Avg. Volume: 1,636,722
• 30 Day Avg. Volume: 1,637,703
• PEG Ratio: 1.36
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 5.55
• P/FCF Ratio: 14.10
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 8.85
• Enterprise Value/Gross Profit: 22.06
• Enterprise Value/Ebitda: -185.83
• 1Y Price Target: $18.00
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.14
• Revenue Forecast (FY): $239.26M

• Rating: 52 Neutral
• Price Target: $17.00 ▲(0.53% Upside)

Elme Communities faces challenges with profitability and recent corporate restructuring, which are significant concerns. Despite positive technical indicators and a high dividend yield, the negative P/E ratio and corporate events weigh heavily on the stock's outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Elme's properties, enhancing its market position and potential for future earnings.

Cash Flow Generation

Positive operating cash flow suggests good liquidity management, enabling Elme to meet obligations and invest in growth opportunities.

Strategic Partnerships

Partnerships enhance operational efficiency and tenant satisfaction, supporting long-term revenue stability and competitive advantage.

Negative Factors

Profitability Challenges

Persistent profitability issues reflect operational inefficiencies, which could hinder long-term financial health and investor confidence.

Corporate Restructuring

Major restructuring and leadership changes can create instability, impacting strategic direction and operational continuity.

Asset Liquidation Plan

Liquidation plan suggests a shift away from core operations, potentially reducing future revenue streams and altering business model.

Elme Communities Business Overview & Revenue Model

Company Description

Elme Communities (ELME) is a real estate investment trust (REIT) focused on the acquisition, development, and management of multifamily residential properties primarily in the Mid-Atlantic and Southeastern United States. The company aims to provide high-quality living environments for its residents while maximizing returns for its investors. Elme Communities operates in the residential sector, offering a range of apartment communities that cater to diverse demographics and lifestyles, emphasizing both modern amenities and sustainability.

How the Company Makes Money

Elme Communities generates revenue primarily through rental income from its multifamily residential properties. The company leases units to tenants, and the consistent demand for housing in its target markets provides a stable revenue stream. Additionally, Elme may benefit from ancillary income sources such as fees from leasing, parking, and other community services. The company’s revenue model is supported by strategic partnerships with property management firms that enhance operational efficiency and tenant satisfaction. Furthermore, Elme's focus on property redevelopment and modernization can lead to increased rental rates and occupancy levels, thereby contributing to its overall earnings.

Elme Communities Financial Statement Overview

Summary

Elme Communities shows strong revenue growth but struggles with profitability, reflected in negative net profit and EBIT margins. The balance sheet indicates moderate leverage, and while operating cash flow is positive, free cash flow growth is declining.

Income Statement

Elme Communities has experienced a significant revenue growth of 42.6% in the TTM, indicating strong top-line expansion. However, the company is facing profitability challenges with a negative net profit margin of -54.57% and a negative EBIT margin, reflecting operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The debt-to-equity ratio of 0.78 in the TTM suggests moderate leverage, which is manageable but has increased compared to previous years. The return on equity remains negative, indicating that the company is not generating positive returns for shareholders. The equity ratio is stable, providing some financial stability.

Cash Flow

Operating cash flow remains positive, but there is a decline in free cash flow growth by -5.21% in the TTM. The free cash flow to net income ratio is strong at 1.0, indicating that the company is generating cash flow despite net losses, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.96M	241.94M	227.91M	209.38M	169.15M	176.00M
Gross Profit	99.09M	144.37M	139.97M	127.94M	102.24M	106.88M
EBITDA	-11.76M	120.67M	66.40M	85.79M	76.48M	117.02M
Net Income	-134.77M	-13.10M	-52.98M	-30.87M	-21.79M	-15.68M
Balance Sheet
Total Assets	1.69B	1.85B	1.90B	1.87B	1.88B	2.41B
Cash, Cash Equivalents and Short-Term Investments	7.09M	6.14M	5.98M	8.39M	233.60M	7.70M
Total Debt	709.33M	698.95M	679.35M	552.36M	496.95M	987.37M
Total Liabilities	777.68M	763.68M	745.68M	608.82M	558.93M	1.09B
Stockholders Equity	908.90M	1.08B	1.15B	1.26B	1.32B	1.32B
Cash Flow
Free Cash Flow	86.36M	95.03M	84.26M	71.47M	89.16M	54.67M
Operating Cash Flow	86.44M	95.24M	84.67M	73.21M	89.16M	112.99M
Investing Cash Flow	-37.25M	-43.74M	-146.22M	-241.16M	702.17M	65.76M
Financing Cash Flow	-47.00M	-51.43M	60.24M	-56.42M	-565.40M	-185.20M

Elme Communities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELME, the sentiment is Positive. The current price of 16.91 is below the 20-day moving average (MA) of 17.25, below the 50-day MA of 16.91, and above the 200-day MA of 16.31, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELME.

Elme Communities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PGRE	58 Neutral	$1.57B	-14.82	-3.14%	―	-5.29%	54.66%
DEA	58 Neutral	$989.49M	70.73	1.00%	9.38%	11.02%	-30.91%
PDM	55 Neutral	$1.04B	-14.77	-4.45%	5.98%	-1.23%	9.10%
ELME	52 Neutral	$1.53B	-11.30	-13.43%	4.16%	3.10%	-900.13%
HPP	46 Neutral	$610.52M	-0.61	-14.02%	―	-7.89%	-15.88%
JBGS	46 Neutral	$1.25B	-8.41	-10.10%	4.01%	-11.04%	-58.49%

Elme Communities Corporate Events

Elme Communities Announces Special Liquidating Distribution

Elme Communities announced a special liquidating distribution of $14.67 per share, to be paid on January 7, 2026, following the completion of its 19-property portfolio sale on November 12, 2025. The distribution is part of the company’s voluntary Plan of Sale and Liquidation and involves due bills trading on the NYSE, affecting shareholders’ rights to the dividend during a specified period.

Elme Communities Announces CIO Departure Amid Restructuring

On November 10, 2025, Elme Communities announced the mutual separation with Susan Gerock, the Senior Vice President and Chief Information Officer, effective November 14, 2025. This separation is part of a broader restructuring plan following the sale of 19 multifamily assets and the company’s ongoing liquidation process, which includes workforce downsizing to align with its reduced operational scale.

Elme Communities Sells Properties in $1.6B Deal

On November 12, 2025, Elme Communities completed the sale of 19 multifamily communities to Cortland Partners for $1.6 billion, marking the first step in the company’s Plan of Sale and Liquidation. Following this transaction, Elme entered a loan agreement with Goldman Sachs Bank USA for a $520 million term loan, intended to be repaid through property sales. Elme plans to distribute proceeds to shareholders through special liquidating distributions, with the initial distribution expected in January 2026.

Elme Communities Approves Asset Liquidation Plan

On October 30, 2025, Elme Communities held a special meeting of shareholders where three proposals were approved: the sale of 19 multifamily properties to Cortland Partners, the liquidation of the company’s assets, and the compensation for executives related to these transactions. The approval of these proposals marks a significant shift in the company’s operations, with the liquidation plan becoming effective immediately and the property sale expected to close by November 12, 2025.

Elme Communities Plans Asset Sale and Liquidation

Elme Communities reported its third-quarter 2025 financial results, revealing a net loss per diluted share of $1.40, compared to a $0.03 loss in the same period last year. The company is undergoing significant changes, including a pending sale of 19 multifamily communities for approximately $1.6 billion and a plan for sale and liquidation of its remaining assets, subject to shareholder approval on October 30, 2025. Operationally, the company experienced a 1.8% decrease in same-store multifamily NOI and a slight drop in average occupancy. Elme’s available liquidity stood at $321 million, and it recognized a $111.7 million impairment charge for certain properties. The company paid a quarterly dividend of $0.18 per share but does not plan future dividends if the liquidation plan is approved.