Elme Communities (ELME) AI Stock Analysis

• Market Cap: $193.95M
• Dividend Yield: 4.14%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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: 1,785,568
• 30 Day Avg. Volume: 1,685,824
• PEG Ratio: 1.36
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 5.55
• P/FCF Ratio: 14.13
• Enterprise Value/Market Cap: 4.62
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 9.04
• Enterprise Value/Ebitda: -76.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-34.85% Downside)

The score is primarily limited by weak financial profitability (large net losses) and a strong technical downtrend with oversold readings. Dividend yield and moderate leverage provide partial support, but liquidation-related execution and distribution uncertainty remain meaningful risks.

Positive Factors

Strong Revenue Growth

Sustained 42.6% TTM revenue expansion shows strong leasing and rental demand in Elme’s target markets, supporting cash generation and buyer interest in assets. That top-line strength improves prospects for orderly asset sales and distributions during the multi-quarter wind-down.

Positive Operating Cash Flow

Positive operating cash flow and a FCF-to-net-income ratio of 1.0 indicate core rental operations convert earnings into real cash despite accounting losses. This cash quality enhances near-term liquidity to fund debt paydown and liquidating distributions while sales are completed over coming months.

Large Asset Sale Execution

A $1.6B portfolio sale demonstrates management can execute large, complex dispositions and realize material proceeds. That precedent reduces execution uncertainty for remaining sales, strengthens the balance sheet, and provides tangible funding for creditor repayment and shareholder liquidating distributions.

Negative Factors

Deep Operating Losses

Very large negative margins signal structural operating inefficiencies and high non-recurring or recurring costs that erode equity. Absent asset sales, persistent losses would deplete reserves and force greater reliance on disposals, increasing risk to timing and size of any remaining distributions.

Declining Free Cash Flow Growth

Falling free cash flow growth reduces the company’s internal funding buffer during a multi-quarter liquidation. Even with positive OCF, weaker FCF momentum tightens the margin for transaction costs, loan amortization and distributions, amplifying execution risk if sales slow or costs rise.

Liquidation Execution & Governance Risk

Ongoing leadership turnover and revised lower payout estimates introduce execution and governance risk in a complex wind-down. Retention arrangements and trustee resignations can disrupt continuity, and reduced distribution expectations reflect weaker realizations, increasing uncertainty over final shareholder outcomes.

Elme Communities Business Overview & Revenue Model

Company Description

Elme Communities owns and operates uniquely positioned real estate assets in the Washington Metro area. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. As of October 29, 2020, the Company's portfolio of 45 properties includes approximately 3.7 million square feet of commercial space and 6,863 multifamily apartment units. These 45 properties consist of 22 multifamily properties,15 office properties, and 8 retail centers. Our shares trade on the NYSE. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation's most competitive real estate markets.

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

Strong trailing revenue growth supports the top line, but results are weighed down by steep losses (negative net margin and EBIT margin). Leverage is moderate (debt-to-equity 0.78) and operating cash flow is positive, though 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: Negative
• Last Price: 3.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 3.07 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.68, and above the 200-day MA of 2.53, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 28.82 is Positive, neither overbought nor oversold. The STOCH value of 6.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
DEA	58 Neutral	$1.08B	77.09	1.00%	9.58%	11.02%	-30.91%
PDM	55 Neutral	$1.05B	-14.87	-4.45%	6.09%	-1.23%	9.10%
ELME	47 Neutral	$193.95M	-1.43	-13.43%	4.14%	3.10%	-900.13%
HPP	47 Neutral	$509.95M	-0.51	-14.02%	―	-7.89%	-15.88%
JBGS	46 Neutral	$1.23B	-8.23	-10.10%	4.01%	-11.04%	-58.49%

Elme Communities Corporate Events

Elme Communities Advances Liquidation Plan with Leadership Changes

On January 23, 2026, Elme Communities detailed further steps in its wind-down, including board, executive and financial updates tied to its Plan of Sale and Liquidation. Two trustees, Ellen M. Goitia and Ron D. Sturzenegger, notified the company on January 21, 2026 that they will resign shortly after the filing of the 2025 Form 10-K as part of a planned reduction in board size aligned with the liquidation. The board also approved new compensation and retention arrangements for top executives, replacing prior change-in-control and incentive plans with retention agreements and a new short-term incentive plan that tie payouts to maximizing additional liquidating distributions, accelerating the sale of remaining properties and maintaining efficient operations during the wind-down; current CFO Steven Freishtat will depart shortly after the 2025 Form 10-K is filed, with long-time executive W. Drew Hammond assuming the CFO role and receiving an increased salary and incentive opportunity. Operationally, as of January 23, 2026 Elme had entered into purchase and sale agreements, beyond inspection periods, to sell three of its ten remaining properties for about $155 million, continues to market the remaining seven assets, and is still targeting completion of all property sales by mid-2026 while it downsizes to a lean workforce of roughly 109 employees. Financially, the company updated its estimated total liquidating distributions to between $17.02 and $17.47 per share, including the $14.67 per share initial liquidating distribution paid on January 7, 2026, lowering the expected additional payout range to $2.35–$2.80 per share mainly due to reduced expected sale proceeds for Riverside Apartments and, to a lesser extent, two D.C. properties amid softer local market conditions and slightly higher costs and term loan balances; Elme plans to keep its shares listed on the NYSE during most of this process to preserve liquidity before any later cost-saving delisting decision.

The most recent analyst rating on (ELME) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Elme Communities stock, see the ELME Stock Forecast page.

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.

The most recent analyst rating on (ELME) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Elme Communities stock, see the ELME Stock Forecast page.

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.

The most recent analyst rating on (ELME) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Elme Communities stock, see the ELME Stock Forecast page.

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.

The most recent analyst rating on (ELME) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Elme Communities stock, see the ELME Stock Forecast page.

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.

The most recent analyst rating on (ELME) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Elme Communities stock, see the ELME Stock Forecast page.