Elme Communities (ELME)
NYSE:ELME
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Elme Communities
(NYSE:ELME)
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Rating:49Neutral
Price Target:
$2.00
▼(-34.85% Downside)
Action:Reiterated
Date:05/12/26
The score is held down primarily by weak and deteriorating profitability (including the sharp 2025 breakdown), with only partial offset from positive cash flow and a more manageable leverage picture. Technicals remain broadly weak, while valuation support comes mainly from the dividend yield. The liquidation update reduces execution risk but the lowered distribution outlook and planned delisting/dissolution add uncertainty.
Positive Factors
Cash Generation
Consistent positive operating and free cash flow across the period indicates the portfolio still produces cash even when accounting earnings are weak. This durable cash generation supports debt repayment, wind-down costs and liquidating distributions over the coming months, reducing short-term liquidity risk.
Negative Factors
Persistent Negative Profitability
A history of multi-year net losses and the 2025 collapse to zero revenue indicate chronic operating weakness or large non-recurring impairments. Sustained unprofitability undermines ability to recover operating returns, increases reliance on asset sales for value realization, and raises structural viability concerns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent positive operating and free cash flow across the period indicates the portfolio still produces cash even when accounting earnings are weak. This durable cash generation supports debt repayment, wind-down costs and liquidating distributions over the coming months, reducing short-term liquidity risk.
Read all positive factors
Elme Communities Key Performance Indicators (KPIs)
Elme Communities (ELME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$178.60M
Dividend Yield4.14%
Average Volume (3M)1.69M
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth3.10%
EPS Growth-900.13%
CountryUS
Employees255
SectorReal Estate
Sector Strength53
IndustryREIT - Office
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 Cap0.78
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-1.82
Enterprise Value/Ebitda-3.16
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 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...
How the Company Makes Money
Elme Communities makes money primarily by leasing apartment units to residents and collecting recurring rental revenue. Key revenue streams include (1) base apartment rent from occupied units, which is the main driver of income; (2) other resident...
Elme Communities Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
Neutral
3.07
Price Trends
2.12
Positive
2.39
Negative
2.46
Negative
Market Momentum
<0.01
Negative
59.05
Neutral
79.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELME, the sentiment is Neutral. The current price of 3.07 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 2.12, and above the 200-day MA of 2.46, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
63 Neutral | $1.07B | 181.57 | 0.85% | 9.58% | 13.93% | -43.58% | |
57 Neutral | $975.15M | -15.87 | -5.70% | 6.09% | -0.50% | -40.17% | |
55 Neutral | $624.38M | ― | -17.20% | ― | -0.88% | 47.15% | |
50 Neutral | $1.06B | -11.54 | -9.32% | 4.01% | -3.31% | 0.50% | |
49 Neutral | $178.60M | -9.47 | -18.93% | 4.14% | 3.10% | -900.13% |
* Real Estate Sector Average
ELME
Elme Communities
2.01
-0.42
-17.25%
HPP
Hudson Pacific Properties
10.80
-3.69
-25.47%
PDM
Piedmont Office
7.95
1.07
15.55%
DEA
Easterly Government Properties
23.67
3.43
16.95%
JBGS
JBG Smith Properties
14.60
-1.29
-8.13%
Elme Communities Corporate Events
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.