Elme Communities (ELME)
NYSE:ELME
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Elme Communities
(NYSE:ELME)
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Rating:46Neutral
Price Target:
$2.00
▼(-34.85% Downside)
Action:ReiteratedDate:02/28/26
The score is held down mainly by deteriorated financial performance (large 2025 disruption and ongoing losses) and bearish technicals (below key moving averages with negative MACD). A high dividend yield and still-positive cash flow provide some support, but liquidation-related execution risk and reduced expected proceeds limit confidence.
Positive Factors
Cash generation resilience
Elme continues to generate positive operating and free cash flow even through the 2025 disruption, indicating that core property operations still produce cash. Durable cash generation supports orderly asset dispositions, funds working capital during wind-down, and limits reliance on new financing.
Negative Factors
Persistent net losses and 2025 collapse
Chronic net losses through multiple years and a severe 2025 earnings collapse undermine returns on invested capital and indicate fundamental profitability weaknesses. Persistent losses strain retained capital, limit reinvestment capacity, and raise the risk that asset sales must absorb operating shortfalls or writedowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation resilience
Elme continues to generate positive operating and free cash flow even through the 2025 disruption, indicating that core property operations still produce cash. Durable cash generation supports orderly asset dispositions, funds working capital during wind-down, and limits reliance on new financing.
Read all positive factors
Elme Communities (ELME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$179.49M
Dividend Yield4.14%
Average Volume (3M)1.69M
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth3.10%
EPS Growth-900.13%
CountryUS
Employees255
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)N/A
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-3.52
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.26
Enterprise Value/Ebitda14.36
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 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. Addi...
Elme Communities Key Performance Indicators (KPIs)
Elme Communities Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 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.
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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 | 89.16M |
| 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
3.07
Price Trends
2.28
Negative
2.46
Negative
2.49
Negative
Market Momentum
-0.07
Negative
30.86
Neutral
27.62
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 3.07 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.28, and above the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 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% | |
57 Neutral | $991.68M | 73.21 | 0.98% | 9.58% | 11.02% | -30.91% | |
51 Neutral | $797.79M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
46 Neutral | $179.49M | -9.94 | -18.93% | 4.14% | 3.10% | -900.13% | |
46 Neutral | $1.13B | -8.24 | -10.61% | 4.01% | -11.04% | -58.49% | |
45 Neutral | $307.71M | -0.88 | -17.84% | ― | -7.89% | -15.88% |
* Real Estate Sector Average
ELME
Elme Communities
2.02
-0.57
-22.10%
HPP
Hudson Pacific Properties
5.60
-15.19
-73.06%
PDM
Piedmont Office
6.39
-0.84
-11.62%
DEA
Easterly Government Properties
21.41
-2.92
-12.00%
JBGS
JBG Smith Properties
14.90
-0.40
-2.60%
Elme Communities Corporate Events
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Elme Communities Advances Liquidation Plan with Leadership Changes
Negative
Jan 23, 2026
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 o...
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.