---

CONTACT:						1775 Eye Street, NW, Suite 1000
Amy Hopkins						Washington, DC 20006
Vice President, Investor Relations						Tel 202-774-3198
E-Mail: ahopkins@elmecommunities.com						Fax 301-984-9610
						www.elmecommunities.com
						April 27, 2023
Elme Communities Announces First Quarter 2023 Results

Elme Communities (the “Company”) (NYSE: ELME), a multifamily REIT with properties in the Washington DC metro area and the Sunbelt, reported financial and operating results today for the quarter ended March 31, 2023:

Financial Results

•Net loss was $3.6 million, or $0.04 per diluted share

•NAREIT FFO was $17.9 million, or $0.20 per diluted share

•Core FFO was $21.5 million, or $0.24 per diluted share, up 20% from the prior year period driven by rental rate growth and the full deployment of our commercial sale proceeds

•Net Operating Income (NOI) was $36.3 million up 18% from the prior year period due primarily to the same factors as Core FFO growth

Operational Highlights

•Same-store multifamily NOI increased by 10.7% compared to the prior year period

•Effective blended Lease Rate Growth was 4.5% during the quarter for our same-store portfolio, comprised of Effective new Lease Rate Growth of 0.7% and Effective renewal Lease Rate Growth of 8.0%

•Average Effective Monthly Rent per Home increased 9.7% compared to the prior year period

•Same-store retention was 64% while achieving strong renewal lease rate growth

•Same-store multifamily Average Occupancy was 95.5% during the quarter, up 50 basis points from the prior quarter

Liquidity Position

•Available liquidity was more than $670 million as of March 31, 2023, consisting of availability under the Company's revolving credit facility and cash on hand

•Annualized first quarter net debt to EBITDA was 4.8x

•The Company has no maturities until 2025 and no secured debt

•In March, the Company executed swaps that will convert the interest rate on its $125 million term loan to a fixed 4.73% rate starting in July 2023 through maturity in January 2025. $100 million of the $125 million term loan is currently hedged through July.

"We delivered a strong first quarter and we remain on track to generate double-digit Core FFO growth this year," said Paul T. McDermott, President and CEO. "We expect very strong NOI growth from our multifamily portfolio and we are well positioned with a geographic mix that provides relative insulation from job losses and mid-market price points that provide meaningful differentiation from new supply. Beyond 2023, we expect to generate operational upside enabled by our infrastructure transformation and technology investments, which we look forward to discussing in detail on our earnings call."

1

---

Elme Communities

Transformation Update

•Transitioned community-level operations to Elme management for approximately 70% of our portfolio. We are on track to complete the transition by the end of July 2023.

•As a result of our transformed internal infrastructure and smart home investment, we expect to generate incremental FFO from 2023 through 2025 of $4.25 to $4.75 million. This expectation is based on current assumptions, which may differ materially from actual results. The FFO impact includes the NOI impact plus approximately $0.3 million of annual interest savings from internalizing community-level cash management, which allows us to maintain a lower average balance on our line of credit.

First Quarter Operating Results

•Multifamily same-store NOI - Same-store NOI increased 10.7% compared to the corresponding prior year period driven primarily by higher base rent and lower concessions. Average occupancy for the quarter decreased 10 basis points from the prior year period to 95.5%.

•Other same-store NOI - The Other same-store portfolio is comprised of one asset, Watergate 600. Other same-store NOI increased by 6.9% compared to the corresponding prior year period due to higher rental income. Watergate 600 was 92.8% occupied and leased at quarter end.

2023 Guidance

"We are tightening and slightly reducing the midpoint of our Core FFO guidance range, which represents 13% Core FFO growth at the midpoint," said Steven Freishtat, Executive Vice President and CFO. "Although we are lowering the top end of our same-store and non-same store NOI guidance ranges given increased visibility into the spring leasing season, we see good momentum in April as new lease rates are trending up and renewal rates remain very strong into May. With over 5.2% of rental rate growth already captured, we feel good about our ability to deliver robust growth this year."

Management is tightening the range of its 2023 Core FFO guidance to $0.96 to $1.02 per fully diluted share. The following assumptions are included in the Core FFO guidance for 2023:

Full Year 2023 Outlook on Key Assumptions and Metrics

•Same-store multifamily NOI growth is now expected to range from 9.0% to 10.5%

•Non-same-store multifamily NOI is now expected to range from $12.75 million to $13.5 million

•Other same-store NOI, which consists solely of Watergate 600, is now expected to range from $12.5 million to $13.25 million due to higher-than-expected operating expenses

•G&A, net of core adjustments, is now expected to range from $25.25 million to $26.25 million, reflecting a $0.6 million decline compared to our prior guidance range driven by our focus on cost saving initiatives and higher allocation of internal time to transition activities including community-level training, expansion of our resident experience technology offerings, and community recruiting efforts

•Interest expense is now expected to range from $28.5 million to $29.25 million, which represents a $0.6 million decline at the midpoint as it incorporates our term loan swap execution, which fixes our term loan interest rate to 4.73% for the second half of 2023

•No acquisitions are assumed in 2023. The Company has acquisition capacity and will update guidance if an acquisition is identified.

•Transformation costs are now expected to range from $5.0 to $6.0 million due to higher allocation of internal time to transformation activities, higher transition expenses, and higher consulting and marketing expenses related to our rebranding

2

---

Elme Communities

Full Year 2023			Prior			Current
Core FFO per diluted share			$0.96 - $1.04			$0.96 - $1.02
Net Operating Income Assumptions
Same-store multifamily NOI growth			9.0% - 11%			9.0% - 10.5%
Non-same-store multifamily NOI (a)			$12.75 million - $13.75 million			$12.75 million - $13.5 million
Non-residential NOI (b)			~$0.75 million			~$0.8 million
Other same-store NOI (c)			$13.0 million - $13.75 million			$12.5 million - $13.25 million
Expense Assumptions
Property management expense			$8.0 million - $8.5 million			$8.0 million - $8.5 million
G&A, net of core adjustments			$25.75 million - $27.0 million			$25.25 million - $26.25 million
Interest expense			$29.0 million - $30.0 million			$28.5 million - $29.25 million
Transformation Costs (d)			$3.0 million - $4.0 million			$5.0 million - $6.0 million
(a) Includes Carlyle of Sandy Springs, Alder Park, Marietta Crossing, and Riverside Development. Guidance does not contemplate any additional acquisitions or dispositions.
(b) Includes revenues and expenses from retail operations at multifamily communities
(c) Consists of Watergate 600
(d) Represents the expected final costs in 2023 related to the internalization of community-level operations

Elme Communities' 2023 Core FFO guidance and outlook are based on a number of factors, many of which are outside the Company's control and all of which are subject to change. Elme Communities may change the guidance provided during the year as actual and anticipated results vary from these assumptions, but Elme Communities undertakes no obligation to do so.

2023 Guidance Reconciliation Table

A reconciliation of projected net loss per diluted share to projected Core FFO per diluted share for the full year ending December 31, 2023 is as follows:

			Low			High
Net loss per diluted share			$(0.09)			$(0.04)
Real estate depreciation and amortization			0.98			0.98
NAREIT FFO per diluted share			0.89			0.94
Core adjustments			0.07			0.08
Core FFO per diluted share			$0.96			$1.02

Dividends

On April 5, 2023, Elme Communities paid a quarterly dividend of $0.18 per share.

Elme Communities announced today that its Board of Trustees has declared a quarterly dividend of $0.18 per share to be paid on July 6, 2023 to shareholders of record on June 22, 2023.

Presentation Webcast and Conference Call Information

The First Quarter 2023 Earnings Call is scheduled for Friday, April 28, 2023 at 10:00 A.M. Eastern Time. Conference Call access information is as follows:

USA Toll Free Number:            1-888-506-0062

International Toll Number:        1-973-528-0011

Conference ID:                704378

The instant replay of the Earnings Call will be available until Friday, May 12, 2023. Instant replay access information is as follows:

3

---

Elme Communities

USA Toll Free Number:            1-877-481-4010

International Toll Number:        1-919-882-2331

Conference ID:                47833

The live on-demand webcast of the Conference Call with presentation slides will be available on the Investor section of Elme Communities' website at www.elmecommunities.com. Online playback of the webcast and presentation slides will be available following the Conference Call.

4

---

Elme Communities

About Elme Communities

Elme Communities (formerly known as Washington Real Estate Investment Trust or WashREIT) is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The company is a multifamily real estate investment trust that owns and operates approximately 8,900 apartment homes in the Washington, DC metro and the Sunbelt, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.

Note: Elme Communities' press releases and supplemental financial information are available on the Company website at www.elmecommunities.com or by contacting Investor Relations at (202) 774-3200.

Forward Looking Statements

Certain statements in our earnings release and on our conference call are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Elme Communities to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Additional factors which may cause the actual results, performance, or achievements of Elme Communities to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements include, but are not limited to: the incremental FFO generated by our transformed internal infrastructure and smart home investment in 2023, 2024 and 2025 and related assumptions; risks associated with our ability to execute on our strategies, including new strategies with respect to our operations and our portfolio, including the acquisition of apartment homes in the Sunbelt markets and our ability to realize any anticipated operational benefits from our internalization of community management functions; the risks associated with ownership of real estate in general and our real estate assets in particular; whether actual Core FFO, Core FFO Growth and NOI growth will be consistent with expectations; the economic health of the areas in which our properties are located, particularly with respect to greater Washington, DC metro region and the larger Sunbelt region; the insulation of our properties from competition from new supply; the risk of failure to enter into and/or complete contemplated acquisitions and dispositions, or at all, within the price ranges anticipated and on the terms and timing anticipated; changes in the composition of our portfolio; risks related to changes in interest rates, including the future of the reference rate used in our existing floating rate debt instruments; reductions in or actual or threatened changes to the timing of federal government spending; the risks related to use of third-party providers; the economic health of our residents; the ultimate duration of the COVID-19 global pandemic, including any mutations thereof, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, the effectiveness and willingness of people to take COVID-19 vaccines, and the duration of associated immunity and efficacy of the vaccines against emerging variants of COVID-19; the impact from macroeconomic factors (including inflation, increases in interest rates, potential economic slowdown or a recession and geopolitical conflicts); compliance with applicable laws and corporate social responsibility goals, including those concerning the environment and access by persons with disabilities; the risks related to not having adequate insurance to cover potential losses; changes in the market value of securities; terrorist attacks or actions and/or cyber-attacks; whether we will succeed in the day-to-day property management and leasing activities that we have previously outsourced; the availability and terms of financing and capital and the general volatility of securities markets; the risks related to our organizational structure and limitations of share ownership; failure to qualify and maintain our qualification as a REIT and the risks of changes in laws affecting REITs; whether our estimated transformation costs for 2023 will be correct; and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2022 Form 10-K filed on February 17, 2023. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We undertake no obligation to update our forward-looking statements or risk factors to reflect new information, future events, or otherwise.

This Earnings Release also includes certain forward-looking non-GAAP information. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these estimates, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable efforts.

5

---

Elme Communities

ELME COMMUNITIES AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)
			Three Months Ended March 31,
OPERATING RESULTS			2023						2022
Revenue
Real estate rental revenue			$	55,809					$	47,804
Expenses
Property operating and maintenance			12,399						10,565
Real estate taxes and insurance			7,122						6,587
Property management			1,769						1,750
General and administrative			6,841						6,939
Transformation costs			2,900						2,223
Depreciation and amortization			21,536						22,200
			52,567						50,264
Real estate operating income (loss)			3,242						(2,460)
Other income (expense)
Interest expense			(6,831)						(5,650)
Loss on extinguishment of debt			(54)						—
Other income			—						386
			(6,885)						(5,264)
Net loss			$	(3,643)					$	(7,724)
Net loss			$	(3,643)					$	(7,724)
Depreciation and amortization			21,536						22,200
NAREIT funds from operations			$	17,893					$	14,476
Non-cash loss on extinguishment of debt			$	54					$	—
Tenant improvements and incentives, net of reimbursements			(10)						(549)
Leasing commissions capitalized			(56)						—
Recurring capital improvements			(2,004)						(1,238)
Straight-line rents, net			(29)						(190)
Non-real estate depreciation & amortization of debt costs			1,267						1,208
Amortization of lease intangibles, net			(237)						(172)
Amortization and expensing of restricted share and unit compensation			1,188						2,081
Adjusted funds from operations			$	18,066					$	15,616

6

---

Elme Communities

						Three Months Ended March 31,
Per share data:						2023						2022
Net loss			(Basic)			$	(0.04)					$	(0.09)
			(Diluted)			$	(0.04)					$	(0.09)
NAREIT FFO			(Basic)			$	0.20					$	0.17
			(Diluted)			$	0.20					$	0.17
Dividends paid						$	0.18					$	0.17
Weighted average shares outstanding - basic						87,649						87,214
Weighted average shares outstanding - diluted						87,649						87,214
Weighted average shares outstanding - diluted (for NAREIT FFO)						87,840						87,253

7

---

Elme Communities

ELME COMMUNITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
			March 31, 2023						December 31, 2022
Assets
Land			$	373,171					$	373,171
Income producing property			1,903,648						1,897,835
			2,276,819						2,271,006
Accumulated depreciation and amortization			(502,104)						(481,588)
Net income producing property			1,774,715						1,789,418
Properties under development or held for future development			31,260						31,260
Total real estate held for investment, net			1,805,975						1,820,678
Cash and cash equivalents			7,044						8,389
Restricted cash			1,487						1,463
Rents and other receivables			16,095						16,346
Prepaid expenses and other assets			24,398						25,730
Total assets			$	1,854,999					$	1,872,606
Liabilities
Notes payable, net			$	521,761					$	497,359
Line of credit			35,000						55,000
Accounts payable and other liabilities			28,583						34,386
Dividend payable			15,869						14,934
Advance rents			1,800						1,578
Tenant security deposits			5,671						5,563
Total liabilities			608,684						608,820
Equity
Shareholders' equity
Preferred shares; $0.01 par value; 10,000 shares authorized; no shares issued or outstanding			—						—
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized: 87,709 and 87,534 shares issued and outstanding, as of March 31, 2023 and December 31, 2022, respectively			877						875
Additional paid in capital			1,731,701						1,729,854
Distributions in excess of net income			(472,503)						(453,008)
Accumulated other comprehensive loss			(14,056)						(14,233)
Total shareholders' equity			1,246,019						1,263,488
Noncontrolling interests in subsidiaries			296						298
Total equity			1,246,315						1,263,786
Total liabilities and equity			$	1,854,999					$	1,872,606

8

---

Elme Communities

The following tables contain reconciliations of net loss to NOI for the periods presented (in thousands):
			Three Months Ended March 31,
			2023						2022
Net loss			$	(3,643)					$	(7,724)
Adjustments:
Property management expense			1,769						1,750
General and administrative expense			6,841						6,939
Transformation costs			2,900						2,223
Real estate depreciation and amortization			21,536						22,200
Interest expense			6,831						5,650
Loss on extinguishment of debt, net			54						—
Other income			—						(386)
Total Net Operating Income (NOI)			$	36,288					$	30,652
Multifamily NOI:
Same-store portfolio			$	29,546					$	26,687
Acquisitions			3,131						576
Development			(58)						—
Non-residential			228						170
Total			32,847						27,433
Other NOI (Watergate 600)			3,441						3,219
Total NOI			$	36,288					$	30,652

9

---

Elme Communities

The following table contains a reconciliation of net loss to core funds from operations for the periods presented (in thousands, except per share data):
						Three Months Ended March 31,
						2023						2022
Net loss						$	(3,643)					$	(7,724)
Add:
Real estate depreciation and amortization						21,536						22,200
NAREIT funds from operations						17,893						14,476
Add:
Structuring expenses						60						—
Loss on extinguishment of debt, net						54						—
Severance expense						394						474
Transformation costs						2,900						2,223
Write-off of pursuit costs						40						—
Relocation expense						186						—
Core funds from operations						$	21,527					$	17,173
						Three Months Ended March 31,
Per share data:						2023						2022
NAREIT FFO			(Basic)			$	0.20					$	0.17
			(Diluted)			$	0.20					$	0.17
Core FFO			(Basic)			$	0.24					$	0.20
			(Diluted)			$	0.24					$	0.20
Weighted average shares outstanding - basic						87,649						87,214
Weighted average shares outstanding - diluted (for NAREIT and Core FFO)						87,840						87,253

10

---

Elme Communities

Non-GAAP Financial Measures

Adjusted EBITDA is earnings before interest expense, taxes, depreciation, amortization, gain/loss on sale of real estate, casualty gain/loss, real estate impairment, gain/loss on extinguishment of debt, gain/loss on interest rate derivatives, severance expense, acquisition expenses and gain from non-disposal activities and transformation costs. Adjusted EBITDA is included herein because we believe it helps investors and lenders understand our ability to incur and service debt and to make capital expenditures. Adjusted EBITDA is a non-GAAP and non-standardized measure and may be calculated differently by other REITs.

Adjusted Funds From Operations (“AFFO”) is a non-GAAP measure. It is calculated by subtracting from FFO (1) recurring improvements, tenant improvements and leasing costs, that are capitalized and amortized and are necessary to maintain our properties and revenue stream (excluding items contemplated prior to acquisition or associated with development / redevelopment of a property) and (2) straight line rents, then adding (3) non-real estate depreciation and amortization, (4) non-cash fair value interest expense and (5) amortization of restricted share compensation, then adding or subtracting the (6) amortization of lease intangibles, (7) real estate impairment and (8) non-cash gain/loss on extinguishment of debt, as appropriate. AFFO is included herein, because we consider it to be a performance measure of a REIT’s ability to incur and service debt and to distribute dividends to its shareholders. AFFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

Core Adjusted Funds From Operations ("Core AFFO") is calculated by adjusting AFFO for the following items (which we believe are not indicative of the performance of Elme Communities' operating portfolio and affect the comparative measurement of Elme Communities' operating performance over time): (1) gains or losses on extinguishment of debt and gains or losses on interest rate derivatives, (2) expenses related to acquisition and structuring activities, (3) non-share-based executive transition costs, severance expenses and other expenses related to corporate restructuring and executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from Core AFFO, as appropriate, (5) relocation expense, (6) transformation costs and (7) write-off of pursuit costs. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core AFFO serves as a useful, supplementary performance measure of Elme Communities' ability to incur and service debt, and distribute dividends to its shareholders. Core AFFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

Core Funds From Operations (“Core FFO”) is calculated by adjusting NAREIT FFO for the following items (which we believe are not indicative of the performance of Elme Communities' operating portfolio and affect the comparative measurement of Elme Communities' operating performance over time): (1) gains or losses on extinguishment of debt and gains or losses on interest rate derivatives, (2) expenses related to acquisition and structuring activities, (3) executive transition costs, severance expenses and other expenses related to corporate restructuring and executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from NAREIT FFO, as appropriate, (5) relocation expense, (6) transformation costs and (7) write-off of pursuit costs. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of Elme Communities' ability to incur and service debt, and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs.

NAREIT Funds From Operations (“FFO”) is defined by 2018 National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) FFO White Paper Restatement, as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) associated with sales of properties, impairments of depreciable real estate and real estate depreciation and amortization. We consider NAREIT FFO to be a standard supplemental measure for equity real estate investment trusts (“REITs”) because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which historically assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, we believe that NAREIT FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs. Our FFO may not be comparable to FFO reported by other real estate investment trusts. These other REITs may not define the term in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. NAREIT FFO is a non-GAAP measure.

Net Operating Income (“NOI”), defined as real estate rental revenue less direct real estate operating expenses, is a non-GAAP measure. NOI is calculated as net income, less non-real estate revenue and the results of discontinued operations (including the gain or loss on sale, if any), plus interest expense, depreciation and amortization, lease origination expenses, general and administrative expenses, acquisition costs, real estate impairment, casualty gain and losses and gain or loss on extinguishment of debt. NOI does not include management expenses, which consist of corporate property management costs and property management fees paid to third parties. NOI is the primary performance measure we use to assess the results of our operations at the property level. We believe that NOI is a useful performance measure because, when compared across periods, it reflects the impact on operations of trends in occupancy rates, rental rates and operating costs on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort

11

---

Elme Communities

operating performance at the property level. As a result of the foregoing, we provide NOI as a supplement to net income, calculated in accordance with GAAP. NOI does not represent net income or income from continuing operations calculated in accordance with GAAP. As such, NOI should not be considered an alternative to these measures as an indication of our operating performance.

Other Definitions

Average Effective Monthly Rent Per Home represents the average of effective rent (net of concessions) for in-place leases plus the market rent for vacant homes, divided by the total number of homes. We believe Average Effective Monthly Rent Per Home is a useful metric in evaluating the average pricing of our homes. It is a component of Residential Revenue, which is used to calculate our NOI. It does not represent actual rental revenue collected per unit.

Average Occupancy is based on average daily occupied apartment homes as a percentage of total apartment homes.

Current Strategy represents the class of each community in our portfolio based on a set of criteria. Our strategies consist of the following subcategories: Class A, Class A-, Class B Value-Add and Class B. A community's class is dependent on a variety of factors, including its vintage, site location, amenities and services, rent growth drivers and rent relative to the market.

•Class A communities are recently-developed, well-located, have competitive amenities and services and command average rental rates well above market median rents.

•Class A- communities have been developed within the past 20 years and feature operational improvements and unit upgrades and command rents at or above median market rents.

•Class B Value-Add communities are over 20 years old but feature operational improvements and strong potential for unit renovations. These communities command average rental rates below median market rents for units that have not been renovated.

•Class B communities are over 20 years old, feature operational improvements and command average rental rates below median market rents.

Debt Service Coverage Ratio is computed by dividing earnings attributable to the controlling interest before interest expense, taxes, depreciation, amortization, real estate impairment, gain on sale of real estate, gain/loss on extinguishment of debt, severance expense, relocation expense, acquisition and structuring expenses and gain/loss from non-disposal activities by interest expense (including interest expense from discontinued operations) and principal amortization.

Debt to Total Market Capitalization is total debt divided by the sum of total debt plus the market value of shares outstanding at the end of the period.

Earnings to Fixed Charges Ratio is computed by dividing earnings attributable to the controlling interest by fixed charges. For this purpose, earnings consist of income from continuing operations (or net income if there are no discontinued operations) plus fixed charges, less capitalized interest. Fixed charges consist of interest expense (excluding interest expense from discontinued operations), including amortized costs of debt issuance, plus interest costs capitalized.

Ending Occupancy is calculated as occupied homes as a percentage of total homes as of the last day of that period.

Lease Rate Growth is defined as the average percentage change in either gross (excluding the impact of concessions) or effective rent (net of concessions) for a new or renewed multifamily lease compared to the prior lease based on the move-in date. The "blended" rate represents the weighted average of new and renewal lease rate growth achieved.

Recurring Capital Improvements represent non-accretive building improvements required to maintain a property's income and value. Recurring capital improvements do not include acquisition capital that was taken into consideration when underwriting the purchase of a building or which are incurred to bring a building up to "operating standard". This category includes improvements made as needed upon vacancy of an apartment. Aside from improvements related to apartment turnover, these improvements include facade repairs, installation of new heating and air conditioning equipment, asphalt replacement, permanent landscaping, new lighting and new finishes.

Retention represents the percentage of multifamily leases renewed that were set to expire in the period presented.

Relocation expenses represent costs associated with the relocation of the corporate headquarters to a new location in the DC metro region.

Same-store Portfolio Properties include properties that were owned for the entirety of the years being compared, and exclude properties under redevelopment or development and properties acquired, sold or classified as held for sale during the years being compared. We categorize our properties as "same-store" or "non-same-store" for purposes of evaluating comparative operating performance. We define development properties as those for which we have planned or ongoing major construction activities on existing or acquired land pursuant to an authorized development plan. Development properties are categorized as same-store when they have reached stabilized occupancy (90%) before the start of the prior year. We define redevelopment properties as those for which we have planned or ongoing significant development and construction activities on existing or acquired buildings pursuant to an authorized plan, which has an impact on current

12

---

Elme Communities

operating results, occupancy and the ability to lease space with the intended result of a higher economic return on the property. We categorize a redevelopment property as same-store when redevelopment activities have been complete for the majority of each year being compared. We currently have two same-store portfolios: "Same-store multifamily" which is comprised of our same-store apartment communities and "Other same-store" which is comprised of our Watergate 600 commercial property.

Transformation Costs include costs related to the strategic shift away from the commercial sector to the residential sector, including the allocation of internal costs, consulting, advisory and termination benefits.

13

---

Table of Contents
March 31, 2023

Schedule						Page
Key Financial Data
			Consolidated Statements of Operations			15
			Consolidated Balance Sheets			16
			Funds From Operations/ Adjusted Funds From Operations			17-18
Portfolio Analysis
			Net Operating Income (NOI) - Multifamily			19
			Same-Store Operating Results - Multifamily			20
			Same-Store Operating Expenses - Multifamily			21
Growth and Strategy
			Acquisition Summary			22
			Schedule of Communities			23-25
Capital Analysis
			Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)			26
			Long Term Debt Analysis			27
			Long Term Debt Maturities			28
			Debt Covenant Compliance			29
			Capital Analysis			30
Reconciliations
			Net Loss to NOI Reconciliations			31

14

---

Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)

									Three Months Ended
OPERATING RESULTS															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Revenues
Real estate rental revenue															$	55,809					$	55,593					$	54,603					$	51,380					$	47,804
Expenses
Property operating and maintenance															(12,399)						(12,126)						(13,092)						(11,747)						(10,565)
Real estate taxes and insurance															(7,122)						(6,578)						(6,469)						(6,837)						(6,587)
Property management															(1,769)						(1,974)						(1,916)						(1,796)						(1,750)
General and administrative															(6,841)						(7,260)						(6,403)						(7,656)						(6,939)
Transformation costs															(2,900)						(3,041)						(2,399)						(2,023)						(2,223)
Depreciation and amortization															(21,536)						(21,851)						(23,632)						(24,039)						(22,200)
															(52,567)						(52,830)						(53,911)						(54,098)						(50,264)
Real estate operating income (loss)															3,242						2,763						692						(2,718)						(2,460)
Other income (expense)
Interest expense															(6,831)						(6,552)						(6,582)						(6,156)						(5,650)
Loss on extinguishment of debt															(54)						—						(4,917)						—						—
Other income															—						258						68						—						386
Net loss															$	(3,643)					$	(3,531)					$	(10,739)					$	(8,874)					$	(7,724)
Per Share Data:
Net loss															$	(0.04)					$	(0.04)					$	(0.12)					$	(0.10)					$	(0.09)
Fully diluted weighted average shares outstanding															87,649						87,491						87,453						87,392						87,214
Percentage of Revenues:
General and administrative expenses															12.3		%				13.1		%				11.7		%				14.9		%				14.5		%
Net loss															(6.5)		%				(6.4)		%				(19.7)		%				(17.3)		%				(16.2)		%
Ratios:
Adjusted EBITDA(1) / Interest expense															4.2		x				4.3		x				4.1		x				4.0		x				4.1		x
______________________________
(1) Adjusted EBITDA is a non-GAAP measure. See "Definitions" on page 11 for the definition of Adjusted EBITDA and page 26 for a reconciliation of Net loss to Adjusted EBITDA.

15

---

Consolidated Balance Sheets (In thousands, except per share data) (Unaudited)

			March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Assets
Land			$	373,171					$	373,171					$	373,171					$	373,171					$	340,046
Income producing property			1,903,648						1,897,835						1,882,235						1,875,307						1,733,326
			2,276,819						2,271,006						2,255,406						2,248,478						2,073,372
Accumulated depreciation and amortization			(502,104)						(481,588)						(461,293)						(441,105)						(421,663)
Net income producing property			1,774,715						1,789,418						1,794,113						1,807,373						1,651,709
Properties under development or held for future development			31,260						31,260						31,232						31,220						31,157
Total real estate held for investment, net			1,805,975						1,820,678						1,825,345						1,838,593						1,682,866
Cash and cash equivalents			7,044						8,389						8,436						44,787						139,711
Restricted cash			1,487						1,463						1,437						1,984						636
Rents and other receivables			16,095						16,346						16,088						16,644						16,120
Prepaid expenses and other assets			24,398						25,730						28,228						32,865						37,391
Total assets			$	1,854,999					$	1,872,606					$	1,879,534					$	1,934,873					$	1,876,724
Liabilities
Notes payable, net			$	521,761					$	497,359					$	497,247					$	497,135					$	497,093
Mortgage notes payable, net			—						—						—						71,576						—
Line of credit			35,000						55,000						43,000						—						—
Accounts payable and other liabilities			28,583						34,386						36,219						39,890						33,184
Dividend payable			15,869						14,934						14,919						14,916						14,924
Advance rents			1,800						1,578						1,489						1,821						1,463
Tenant security deposits			5,671						5,563						5,461						5,439						4,817
Total liabilities			608,684						608,820						598,335						630,777						551,481
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized			—						—						—						—						—
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized			877						875						875						874						874
Additional paid-in capital			1,731,701						1,729,854						1,728,840						1,727,031						1,725,828
Distributions in excess of net income			(472,503)						(453,008)						(434,539)						(408,882)						(385,108)
Accumulated other comprehensive loss			(14,056)						(14,233)						(14,278)						(15,229)						(16,656)
Total shareholders' equity			1,246,019						1,263,488						1,280,898						1,303,794						1,324,938
Noncontrolling interests in subsidiaries			296						298						301						302						305
Total equity			1,246,315						1,263,786						1,281,199						1,304,096						1,325,243
Total liabilities and equity			$	1,854,999					$	1,872,606					$	1,879,534					$	1,934,873					$	1,876,724

16

---

Funds from Operations/ Adjusted Funds From Operations (In thousands, except per share data) (Unaudited)

									Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Funds from operations (FFO)
Net loss															$	(3,643)					$	(3,531)					$	(10,739)					$	(8,874)					$	(7,724)
Real estate depreciation and amortization															21,536						21,851						23,632						24,039						22,200
NAREIT funds from operations (FFO)(1)															17,893						18,320						12,893						15,165						14,476
Loss on extinguishment of debt															54						—						4,917						—						—
Severance expense															394						—						—						—						474
Transformation costs															2,900						3,041						2,399						2,023						2,223
Relocation expense															186						74						—						—						—
Structuring expenses															60						60						121						980						—
Write-off of pursuit costs															40						—						174						—						—
Core FFO(1)															$	21,527					$	21,495					$	20,504					$	18,168					$	17,173
Allocation to participating securities(2)															(70)						(41)						(68)						(51)						(72)
NAREIT FFO per share - basic															$	0.20					$	0.21					$	0.15					$	0.17					$	0.17
NAREIT FFO per share - fully diluted															$	0.20					$	0.21					$	0.15					$	0.17					$	0.17
Core FFO per share - fully diluted															$	0.24					$	0.24					$	0.23					$	0.21					$	0.20
Common dividend per share															$	0.18					$	0.17					$	0.17					$	0.17					$	0.17
Average shares - basic															87,649						87,491						87,453						87,392						87,214
Average shares - fully diluted (for NAREIT FFO and Core FFO)															87,840						87,622						87,564						87,521						87,253

17

---

Funds from Operations/ Adjusted Funds From Operations (continued) (In thousands, except per share data) (Unaudited)

									Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Adjusted funds from operations (AFFO) (1)
NAREIT FFO(1)															$	17,893					$	18,320					$	12,893					$	15,165					$	14,476
Non-cash loss on extinguishment of debt															54						—						4,873						—						—
Tenant improvements and incentives, net of reimbursements															(10)						—						—						(476)						(549)
Leasing commissions capitalized															(56)						(16)						—						—						—
Recurring capital improvements															(2,004)						(2,656)						(2,404)						(1,384)						(1,238)
Straight-line rent, net															(29)						(55)						(112)						(135)						(190)
Non-cash fair value interest expense															—						—						105						105						—
Non-real estate depreciation and amortization of debt costs															1,267						1,147						1,158						1,151						1,208
Amortization of lease intangibles, net															(237)						(337)						(227)						(209)						(172)
Amortization and expensing of restricted share and unit compensation(3)															1,188						1,831						1,917						2,159						2,081
AFFO(1)															18,066						18,234						18,203						16,376						15,616
Cash loss on extinguishment of debt															—						—						44						—						—
Non-share-based severance expense															340						—						—						—						202
Relocation expense															186						74						—						—						—
Structuring expenses															60						60						121						980						—
Transformation costs(4)															2,900						3,041						2,399						1,776						2,162
Write-off of pursuit costs															40						—						174						—						—
Core AFFO(1)															$	21,592					$	21,409					$	20,941					$	19,132					$	17,980
______________________________
(1) See "Definitions" on page 11 for the definitions of non-GAAP measures: NAREIT FFO, Core FFO, AFFO, and Core AFFO.
(2) Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.
(3) Includes share award modifications related to transformation costs.
(4) Excludes share award modifications related to transformation costs.

18

---

Net Operating Income (NOI) - Multifamily (Dollars In thousands)

			Apartment Homes as of 3/31/2023												Three Months Ended
																					March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Rental and other property revenues
Same-store			7,789																		$	45,786					$	45,051					$	44,735					$	42,691					$	42,014
Acquisitions			1,079																		4,957						5,314						4,897						3,650						1,075
Development			—																		—						—						—						—						—
Non-residential(1)			N/A																		248						266						257						305						245
Total rental and other property revenues(2)			8,868																		50,991						50,631						49,889						46,646						43,334
Property operating expenses
Same-store																					16,240						15,390						16,471						15,630						15,327
Acquisitions																					1,826						1,810						1,606						1,593						499
Development																					58						57						52						19						—
Non-residential																					20						67						69						70						75
Total property operating expenses																					18,144						17,324						18,198						17,312						15,901
Net Operating Income (NOI)(3)
Same-store																					29,546						29,661						28,264						27,061						26,687
Acquisitions																					3,131						3,504						3,291						2,057						576
Development																					(58)						(57)						(52)						(19)						—
Non-residential																					228						199						188						235						170
Total NOI																					$	32,847					$	33,307					$	31,691					$	29,334					$	27,433
Same-store metrics
Operating margin(4)																					65%						66%						63%						63%						64%
Retention																					64%						60%						60%						61%						70%
Same-store effective lease rate growth
New																					0.7%						1.5%						11.2%						12.0%						10.1%
Renewal																					8.0%						10.5%						11.6%						11.9%						9.6%
Blended																					4.5%						5.9%						11.4%						12.0%						9.8%
______________________________
(1) See "Definitions" on page 11 for the definitions of non-GAAP measures: NAREIT FFO, Core FFO, AFFO, and Core AFFO.
(2) Utility costs reimbursed by residents are included in real estate rental revenue on our consolidated statements of operations. Utility reimbursements totaled $2.1 million, $1.9 million, $1.9 million,$1.8 million and $1.8 million for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.
(3) NOI is a non-GAAP measure. See "Definitions" on page 11 for the definition of NOI and reconciliation of Net loss to NOI on page 31.
(4) Operating margin is calculated by dividing the same-store NOI (non-GAAP) by same-store rental and other property revenues.

19

---

Same-Store Operating Results - Multifamily (Dollars in thousands, except Average Effective Monthly Rent per Home)

												Rental and Other Property Revenue																		Property Operating Expenses																		Net Operating Income (1)																		Average Occupancy																		Average Effective Monthly Rent per Home
Quarter-to-Date Comparison						Apt Homes						Q1 2023						Q1 2022						% Chg						Q1 2023						Q1 2022						% Chg						Q1 2023						Q1 2022						% Chg						Q1 2023						Q1 2022						% Chg						Q1 2023						Q1 2022						% Chg
Virginia						5,539						$	33,759					$	31,109					8.5		%				$	11,524					$	11,029					4.5		%				$	22,235					$	20,080					10.7		%				95.5		%				95.6		%				(0.1)		%				$	1,919					$	1,754					9.4		%
DC / Maryland						1,520						8,663						8,055						7.5		%				3,177						2,954						7.5		%				5,486						5,101						7.5		%				95.8		%				96.1		%				(0.3)		%				1,869						1,719						8.7		%
Georgia						730						3,364						2,850						18.0		%				$	1,539					$	1,344					14.5		%				1,825						1,506						21.2		%				94.9		%				94.8		%				0.1		%				1,463						1,269						15.3		%
Total						7,789						$	45,786					$	42,014					9.0		%				$	16,240					$	15,327					6.0		%				$	29,546					$	26,687					10.7		%				95.5		%				95.6		%				(0.1)		%				$	1,867					$	1,702					9.7		%
Sequential Comparison						Apt Homes						Q1 2023						Q4 2022						% Chg						Q1 2023						Q4 2022						% Chg						Q1 2023						Q4 2022						% Chg						Q1 2023						Q4 2022						% Chg						Q1 2023						Q4 2022						% Chg
Virginia						5,539						$	33,759					$	33,275					1.5		%				$	11,524					$	10,900					5.7		%				$	22,235					$	22,375					(0.6)		%				95.5		%				94.9		%				0.6		%				$	1,919					$	1,905					0.7		%
DC / Maryland						1,520						8,663						8,438						2.7		%				3,177						3,040						4.5		%				5,486						5,398						1.6		%				95.8		%				95.3		%				0.5		%				1,869						1,857						0.6		%
Georgia						730						3,364						3,338						0.8		%				$	1,539					$	1,450					6.1		%				1,825						1,888						(3.3)		%				94.9		%				95.1		%				(0.2)		%				1,463						1,453						0.7		%
Total						7,789						$	45,786					$	45,051					1.6		%				$	16,240					$	15,390					5.5		%				$	29,546					$	29,661					(0.4)		%				95.5		%				95.0		%				0.5		%				$	1,867					$	1,853					0.8		%
______________________________
(1) NOI is a non-GAAP measure. See "Definitions" on page 11 for the definition of NOI and reconciliation of Net loss to NOI on page 31.

20

---

Same-Store Operating Expenses - Multifamily (In thousands)

Quarter-to-Date Comparison			Q1 2023						Q1 2022						$ Change						% Change									% of Q1 2023 Total
Controllable(1)			$	7,627					$	7,313					$	314					4.3		%							47.0		%
Non-Controllable(2)			8,613						8,014						599						7.5		%							53.0		%
Total same-store operating expenses			16,240						15,327						913						6.0		%							100.0		%
Utility reimbursements			(1,821)						(1,760)						(61)						3.5		%
Total same-store operating expenses, net of utility reimbursements			$	14,419					$	13,567					$	852					6.3		%

Sequential Comparison			Q1 2023						Q4 2022						$ Change						% Change									% of Q1 2023 Total
Controllable			$	7,627					$	7,785					$	(158)					(2.0)		%							47.0		%
Non-Controllable			8,613						7,605						1,008						13.3		%							53.0		%
Total same-store operating expenses			16,240						15,390						850						5.5		%							100.0		%
Utility reimbursements			(1,821)						(1,608)						(213)						13.2		%
Total same-store operating expenses, net of utility reimbursements			$	14,419					$	13,782					$	637					4.6		%

______________________________
(1) Controllable operating expenses consist of:
Payroll, Repairs & Maintenance, Marketing, Administrative and other
(2) Non-Controllable operating expenses consist of:
Utilities, Insurance and Real Estate Taxes

21

---

Acquisition Summary (Dollars in thousands)

Acquisitions
			Location						Acquisition Date												Number of Homes						Ending Occupancy (as of March 31, 2023)						Contract Purchase Price
Carlyle of Sandy Springs			Sandy Springs, GA						February 1, 2022												389						94.6%						$	105,586
Alder Park			Smyrna, GA						May 5, 2022												270						94.8%						69,750
Marietta Crossing			Marietta, GA						May 5, 2022												420						93.1%						107,900
									Total 2022												1,079												$	283,236

22

---

Multifamily Communities
March 31, 2023

Community						Location			Apartment Homes			Current Strategy			Year Acquired			Year Built			Average Occupancy(1)						Ending Occupancy						% of Total Portfolio NOI(1,2)
Virginia
Elme Alexandria						Alexandria, VA			532			B Value-Add			2019			1990			94.9%						94.2%						5%
Cascade at Landmark						Alexandria, VA			277			B Value-Add			2019			1988			94.8%						96.4%						3%
Clayborne						Alexandria, VA			74			A-			N/A			2008			96.7%						97.3%						1%
Riverside Apartments						Alexandria, VA			1,222			B Value-Add			2016			1971			95.7%						95.6%						12%
Bennett Park						Arlington, VA			224			A-			N/A			2007			94.5%						95.5%						4%
Park Adams						Arlington, VA			200			B			1969			1959			97.2%						96.5%						2%
The Maxwell						Arlington, VA			163			A-			N/A			2014			96.5%						96.3%						2%
The Paramount						Arlington, VA			135			B			2013			1984			96.0%						94.1%						2%
The Wellington						Arlington, VA			711			B Value-Add			2015			1960			95.1%						95.8%						7%
Trove						Arlington, VA			401			A			N/A			2020			95.3%						96.0%						6%
Roosevelt Towers						Falls Church, VA			191			B			1965			1964			94.7%						97.4%						2%
Assembly Dulles						Herndon, VA			328			B Value-Add			2019			2000			95.7%						95.1%						4%
Assembly Herndon						Herndon, VA			283			B Value-Add			2019			1991			95.9%						95.4%						3%
Assembly Leesburg						Leesburg, VA			134			B			2019			1986			94.9%						97.0%						1%
Assembly Manassas						Manassas, VA			408			B Value-Add			2019			1986			96.2%						95.3%						4%
The Ashby at McLean						McLean, VA			256			B			1996			1982			96.0%						96.9%						4%
Washington, DC
3801 Connecticut Avenue						Washington, DC			307			B Value-Add			1963			1951			96.1%						96.4%						3%
Kenmore Apartments						Washington, DC			374			B Value-Add			2008			1948			95.7%						94.7%						3%
Yale West						Washington, DC			216			A-			2014			2011			96.3%						94.0%						3%
Maryland
Elme Bethesda						Bethesda, MD			195			B			1997			1986			95.6%						95.4%						2%
Elme Watkins Mill						Gaithersburg, MD			210			B			2019			1975			95.8%						95.7%						2%
Elme Germantown						Germantown, MD			218			B Value-Add			2019			1990			95.2%						97.7%						2%
Georgia
The Oxford						Conyers, GA			240			B			2021			1999			95.5%						96.3%						2%
Assembly Eagles Landing						Stockbridge, GA			490			B			2021			2000			94.6%						94.3%						3%
Total same-store communities									7,789												95.5%						95.6%						82%

23

---

Multifamily Communities (continued)
March 31, 2023

Community						Location			Apartment Homes			Current Strategy			Year Acquired			Year Built			Average Occupancy(1)						Ending Occupancy						% of Total Portfolio NOI(1,2)
Georgia
Marietta Crossing						Marietta, GA			420			B Value-Add			2022			1975			93.3%						93.1%						4%
Carlyle of Sandy Springs						Sandy Springs, GA			389			B Value-Add			2022			1972			94.0%						94.6%						3%
Alder Park						Smyrna, GA			270			B Value-Add			2022			1982			93.6%						94.8%						2%
Total non same-store communities									1,079												93.7%						94.1%						9%
Total multifamily communities									8,868												95.3%						95.4%						91%
______________________________
(1) For the three months ended March 31, 2023.
(2) NOI is a non-GAAP measure. See "Definitions" on page 11 for the definition of NOI and reconciliation of Net loss to NOI on page 31.

24

---

Office Property
March 31, 2023

Property

Location

Year Acquired

Year Built

Net Rentable Square Feet

Leased %(1)

Ending Occupancy(1)

% of Total Portfolio NOI(2,3)

Washington, DC

Watergate 600

Washington, DC

2017

1972/1997

300,000

92.8%

92.8%

9%

______________________________

(1)     The leased and occupied square footage includes short-term lease agreements.

(2)     For the three months ended March 31, 2023.

(3)     NOI is a non-GAAP measure. See "Definitions" on page 11 for the definition of NOI and reconciliation of Net loss to NOI on page 31.

25

---

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (In thousands) (Unaudited)

									Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Adjusted EBITDA(1)
Net loss															$	(3,643)					$	(3,531)					$	(10,739)					$	(8,874)					$	(7,724)
Add/(deduct):
Interest expense															6,831						6,552						6,582						6,156						5,650
Real estate depreciation and amortization															21,536						21,851						23,632						24,039						22,200
Non-real estate depreciation															215						178						189						248						207
Severance expense															394						—						—						—						474
Transformation costs															2,900						3,041						2,399						2,023						2,223
Relocation expense															186						74						—						—						—
Structuring expenses															60						60						121						980						—
Loss on extinguishment of debt															54						—						4,917						—						—
Adjusted EBITDA															$	28,533					$	28,225					$	27,101					$	24,572					$	23,030
______________________________
(1) Adjusted EBITDA is a non-GAAP measure. See "Definitions" on page 11 for the definition of Adjusted EBITDA and reconciliation of Net loss to Adjusted EBITDA on the current page.

26

---

Long Term Debt Analysis (Dollars in thousands)

			March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Balances Outstanding
Secured
Mortgage note payable, net(1)			$	—					$	—					$	—					$	71,576					$	—
Unsecured
Fixed rate bonds			$	397,502					$	397,413					$	397,324					$	397,236					$	397,147
Term loan(2)			124,259						99,946						99,923						99,900						99,946
Credit facility			35,000						55,000						43,000						—						—
Total			$	556,761					$	552,359					$	540,247					$	568,712					$	497,093
Weighted Average Interest Rates
Secured
Mortgage note payable, net			—		%				—		%				—		%				4.3		%				—		%
Unsecured
Fixed rate bonds			4.5		%				4.5		%				4.5		%				4.5		%				4.5		%
Term loan(3)			3.0		%				2.3		%				2.3		%				2.3		%				2.3		%
Credit facility			5.7		%				5.2		%				4.0		%				—		%				—		%
Weighted Average			4.2		%				4.2		%				4.1		%				4.1		%				4.1		%
______________________________
(1) Elme Communities assumed mortgages of $42.8 million and $33.7 million in the acquisitions of Marietta Crossing and Alder Park, respectively, during the second quarter of 2022. The mortgages were extinguished through a defeasance process on September 1, 2022.
(2) Elme Communities entered into a $125.0 million unsecured term loan ("2023 Term Loan") with an interest rate of SOFR (subject to a credit spread adjustment of 10 basis points) plus a margin of 95 basis points. The 2023 Term Loan has a two-year term ending in January 2025, with two one-year extension options. We used the proceeds to prepay the $100.0 million 2018 Term Loan in full and a portion of our borrowings under our unsecured credit facility.
(3) Elme Communities has an interest rate swap to effectively fix the interest rate on a $100.0 million portion of its 2023 Term Loan outstanding through the interest rate swap arrangement's expiration date of July 23, 2023. In March 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that will effectively fix the interest of the 2023 Term Loan beginning on July 22, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025 (see page 28).
Note: The current debt balances outstanding are shown net of discounts, premiums and unamortized debt costs (see page 28).

27

---

Long Term Debt Maturities (in thousands, except average interest rates)
March 31, 2023

									Future Maturities of Debt
Year									Unsecured Debt						Credit Facility						Total Debt						Avg Interest Rate
2023									$	—					$	—					$	—					—%
2024									—						—						—						—%
2025									125,000			(1)			35,000			(2)			160,000						3.6%
2026									—						—						—						—%
2027									—						—						—						—%
Thereafter									400,000						—						400,000						4.5%
Scheduled principal payments									$	525,000					$	35,000					$	560,000					4.2%
Net discounts/premiums									(110)						—						(110)
Loan costs, net of amortization									(3,129)						—						(3,129)
Total maturities									$	521,761					$	35,000					$	556,761					4.2%
Weighted average maturity = 5.9 years
______________________________
(1) Elme Communities entered into an interest rate swap to effectively fix a LIBOR plus 110 basis points floating interest rate to a 2.31% all-in fixed rate for the remaining $100.0 million portion of the 2018 Term Loan. The interest rate was fixed through the term loan maturity of July 2023. The interest rate swap effectively fixes a $100.0 million portion of the 2023 Term Loan at 2.16% through the interest rate swap's expiration date of July 21, 2023. During the quarter, we entered into a $125.0 million unsecured term loan ("2023 Term Loan") with an interest rate of SOFR (subject to a credit spread adjustment of 10 basis points) plus a margin of 95 basis points. The 2023 Term Loan has a two-year term ending in January 2025, with two one-year extension options. We used the proceeds to prepay the $100.0 million 2018 Term Loan in full and a portion of our borrowings under our unsecured credit facility. In March 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that will effectively fix the interest at 4.73% for the 2023 Term Loan beginning on July 22, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025.
(2) The credit facility's term ends in August 2025, with two six-month extension options.

28

---

Debt Covenant Compliance

Unsecured Public Debt Covenants

Unsecured Private Debt Covenants

Notes Payable

Line of Credit and Term Loans

Notes Payable

Quarter Ended March 31, 2023

Covenant

Quarter Ended March 31, 2023

Covenant

Quarter Ended March 31, 2023

Covenant

% of Total Indebtedness to Total Assets(1)

28.9

%

≤ 65.0%

N/A

N/A

N/A

N/A

Ratio of Income Available for Debt Service to Annual Debt Service

3.6

≥ 1.5

N/A

N/A

N/A

N/A

% of Secured Indebtedness to Total Assets(1)

0%

≤ 40.0%

N/A

N/A

N/A

N/A

Ratio of Total Unencumbered Assets(2) to Total Unsecured Indebtedness

3.5

≥ 1.5

N/A

N/A

N/A

N/A

% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3)

N/A

N/A

21.9

%

≤ 60.0%

21.9

%

≤ 60.0%

Ratio of Consolidated Adjusted EBITDA(4) to Consolidated Fixed Charges(5)

N/A

N/A

4.84

≥ 1.50

4.84

≥ 1.50

% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3)

N/A

N/A

0%

≤ 40.0%

0%

≤ 40.0%

% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6)

N/A

N/A

21.9

%

≤ 60.0%

21.9

%

≤ 60.0%

______________________________

(1) Total Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(2) Total Unencumbered Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(4) from unencumbered properties from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(3) Consolidated Total Asset Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from the most recently ended quarter for each asset class, excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this amount, we add the purchase price of acquisitions during the past 6 quarters plus values for development, major redevelopment and low occupancy properties.

(4) Consolidated Adjusted EBITDA is defined as earnings before noncontrolling interests, depreciation, amortization, interest expense, income tax expense, acquisition costs, extraordinary, unusual or nonrecurring transactions including sale of assets, impairment, gains and losses on extinguishment of debt and other non-cash charges.

(5) Consolidated Fixed Charges consist of interest expense excluding capitalized interest and amortization of deferred financing costs, principal payments and preferred dividends, if any.

(6) Unencumbered Pool Value is the sum of unrestricted cash plus the quotient of applying a capitalization rate to the annualized NOI from unencumbered properties from the most recently ended quarter for each asset class excluding NOI from disposed properties, acquisitions during the past 6 quarters, development, major redevelopment and low occupancy properties. To this we add the purchase price of unencumbered acquisitions during the past 6 quarters and values for unencumbered development, major redevelopment and low occupancy properties.

29

---

Capital Analysis (In thousands, except per share amounts)

															Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Market Data
Shares Outstanding															87,709						87,534						87,504						87,392						87,414
Market Price per Share															$	17.86					$	17.80					$	17.56					$	21.31					$	25.50
Equity Market Capitalization															$	1,566,483					$	1,558,105					$	1,536,570					$	1,862,324					$	2,229,057
Total Debt															$	556,761					$	552,359					$	540,247					$	568,712					$	497,093
Total Market Capitalization															$	2,123,244					$	2,110,464					$	2,076,817					$	2,431,036					$	2,726,150
Total Debt to Market Capitalization															0.26		:1				0.26		:1				0.26		:1				0.23		:1				0.18		:1
Earnings to Fixed Charges(1)															0.5x						0.5x						-0.6x						-0.4x						-0.4x
Debt Service Coverage Ratio(2)															4.2x						4.3x						4.1x						4.0x						4.1x
Dividend Data									Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Total Dividends Declared															$	15,852					$	14,938					$	14,918					$	14,900					$	14,890
Common Dividend Declared per Share															$	0.18					$	0.17					$	0.17					$	0.17					$	0.17
Payout Ratio (Core FFO basis)(3)															75.0		%				70.8		%				73.9		%				81.0		%				85.0		%
Payout Ratio (Core AFFO basis)(4)															72.0		%																						81.0		%
______________________________
(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income from continuing operations attributable to the controlling interests plus fixed charges, less capitalized interest. Fixed charges consist of interest expense, including amortized costs of debt issuance, plus interest costs capitalized. The earnings to fixed charges ratio includes loss on extinguishment of debt of $4.9 million for the three months ended September 30, 2022.
(2) Debt service coverage ratio is calculated by dividing Adjusted EBITDA by interest expense and principal amortization. Adjusted EBITDA is a non-GAAP measure. See "Definitions" on page 11 for the definition of Adjusted EBITDA.
(3) Payout Ratio (Core FFO basis) is calculated by dividing the common dividend per share by the core FFO per share. Core FFO is a non-GAAP measure. See "Definitions" on page 11 for the definition of Core FFO.
(4) Payout Ratio (Core AFFO basis) is calculated by dividing the common dividend per share by the core AFFO per share. Core AFFO is a non-GAAP measure. See "Definitions" on page 11 for the definition of Core AFFO.

30

---

Net Loss to NOI Reconciliations (In thousands)

									Three Months Ended
															March 31, 2023						December 31, 2022						September 30, 2022						June 30, 2022						March 31, 2022
Net loss															$	(3,643)					$	(3,531)					$	(10,739)					$	(8,874)					$	(7,724)
Adjustments:
Property management expense															1,769						1,974						1,916						1,796						1,750
General and administrative expense															6,841						7,260						6,403						7,656						6,939
Transformation costs															2,900						3,041						2,399						2,023						2,223
Real estate depreciation and amortization															21,536						21,851						23,632						24,039						22,200
Interest expense															6,831						6,552						6,582						6,156						5,650
Loss on extinguishment of debt, net															54						—						4,917						—						—
Other income															—						(258)						(68)						—						(386)
Total Net operating income (NOI)(1)															$	36,288					$	36,889					$	35,042					$	32,796					$	30,652
Multifamily NOI:
Same-store portfolio															$	29,546					$	29,661					$	28,264					$	27,061					$	26,687
Acquisitions															3,131						3,504						3,291						2,057						576
Development															(58)						(57)						(52)						(19)						—
Non-residential															228						199						188						235						170
Total															32,847						33,307						31,691						29,334						27,433
Other NOI (Watergate 600)															3,441						3,582						3,351						3,462						3,219
Total NOI															$	36,288					$	36,889					$	35,042					$	32,796					$	30,652
______________________________
(1) NOI is a non-GAAP measure. See "Definitions" on page 11 for the definition of NOI and reconciliation of Net loss to NOI on the current page.

31