---

CONTACT:						7550 Wisconsin Ave, Suite 900
Amy Hopkins						Bethesda, MD 20814
Vice President, Investor Relations						Tel 202-774-3253
E-Mail: ahopkins@elmecommunities.com						Fax 301-984-9610
						www.elmecommunities.com
						August 1, 2024
Elme Communities Announces Second Quarter 2024 Results

Elme Communities (the “Company”) (NYSE: ELME), a multifamily REIT with communities in the Washington, DC metro area and the Atlanta metro area, reported financial and operating results today for the quarter ended June 30, 2024:

Financial Results

•Net loss was $3.5 million, or $0.04 per diluted share

•NAREIT FFO was $20.4 million, or $0.23 per diluted share

•Core FFO was $20.5 million, or $0.23 per diluted share

•Net Operating Income (NOI) was $38.1 million

Operational Highlights

•Same-store multifamily NOI increased by 1.3% compared to the prior year period

•Effective blended Lease Rate Growth increased to 3.2% for our Same-Store Portfolio during the quarter, comprised of effective new Lease Rate Growth of 0.2% and effective renewal Lease Rate Growth of 5.4%

•Average Effective Monthly Rent Per Home increased 2.5% compared to the prior year period for our Same-Store Portfolio

•Same-store Retention was 65% while achieving strong renewal Lease Rate Growth

•Same-store multifamily Average Occupancy was 94.6% during the quarter, down 0.8% compared to the prior year period and up 0.2% compared to the prior quarter. Same-store multifamily Average Occupancy averaged 95.3% in July, up an additional 0.7% since quarter end.

•Same-store multifamily Ending Occupancy was 95.5%, down 0.2% compared to the prior year period and up 0.4% compared to the prior quarter.

Liquidity Position

•Subsequent to quarter end, the Company amended and restated its credit agreement. The amended and restated credit agreement provides for a $500 million revolving credit facility with an accordion feature that allows the Company to increase the facility to up to $1.0 billion, subject to the lenders’ additional commitments, and extends the maturity from August 2025 to July 2028 with two six-month extension options.

•Availability on the Company's revolving credit facility was approximately $320 million as of August 1, 2024

•Annualized second quarter Net Debt to Adjusted EBITDA ratio was 5.6x

•The Company has a strong balance sheet with $125 million of debt maturing before 2028 and no secured debt

1

---

Elme Communities

“The positive momentum we began to experience in April has continued, and blended lease rate growth and occupancy improved sequentially during the second quarter and further increased in July,” said Paul T. McDermott, President and CEO. “The demand patterns that we are seeing in Northern Virginia are exceptional, and we are tightening and raising the midpoint of our same-store multifamily NOI assumption due to better-than-expected Washington Metro performance. While the Atlanta market is experiencing an unprecedented level of new supply, our operating fundamentals are showing stability with modest improvement, supported by strong retention and renewal rates.”

Second Quarter Operating Results

•Multifamily same-store NOI - Same-store NOI increased 1.3% compared to the corresponding prior year period driven primarily by higher base rent. Average Occupancy for the quarter decreased 80 basis points from the prior year period to 94.6%.

•Other same-store NOI - The Other same-store portfolio is comprised of one asset, Watergate 600. Other same-store NOI decreased by 1.3% compared to the corresponding prior year period due to higher operating expenses. Watergate 600 was 87.8% occupied and leased at quarter end.

Guidance

Elme is tightening its Core FFO guidance range for 2024 to $0.91 to $0.95 from $0.90 to $0.96 per fully diluted share. The following assumptions are included in the Core FFO guidance for 2024:

Full Year 2024 Outlook on Key Assumptions and Metrics

•Same-store multifamily NOI growth is now expected to range from 0.75% to 1.75%

•Non-same-store multifamily NOI is now expected to range from $5.35 million to $6.15 million

•Other same-store NOI, which consists solely of Watergate 600, is now expected to range from $12.25 million to $12.75 million

•Property management expense is expected to range from $8.5 million to $9.0 million

•G&A, net of core adjustments, is expected to range from $24.25 million to $25.25 million

•Interest expense is now expected to range from $37.5 million to $38.25 million

•Does not consider any potential future acquisitions or dispositions in 2024

Full Year 2024
Core FFO per diluted share			$0.91 - $0.95
Net Operating Income Assumptions
Same-store multifamily NOI growth (a)			0.75% - 1.75%
Non-same-store multifamily NOI (b)			$5.35 million - $6.15 million
Other same-store NOI (c)			$12.25 million - $12.75 million
Expense Assumptions
Property management expense			$8.5 million - $9.0 million
G&A, net of core adjustments			$24.25 million - $25.25 million
Interest expense			$37.5 million - $38.25 million
(a) Includes revenue and expenses from retail operations at multifamily communities
(b) Includes Elme Druid Hills and Riverside Development
(c) Consists of Watergate 600

2

---

Elme Communities

Elme Communities' 2024 Core FFO guidance and outlook are based on a number of factors, many of which are outside the Company's control, including economic factors such as inflation and interest rate changes, 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.

2024 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, 2024 is as follows:

			Low			High
Net loss per diluted share			$(0.17)			$(0.13)
Real estate depreciation and amortization			1.09			1.09
NAREIT FFO per diluted share			0.92			0.96
Core adjustments			(0.01)			(0.01)
Core FFO per diluted share			$0.91			$0.95

Dividends

On July 3, 2024, 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 October 3, 2024 to shareholders of record on September 19, 2024.

Presentation Webcast and Conference Call Information

The Second Quarter 2024 Earnings Call is scheduled for Friday, August 2, 2024 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:                222443

The instant replay of the Earnings Call will be available until Friday, August 16, 2024. Instant replay access information is as follows:

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

International Toll Number:        1-919-882-2331

Conference ID:                50778

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.

About Elme Communities

Elme Communities 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 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, 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.

3

---

Elme Communities

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 risks associated with ownership of real estate in general and our real estate assets in particular; our ability to work through elevated eviction backlogs; our ability to benefit from core growth drivers across our Washington Metro communities and end the year in a strong position; our ability to ramp up renovations over the course of this year; our ability to achieve above market growth after 2024 driven by renovations; the economic health of the areas in which our properties are located, particularly with respect to the greater Washington, DC metro and Sunbelt regions; 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 risk of failure to enter into and/or complete acquisitions and dispositions; changes in the composition of our portfolio; reductions in or actual or threatened changes to the timing of federal government spending; the economic health of our residents; the impact from macroeconomic factors (including inflation, increases in interest rates, potential economic slowdowns or recessions and geopolitical conflicts); risks related to our ability to control our expenses if revenues decrease; compliance with applicable laws and corporate social responsibility goals, including those concerning the environment and access by persons with disabilities; 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; and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2023 Form 10-K filed on February 16, 2024. 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. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Please see the following pages for the corresponding definitions and reconciliations of such non-GAAP financial measures.

4

---

Elme Communities

ELME COMMUNITIES AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)
			Three Months Ended June 30,												Six Months Ended June 30,
OPERATING RESULTS			2024						2023						2024						2023
Revenue
Real estate rental revenue			$	60,103					$	56,599					$	119,616					$	112,408
Expenses
Property operating and maintenance (1)			13,996						13,325						27,460						25,664
Real estate taxes and insurance (1)			7,986						6,933						16,241						14,115
Property management			2,175						2,178						4,393						3,947
General and administrative			6,138						6,680						12,334						13,521
Transformation costs			—						2,454						—						5,354
Depreciation and amortization			23,895						21,415						48,838						42,951
			54,190						52,985						109,266						105,552
Real estate operating income (loss)			5,913						3,614						10,350						6,856
Other income (expense)
Interest expense			(9,384)						(6,794)						(18,878)						(13,625)
Loss on extinguishment of debt			—						—						—						(54)
Other income			—						569						1,410						569
			(9,384)						(6,225)						(17,468)						(13,110)
Net loss			$	(3,471)					$	(2,611)					$	(7,118)					$	(6,254)
Net loss			$	(3,471)					$	(2,611)					$	(7,118)					$	(6,254)
Depreciation and amortization			23,895						21,415						48,838						42,951
NAREIT funds from operations			$	20,424					$	18,804					$	41,720					$	36,697
Non-cash loss on extinguishment of debt			$	—					$	—					$	—					$	54
Tenant improvements and incentives, net of reimbursements			—						—						—						(10)
Leasing commissions capitalized			—						—						—						(56)
Recurring capital improvements			(2,144)						(2,456)						(4,915)						(4,460)
Straight-line rents, net			25						(57)						40						(86)
Non-real estate depreciation & amortization of debt costs			1,259						1,276						2,429						2,543
Amortization of lease intangibles, net			(163)						(178)						(325)						(415)
Amortization and expensing of restricted share and unit compensation			1,045						1,346						2,135						2,534
Adjusted funds from operations			$	20,446					$	18,735					$	41,084					$	36,801
______________________________
(1) Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation.

5

---

Elme Communities

						Three Months Ended June 30,												Six Months Ended June 30,
Per share data:						2024						2023						2024						2023
Net loss			(Basic)			$	(0.04)					$	(0.03)					$	(0.08)					$	(0.07)
			(Diluted)			$	(0.04)					$	(0.03)					$	(0.08)					$	(0.07)
NAREIT FFO			(Basic)			$	0.23					$	0.21					$	0.47					$	0.42
			(Diluted)			$	0.23					$	0.21					$	0.47					$	0.42
Dividends paid						$	0.18					$	0.18					$	0.36					$	0.36
Weighted average shares outstanding - basic						87,910						87,741						87,898						87,695
Weighted average shares outstanding - diluted						87,910						87,741						87,898						87,695
Weighted average shares outstanding - diluted (for NAREIT FFO)						87,975						87,785						87,936						87,813

6

---

Elme Communities

ELME COMMUNITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
			June 30, 2024						December 31, 2023
Assets
Land			$	383,808					$	384,097
Income producing property			1,976,127						1,960,020
			2,359,935						2,344,117
Accumulated depreciation and amortization			(573,054)						(528,024)
Net income producing property			1,786,881						1,816,093
Properties under development or held for future development			30,980						30,980
Total real estate held for investment, net			1,817,861						1,847,073
Cash and cash equivalents			5,629						5,984
Restricted cash			2,263						2,554
Rents and other receivables			12,575						17,642
Prepaid expenses and other assets			23,147						26,775
Total assets			$	1,861,475					$	1,900,028
Liabilities
Notes payable, net			$	522,734					$	522,345
Line of credit			156,000						157,000
Accounts payable and other liabilities			37,283						38,997
Dividend payable			15,905						15,863
Advance rents			5,074						5,248
Tenant security deposits			6,334						6,225
Total liabilities			743,330						745,678
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: 88,011 and 87,867 shares issued and outstanding, as of June 30, 2024 and December 31, 2023, respectively			880						879
Additional paid in capital			1,737,941						1,735,530
Distributions in excess of net income			(608,310)						(569,391)
Accumulated other comprehensive loss			(12,651)						(12,958)
Total shareholders' equity			1,117,860						1,154,060
Noncontrolling interests in subsidiaries			285						290
Total equity			1,118,145						1,154,350
Total liabilities and equity			$	1,861,475					$	1,900,028

7

---

Elme Communities

The following tables contain reconciliations of net loss to NOI and same-store NOI for the periods presented (in thousands):
			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Net loss			$	(3,471)					$	(2,611)					$	(7,118)					$	(6,254)
Adjustments:
Property management expense			2,175						2,178						4,393						3,947
General and administrative expense			6,138						6,680						12,334						13,521
Transformation costs			—						2,454						—						5,354
Real estate depreciation and amortization			23,895						21,415						48,838						42,951
Interest expense			9,384						6,794						18,878						13,625
Loss on extinguishment of debt			—						—						—						54
Other income			—						(569)						(1,410)						(569)
Total Net Operating Income (NOI)			$	38,121					$	36,341					$	75,915					$	72,629
Multifamily NOI:
Same-store Portfolio			$	33,516					$	33,100					$	66,536					$	66,005
Acquisitions			1,411						—						2,961						—
Development			(57)						(54)						(114)						(112)
Total			34,870						33,046						69,383						65,893
Other NOI (Watergate 600)			3,251						3,295						6,532						6,736
Total NOI			$	38,121					$	36,341					$	75,915					$	72,629

8

---

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 June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Net loss						$	(3,471)					$	(2,611)					$	(7,118)					$	(6,254)
Add:
Real estate depreciation and amortization						23,895						21,415						48,838						42,951
NAREIT funds from operations						20,424						18,804						41,720						36,697
Add:
Structuring expenses						60						—						60						60
Loss on extinguishment of debt						—						—						—						54
Severance expense						64						—						64						394
Transformation costs						—						2,454						—						5,354
Write-off of pursuit costs						—						9						—						49
Relocation expense						—						134						—						320
Gain on land easements						—						—						(1,410)						—
Core funds from operations						$	20,548					$	21,401					$	40,434					$	42,928
						Three Months Ended June 30,												Six Months Ended June 30,
Per share data:						2024						2023						2024						2023
NAREIT FFO			(Basic)			$	0.23					$	0.21					$	0.47					$	0.42
			(Diluted)			$	0.23					$	0.21					$	0.47					$	0.42
Core FFO			(Basic)			$	0.23					$	0.24					$	0.46					$	0.49
			(Diluted)			$	0.23					$	0.24					$	0.46					$	0.49
Weighted average shares outstanding - basic						87,910						87,741						87,898						87,695
Weighted average shares outstanding - diluted (for NAREIT and Core FFO)						87,975						87,785						87,936						87,813

9

---

Elme Communities

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands):
			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Net loss			$	(3,471)					$	(2,611)					$	(7,118)					$	(6,254)
Add/(deduct):
Interest expense			9,384						6,794						18,878						13,625
Real estate depreciation and amortization			23,895						21,415						48,838						42,951
Non-real estate depreciation			197						222						308						437
Severance expense			64						—						64						394
Transformation costs			—						2,454						—						5,354
Relocation expense			—						134						—						320
Structuring expenses			60						—						60						60
Loss on extinguishment of debt			—						—						—						54
Write-off of pursuit costs			—						9						—						49
Gain on land easements			—						—						(1,410)						—
Adjusted EBITDA			$	30,129					$	28,417					$	59,620					$	56,990

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, gain from non-disposal activities, adjustment to deferred taxes, write-off of pursuit costs, Transformation Costs and gain on land easements. 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, (7) write-off of pursuit costs, (8) adjustment to deferred taxes and (9) gain on land easements. 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, (7) write-off of pursuit costs, (8) adjustment to deferred taxes and (9) gain on land easements. 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 the 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 real estate investment trusts (“REITs”), and believe it is a useful measure 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 NAREIT FFO may not be comparable to FFO reported by other REITs. 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 Debt to Adjusted EBITDA represents net debt as of period end divided by adjusted EBITDA for the period, as annualized (i.e. three months periods are multiplied by four) or on a trailing 12 month basis. We define net debt as the total outstanding debt reported as per our consolidated balance sheets less cash and cash equivalents at the end of the period.

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

11

---

Elme Communities

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 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, gain/loss from non-disposal activities and gain on land easements 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 Washington metro region.

12

---

Elme Communities

Same-store Portfolio includes 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 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
June 30, 2024

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
			Schedule of Communities			22-24
Capital Analysis
			Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)			25
			Long Term Debt Analysis			26
			Long Term Debt Maturities			27
			Debt Covenant Compliance			28
			Capital Analysis			29
Reconciliations
			Net Loss to NOI Reconciliations			30

14

---

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

			Six Months Ended															Three Months Ended
OPERATING RESULTS			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Revenues
Real estate rental revenue			$	119,616					$	112,408								$	60,103					$	59,513					$	58,852					$	56,651					$	56,599
Expenses
Property operating and maintenance(1)			(27,460)						(25,664)									(13,996)						(13,464)						(12,625)						(12,696)						(13,325)
Real estate taxes and insurance(1)			(16,241)						(14,115)									(7,986)						(8,255)						(7,629)						(7,101)						(6,933)
Property management			(4,393)						(3,947)									(2,175)						(2,218)						(2,226)						(1,935)						(2,178)
General and administrative			(12,334)						(13,521)									(6,138)						(6,196)						(5,996)						(6,370)						(6,680)
Transformation costs			—						(5,354)									—						—						—						(985)						(2,454)
Depreciation and amortization			(48,838)						(42,951)									(23,895)						(24,943)						(24,095)						(21,904)						(21,415)
Real estate impairment			—						—									—						—						—						(41,860)						—
			(109,266)						(105,552)									(54,190)						(55,076)						(52,571)						(92,851)						(52,985)
Real estate operating income (loss)			10,350						6,856									5,913						4,437						6,281						(36,200)						3,614
Other income (expense)
Interest expense			(18,878)						(13,625)									(9,384)						(9,494)						(9,386)						(7,418)						(6,794)
Loss on extinguishment of debt			—						(54)									—						—						—						—						—
Other income			1,410						569									—						1,410						—						—						569
Net loss			$	(7,118)					$	(6,254)								$	(3,471)					$	(3,647)					$	(3,105)					$	(43,618)					$	(2,611)
Per Share Data:
Net loss			$	(0.08)					$	(0.07)								$	(0.04)					$	(0.04)					$	(0.04)					$	(0.50)					$	(0.03)
Fully diluted weighted average shares outstanding			87,898						87,695									87,910						87,885						87,788						87,759						87,741
Percentage of Revenues:
General and administrative expenses			10.3		%				12.0		%							10.2		%				10.4		%				10.2		%				11.2		%				11.8		%
Net loss			(6.0)		%				(5.6)		%							(5.8)		%				(6.1)		%				(5.3)		%				(77.0)		%				(4.6)		%
Ratios:
Adjusted EBITDA(2) / Interest expense			3.2		x				4.2		x							3.2		x				3.1		x				3.2		x				3.9		x				4.2		x
______________________________
(1) Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation.
(2) Adjusted EBITDA is a non-GAAP measure. See “Definitions” on page 11 for the definition of Adjusted EBITDA and page 25 for a reconciliation of Net loss to Adjusted EBITDA.

15

---

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

			June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Assets
Land			$	383,808					$	383,808					$	384,097					$	384,097					$	373,113
Income producing property			1,976,127						1,966,412						1,960,020						1,941,663						1,911,381
			2,359,935						2,350,220						2,344,117						2,325,760						2,284,494
Accumulated depreciation and amortization			(573,054)						(550,421)						(528,024)						(506,298)						(523,153)
Net income producing property			1,786,881						1,799,799						1,816,093						1,819,462						1,761,341
Properties under development or held for future development			30,980						30,980						30,980						31,095						31,260
Total real estate held for investment, net			1,817,861						1,830,779						1,847,073						1,850,557						1,792,601
Cash and cash equivalents			5,629						4,199						5,984						8,079						5,554
Restricted cash			2,263						2,704						2,554						2,104						1,887
Rents and other receivables			12,575						12,886						17,642						15,300						15,746
Prepaid expenses and other assets			23,147						25,971						26,775						34,233						22,711
Total assets			$	1,861,475					$	1,876,539					$	1,900,028					$	1,910,273					$	1,838,499
Liabilities
Notes payable, net			$	522,734					$	522,539					$	522,345					$	522,150					$	521,955
Line of credit			156,000						160,000						157,000						149,000						24,000
Accounts payable and other liabilities			37,283						31,112						38,997						40,666						36,920
Dividend payable			15,905						15,888						15,863						15,868						15,834
Advance rents			5,074						4,361						5,248						3,365						2,949
Tenant security deposits			6,334						6,235						6,225						6,171						5,913
Total liabilities			743,330						740,135						745,678						737,220						607,571
Equity
Preferred shares; $0.01 par value; 10,000 shares authorized			—						—						—						—						—
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized			880						880						879						878						878
Additional paid-in capital			1,737,941						1,736,524						1,735,530						1,734,657						1,733,388
Distributions in excess of net income			(608,310)						(588,923)						(569,391)						(550,442)						(490,939)
Accumulated other comprehensive loss			(12,651)						(12,365)						(12,958)						(12,332)						(12,693)
Total shareholders' equity			1,117,860						1,136,116						1,154,060						1,172,761						1,230,634
Noncontrolling interests in subsidiaries			285						288						290						292						294
Total equity			1,118,145						1,136,404						1,154,350						1,173,053						1,230,928
Total liabilities and equity			$	1,861,475					$	1,876,539					$	1,900,028					$	1,910,273					$	1,838,499

16

---

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

			Six Months Ended															Three Months Ended
			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Funds from operations (FFO)
Net loss			$	(7,118)					$	(6,254)								$	(3,471)					$	(3,647)					$	(3,105)					$	(43,618)					$	(2,611)
Real estate depreciation and amortization			48,838						42,951									23,895						24,943						24,095						21,904						21,415
Real estate impairment			—						—									—						—						—						41,860						—
NAREIT funds from operations (FFO)(1)			41,720						36,697									20,424						21,296						20,990						20,146						18,804
Loss on extinguishment of debt			—						54									—						—						—						—						—
Severance expense			64						394									64						—						391						—						—
Transformation costs			—						5,354									—						—						—						985						2,454
Relocation expense			—						320									—						—						3						306						134
Structuring expenses			60						60									60						—						—						—						—
Write-off of pursuit costs			—						49									—						—						24						—						9
Adjustment to deferred taxes			—						—									—						—						(526)						—						—
Gain on land easements			(1,410)						—									—						(1,410)						—						—						—
Core FFO(1)			$	40,434					$	42,928								$	20,548					$	19,886					$	20,882					$	21,437					$	21,401
Allocation to participating securities(2)			(158)						(138)									(79)						(80)						(46)						(71)						(68)
NAREIT FFO per share - basic			$	0.47					$	0.42								$	0.23					$	0.24					$	0.24					$	0.23					$	0.21
NAREIT FFO per share - fully diluted			$	0.47					$	0.42								$	0.23					$	0.24					$	0.24					$	0.23					$	0.21
Core FFO per share - fully diluted			$	0.46					$	0.49								$	0.23					$	0.23					$	0.24					$	0.24					$	0.24
Common dividend per share			$	0.36					$	0.36								$	0.18					$	0.18					$	0.18					$	0.18					$	0.18
Average shares - basic			87,898						87,695									87,910						87,885						87,788						87,759						87,741
Average shares - fully diluted (for NAREIT FFO and Core FFO)			87,936						87,813									87,975						87,897						87,836						87,799						87,785

17

---

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

			Six Months Ended															Three Months Ended
			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Adjusted funds from operations (AFFO)(1)
NAREIT FFO(1)			$	41,720					$	36,697								$	20,424					$	21,296					$	20,990					$	20,146					$	18,804
Non-cash loss on extinguishment of debt			—						54									—						—						—						—						—
Tenant improvements and incentives, net of reimbursements			—						(10)									—						—						(267)						—						—
Leasing commissions capitalized			—						(56)									—						—						—						—						—
Recurring capital improvements			(4,915)						(4,460)									(2,144)						(2,771)						(2,642)						(1,490)						(2,456)
Straight-line rent, net			40						(86)									25						15						(27)						(74)						(57)
Non-real estate depreciation and amortization of debt costs			2,429						2,543									1,259						1,170						1,217						1,348						1,276
Amortization of lease intangibles, net			(325)						(415)									(163)						(162)						(248)						(155)						(178)
Amortization and expensing of restricted share and unit compensation(3)			2,135						2,534									1,045						1,090						1,508						1,432						1,346
AFFO(1)			41,084						36,801									20,446						20,638						20,531						21,207						18,735
Non-share-based severance expense			64						340									64						—						313						—						—
Relocation expense			—						320									—						—						3						306						134
Structuring expenses			60						60									60						—						—						—						—
Transformation costs(4)			—						5,354									—						—						—						985						2,454
Write-off of pursuit costs			—						49									—						—						24						—						9
Adjustment to deferred taxes			—						—									—						—						(526)						—						—
Gain on land easements			(1,410)						—									—						(1,410)						—						—						—
Core AFFO(1)			$	39,798					$	42,924								$	20,570					$	19,228					$	20,345					$	22,498					$	21,332
______________________________
(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 June 30, 2024						Six Months Ended												Three Months Ended
									June 30, 2024						June 30, 2023						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Rental and other property revenues
Same-store			8,874						$	105,395					$	103,091					$	53,021					$	52,374					$	51,660					$	52,011					$	52,100
Acquisitions			500						4,968						—						2,471						2,497						2,495						54						—
Development			N/A						—						—						—						—						—						—						—
Total rental and other property revenues(1)			9,374						$	110,363					$	103,091					$	55,492					$	54,871					$	54,155					$	52,065					$	52,100
Property operating expenses
Same-store									38,859						37,086						19,505						19,354						17,988						18,357						19,000
Acquisitions									2,007						—						1,060						947						862						18						—
Development									114						112						57						57						56						56						54
Total property operating expenses									$	40,980					$	37,198					$	20,622					$	20,358					$	18,906					$	18,431					$	19,054
Net Operating Income (NOI)(2)
Same-store									66,536						66,005						33,516						33,020						33,672						33,654						33,100
Acquisitions									2,961						—						1,411						1,550						1,633						36						—
Development									(114)						(112)						(57)						(57)						(56)						(56)						(54)
Total NOI									$	69,383					$	65,893					$	34,870					$	34,513					$	35,249					$	33,634					$	33,046
Same-store metrics
Operating margin(3)									63%						64%						63%						63%						65%						65%						64%
Retention									65%						63%						65%						65%						65%						61%						63%
Same-store effective lease rate growth
New									(0.8)%						0.1%						0.2%						(2.1)%						(3.6)%						(0.4)%						(0.1)%
Renewal									5.7%						7.0%						5.4%						6.2%						5.9%						5.1%						6.4%
Blended									2.9%						3.8%						3.2%						2.3%						1.8%						2.7%						3.5%
______________________________
(1) Utility costs reimbursed by residents are included in real estate rental revenue on our consolidated statements of operations. Utility reimbursements totaled $4.4 million and $4.2 million for the six months ended June 30, 2024 and 2023 respectively, and $2.0 million, $2.4 million, $1.9 million, $1.9 million and $2.2 million for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.
(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 30.
(3) 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						Q2 2024						Q2 2023						% Chg						Q2 2024						Q2 2023						% Chg						Q2 2024						Q2 2023						% Chg						Q2 2024						Q2 2023						% Chg						Q2 2024						Q2 2023						% Chg
Virginia						5,550						$	36,074					$	34,882					3.4		%				$	12,221					$	12,092					1.1		%				$	23,853					$	22,790					4.7		%				96.3		%				95.8		%				0.5		%				$	2,006					$	1,942					3.3		%
DC / Maryland						1,515						9,139						8,782						4.1		%				3,359						3,282						2.3		%				5,780						5,500						5.1		%				95.2		%				95.8		%				(0.6)		%				1,974						1,900						3.9		%
Georgia						1,809						7,808						8,436						(7.4)		%				3,925						3,626						8.2		%				3,883						4,810						(19.3)%						88.8		%				94.2		%				(5.4)		%				1,513						1,539						(1.7)		%
Total						8,874						$	53,021					$	52,100					1.8		%				$	19,505					$	19,000					2.7		%				$	33,516					$	33,100					1.3		%				94.6		%				95.4		%				(0.8)		%				$	1,900					$	1,853					2.5		%
Sequential Comparison						Apt Homes						Q2 2024						Q1 2024						% Chg						Q2 2024						Q1 2024						% Chg						Q2 2024						Q1 2024						% Chg						Q2 2024						Q1 2024						% Chg						Q2 2024						Q1 2024						% Chg
Virginia						5,550						$	36,074					$	35,556					1.5		%				$	12,221					$	12,122					0.8		%				$	23,853					$	23,434					1.8		%				96.3		%				96.1		%				0.2		%				$	2,006					$	1,990					0.8		%
DC / Maryland						1,515						9,139						9,116						0.3		%				3,359						3,304						1.7		%				5,780						5,812						(0.6)		%				95.2		%				94.9		%				0.3		%				1,974						1,955						1.0		%
Georgia						1,809						7,808						7,702						1.4		%				3,925						3,928						(0.1)		%				3,883						3,774						2.9		%				88.8		%				88.6		%				0.2		%				1,513						1,526						(0.9)		%
Total						8,874						$	53,021					$	52,374					1.2		%				$	19,505					$	19,354					0.8		%				$	33,516					$	33,020					1.5		%				94.6		%				94.4		%				0.2		%				$	1,900					$	1,889					0.6		%
Year-to-Date Comparison						Apt Homes						YTD 2024						YTD 2023						% Chg						YTD 2024						YTD 2023						% Chg						YTD 2024						YTD 2023						% Chg						YTD 2024						YTD 2023						% Chg						YTD 2024						YTD 2023						% Chg
Virginia						5,550						$	71,630					$	68,862					4.0		%				$	24,343					$	23,624					3.0		%				$	47,287					$	45,238					4.5		%				96.2		%				95.6		%				0.6		%				$	1,998					$	1,930					3.5		%
DC / Maryland						1,515						18,255						17,472						4.5		%				6,663						6,472						3.0		%				11,592						11,000						5.4		%				95.0		%				95.8		%				(0.8)		%				1,964						1,884						4.2		%
Georgia						1,809						15,510						16,757						(7.4)		%				7,853						6,990						12.3		%				7,657						9,767						(21.6)		%				88.7		%				94.2		%				(5.5)		%				1,519						1,537						(1.2)		%
Total						8,874						$	105,395					$	103,091					2.2		%				$	38,859					$	37,086					4.8		%				$	66,536					$	66,005					0.8		%				94.5		%				95.4		%				(0.9)		%				$	1,895					$	1,842					2.9		%
______________________________
(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 30.

20

---

Same-Store Operating Expenses - Multifamily (In thousands)

Quarter-to-Date Comparison			Q2 2024						Q2 2023						$ Change						% Change									% of Q2 2024 Total
Controllable operating expenses(1,2)			$	9,768					$	10,048					$	(280)					(2.8)		%							50.0		%
Real estate taxes(2)			5,609						5,392						217						4.0		%							28.8		%
Utilities			2,984						2,686						298						11.1		%							15.3		%
Insurance			1,144						874						270						30.9		%							5.9		%
Total same-store operating expenses			19,505						19,000						505						2.7		%							100.0		%
Utility reimbursements			(2,047)						(2,151)						104						(4.8)		%
Total same-store operating expenses, net of utility reimbursements			$	17,458					$	16,849					$	609					3.6		%

Sequential Comparison			Q2 2024						Q1 2024						$ Change						% Change									% of Q2 2024 Total
Controllable operating expenses(1,2)			$	9,768					$	8,847					$	921					10.4		%							50.0		%
Real estate taxes(2)			5,609						5,893						(284)						(4.8)		%							28.8		%
Utilities			2,984						3,470						(486)						(14.0)		%							15.3		%
Insurance			1,144						1,144						—						—		%							5.9		%
Total same-store operating expenses			19,505						19,354						151						0.8		%							100.0		%
Utility reimbursements			(2,047)						(2,313)						266						(11.5)		%
Total same-store operating expenses, net of utility reimbursements			$	17,458					$	17,041					$	417					2.4		%

Year-to-Date Comparison			YTD 2024						YTD 2023						$ Change						% Change									% of YTD 2024 Total
Controllable operating expenses(1,2)			$	18,615					$	18,458					$	157					0.9		%							47.9		%
Real estate taxes(2)			11,502						10,989						513						4.7		%							29.6		%
Utilities			6,454						5,929						525						8.9		%							16.6		%
Insurance			2,288						1,710						578						33.8		%							5.9		%
Total same-store operating expenses			38,859						37,086						1,773						4.8		%							100.0		%
Utility reimbursements			(4,360)						(4,209)						(151)						3.6		%
Total same-store operating expenses, net of utility reimbursements			$	34,499					$	32,877					$	1,622					4.9		%

______________________________
(1) Controllable operating expenses consist of:
Payroll, Repairs & Maintenance, Marketing, Administrative and other
(2) Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation.

21

---

Multifamily Communities
June 30, 2024

Community						Location			Apartment Homes			Current Strategy			Year Acquired			Year Built			Average Occupancy(1)						Ending Occupancy						% of Total Portfolio NOI(1,2)
Virginia
Cascade at Landmark						Alexandria, VA			277			B Value-Add			2019			1988			96.6%						97.8%						3%
Clayborne						Alexandria, VA			74			A-			N/A			2008			96.5%						97.3%						1%
Elme Alexandria						Alexandria, VA			532			B Value-Add			2019			1990			95.3%						96.1%						5%
Riverside Apartments						Alexandria, VA			1222			B Value-Add			2016			1971			96.6%						97.6%						13%
Bennett Park						Arlington, VA			224			A-			N/A			2007			95.9%						94.6%						3%
Park Adams						Arlington, VA			200			B Value-Add			1969			1959			95.2%						96.5%						2%
The Maxwell						Arlington, VA			163			A-			N/A			2014			96.5%						97.5%						2%
The Paramount						Arlington, VA			135			B			2013			1984			96.9%						98.5%						2%
The Wellington						Arlington, VA			710			B Value-Add			2015			1960			96.6%						97.3%						7%
Trove						Arlington, VA			401			A			N/A			2020			95.9%						97.0%						5%
Roosevelt Towers						Falls Church, VA			191			B Value-Add			1965			1964			95.7%						93.2%						2%
Elme Dulles						Herndon, VA			328			B Value-Add			2019			2000			97.0%						97.9%						4%
Elme Herndon						Herndon, VA			283			B Value-Add			2019			1991			96.2%						97.5%						3%
Elme Leesburg						Leesburg, VA			134			B			2019			1986			97.1%						98.5%						2%
Elme Manassas						Manassas, VA			408			B Value-Add			2019			1986			95.5%						98.3%						4%
The Ashby at McLean						McLean, VA			268			B Value-Add			1996			1982			95.8%						95.5%						4%
Washington, DC
3801 Connecticut Avenue						Washington, DC			307			B Value-Add			1963			1951			94.4%						97.1%						3%
Kenmore Apartments						Washington, DC			371			B Value-Add			2008			1948			93.8%						95.4%						3%
Yale West						Washington, DC			216			A-			2014			2011			94.5%						93.1%						3%
Maryland
Elme Bethesda						Bethesda, MD			193			B			1997			1986			97.5%						98.4%						3%
Elme Watkins Mill						Gaithersburg, MD			210			B			2019			1975			96.1%						98.1%						2%
Elme Germantown						Germantown, MD			218			B Value-Add			2019			1990			95.4%						95.4%						2%
Georgia
Elme Conyers						Conyers, GA			240			B			2021			1999			93.5%						94.6%						1%
Elme Marietta			3			Marietta, GA			420			B Value-Add			2022			1975			87.1%						88.6%						2%
Elme Sandy Springs						Sandy Springs, GA			389			B Value-Add			2022			1972			88.6%						87.7%						2%

22

---

Multifamily Communities (continued)
June 30, 2024

Community						Location			Apartment Homes			Current Strategy			Year Acquired			Year Built			Average Occupancy(1)			Ending Occupancy						% of Total Portfolio NOI(1,2)
Elme Cumberland						Smyrna, GA			270			B Value-Add			2022			1982			90.9%			93.3%						2%
Elme Eagles Landing						Stockbridge, GA			490			B Value-Add			2021			2000			86.6%			89.4%						2%
Total same-store communities									8,874												94.5%			95.5%						87%
Elme Druid Hills						Atlanta, GA			500			B Value-Add			2023			1987			92.4%			92.8%						4%
Total non same-store communities									500												92.4%			92.8%						4%
Total multifamily communities									9,374												94.4%			95.4%						91%
______________________________
(1) For the six months ended June 30, 2024.
(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 30.
(3) Metrics for Elme Marietta are not adjusted for 24 down units that are currently unavailable for use due to a fire that occurred within the community on March 24, 2024. We are currently assessing the timeline for these units to be placed back in service. Concurrently, we are engaged with our insurance provider to determine potential insurance proceeds and coverage under our business interruption insurance.

23

---

Office Property
June 30, 2024

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

87.8%

87.8%

9%

______________________________

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

(2)     For the six months ended June 30, 2024.

(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 30.

24

---

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

			Six Months Ended															Three Months Ended
			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Adjusted EBITDA(1)
Net loss			$	(7,118)					$	(6,254)								$	(3,471)					$	(3,647)					$	(3,105)					$	(43,618)					$	(2,611)
Add/(deduct):
Interest expense			18,878						13,625									9,384						9,494						9,386						7,418						6,794
Real estate depreciation and amortization			48,838						42,951									23,895						24,943						24,095						21,904						21,415
Real estate impairment			—						—									—						—						—						41,860						—
Non-real estate depreciation			308						437									197						111						158						291						222
Severance expense			64						394									64						—						391						—						—
Transformation costs			—						5,354									—						—						—						985						2,454
Relocation expense			—						320									—						—						3						306						134
Structuring expenses			60						60									60						—						—						—						—
Loss on extinguishment of debt			—						54									—						—						—						—						—
Adjustment to deferred taxes			—						—									—						—						(526)						—						—
Write-off of pursuit costs(2)			—						49									—						—						24						—						9
Gain on land easements			(1,410)						—									—						(1,410)						—						—						—
Adjusted EBITDA			$	59,620					$	56,990								$	30,129					$	29,491					$	30,426					$	29,146					$	28,417
______________________________
(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.
(2) Adjusted EBITDA in prior periods has been updated to conform with the current period presentation and definition to include write-off of pursuit costs.

25

---

Long Term Debt Analysis (Dollars in thousands)

			June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Balances Outstanding
Unsecured
Fixed rate bonds			$	397,945					$	397,857					$	397,768					$	397,679					$	397,590
Term loan(1)			124,788						124,682						124,577						124,471						124,365
Credit facility			156,000						160,000						157,000						149,000						24,000
Total			$	678,733					$	682,539					$	679,345					$	671,150					$	545,955
Weighted Average Interest Rates
Unsecured
Fixed rate bonds			4.5		%				4.5		%				4.5		%				4.5		%				4.5		%
Term loan(2)			4.7		%				4.7		%				4.7		%				4.7		%				3.0		%
Credit facility			6.3		%				6.3		%				6.3		%				6.3		%				6.0		%
Weighted Average			4.9		%				5.0		%				4.9		%				4.9		%				4.2		%
______________________________
(1) 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 (subject to adjustment depending on Elme Communities' credit rating). 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.
(2) Elme Communities had an interest rate swap that had effectively fixed 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 21, 2023. In March 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that effectively fixed the interest at 4.73% for the 2023 Term Loan beginning on July 21, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025.
Note: The current debt balances outstanding are shown net of discounts, premiums and unamortized debt costs (see page 27).

26

---

Long Term Debt Maturities (in thousands, except average interest rates)
June 30, 2024

									Future Maturities of Debt
Year									Unsecured Debt						Credit Facility						Total Debt						Avg Interest Rate
2024									$	—					$	—					$	—					—%
2025									125,000			(1)			156,000			(2)			281,000						5.6%
2026									—						—						—						—%
2027									—						—						—						—%
2028									50,000						—						50,000						7.4%
Thereafter									350,000						—						350,000						4.1%
Scheduled principal payments									$	525,000					$	156,000					$	681,000					4.9%
Net discounts/premiums									(82)						—						(82)
Loan costs, net of amortization									(2,184)						—						(2,184)
Total maturities									$	522,734					$	156,000					$	678,734					4.9%
Weighted average maturity = 4.0 years
______________________________
(1) During the first quarter of 2023, we entered into the $125.0 million 2023 Term Loan with an interest rate of adjusted SOFR (subject to a credit spread adjustment of 10 basis points) plus a margin of 95 basis points (subject to adjustment depending on Elme Communities’ credit rating). 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 Revolving Credit Facility. Elme Communities had previously entered into an interest rate swap to effectively fix the interest rate for the remaining $100.0 million portion of the 2018 Term Loan. Following the prepayment of the 2018 Term Loan, the interest rate swap effectively fixed 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. In March 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that effectively fixed the 2023 Term Loan’s interest rate at 4.73% beginning on July 21, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025.
(2) As of June 30, 2024, the credit facility had an August 2025 maturity date, with two six-month extension options. On July 10, 2024, we executed an amended and restated credit agreement (the “Amended Credit Agreement”) that provides for a revolving credit facility of $500.0 million that matures in July 2028, with two six-month extension options.

27

---

Debt Covenant Compliance

Unsecured Public Debt Covenants

Unsecured Private Debt Covenants

Notes Payable

Line of Credit and Term Loan(1)

Notes Payable

Quarter Ended June 30, 2024

Covenant

Quarter Ended June 30, 2024

Covenant

Quarter Ended June 30, 2024

Covenant

% of Total Indebtedness to Total Assets(2)

33.6

%

≤ 65.0%

N/A

N/A

N/A

N/A

Ratio of Income Available for Debt Service to Annual Debt Service

3.3

≥ 1.5

N/A

N/A

N/A

N/A

% of Secured Indebtedness to Total Assets(2)

—

%

≤ 40.0%

N/A

N/A

N/A

N/A

Ratio of Total Unencumbered Assets(3) to Total Unsecured Indebtedness

3.0

≥ 1.5

N/A

N/A

N/A

N/A

% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(4) (8)

N/A

N/A

27.8

%

≤ 60.0%

27.0

%

≤ 60.0%

Ratio of Consolidated Adjusted EBITDA(5) to Consolidated Fixed Charges(6)

N/A

N/A

3.55

≥ 1.50

3.55

≥ 1.50

% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(4) (8)

N/A

N/A

—

%

≤ 40.0%

—

%

≤ 40.0%

% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(7) (8)

N/A

N/A

27.8

%

≤ 60.0%

27.0

%

≤ 60.0%

______________________________

(1) The covenants for the line of credit and 2023 Term Loan are per the amended and restated credit facility, provided for under the Amended Credit Agreement and the first amendment to the 2023 Term Loan.

(2) Total Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(5) from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(3) Total Unencumbered Assets is calculated by applying a capitalization rate of 7.50% to the EBITDA(5) from unencumbered properties from the last four consecutive quarters, excluding EBITDA from acquired, disposed, and non-stabilized development properties.

(4) 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.

(5) 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.

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

(7) 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.

(8) For the line of credit and 2023 Term Loan, Watergate 600 is valued at its undepreciated GAAP book value for Consolidated Total Asset Value and Unencumbered Pool Value.

28

---

Capital Analysis (In thousands, except per share amounts)

																		Three Months Ended
																		June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Market Data
Shares Outstanding																		88,011						88,003						87,867						87,832						87,809
Market Price per Share																		$	15.93					$	13.92					$	14.60					$	13.64					$	16.44
Equity Market Capitalization																		$	1,402,015					$	1,225,002					$	1,282,858					$	1,198,028					$	1,443,580
Total Debt																		$	678,733					$	682,539					$	679,345					$	671,150					$	545,955
Total Market Capitalization																		$	2,080,748					$	1,907,541					$	1,962,203					$	1,869,178					$	1,989,535
Total Debt to Market Capitalization																		0.33		:1				0.36		:1				0.35		:1				0.36		:1				0.27		:1
Earnings to Fixed Charges(1)																		0.6x						0.6x						0.7x						-4.9x						0.6x
Debt Service Coverage Ratio(2)																		3.2x						3.1x						3.2x						3.9x						4.2x
Dividend Data			Six Months Ended															Three Months Ended
			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Total Dividends Declared			$	31,801					$	31,677								$	15,916					$	15,885					$	15,844					$	15,885					$	15,825
Common Dividend Declared per Share			$	0.36					$	0.36								$	0.18					$	0.18					$	0.18					$	0.18					$	0.18
Payout Ratio (Core FFO basis)(3)			78.3		%				73.5		%							78.3		%				78.3		%				75.0		%				75.0		%				75.0		%
Payout Ratio (Core AFFO basis)(4)			80.0		%				73.5		%							78.3		%																						75.0		%
______________________________
(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 real estate impairment of $41.9 million for the three months ended September 30, 2023.
(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.

29

---

Net Loss to NOI Reconciliations (In thousands)

			Six Months Ended															Three Months Ended
			June 30, 2024						June 30, 2023									June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023						June 30, 2023
Net loss			$	(7,118)					$	(6,254)								$	(3,471)					$	(3,647)					$	(3,105)					$	(43,618)					$	(2,611)
Adjustments:
Property management expense			4,393						3,947									2,175						2,218						2,226						1,935						2,178
General and administrative expense			12,334						13,521									6,138						6,196						5,996						6,370						6,680
Transformation costs			—						5,354									—						—						—						985						2,454
Real estate depreciation and amortization			48,838						42,951									23,895						24,943						24,095						21,904						21,415
Real estate impairment			—						—									—						—						—						41,860						—
Interest expense			18,878						13,625									9,384						9,494						9,386						7,418						6,794
Loss on extinguishment of debt			—						54									—						—						—						—						—
Other income			(1,410)						(569)									—						(1,410)						—						—						(569)
Total Net operating income (NOI)(1)			$	75,915					$	72,629								$	38,121					$	37,794					$	38,598					$	36,854					$	36,341
Multifamily NOI:
Same-store portfolio			$	66,536					$	66,005								$	33,516					$	33,020					$	33,672					$	33,654					$	33,100
Acquisitions			2,961						—									1,411						1,550						1,633						36						—
Development			(114)						(112)									(57)						(57)						(56)						(56)						(54)
Total			69,383						65,893									34,870						34,513						35,249						33,634						33,046
Other NOI (Watergate 600)			6,532						6,736									3,251						3,281						3,349						3,220						3,295
Total NOI			$	75,915					$	72,629								$	38,121					$	37,794					$	38,598					$	36,854					$	36,341
______________________________
(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.

30