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CONTACT:7550 Wisconsin Ave, Suite 900
Amy HopkinsBethesda, MD 20814
Vice President, Investor RelationsTel 202-774-3253
E-Mail: ahopkins@elmecommunities.comFax 301-984-9610
www.elmecommunities.com
November 4, 2024
Elme Communities Announces Third 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 September 30, 2024:
Financial Results
Net loss was $3.0 million, or $0.03 per diluted share
NAREIT FFO was $20.5 million, or $0.23 per diluted share
Core FFO was $20.7 million, or $0.23 per diluted share
Net Operating Income (NOI) was $38.8 million
Operational Highlights
Same-store multifamily NOI increased by 2.3% compared to the prior year quarter
Effective blended Lease Rate Growth was 2.1% for our Same-Store Portfolio during the quarter, comprised of effective new Lease Rate Growth of (1.5)% and effective renewal Lease Rate Growth of 4.5%
Average Effective Monthly Rent Per Home increased 2.4% compared to the prior year quarter for our Same-Store Portfolio
Same-store Retention was 66%, up 5% compared to the prior year quarter
Same-store multifamily Average Occupancy was 95.2% during the quarter, down 0.2% compared to the prior year quarter and up 0.6% compared to the prior quarter.
Same-store multifamily Ending Occupancy was 94.8%, down 0.4% compared to the prior year quarter and down 0.7% compared to the prior quarter.
Liquidity Position
Available liquidity was approximately $337 million as of September 30, 2024, consisting of availability under the Company's revolving credit facility and cash on hand
Annualized third quarter Net Debt to Adjusted EBITDA ratio was 5.6x
The Company has a strong balance sheet with only $125 million of debt maturing before 2028 and no secured debt

“We continue to experience solid demand across our Washington Metro portfolio, resulting in a 0.6% sequential improvement in same-store occupancy,” said Paul T. McDermott, President and CEO. “In Atlanta, while we are achieving strong retention and renewal rates, our third quarter performance reflects the combined impacts of elevated supply and slower than expected improvement in bad debt. Looking ahead to 2025, we expect to deliver meaningful improvement in our Atlanta performance due to lower bad debt and we anticipate increasingly favorable supply/demand dynamics thereafter."
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Third Quarter Operating Results
Multifamily same-store NOI - Same-store NOI increased 2.3% compared to the corresponding prior year period driven primarily by higher base rent. Average Occupancy for the quarter decreased 20 basis points from the prior year period to 95.2%.
Other same-store NOI - The Other same-store portfolio is comprised of one asset, Watergate 600. Other same-store NOI decreased by 0.9% compared to the corresponding prior year period due to higher operating expenses. Watergate 600 was 86.0% occupied and leased at quarter end.

Guidance
“We are pleased with the strong performance from our Washington Metro portfolio and how our teams have effectively managed operating expenses,” said Steven Freishtat, Executive Vice President and CFO. “However, progress on reducing bad debt across our Atlanta portfolio was slower than anticipated for the quarter. As a result, we are tightening our guidance range while reiterating the midpoint of Core FFO guidance.”

The Company is tightening its Core FFO guidance range for 2024 to $0.92 to $0.94 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 1.0% to 1.5%
Non-same-store multifamily NOI is now expected to range from $5.35 million to $5.75 million
Other same-store NOI, which consists solely of Watergate 600, is now expected to range from $12.5 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 now expected to range from $24.4 million to $25.1 million
Interest expense is now expected to range from $37.5 million to $38.0 million
Does not consider any potential future acquisitions or dispositions in 2024

Full Year 2024
Core FFO per diluted share$0.92 - $0.94
Net Operating Income Assumptions
  Same-store multifamily NOI growth (a)
1.0% - 1.5%
  Non-same-store multifamily NOI (b)
$5.35 million - $5.75 million
  Other same-store NOI (c)
$12.5 million - $12.75 million
Expense Assumptions
   Property management expense$8.5 million - $9.0 million
   G&A, net of core adjustments$24.4 million - $25.1 million
   Interest expense$37.5 million - $38.0 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

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.

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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:
LowHigh
Net loss per diluted share                                     
$(0.16)$(0.14)
Real estate depreciation and amortization1.091.09
NAREIT FFO per diluted share 0.930.95
Core adjustments(0.01)(0.01)
Core FFO per diluted share                                                                           $0.92$0.94

Dividends

On October 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 January 6, 2025 to shareholders of record on December 19, 2024.

Presentation Webcast and Conference Call Information

The Third Quarter 2024 Earnings Call is scheduled for Tuesday, November 5, 2024 at 10:00 A.M. Eastern Time. There will also be a webcast presentation with slides. Conference Call access information is as follows:

USA Toll Free Number:            1-888-506-0062
International Toll Number:        1-973-528-0011
Conference ID:                848746

The instant replay of the Earnings Call will be available until Tuesday, November 19, 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:                51315

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.

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,”
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“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; our ability to capture the impacts from normalizing bad debt; 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.

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 ELME COMMUNITIES AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
OPERATING RESULTS2024202320242023
Revenue
Real estate rental revenue$61,055 $56,651 $180,671 $169,059 
Expenses
Property operating and maintenance (1)
14,095 12,696 41,555 38,360 
Real estate taxes and insurance (1)
8,163 7,101 24,404 21,216 
Property management2,235 1,935 6,628 5,882 
General and administrative6,354 6,370 18,688 19,891 
Transformation costs— 985 — 6,339 
Depreciation and amortization23,474 21,904 72,312 64,855 
Real estate impairment — 41,860 — 41,860 
54,321 92,851 163,587 198,403 
Real estate operating income (loss)6,734 (36,200)17,084 (29,344)
Other income (expense)
Interest expense(9,557)(7,418)(28,435)(21,043)
Loss on extinguishment of debt(147)— (147)(54)
Other income— — 1,410 569 
(9,704)(7,418)(27,172)(20,528)
Net loss$(2,970)$(43,618)$(10,088)$(49,872)
Net loss$(2,970)$(43,618)$(10,088)$(49,872)
Depreciation and amortization23,474 21,904 72,312 64,855 
Real estate impairment— 41,860 — 41,860 
NAREIT funds from operations$20,504 $20,146 $62,224 $56,843 
Non-cash loss on extinguishment of debt$147 $— $147 $54 
Tenant improvements and incentives, net of reimbursements— — — (10)
Leasing commissions capitalized(30)— (30)(56)
Recurring capital improvements(2,284)(1,490)(7,199)(5,950)
Straight-line rents, net26 (74)66 (160)
Non-real estate depreciation & amortization of debt costs1,326 1,348 3,755 3,891 
Amortization of lease intangibles, net(201)(155)(526)(570)
Amortization and expensing of restricted share and unit compensation1,578 1,432 3,713 3,966 
Adjusted funds from operations$21,066 $21,207 $62,150 $58,008 
 ______________________________
(1) Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation.
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Three Months Ended September 30,Nine Months Ended September 30,
Per share data:2024202320242023
Net loss(Basic)$(0.03)$(0.50)$(0.12)$(0.57)
(Diluted)$(0.03)$(0.50)$(0.12)$(0.57)
NAREIT FFO(Basic)$0.23 $0.23 $0.71 $0.65 
(Diluted)$0.23 $0.23 $0.70 $0.64 
Dividends paid$0.18 $0.18 $0.54 $0.54 
Weighted average shares outstanding - basic87,930 87,759 87,909 87,717 
Weighted average shares outstanding - diluted87,930 87,759 87,909 87,717 
Weighted average shares outstanding - diluted (for NAREIT FFO)87,994 87,799 87,956 87,809 
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ELME COMMUNITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
September 30, 2024December 31, 2023
Assets
Land$383,808 $384,097 
Income producing property1,986,596 1,960,020 
2,370,404 2,344,117 
Accumulated depreciation and amortization(595,533)(528,024)
Net income producing property1,774,871 1,816,093 
Properties under development or held for future development30,980 30,980 
Total real estate held for investment, net1,805,851 1,847,073 
Cash and cash equivalents4,840 5,984 
Restricted cash2,358 2,554 
Rents and other receivables12,676 17,642 
Prepaid expenses and other assets27,434 26,775 
Total assets$1,853,159 $1,900,028 
Liabilities
Notes payable, net$522,914 $522,345 
Line of credit168,000 157,000 
Accounts payable and other liabilities36,295 38,997 
Dividend payable15,906 15,863 
Advance rents4,801 5,248 
Tenant security deposits6,270 6,225 
Total liabilities754,186 745,678 
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: 88,010 and 87,867 shares issued and outstanding, as of September 30, 2024 and December 31, 2023, respectively
880 879 
Additional paid in capital1,739,319 1,735,530 
Distributions in excess of net income(627,186)(569,391)
Accumulated other comprehensive loss(14,323)(12,958)
Total shareholders' equity1,098,690 1,154,060 
Noncontrolling interests in subsidiaries283 290 
Total equity1,098,973 1,154,350 
Total liabilities and equity$1,853,159 $1,900,028 

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The following tables contain reconciliations of net loss to NOI and same-store NOI for the periods presented (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net loss$(2,970)$(43,618)$(10,088)$(49,872)
Adjustments:
Property management expense2,235 1,935 6,628 5,882 
General and administrative expense6,354 6,370 18,688 19,891 
Transformation costs— 985 — 6,339 
Real estate depreciation and amortization23,474 21,904 72,312 64,855 
Real estate impairment— 41,860 — 41,860 
Interest expense9,557 7,418 28,435 21,043 
Loss on extinguishment of debt147 — 147 54 
Other income— — (1,410)(569)
Total Net Operating Income (NOI)$38,797 $36,854 $114,712 $109,483 
Multifamily NOI:
Same-store Portfolio$34,414 $33,654 $100,950 $99,659 
Acquisitions1,254 36 4,215 36 
Development(61)(56)(175)(168)
Total35,607 33,634 104,990 99,527 
Other NOI (Watergate 600)3,190 3,220 9,722 9,956 
Total NOI$38,797 $36,854 $114,712 $109,483 


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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 September 30,Nine Months Ended September 30,
2024202320242023
Net loss $(2,970)$(43,618)$(10,088)$(49,872)
Add:
Real estate depreciation and amortization23,474 21,904 72,312 64,855 
Real estate impairment— 41,860 — 41,860 
NAREIT funds from operations20,504 20,146 62,224 56,843 
Add:
Structuring expenses— — 60 60 
Loss on extinguishment of debt147 — 147 54 
Severance expense13 — 77 394 
Transformation costs— 985 — 6,339 
Write-off of pursuit costs— — — 49 
Relocation expense— 306 — 626 
Gain on land easements— — (1,410)— 
Core funds from operations$20,664 $21,437 $61,098 $64,365 
Three Months Ended September 30,Nine Months Ended September 30,
Per share data:2024202320242023
NAREIT FFO(Basic)$0.23 $0.23 $0.71 $0.65 
(Diluted)$0.23 $0.23 $0.70 $0.64 
Core FFO(Basic)$0.23 $0.24 $0.69 $0.73 
(Diluted)$0.23 $0.24 $0.69 $0.73 
Weighted average shares outstanding - basic87,930 87,759 87,909 87,717 
Weighted average shares outstanding - diluted
(for NAREIT and Core FFO)
87,994 87,799 87,956 87,809 

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Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net loss$(2,970)$(43,618)$(10,088)$(49,872)
Add/(deduct):
Interest expense9,5577,41828,43521,043
Real estate depreciation and amortization23,47421,90472,31264,855
Real estate impairment41,86041,860
Non-real estate depreciation160291468728
Severance expense1377394
Transformation costs9856,339
Relocation expense306626
Structuring expenses6060
Loss on extinguishment of debt14714754
Write-off of pursuit costs49
Gain on land easements(1,410)
Adjusted EBITDA $30,381$29,146$90,001$86,136


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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
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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.
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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
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September 30, 2024


SchedulePage
Key Financial Data
Portfolio Analysis
Net Operating Income (NOI) - Multifamily
Same-Store Operating Results - Multifamily
Same-Store Operating Expenses - Multifamily
Growth and Strategy
Schedule of Communities
Capital Analysis
Debt Covenant Compliance
Reconciliations
14



Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
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Nine Months EndedThree Months Ended
OPERATING RESULTSSeptember 30, 2024September 30, 2023September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Revenues
Real estate rental revenue$180,671 $169,059 $61,055 $60,103 $59,513 $58,852 $56,651 
Expenses
Property operating and maintenance(1)
(41,555)(38,360)(14,095)(13,996)(13,464)(12,625)(12,696)
Real estate taxes and insurance(1)
(24,404)(21,216)(8,163)(7,986)(8,255)(7,629)(7,101)
Property management(6,628)(5,882)(2,235)(2,175)(2,218)(2,226)(1,935)
General and administrative(18,688)(19,891)(6,354)(6,138)(6,196)(5,996)(6,370)
Transformation costs— (6,339)— — — — (985)
Depreciation and amortization(72,312)(64,855)(23,474)(23,895)(24,943)(24,095)(21,904)
Real estate impairment— (41,860)— — — — (41,860)
(163,587)(198,403)(54,321)(54,190)(55,076)(52,571)(92,851)
Real estate operating income (loss)17,084 (29,344)6,734 5,913 4,437 6,281 (36,200)
Other income (expense)
Interest expense(28,435)(21,043)(9,557)(9,384)(9,494)(9,386)(7,418)
Loss on extinguishment of debt(147)(54)(147)— — — — 
Other income1,410 569 — — 1,410 — — 
Net loss$(10,088)$(49,872)$(2,970)$(3,471)$(3,647)$(3,105)$(43,618)
Per Share Data:
Net loss$(0.12)$(0.57)$(0.03)$(0.04)$(0.04)$(0.04)$(0.50)
Fully diluted weighted average shares outstanding87,909 87,717 87,930 87,910 87,885 87,788 87,759 
Percentage of Revenues:
General and administrative expenses10.3 %11.8 %10.4 %10.2 %10.4 %10.2 %11.2 %
Net loss(5.6)%(29.5)%(4.9)%(5.8)%(6.1)%(5.3)%(77.0)%
Ratios:
Adjusted EBITDA(2) / Interest expense
3.2 x4.1 x3.2 x3.2 x3.1 x3.2 x3.9 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)
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September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Assets
Land$383,808 $383,808 $383,808 $384,097 $384,097 
Income producing property1,986,596 1,976,127 1,966,412 1,960,020 1,941,663 
2,370,404 2,359,935 2,350,220 2,344,117 2,325,760 
Accumulated depreciation and amortization(595,533)(573,054)(550,421)(528,024)(506,298)
Net income producing property1,774,871 1,786,881 1,799,799 1,816,093 1,819,462 
Properties under development or held for future development30,980 30,980 30,980 30,980 31,095 
Total real estate held for investment, net1,805,851 1,817,861 1,830,779 1,847,073 1,850,557 
Cash and cash equivalents4,840 5,629 4,199 5,984 8,079 
Restricted cash2,358 2,263 2,704 2,554 2,104 
Rents and other receivables12,676 12,575 12,886 17,642 15,300 
Prepaid expenses and other assets27,434 23,147 25,971 26,775 34,233 
Total assets$1,853,159 $1,861,475 $1,876,539 $1,900,028 $1,910,273 
Liabilities
Notes payable, net$522,914 $522,734 $522,539 $522,345 $522,150 
Line of credit168,000 156,000 160,000 157,000 149,000 
Accounts payable and other liabilities36,295 37,283 31,112 38,997 40,666 
Dividend payable15,906 15,905 15,888 15,863 15,868 
Advance rents4,801 5,074 4,361 5,248 3,365 
Tenant security deposits6,270 6,334 6,235 6,225 6,171 
Total liabilities754,186 743,330 740,135 745,678 737,220 
Equity
Preferred shares, $0.01 par value; 10,000 shares authorized
— — — — — 
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized880 880 880 879 878 
Additional paid-in capital1,739,319 1,737,941 1,736,524 1,735,530 1,734,657 
Distributions in excess of net income(627,186)(608,310)(588,923)(569,391)(550,442)
Accumulated other comprehensive loss (14,323)(12,651)(12,365)(12,958)(12,332)
Total shareholders' equity1,098,690 1,117,860 1,136,116 1,154,060 1,172,761 
Noncontrolling interests in subsidiaries283 285 288 290 292 
Total equity1,098,973 1,118,145 1,136,404 1,154,350 1,173,053 
Total liabilities and equity$1,853,159 $1,861,475 $1,876,539 $1,900,028 $1,910,273 
16


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

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Nine Months EndedThree Months Ended
September 30, 2024September 30, 2023September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Funds from operations (FFO)
Net loss$(10,088)$(49,872)$(2,970)$(3,471)$(3,647)$(3,105)$(43,618)
Real estate depreciation and amortization72,31264,85523,47423,89524,94324,09521,904
Real estate impairment41,86041,860
NAREIT funds from operations (FFO)(1)
62,22456,84320,50420,42421,29620,99020,146
Loss on extinguishment of debt14754147
Severance expense773941364391
Transformation costs6,339985
Relocation expense6263306
Structuring expenses606060
Write-off of pursuit costs4924
Adjustment to deferred taxes(526)
Gain on land easements(1,410)(1,410)
Core FFO(1)
$61,098$64,365$20,664$20,548$19,886$20,882$21,437
Allocation to participating securities(2)
(236)(209)(78)(79)(80)(46)(71)
NAREIT FFO per share - basic$0.71$0.65$0.23$0.23$0.24$0.24$0.23
NAREIT FFO per share - fully diluted$0.70$0.64$0.23$0.23$0.24$0.24$0.23
Core FFO per share - fully diluted$0.69$0.73$0.23$0.23$0.23$0.24$0.24
Common dividend per share$0.54$0.54$0.18$0.18$0.18$0.18$0.18
Average shares - basic87,90987,71787,93087,91087,88587,78887,759
Average shares - fully diluted (for NAREIT FFO and Core FFO)87,95687,80987,99487,97587,89787,83687,799
17


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

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Nine Months EndedThree Months Ended
September 30, 2024September 30, 2023September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Adjusted funds from operations (AFFO)(1)
NAREIT FFO(1)
$62,224$56,843$20,504$20,424$21,296$20,990$20,146
Non-cash loss on extinguishment of debt14754147
Tenant improvements and incentives, net of reimbursements(10)(267)
Leasing commissions capitalized(30)(56)(30)
Recurring capital improvements(7,199)(5,950)(2,284)(2,144)(2,771)(2,642)(1,490)
Straight-line rent, net66(160)262515(27)(74)
Non-real estate depreciation and amortization of debt costs3,7553,8911,3261,2591,1701,2171,348
Amortization of lease intangibles, net(526)(570)(201)(163)(162)(248)(155)
Amortization and expensing of restricted share and unit compensation(3)
3,7133,9661,5781,0451,0901,5081,432
AFFO(1)
62,15058,00821,06620,44620,63820,53121,207
Non-share-based severance expense773401364313
Relocation expense6263306
Structuring expenses606060
Transformation costs(4)
6,339985
Write-off of pursuit costs4924
Adjustment to deferred taxes(526)
Gain on land easements(1,410)(1,410)
Core AFFO(1)
$60,877$65,422$21,079$20,570$19,228$20,345$22,498
______________________________
(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)

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Apartment Homes as of September 30, 2024
Nine Months EndedThree Months Ended
September 30, 2024September 30, 2023September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Rental and other property revenues
Same-store8,874$159,344 $155,102 $53,949 $53,021 $52,374 $51,660 $52,011 
Acquisitions5007,446 54 2,478 2,471 2,497 2,495 54 
DevelopmentN/A— — — — — — — 
Total rental and other property revenues(1)
9,374$166,790 $155,156 $56,427 $55,492 $54,871 $54,155 $52,065 
Property operating expenses
Same-store58,394 55,443 19,535 19,505 19,354 17,988 18,357 
Acquisitions3,231 18 1,224 1,060 947 862 18 
Development175 168 61 57 57 56 56 
Total property operating expenses$61,800 $55,629 $20,820 $20,622 $20,358 $18,906 $18,431 
Net Operating Income (NOI)(2)
Same-store100,950 99,659 34,414 33,516 33,020 33,672 33,654 
Acquisitions4,215 36 1,254 1,411 1,550 1,633 36 
Development(175)(168)(61)(57)(57)(56)(56)
Total NOI$104,990 $99,527 $35,607 $34,870 $34,513 $35,249 $33,634 
Same-store metrics
Operating margin(3)
63%64%64%63%63%65%65%
Retention65%62%66%65%65%65%61%
Same-store effective lease rate growth
    New(1.2)%(0.1)%(1.5)%0.2%(2.1)%(3.6)%(0.4)%
    Renewal5.2%6.2%4.5%5.4%6.2%5.9%5.1%
    Blended2.5%3.3%2.1%3.2%2.3%1.8%2.7%
______________________________
(1) Utility costs reimbursed by residents are included in real estate rental revenue on our consolidated statements of operations. Utility reimbursements totaled $6.6 million and $6.1 million for the nine months ended September 30, 2024 and 2023 respectively, and $2.2 million, $2.0 million, $2.4 million, $1.9 million and $1.9 million for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 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)
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Rental and Other Property RevenueProperty Operating Expenses
Net Operating Income (1)
Average OccupancyAverage Effective Monthly Rent per Home
Quarter-to-Date ComparisonApt HomesQ3 2024Q3 2023% ChgQ3 2024Q3 2023% ChgQ3 2024Q3 2023%
Chg
Q3 2024Q3 2023% ChgQ3 2024Q3 2023% Chg
Virginia5,550$36,963 $34,716 6.5 %$11,879 $11,619 2.2 %$25,084 $23,097 8.6 %96.7 %95.9 %0.8 %$2,035 $1,963 3.7 %
DC / Maryland1,5159,263 8,999 2.9 %3,320 3,105 6.9 %5,943 5,894 0.8 %96.0 %96.5 %(0.5)%1,986 1,935 2.6 %
Georgia1,8097,723 8,296 (6.9)%4,336 3,633 19.4 %3,387 4,663 (27.4)%90.1 %92.9 %(2.8)%1,493 1,539 (3.0)%
Total 8,874$53,949 $52,011 3.7 %$19,535 $18,357 6.4 %$34,414 $33,654 2.3 %95.2 %95.4 %(0.2)%$1,916 $1,872 2.4 %
Sequential ComparisonApt HomesQ3 2024Q2 2024% ChgQ3 2024Q2 2024% ChgQ3 2024Q2 2024% ChgQ3 2024Q2 2024% ChgQ3 2024Q2 2024% Chg
Virginia5,550$36,963 $36,074 2.5 %$11,879 $12,221 (2.8)%$25,084 $23,853 5.2 %96.7 %96.3 %0.4 %$2,035 $2,006 1.4 %
DC / Maryland1,5159,263 9,139 1.4 %3,320 3,359 (1.2)%5,943 5,780 2.8 %96.0 %95.2 %0.8 %1,986 1,974 0.6 %
Georgia1,8097,723 7,808 (1.1)%4,336 3,925 10.5 %3,387 3,883 (12.8)%90.1 %88.8 %1.3 %1,493 1,513 (1.3)%
Total8,874$53,949 $53,021 1.8 %$19,535 $19,505 0.2 %$34,414 $33,516 2.7 %95.2 %94.6 %0.6 %$1,916 $1,900 0.8 %
Year-to-Date ComparisonApt HomesYTD 2024YTD 2023% ChgYTD 2024YTD 2023% ChgYTD 2024YTD 2023% ChgYTD 2024YTD 2023% ChgYTD 2024YTD 2023% Chg
Virginia5,550$108,593 $103,578 4.8 %$36,222 $35,243 2.8 %$72,371 $68,335 5.9 %96.4 %95.7 %0.7 %$2,010 $1,941 3.6 %
DC / Maryland1,51527,518 26,471 4.0 %9,983 9,577 4.2 %17,535 16,894 3.8 %95.4 %96.0 %(0.6)%1,971 1,901 3.7 %
Georgia1,80923,233 25,053 (7.3)%12,189 10,623 14.7 %11,044 14,430 (23.5)%89.2 %93.7 %(4.5)%1,511 1,538 (1.8)%
Total8,874$159,344 $155,102 2.7 %$58,394 $55,443 5.3 %$100,950 $99,659 1.3 %94.7 %95.4 %(0.7)%$1,902 $1,852 2.7 %
______________________________
(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)
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Quarter-to-Date ComparisonQ3 2024Q3 2023$ Change% Change% of Q3 2024 Total
Controllable operating expenses(1,2)
$9,283 $8,989 $294 3.3 %47.5 %
Real estate taxes(2)
5,698 5,378 320 6.0 %29.2 %
Utilities3,401 3,023 378 12.5 %17.4 %
Insurance1,153 967 186 19.2 %5.9 %
Total same-store operating expenses19,535 18,357 1,178 6.4 %100.0 %
Utility reimbursements(2,225)(1,915)(310)16.2 %
Total same-store operating expenses, net of utility reimbursements$17,310 $16,442 $868 5.3 %
Sequential ComparisonQ3 2024Q2 2024$ Change% Change% of Q3 2024 Total
Controllable operating expenses(1,2)
$9,283 $9,768 $(485)(5.0)%47.5 %
Real estate taxes(2)
5,698 5,609 89 1.6 %29.2 %
Utilities3,401 2,984 417 14.0 %17.4 %
Insurance1,153 1,144 0.8 %5.9 %
Total same-store operating expenses19,535 19,505 30 0.2 %100.0 %
Utility reimbursements(2,225)(2,047)(178)8.7 %
Total same-store operating expenses, net of utility reimbursements$17,310 $17,458 $(148)(0.8)%
Year-to-Date ComparisonYTD 2024YTD 2023$ Change% Change% of YTD 2024 Total
Controllable operating expenses(1,2)
$27,898 $27,447 $451 1.6 %47.8 %
Real estate taxes(2)
17,200 16,367 833 5.1 %29.4 %
Utilities9,855 8,952 903 10.1 %16.9 %
Insurance3,441 2,677 764 28.5 %5.9 %
Total same-store operating expenses58,394 55,443 2,951 5.3 %100.0 %
Utility reimbursements(6,585)(6,124)(461)7.5 %
Total same-store operating expenses, net of utility reimbursements$51,809 $49,319 $2,490 5.0 %
______________________________
(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
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September 30, 2024
CommunityLocationApartment HomesCurrent StrategyYear AcquiredYear Built
Average Occupancy(1)
Ending Occupancy
% of Total Portfolio NOI(1,2)
Virginia
Cascade at LandmarkAlexandria, VA277B Value-Add2019198896.7%96.0%3%
Clayborne Alexandria, VA74A-N/A200896.5%97.3%1%
Elme AlexandriaAlexandria, VA532B Value-Add2019199095.6%95.1%5%
Riverside ApartmentsAlexandria, VA1222B Value-Add2016197196.7%96.0%13%
Bennett ParkArlington, VA224A-N/A200796.1%97.3%4%
Park AdamsArlington, VA200B Value-Add1969195995.5%92.5%2%
The MaxwellArlington, VA163A-N/A201496.2%95.7%2%
The ParamountArlington, VA135B2013198497.0%97.0%2%
The WellingtonArlington, VA710B Value-Add2015196096.6%97.0%7%
TroveArlington, VA401AN/A202096.2%96.8%5%
Roosevelt TowersFalls Church, VA191B Value-Add1965196495.5%96.9%2%
Elme DullesHerndon, VA328B Value-Add2019200097.1%97.0%4%
Elme HerndonHerndon, VA283B Value-Add2019199196.3%96.1%3%
Elme LeesburgLeesburg, VA134B 2019198697.3%95.5%1%
Elme ManassasManassas, VA408B Value-Add2019198696.0%96.1%4%
The Ashby at McLeanMcLean, VA268B Value-Add1996198296.2%96.6%4%
Washington, DC
3801 Connecticut AvenueWashington, DC307B Value-Add1963195195.4%97.1%3%
Kenmore ApartmentsWashington, DC371B Value-Add2008194894.5%96.0%3%
Yale WestWashington, DC216A-2014201195.0%97.2%3%
Maryland
Elme BethesdaBethesda, MD193B1997198696.8%94.8%3%
Elme Watkins MillGaithersburg, MD210B2019197595.7%96.7%2%
Elme GermantownGermantown, MD218B Value-Add2019199095.6%95.0%2%
Georgia
Elme ConyersConyers, GA240B 2021199993.5%92.1%1%
Elme Marietta
3
Marietta, GA420B Value-Add2022197586.9%85.2%2%
Elme Sandy SpringsSandy Springs, GA389B Value-Add2022197289.1%91.3%2%
22




Multifamily Communities (continued)
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September 30, 2024

CommunityLocationApartment HomesCurrent StrategyYear AcquiredYear Built
Average Occupancy(1)
Ending Occupancy
% of Total Portfolio NOI(1,2)
Elme CumberlandSmyrna, GA270B Value-Add2022198292.2%94.4%2%
Elme Eagles LandingStockbridge, GA490B Value-Add2021200087.5%88.0%2%
Total same-store communities8,87494.7%94.8%87%
Elme Druid HillsAtlanta, GA500B Value-Add2023198792.9%94.8%4%
Total non same-store communities50092.9%94.8%4%
Total multifamily communities9,37494.6%94.8%91%
______________________________
(1) For the nine months ended September 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
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September 30, 2024

PropertyLocationYear AcquiredYear BuiltNet Rentable Square Feet
Leased %(1)
Ending Occupancy(1)
% of Total Portfolio NOI(2,3)
Washington, DC
Watergate 600Washington, DC20171972/1997300,00086.0%86.0%9%
______________________________
(1)     The leased and occupied square footage includes short-term lease agreements.
(2)     For the nine months ended September 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)
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Nine Months EndedThree Months Ended
September 30, 2024September 30, 2023September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Adjusted EBITDA(1)
Net loss$(10,088)$(49,872)$(2,970)$(3,471)$(3,647)$(3,105)$(43,618)
Add/(deduct):
Interest expense28,43521,0439,5579,3849,4949,3867,418
Real estate depreciation and amortization72,31264,85523,47423,89524,94324,09521,904
Real estate impairment41,86041,860
Non-real estate depreciation468728160197111158291
Severance expense773941364391
Transformation costs6,339985
Relocation expense6263306
Structuring expenses606060
Loss on extinguishment of debt14754147
Adjustment to deferred taxes(526)
Write-off of pursuit costs(2)
4924
Gain on land easements(1,410)— (1,410)
Adjusted EBITDA $90,001$86,136$30,381$30,129$29,491$30,426$29,146
______________________________
(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)
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September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Balances Outstanding
Unsecured
Fixed rate bonds$398,034 $397,945 $397,857 $397,768 $397,679 
Term loan(1)
124,880 124,788 124,682 124,577 124,471 
Credit facility168,000 156,000 160,000 157,000 149,000 
Total$690,914 $678,733 $682,539 $679,345 $671,150 
Weighted Average Interest Rates
Unsecured
Fixed rate bonds4.5 %4.5 %