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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 5, 2025
Elme Communities Announces Second Quarter 2025 Results

Elme Communities (the “Company” or “Elme”) (NYSE: ELME), a multifamily REIT, reported financial and operating results today for the quarter ended June 30, 2025:

Financial Results
			Three months ended June 30,
			2025						2024
Net loss per diluted share			$	(0.04)					$	(0.04)
Core FFO per diluted share			0.24						0.23

Operational Highlights

•Same-store multifamily NOI increased by 4.5% compared to the prior year quarter

•Same-store Average Effective Monthly Rent Per Home increased 1.4% compared to the prior year quarter

•Effective blended Lease Rate Growth was 1.3% for our Same-Store Portfolio during the quarter, comprised of effective new Lease Rate Growth of (3.3)% and effective renewal Lease Rate Growth of 4.9%

•Retention was 62% during the quarter, in line with expectations

•Same-store multifamily Average Occupancy was 94.7% during the quarter, up 0.2% compared to the prior year quarter

Balance Sheet

•Available liquidity was $330 million as of June 30, 2025, consisting of availability under the Company's revolving credit facility and cash on hand

•Annualized second 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

Strategic Review Update

On August 4, 2025, Elme announced that it had entered into a Purchase and Sale Agreement with Cortland Partners, dated August 1, 2025 (the “Purchase Agreement”), providing for the sale of 19 multifamily communities for approximately $1.6 billion. Also on August 4, 2025, the Board of Trustees announced that it has approved a voluntary plan of sale and liquidation providing for the sale of Elme Communities’ remaining assets and the liquidation and dissolution of Elme (the “Plan of Sale and Liquidation”).

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Second Quarter Operating Results

•Multifamily same-store NOI - Same-store NOI increased 4.5% compared to the corresponding prior year period driven primarily by higher rental revenue and fee and ancillary income. Average occupancy for the quarter increased 0.2% from the prior year period to 94.7%.

•Other same-store NOI - The Other same-store portfolio is comprised of one asset, Watergate 600. Other same-store NOI decreased by 7.3% compared to the corresponding prior year period due to lower occupancy. Watergate 600 was 82.3% occupied and leased at quarter end.

2025 Guidance

Given the announced portfolio sale transaction and adoption of the Plan of Sale and Liquidation, the Company is withdrawing it’s prior 2025 guidance and assumptions and does not expect to issue new guidance for 2025 or 2026.

Dividends

On July 3, 2025, Elme Communities paid a quarterly dividend of $0.18 per share.

On August 4, 2025, Elme Communities announced that its Board of Trustees has declared a quarterly dividend of $0.18 per share to be paid on October 3, 2025 to shareholders of record on September 17, 2025.

Presentation Webcast and Conference Call Information

The Second Quarter 2025 Earnings Call is scheduled for Wednesday, August 6, 2025 at 10:00 A.M. Eastern Time. There will also be a webcast presentation. Conference Call access information is as follows:

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

International Toll Number:        1-973-528-0011

Conference ID:                990450

The instant replay of the Earnings Call will be available until Wednesday, August 20, 2025. Instant replay access information is as follows:

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

International Toll Number:        1-919-882-2331

Conference ID:                52639

The replay of the call will also be available on the Investors section of Elme Communities' website at www.elmecommunities.com. Online playback of the webcast 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.

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Forward-Looking and Cautionary Statements

Certain statements in our earnings release 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 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 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 satisfaction or waiver of the conditions to closing the sale of a 19-asset portfolio by Elme to an affiliate of Cortland Partners, LLC (the “Portfolio Sale Transaction”) pursuant to the Purchase and Sale Agreement; the possibility that Elme’s shareholders do not approve the Portfolio Sale Transaction and/or plan of sale and liquidation (the “Plan of Sale and Liquidation” and together with the Portfolio Sale Transaction, the “Proposed Transactions”) or that other conditions to the closing on all 19 of the properties included in the Portfolio Sale Transaction are not satisfied or waived at all or on the anticipated timeline; unanticipated difficulties or expenditures relating to the Proposed Transactions; changes in the amount and timing of the total liquidating distributions, including as a result of unexpected levels of transaction cost, delayed or terminated closings, liquidation costs or unpaid or additional liabilities and obligations; the inability to close our proposed new debt financing on the terms or timeline or for the amount anticipated; fees associated with the repayment of our existing indebtedness; the possibility of converting to a liquidating trust or other liquidating entity; the ability of our board of trustees to terminate the Plan of Sale and Liquidation, whether or not approved by shareholders; the response of our residents, tenants and business partners to the announcement of the Proposed Transactions; potential difficulties in employee retention as a result of announcement of the Proposed Transactions; the occurrence of any event, change or other circumstances that could give rise to the termination of the Portfolio Sale Transaction; the outcome of legal proceedings that may be instituted against Elme, its trustees and others related to the Proposed Transactions; the risk that disruptions caused by or relating to the Proposed Transactions will harm Elme’s business, including current plans and operations; risks relating to the market value of Elme’s common shares, including following approval of the Proposed Transactions by our shareholders; risks associated with third party contracts containing consent and/or other provisions that may be triggered by the Proposed Transactions; restrictions during the pendency of the Portfolio Sale Transaction that may impact Elme’s ability to pursue certain business opportunities or strategic transactions; general risks affecting the real estate industry and local real estate markets (including, without limitation, the market value of Elme’s properties and potential illiquidity of Elme’s remaining real estate investments); whether or not the sale of one or more of Elme’s properties may be considered a prohibited transaction under the Internal Revenue Code of 1986, as amended; Elme’s ability to maintain its status as a real estate investment trust for U.S. federal income tax purposes; the occurrence of any event, change or other circumstances that could give rise to the termination of one or both of the Proposed Transactions; the risks associated with ownership of real estate in general and our real estate assets in particular; general economic and market developments and conditions; and volatility and uncertainty in the financial markets.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect Elme’s businesses in the “Risk Factors” section of Elme’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by Elme from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. While forward-looking statements reflect Elme’s good faith beliefs, they are not guarantees of future performance. Elme undertakes no obligation to update its 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 June 30,												Six Months Ended June 30,
OPERATING RESULTS			2025						2024						2025						2024
Revenue
Real estate rental revenue			$	62,099					$	60,103					$	123,592					$	119,616
Expenses
Property operating and maintenance			14,624						13,996						28,799						27,460
Real estate taxes and insurance			8,038						7,986						15,857						16,241
Property management			2,256						2,175						4,502						4,393
General and administrative			7,689						6,138						16,918						12,334
Depreciation and amortization			23,560						23,895						46,799						48,838
			56,167						54,190						112,875						109,266
Real estate operating income			5,932						5,913						10,717						10,350
Other income (expense)
Interest expense			(9,498)						(9,384)						(18,958)						(18,878)
Other income			—						—						—						1,410
			(9,498)						(9,384)						(18,958)						(17,468)
Net loss			$	(3,566)					$	(3,471)					$	(8,241)					$	(7,118)
Net loss			$	(3,566)					$	(3,471)					$	(8,241)					$	(7,118)
Depreciation and amortization			23,560						23,895						46,799						48,838
NAREIT funds from operations			$	19,994					$	20,424					$	38,558					$	41,720
Leasing commissions capitalized			(4)						—						(4)						—
Recurring capital improvements			(3,203)						(2,144)						(6,120)						(4,915)
Straight-line rents, net			86						25						166						40
Non-real estate depreciation & amortization of debt costs			1,269						1,259						2,540						2,429
Amortization of lease intangibles, net			(167)						(163)						(336)						(325)
Amortization and expensing of restricted share and unit compensation			1,740						1,045						3,113						2,135
Adjusted funds from operations			$	19,715					$	20,446					$	37,917					$	41,084

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						Three Months Ended June 30,												Six Months Ended June 30,
Per share data:						2025						2024						2025						2024
Net loss			(Basic)			$	(0.04)					$	(0.04)					$	(0.10)					$	(0.08)
			(Diluted)			$	(0.04)					$	(0.04)					$	(0.10)					$	(0.08)
NAREIT FFO			(Basic)			$	0.23					$	0.23					$	0.44					$	0.47
			(Diluted)			$	0.23					$	0.23					$	0.43					$	0.47
Dividends paid						$	0.18					$	0.18					$	0.36					$	0.36
Weighted average shares outstanding - basic						88,093						87,910						88,078						87,898
Weighted average shares outstanding - diluted						88,093						87,910						88,078						87,898
Weighted average shares outstanding - diluted (for NAREIT FFO)						88,414						87,975						88,436						87,936

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ELME COMMUNITIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
			June 30, 2025						December 31, 2024
Assets
Land			$	383,808					$	383,808
Income producing property			2,013,831						1,999,525
			2,397,639						2,383,333
Accumulated depreciation and amortization			(662,209)						(618,299)
Net income producing property			1,735,430						1,765,034
Properties under development or held for future development			30,980						30,980
Total real estate held for investment, net			1,766,410						1,796,014
Cash and cash equivalents			4,786						6,144
Restricted cash			2,307						2,465
Rents and other receivables			12,250						12,511
Prepaid expenses and other assets			24,451						28,628
Total assets			$	1,810,204					$	1,845,762
Liabilities
Notes payable, net			$	523,196					$	522,953
Line of credit			175,000						176,000
Accounts payable and other liabilities			38,230						36,293
Dividend payable			15,947						15,898
Advance rents			5,079						6,257
Tenant security deposits			6,282						6,283
Total liabilities			763,734						763,684
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: 88,162 and 88,029 shares issued and outstanding, as of June 30, 2025 and December 31, 2024, respectively			882						880
Additional paid in capital			1,743,161						1,740,078
Distributions in excess of net income			(686,226)						(646,095)
Accumulated other comprehensive loss			(11,624)						(13,066)
Total shareholders' equity			1,046,193						1,081,797
Noncontrolling interests in subsidiaries			277						281
Total equity			1,046,470						1,082,078
Total liabilities and equity			$	1,810,204					$	1,845,762

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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 June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net loss			$	(3,566)					$	(3,471)					$	(8,241)					$	(7,118)
Adjustments:
Property management expense			2,256						2,175						4,502						4,393
General and administrative expense			7,689						6,138						16,918						12,334
Real estate depreciation and amortization			23,560						23,895						46,799						48,838
Interest expense			9,498						9,384						18,958						18,878
Other income			—						—						—						(1,410)
Total Net Operating Income (NOI)			$	39,437					$	38,121					$	78,936					$	75,915
Multifamily NOI:
Same-store Portfolio			$	36,483					$	34,927					$	72,944					$	69,497
Development			(61)						(57)						(124)						(114)
Total			36,422						34,870						72,820						69,383
Other NOI (Watergate 600)			3,015						3,251						6,116						6,532
Total NOI			$	39,437					$	38,121					$	78,936					$	75,915

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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 June 30,												Six Months Ended June 30,
						2025						2024						2025						2024
Net loss						$	(3,566)					$	(3,471)					$	(8,241)					$	(7,118)
Add:
Real estate depreciation and amortization						23,560						23,895						46,799						48,838
NAREIT funds from operations						19,994						20,424						38,558						41,720
Add/(deduct):
Other non-operating expenses(1)						1,503						60						4,544						60
Severance expense						—						64						—						64
Gain on land easements						—						—						—						(1,410)
Core funds from operations						$	21,497					$	20,548					$	43,102					$	40,434
						Three Months Ended June 30,												Six Months Ended June 30,
Per share data:						2025						2024						2025						2024
NAREIT FFO			(Basic)			$	0.23					$	0.23					$	0.44					$	0.47
			(Diluted)			$	0.23					$	0.23					$	0.43					$	0.47
Core FFO			(Basic)			$	0.24					$	0.23					$	0.49					$	0.46
			(Diluted)			$	0.24					$	0.23					$	0.49					$	0.46
Weighted average shares outstanding - basic						88,093						87,910						88,078						87,898
Weighted average shares outstanding - diluted (for NAREIT and Core FFO)						88,414						87,975						88,436						87,936

(1) Other non-operating expenses during 2025 consist of advisory and legal services provided by third parties related to the previously disclosed cooperation agreement with Argosy-Lionbridge Management, LLC in Q1 2025 and our previously announced formal strategic alternatives review.

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Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (in thousands):
			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net loss			$	(3,566)					$	(3,471)					$	(8,241)					$	(7,118)
Add/(deduct):
Interest expense			9,498						9,384						18,958						18,878
Real estate depreciation and amortization			23,560						23,895						46,799						48,838
Non-real estate depreciation			198						197						397						308
Severance expense			—						64						—						64
Other non-operating expenses(1)			1,503						60						4,544						60
Gain on land easements			—						—						—						(1,410)
Adjusted EBITDA			$	31,193					$	30,129					$	62,457					$	59,620

(1) Other non-operating expenses during 2025 consist of advisory and legal services provided by third parties related to the previously disclosed cooperation agreement with Argosy-Lionbridge Management, LLC in Q1 2025 and our previously announced formal strategic alternatives review.

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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 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) expenses consisting of advisory and legal services provided by third parties related to our previously announced formal strategic alternatives review and the previously disclosed cooperation agreement, (5) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from Core AFFO, as appropriate, (6) write-off of pursuit costs, (7) adjustment to deferred taxes and (8) 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) expenses consisting of advisory and legal services provided by third parties related to our previously announced formal strategic alternatives review and the previously disclosed cooperation agreement, (5) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from NAREIT FFO, as appropriate, (6) write-off of pursuit costs, (7) adjustment to deferred taxes and (8) 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.

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

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Elme Communities

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

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.

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Table of Contents
June 30, 2025

Schedule						Page
Key Financial Data
			Consolidated Statements of Operations			14
			Consolidated Balance Sheets			15
			Funds From Operations/ Adjusted Funds From Operations			16-17
Portfolio Analysis
			Net Operating Income (NOI) - Multifamily			18
			Same-Store Operating Results - Multifamily			19
			Same-Store Operating Expenses - Multifamily			20
Growth and Strategy
			Schedule of Communities			21-23
Capital Analysis
			Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)			24
			Long Term Debt Analysis			25
			Long Term Debt Maturities			26
			Debt Covenant Compliance			27
			Capital Analysis			28
Reconciliations
			Net Loss to NOI Reconciliations			29

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

			Six Months Ended															Three Months Ended
OPERATING RESULTS			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Revenues
Real estate rental revenue			$	123,592					$	119,616								$	62,099					$	61,493					$	61,264					$	61,055					$	60,103
Expenses
Property operating and maintenance			(28,799)						(27,460)									(14,624)						(14,175)						(14,727)						(14,095)						(13,996)
Real estate taxes and insurance			(15,857)						(16,241)									(8,038)						(7,819)						(8,015)						(8,163)						(7,986)
Property management			(4,502)						(4,393)									(2,256)						(2,246)						(2,233)						(2,235)						(2,175)
General and administrative			(16,918)						(12,334)									(7,689)						(9,229)						(6,281)						(6,354)						(6,138)
Depreciation and amortization			(46,799)						(48,838)									(23,560)						(23,239)						(23,623)						(23,474)						(23,895)
			(112,875)						(109,266)									(56,167)						(56,708)						(54,879)						(54,321)						(54,190)
Real estate operating income			10,717						10,350									5,932						4,785						6,385						6,734						5,913
Other (expense) income
Interest expense			(18,958)						(18,878)									(9,498)						(9,460)						(9,400)						(9,557)						(9,384)
Loss on extinguishment of debt			—						—									—						—						—						(147)						—
Other income			—						1,410									—						—						—						—						—
Net loss			$	(8,241)					$	(7,118)								$	(3,566)					$	(4,675)					$	(3,015)					$	(2,970)					$	(3,471)
Per Share Data:
Net loss			$	(0.10)					$	(0.08)								$	(0.04)					$	(0.05)					$	(0.03)					$	(0.03)					$	(0.04)
Fully diluted weighted average shares outstanding			88,078						87,898									88,093						88,064						87,955						87,930						87,910
Percentage of Revenues:
General and administrative expenses			13.7		%				10.3		%							12.4		%				15.0		%				10.3		%				10.4		%				10.2		%
Net loss			(6.7)		%				(6.0)		%							(5.7)		%				(7.6)		%				(4.9)		%				(4.9)		%				(5.8)		%
Ratios:
Adjusted EBITDA(1) / Interest expense			3.3		x				3.2		x							3.3		x				3.3		x				3.2		x				3.2		x				3.2		x
______________________________
(1) Adjusted EBITDA is a non-GAAP measure. See “Definitions” on page 10 for the definition of Adjusted EBITDA and page 25 for a reconciliation of Net loss to Adjusted EBITDA.

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

			June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Assets
Land			$	383,808					$	383,808					$	383,808					$	383,808					$	383,808
Income producing property			2,013,831						2,004,162						1,999,525						1,986,596						1,976,127
			2,397,639						2,387,970						2,383,333						2,370,404						2,359,935
Accumulated depreciation and amortization			(662,209)						(640,061)						(618,299)						(595,533)						(573,054)
Net income producing property			1,735,430						1,747,909						1,765,034						1,774,871						1,786,881
Properties under development or held for future development			30,980						30,980						30,980						30,980						30,980
Total real estate held for investment, net			1,766,410						1,778,889						1,796,014						1,805,851						1,817,861
Cash and cash equivalents			4,786						6,396						6,144						4,840						5,629
Restricted cash			2,307						2,556						2,465						2,358						2,263
Rents and other receivables			12,250						12,206						12,511						12,676						12,575
Prepaid expenses and other assets			24,451						27,532						28,628						27,434						23,147
Total assets			$	1,810,204					$	1,827,579					$	1,845,762					$	1,853,159					$	1,861,475
Liabilities
Notes payable, net			$	523,196					$	523,061					$	522,953					$	522,914					$	522,734
Line of credit			175,000						182,000						176,000						168,000						156,000
Accounts payable and other liabilities			38,230						31,082						36,293						36,295						37,283
Dividend payable			15,947						15,943						15,898						15,906						15,905
Advance rents			5,079						6,010						6,257						4,801						5,074
Tenant security deposits			6,282						6,282						6,283						6,270						6,334
Total liabilities			763,734						764,378						763,684						754,186						743,330
Equity
Preferred shares, $0.01 par value; 10,000 shares authorized			—						—						—						—						—
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized			882						882						880						880						880
Additional paid-in capital			1,743,161						1,741,220						1,740,078						1,739,319						1,737,941
Distributions in excess of net income			(686,226)						(666,713)						(646,095)						(627,186)						(608,310)
Accumulated other comprehensive loss			(11,624)						(12,467)						(13,066)						(14,323)						(12,651)
Total shareholders' equity			1,046,193						1,062,922						1,081,797						1,098,690						1,117,860
Noncontrolling interests in subsidiaries			277						279						281						283						285
Total equity			1,046,470						1,063,201						1,082,078						1,098,973						1,118,145
Total liabilities and equity			$	1,810,204					$	1,827,579					$	1,845,762					$	1,853,159					$	1,861,475

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

			Six Months Ended															Three Months Ended
			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Funds from operations (FFO)
Net loss			$	(8,241)					$	(7,118)								$	(3,566)					$	(4,675)					$	(3,015)					$	(2,970)					$	(3,471)
Real estate depreciation and amortization			46,799						48,838									23,560						23,239						23,623						23,474						23,895
NAREIT funds from operations (FFO)(1)			38,558						41,720									19,994						18,564						20,608						20,504						20,424
Loss on extinguishment of debt			—						—									—						—						—						147						—
Severance expense			—						64									—						—						—						13						64
Other non-operating expenses(2)			4,544						60									1,503						3,041						128						—						60
Gain on land easements			—						(1,410)									—						—						—						—						—
Core FFO(1)			$	43,102					$	40,434								$	21,497					$	21,605					$	20,736					$	20,664					$	20,548
Allocation to participating securities(3)			(177)						(158)									(88)						(89)						(50)						(78)						(79)
NAREIT FFO per share - basic			$	0.44					$	0.47								$	0.23					$	0.21					$	0.23					$	0.23					$	0.23
NAREIT FFO per share - fully diluted			$	0.43					$	0.47								$	0.23					$	0.21					$	0.23					$	0.23					$	0.23
Core FFO per share - fully diluted			$	0.49					$	0.46								$	0.24					$	0.24					$	0.24					$	0.23					$	0.23
Common dividend per share			$	0.36					$	0.36								$	0.18					$	0.18					$	0.18					$	0.18					$	0.18
Average shares - basic			88,078						87,898									88,093						88,064						87,955						87,930						87,910
Average shares - fully diluted (for NAREIT FFO and Core FFO)			88,436						87,936									88,414						88,457						88,001						87,994						87,975

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

			Six Months Ended															Three Months Ended
			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Adjusted funds from operations (AFFO)(1)
NAREIT FFO(1)			$	38,558					$	41,720								$	19,994					$	18,564					$	20,608					$	20,504					$	20,424
Non-cash loss on extinguishment of debt			—						—									—						—						—						147						—
Leasing commissions capitalized			(4)						—									(4)						—						(107)						(30)						—
Recurring capital improvements			(6,120)						(4,915)									(3,203)						(2,917)						(3,143)						(2,284)						(2,144)
Straight-line rent, net			166						40									86						80						41						26						25
Non-real estate depreciation and amortization of debt costs			2,540						2,429									1,269						1,271						1,303						1,326						1,259
Amortization of lease intangibles, net			(336)						(325)									(167)						(169)						(184)						(201)						(163)
Amortization and expensing of restricted share and unit compensation			3,113						2,135									1,740						1,373						1,504						1,578						1,045
AFFO(1)			37,917						41,084									19,715						18,202						20,022						21,066						20,446
Non-share-based severance expense			—						64									—						—						—						13						64
Other non-operating expenses(2)			4,544						60									1,503						3,041						128						—						60
Gain on land easements			—						(1,410)									—						—						—						—						—
Core AFFO(1)			$	42,461					$	39,798								$	21,218					$	21,243					$	20,150					$	21,079					$	20,570
______________________________
(1) See “Definitions” on page 10 for the definitions of non-GAAP measures: NAREIT FFO, Core FFO, AFFO, and Core AFFO.
(2) Other non-operating expenses during 2025 consist of advisory and legal services provided by third parties related to the previously disclosed cooperation agreement with Argosy-Lionbridge Management, LLC in Q1 2025 and our previously announced formal strategic alternatives review.
(3) Adjustment to the numerators for FFO and Core FFO per share calculations when applying the two-class method for calculating EPS.

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

			Apartment Homes as of June 30, 2025						Six Months Ended															Three Months Ended
									June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Rental and other property revenues
Same-store rental and other property operations (1)			9,374						$	114,690					$	110,363								$	57,683					$	57,007					$	56,848					$	56,427					$	55,492
Property operating expenses
Same-store									41,746						40,866									21,200						20,546						21,208						20,759						20,565
Development									124						114									61						63						58						61						57
Total property operating expenses									$	41,870					$	40,980								$	21,261					$	20,609					$	21,266					$	20,820					$	20,622
Net Operating Income (NOI)(2)
Same-store									72,944						69,497									36,483						36,461						35,640						35,668						34,927
Development									(124)						(114)									(61)						(63)						(58)						(61)						(57)
Total NOI									$	72,820					$	69,383								$	36,422					$	36,398					$	35,582					$	35,607					$	34,870
Same-store metrics
Operating margin(3)									64%						63%									63%						64%						63%						63%						63%
Retention									62%						65%									62%						62%						69%						66%						65%
Same-store effective lease rate growth
New									(2.8)%						(1.3)%									(3.3)%						(2.0)%						(3.9)%						(2.2)%						(0.1)%
Renewal									5.0%						5.7%									4.9%						5.0%						4.9%						4.4%						5.4%
Blended									1.5%						2.7%									1.3%						1.9%						1.0%						1.8%						3.1%
______________________________
(1) Utility costs reimbursed by residents are included in real estate rental revenue on our consolidated statements of operations. Utility reimbursements totaled $4.7 million and $4.5 million for the six months ended June 30, 2025 and 2024 respectively, and $2.3 million, $2.4 million, $2.4 million, $2.3 million and $2.1 million for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
(2) NOI is a non-GAAP measure. See “Definitions” on page 10 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.

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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 2025						Q2 2024						% Chg						Q2 2025						Q2 2024						% Chg						Q2 2025						Q2 2024						% Chg						Q2 2025						Q2 2024						% Chg						Q2 2025						Q2 2024						% Chg
Virginia						5,550						$	37,794					$	36,074					4.8		%				$	12,381					$	12,221					1.3		%				$	25,413					$	23,853					6.5		%				96.4		%				96.3		%				0.1		%				$	2,077					$	2,006					3.5		%
DC / Maryland						1,515						9,247						9,139						1.2		%				3,480						3,359						3.6		%				5,767						5,780						(0.2)		%				94.9		%				95.2		%				(0.3)		%				1,995						1,974						1.1		%
Georgia						2,309						10,642						10,279						3.5		%				5,339						4,985						7.1		%				5,303						5,294						0.2		%				90.2		%				89.6		%				0.6		%				1,466						1,544						(5.1)		%
Total						9,374						$	57,683					$	55,492					3.9		%				$	21,200					$	20,565					3.1		%				$	36,483					$	34,927					4.5		%				94.7		%				94.5		%				0.2		%				$	1,913					$	1,887					1.4		%
Sequential Comparison						Apt Homes						Q2 2025						Q1 2025						% Chg						Q2 2025						Q1 2025						% Chg						Q2 2025						Q1 2025						% Chg						Q2 2025						Q1 2025						% Chg						Q2 2025						Q1 2025						% Chg
Virginia						5,550						$	37,794					$	37,144					1.7		%				$	12,381					$	12,176					1.7		%				$	25,413					$	24,968					1.8		%				96.4		%				96.5		%				(0.1)		%				$	2,077					$	2,059					0.9		%
DC / Maryland						1,515						9,247						9,299						(0.6)		%				3,480						3,376						3.1		%				5,767						5,923						(2.6)		%				94.9		%				94.9		%				—		%				1,995						1,992						0.2		%
Georgia						2,309						10,642						10,564						0.7		%				5,339						4,994						6.9		%				5,303						5,570						(4.8)		%				90.2		%				90.6		%				(0.4)		%				1,466						1,489						(1.5)		%
Total						9,374						$	57,683					$	57,007					1.2		%				$	21,200					$	20,546					3.2		%				$	36,483					$	36,461					0.1		%				94.7		%				94.8		%				(0.1)		%				$	1,913					$	1,908					0.3		%
Year-to-Date Comparison						Apt Homes						YTD 2025						YTD 2024						% Chg						YTD 2025						YTD 2024						% Chg						YTD 2025						YTD 2024						% Chg						YTD 2025						YTD 2024						% Chg						YTD 2025						YTD 2024						% Chg
Virginia						5,550						$	74,938					$	71,630					4.6		%				$	24,557					$	24,343					0.9		%				$	50,381					$	47,287					6.5		%				96.5		%				96.2		%				0.3		%				$	2,068					$	1,998					3.5		%
DC / Maryland						1,515						18,546						18,255						1.6		%				6,856						6,663						2.9		%				11,690						11,592						0.8		%				94.9		%				95.0		%				(0.1)		%				1,993						1,964						1.5		%
Georgia						2,309						21,206						20,478						3.6		%				10,333						9,860						4.8		%				10,873						10,618						2.4		%				90.4		%				89.5		%				0.9		%				1,477						1,550						(4.7)		%
Total						9,374						$	114,690					$	110,363					3.9		%				$	41,746					$	40,866					2.2		%				$	72,944					$	69,497					5.0		%				94.7		%				94.4		%				0.3		%				$	1,910					$	1,882					1.5		%
______________________________
(1) NOI is a non-GAAP measure. See “Definitions” on page 10 for the definition of NOI and reconciliation of Net loss to NOI on page 30.

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Same-Store Operating Expenses - Multifamily (In thousands)

Quarter-to-Date Comparison			Q2 2025						Q2 2024						$ Change						% Change									% of Q2 2025 Total
Controllable operating expenses(1)			$	10,610					$	10,212					$	398					3.9		%							50.0		%
Real estate taxes			6,099						6,060						39						0.6		%							28.8		%
Utilities			3,255						3,102						153						4.9		%							15.4		%
Insurance			1,236						1,191						45						3.8		%							5.8		%
Total same-store operating expenses			21,200						20,565						635						3.1		%							100.0		%
Utility reimbursements			(2,322)						(2,117)						(205)						9.7		%
Total same-store operating expenses, net of utility reimbursements			$	18,878					$	18,448					$	430					2.3		%

Sequential Comparison			Q2 2025						Q1 2025						$ Change						% Change									% of Q2 2025 Total
Controllable operating expenses(1)			$	10,610					$	9,685					$	925					9.6		%							50.0		%
Real estate taxes			6,099						5,878						221						3.8		%							28.8		%
Utilities			3,255						3,747						(492)						(13.1)		%							15.4		%
Insurance			1,236						1,236						—						—		%							5.8		%
Total same-store operating expenses			21,200						20,546						654						3.2		%							100.0		%
Utility reimbursements			(2,322)						(2,368)						46						(1.9)		%
Total same-store operating expenses, net of utility reimbursements			$	18,878					$	18,178					$	700					3.9		%

Year-to-Date Comparison			YTD 2025						YTD 2024						$ Change						% Change									% of YTD 2025 Total
Controllable operating expenses(1)			$	20,295					$	19,396					$	899					4.6		%							48.6		%
Real estate taxes			11,977						12,404						(427)						(3.4)		%							28.7		%
Utilities			7,002						6,683						319						4.8		%							16.8		%
Insurance			2,472						2,383						89						3.7		%							5.9		%
Total same-store operating expenses			41,746						40,866						880						2.2		%							100.0		%
Utility reimbursements			(4,690)						(4,489)						(201)						4.5		%
Total same-store operating expenses, net of utility reimbursements			$	37,056					$	36,377					$	679					1.9		%

______________________________
(1) Controllable operating expenses consist of:
Payroll, Repairs & Maintenance, Marketing, Administrative and other

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Multifamily Communities
June 30, 2025

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			95.2%						96.0%						3%
Clayborne						Alexandria, VA			74			A-			N/A			2008			94.2%						97.3%						1%
Elme Alexandria						Alexandria, VA			532			B Value-Add			2019			1990			96.5%						96.1%						5%
Riverside Apartments						Alexandria, VA			1222			B Value-Add			2016			1971			96.1%						96.6%						12%
Bennett Park						Arlington, VA			224			A-			N/A			2007			95.7%						96.0%						4%
Park Adams						Arlington, VA			200			B Value-Add			1969			1959			96.0%						95.5%						2%
The Maxwell						Arlington, VA			163			A-			N/A			2014			96.8%						94.5%						2%
The Paramount						Arlington, VA			135			B			2013			1984			96.9%						95.6%						2%
The Wellington						Arlington, VA			710			B Value-Add			2015			1960			96.8%						95.9%						8%
Trove						Arlington, VA			401			A			N/A			2020			95.7%						96.5%						5%
Roosevelt Towers						Falls Church, VA			191			B Value-Add			1965			1964			96.6%						99.5%						2%
Elme Dulles						Herndon, VA			328			B Value-Add			2019			2000			97.5%						98.2%						4%
Elme Herndon						Herndon, VA			283			B Value-Add			2019			1991			97.3%						96.5%						3%
Elme Leesburg						Leesburg, VA			134			B Value-Add			2019			1986			97.7%						97.8%						2%
Elme Manassas						Manassas, VA			408			B Value-Add			2019			1986			96.2%						95.3%						4%
The Ashby at McLean						McLean, VA			268			B Value-Add			1996			1982			98.6%						97.4%						4%
Washington, DC
3801 Connecticut Avenue						Washington, DC			307			B Value-Add			1963			1951			94.4%						96.4%						3%
Kenmore Apartments						Washington, DC			371			B Value-Add			2008			1948			93.4%						91.9%						3%
Yale West						Washington, DC			216			A-			2014			2011			94.3%						94.0%						3%
Maryland
Elme Bethesda						Bethesda, MD			193			B			1997			1986			95.9%						94.3%						2%
Elme Watkins Mill						Gaithersburg, MD			210			B			2019			1975			95.9%						96.7%						2%
Elme Germantown						Germantown, MD			218			B Value-Add			2019			1990			96.8%						98.2%						2%
Georgia
Elme Druid Hills						Atlanta, GA			500			B Value-Add			2023			1987			93.9%						93.0%						4%
Elme Conyers						Conyers, GA			240			B			2021			1999			90.4%						92.1%						1%

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Multifamily Communities (continued)
June 30, 2025

Community						Location			Apartment Homes			Current Strategy			Year Acquired			Year Built			Average Occupancy(1)			Ending Occupancy						% of Total Portfolio NOI(1,2)
Georgia
Elme Marietta (3)						Marietta, GA			420			B Value-Add			2022			1975			88.4%			90.5%						2%
Elme Sandy Springs						Sandy Springs, GA			389			B Value-Add			2022			1972			89.0%			90.0%						3%
Elme Cumberland						Smyrna, GA			270			B Value-Add			2022			1982			92.8%			95.6%						2%
Elme Eagles Landing						Stockbridge, GA			490			B Value-Add			2021			2000			88.3%			90.4%						2%
Total multifamily communities									9,374												94.7%			95.0%						92%
______________________________
(1) For the six months ended June 30, 2025.
(2) NOI is a non-GAAP measure. See “Definitions” on page 10 for the definition of NOI and reconciliation of Net loss to NOI on page 29.
(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 currently anticipate these units will be placed back in service by the end of the fourth quarter of 2025. Concurrently, we are engaged with our insurance provider to determine potential insurance proceeds and coverage under our business interruption insurance.

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Office Property
June 30, 2025

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

82.3%

82.3%

8%

______________________________

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

(2)     For the six months ended June 30, 2025.

(3)     NOI is a non-GAAP measure. See “Definitions” on page 10 for the definition of NOI and reconciliation of Net loss to NOI on page 29.

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

			Six Months Ended															Three Months Ended
			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Adjusted EBITDA(1)
Net loss			$	(8,241)					$	(7,118)								$	(3,566)					$	(4,675)					$	(3,015)					$	(2,970)					$	(3,471)
Add/(deduct):
Interest expense			18,958						18,878									9,498						9,460						9,400						9,557						9,384
Real estate depreciation and amortization			46,799						48,838									23,560						23,239						23,623						23,474						23,895
Non-real estate depreciation			397						308									198						199						168						160						197
Severance expense			—						64									—						—						—						13						64
Other non-operating expenses(2)			4,544						60									1,503						3,041						128						—						60
Loss on extinguishment of debt			—						—									—						—						—						147						—
Gain on land easements			—						(1,410)									—						—						—						—						—
Adjusted EBITDA			$	62,457					$	59,620								$	31,193					$	31,264					$	30,304					$	30,381					$	30,129
______________________________
(1) Adjusted EBITDA is a non-GAAP measure. See “Definitions” on page 10 for the definition of Adjusted EBITDA and reconciliation of Net loss to Adjusted EBITDA on the current page.
(2) Other non-operating expenses during 2025 consist of advisory and legal services provided by third parties related to the previously disclosed cooperation agreement with Argosy-Lionbridge Management, LLC in Q1 2025 and our previously announced formal strategic alternatives review.

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Long Term Debt Analysis (Dollars in thousands)

			June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Balances Outstanding
Unsecured
Fixed rate bonds			$	398,301					$	398,212					$	398,123					$	398,034					$	397,945
Term loan(1)			124,895						124,849						124,830						124,880						124,788
Credit facility			175,000						182,000						176,000						168,000						156,000
Total			$	698,196					$	705,061					$	698,953					$	690,914					$	678,733
Weighted Average Interest Rates
Unsecured
Fixed rate bonds			4.5		%				4.5		%				4.5		%				4.5		%				4.5		%
Term loan(2)			5.8		%				5.8		%				4.7		%				4.7		%				4.7		%
Credit facility			5.3		%				5.3		%				5.3		%				5.8		%				6.3		%
Weighted Average			4.9		%				4.9		%				4.7		%				4.9		%				4.9		%
______________________________
(1) In the first quarter of 2023, 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 original term of the 2023 Term Loan had a two-year term ending in January 2025, with two one-year extension options. In the fourth quarter of 2024, we exercised one of two one-year extension options to extend the maturity of the loan to January 10, 2026.
(2) In the first quarter of 2023, Elme Communities 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 initial maturity date of January 10, 2025. In the second quarter of 2024, we entered into two forward interest rate swap arrangements with an aggregate notional amount of $150.0 million beginning on January 10, 2025 through the loan maturity date of January 10, 2026. These forward interest rate swap arrangements effectively fix (i) a portion of our variable rate debt based on an adjusted daily SOFR at 4.72% (subject to applicable interest rate margins) and (ii) the 2023 Term Loan’s interest rate at 5.77% beginning on January 10, 2025 through the loan maturity date of January 10, 2026.
Note: The current debt balances outstanding are shown net of discounts, premiums and unamortized debt costs (see page 26).

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Long Term Debt Maturities (in thousands, except average interest rates)
June 30, 2025

									Future Maturities of Debt
Year									Unsecured Debt						Credit Facility						Total Debt						Avg Interest Rate
2025									$	—					$	—					$	—					—%
2026									125,000			(1)			—						125,000						5.8%
2027									—						—						—						—%
2028									50,000						175,000			(2)			225,000						5.8%
2029									—						—						—						—%
Thereafter									350,000						—						350,000						4.1%
Scheduled principal payments									$	525,000					$	175,000					$	700,000					4.9%
Net discounts/premiums									(60)						—						(60)
Loan costs, net of amortization									(1,744)						—						(1,744)
Total maturities									$	523,196					$	175,000					$	698,196					4.9%
Weighted average maturity = 3.8 years
______________________________
(1) In the first quarter of 2023, we entered into a $125.0 million 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 original term of the 2023 Term Loan had a two-year term ending in January 2025, with two one-year extension options. In the fourth quarter of 2024, we exercised one of two one-year extension options to extend the maturity of the loan to January 10, 2026. In the first quarter of 2023, Elme Communities 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 initial maturity date of January 10, 2025. In the second quarter of 2024, we entered into two forward interest rate swap arrangements with an aggregate notional amount of $150.0 million beginning on January 10, 2025 through the loan maturity date of January 10, 2026. These forward interest rate swap arrangements effectively fix (i) a portion of our variable rate debt based on an adjusted daily SOFR at 4.72% (subject to applicable interest rate margins) and (ii) the 2023 Term Loan’s interest rate at 5.77% beginning on January 10, 2025 through the loan maturity date of January 10, 2026.
(2) In the third quarter of 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.

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Debt Covenant Compliance

Unsecured Public Debt Covenants

Unsecured Private Debt Covenants

Notes Payable

Line of Credit and Term Loan

Notes Payable

Quarter Ended June 30, 2025

Covenant

Quarter Ended June 30, 2025

Covenant

Quarter Ended June 30, 2025

Covenant

% of Total Indebtedness to Total Assets(1)

34.4

%

≤ 65.0%

N/A

N/A

N/A

N/A

Ratio of Income Available for Debt Service to Annual Debt Service

3.1

≥ 1.5

N/A

N/A

N/A

N/A

% of Secured Indebtedness to Total Assets(1)

—

%

≤ 40.0%

N/A

N/A

N/A

N/A

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

2.9

≥ 1.5

N/A

N/A

N/A

N/A

% of Net Consolidated Total Indebtedness to Consolidated Total Asset Value(3) (7)

N/A

N/A

27.7

%

≤ 60.0%

27.0

%

≤ 60.0%

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

N/A

N/A

3.63

≥ 1.50

3.63

≥ 1.50

% of Consolidated Secured Indebtedness to Consolidated Total Asset Value(3) (7)

N/A

N/A

—

%

≤ 40.0%

—

%

≤ 40.0%

% of Consolidated Unsecured Indebtedness to Unencumbered Pool Value(6) (7)

N/A

N/A

27.7

%

≤ 60.0%

27.0

%

≤ 60.0%

______________________________

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

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

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

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

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

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

(7) 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.

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Capital Analysis (In thousands, except per share amounts)

																		Three Months Ended
																		June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Market Data
Shares Outstanding																		88,162						88,157						88,029						88,010						88,011
Market Price per Share																		$	15.90					$	17.40					$	15.27					$	17.59					$	15.93
Equity Market Capitalization																		$	1,401,776					$	1,533,932					$	1,344,203					$	1,548,096					$	1,402,015
Total Debt																		$	698,196					$	705,061					$	698,953					$	690,914					$	678,733
Total Market Capitalization																		$	2,099,972					$	2,238,993					$	2,043,156					$	2,239,010					$	2,080,748
Total Debt to Market Capitalization																		0.33		:1				0.31		:1				0.34		:1				0.31		:1				0.33		:1
Earnings to Fixed Charges(1)																		0.6x						0.5x						0.7x						0.7x						0.6x
Debt Service Coverage Ratio(2)																		3.3x						3.3x						3.2x						3.2x						3.2x
Dividend Data			Six Months Ended															Three Months Ended
			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Total Dividends Declared			$	31,890					$	31,801								$	15,947					$	15,943					$	15,894					$	15,906					$	15,916
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)			73.5		%				78.3		%							75.0		%				75.0		%				75.0		%				78.3		%				78.3		%
Payout Ratio (Core AFFO basis)(4)			75.0		%				80.0		%							75.0		%																						78.3		%
______________________________
(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.
(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 10 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 10 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 10 for the definition of Core AFFO.

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Net Loss to NOI Reconciliations (In thousands)

			Six Months Ended															Three Months Ended
			June 30, 2025						June 30, 2024									June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
Net loss			$	(8,241)					$	(7,118)								$	(3,566)					$	(4,675)					$	(3,015)					$	(2,970)					$	(3,471)
Adjustments:
Property management expense			4,502						4,393									2,256						2,246						2,233						2,235						2,175
General and administrative expense			16,918						12,334									7,689						9,229						6,281						6,354						6,138
Real estate depreciation and amortization			46,799						48,838									23,560						23,239						23,623						23,474						23,895
Interest expense			18,958						18,878									9,498						9,460						9,400						9,557						9,384
Loss on extinguishment of debt			—						—									—						—						—						147						—
Other income			—						(1,410)									—						—						—						—						—
Total Net operating income (NOI)(1)			$	78,936					$	75,915								$	39,437					$	39,499					$	38,522					$	38,797					$	38,121
Multifamily NOI:
Same-store portfolio			$	72,944					$	69,497								$	36,483					$	36,461					$	35,640					$	35,668					$	34,927
Development			(124)						(114)									(61)						(63)						(58)						(61)						(57)
Total			72,820						69,383									36,422						36,398						35,582						35,607						34,870
Other NOI (Watergate 600)			6,116						6,532									3,015						3,101						2,940						3,190						3,251
Total NOI			$	78,936					$	75,915								$	39,437					$	39,499					$	38,522					$	38,797					$	38,121
______________________________
(1) NOI is a non-GAAP measure. See “Definitions” on page 10 for the definition of NOI and reconciliation of Net loss to NOI on the current page.

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