Elme Communities Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Elme Communities filed its Q1 2024 10-Q, detailing financial performance and corporate information.</b>

AI Summary

Elme Communities (ELME) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Elme Communities filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's principal business address is 7550 Wisconsin Avenue, Suite 900, Bethesda, MD 20814. Elme Communities was formerly known as Washington Real Estate Investment Trust. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking Elme Communities, this filing contains several important signals. This 10-Q provides investors with the latest financial snapshot of Elme Communities, crucial for understanding its current operational health and strategic direction. The filing includes historical financial data and details about the company's structure, which are important for comparative analysis and assessing long-term value.

Risk Assessment

Risk Level: — Elme Communities shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags or significant negative disclosures, indicating a routine update.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to assess Elme Communities' performance and identify any emerging trends.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-02 — Filing Date (Filed as of Date)
• 12/31 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• Elme Communities (company) — Filer name
• Washington Real Estate Investment Trust (company) — Former company name
• 7550 Wisconsin Avenue, Suite 900, Bethesda, MD 20814 (company) — Business address

FAQ

Industry Context

Elme Communities operates as a Real Estate Investment Trust (REIT), focusing on owning and managing real estate properties. This sector is sensitive to interest rates and economic conditions.

Regulatory Implications

As a publicly traded company, Elme Communities is subject to SEC regulations, including the requirement to file quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the balance sheet and income statement for the quarter ended March 31, 2024.
2. Examine any disclosures related to debt, equity, and cash flow.
3. Review the company's business description and any updates provided.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive update on the company's financial performance and condition during the quarter.)

REIT

Real Estate Investment Trust, a company that owns, operates, or finances income-generating real estate. (Indicates Elme Communities' business model and its focus on real estate investment and operations.)

Year-Over-Year Comparison

This filing is the Q1 2024 10-Q, following the company's previous filings which would include the Q4 2023 10-K and potentially prior 10-Q reports.

Filing Documents

• elme-20240331.htm (10-Q) — 864KB
• elme-033124exhibit311.htm (EX-31.1) — 10KB
• elme-033124exhibit312.htm (EX-31.2) — 11KB
• elme-033124exhibit313.htm (EX-31.3) — 11KB
• elme-033124exhibit32.htm (EX-32) — 9KB
• elme-20240331_g1.jpg (GRAPHIC) — 75KB
• 0000104894-24-000043.txt (&nbsp;) — 4811KB
• elme-20240331.xsd (EX-101.SCH) — 34KB
• elme-20240331_cal.xml (EX-101.CAL) — 54KB
• elme-20240331_def.xml (EX-101.DEF) — 152KB
• elme-20240331_lab.xml (EX-101.LAB) — 464KB
• elme-20240331_pre.xml (EX-101.PRE) — 321KB
• elme-20240331_htm.xml (XML) — 477KB

: Financial Information

Part I: Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Income (Loss ) 7 Consolidated Statements of Equity 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 33

: Other Information

Part II: Other Information

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 36 3 PART I FINANCIAL INFORMATION

: FINANCIAL STATEMENTS

ITEM 1: FINANCIAL STATEMENTS The information furnished in the accompanying unaudited Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Equity and Consolidated Statements of Cash Flows reflects all adjustments, consisting of normal recurring items, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The accompanying financial statements and notes thereto should be read in conjunction with the financial statements and notes for the three years ended December 31, 2023 included in our 2023 Annual Report on Form 10-K filed on February 16, 2024. 4 ELME COMMUNITIES AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE DATA ) March 31, 2024 December 31, 2023 (Unaudited) Assets Land $ 383,808 $ 384,097 Income producing property 1,966,412 1,960,020 2,350,220 2,344,117 Accumulated depreciation and amortization ( 550,421 ) ( 528,024 ) Net income producing property 1,799,799 1,816,093 Properties under development or held for future development 30,980 30,980 Total real estate held for investment, net 1,830,779 1,847,073 Cash and cash equivalents 4,199 5,984 Restricted cash 2,704 2,554 Rents and other receivables 12,886 17,642 Prepaid expenses and other assets 25,971 26,775 Total assets $ 1,876,539 $ 1,900,028 Liabilities Notes payable, net $ 522,539 $ 522,345 Line of credit 160,000 157,000 Accounts payable and other liabilities 31,112 38,997 Dividend payable 15,888 15,863 Advance rents 4,361 5,248 Tenant security deposits 6,235 6,225 Total liabilities 740,135 745,678 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; 88,003 and 87,867 shares

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (UNAUDITED) NOTE 1: NATURE OF BUSINESS Elme Communities, a Maryland real estate investment trust, is a self-administered equity real estate investment trust ("REIT"), and successor to a trust organized in 1960. Our business primarily consists of the ownership of apartment communities in the greater Washington, DC metro and Sunbelt regions. Within these notes to the financial statements, we refer to the three months ended March 31, 2024 and March 31, 2023 as the "2024 Quarter" and the "2023 Quarter," respectively. Federal Income Taxes We believe that we qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"), and intend to continue to qualify as such. To maintain our status as a REIT, we are, among other things, required to distribute 90% of our REIT taxable income (determined before the deduction for dividends paid and excluding net capital gains to our shareholders) on an annual basis. When selling a property, we generally have the option of (a) reinvesting the sales proceeds of property sold in a way that allows us to defer recognition of some or all taxable gain realized on the sale, (b) distributing gains to the shareholders with no tax to us or (c) treating net long-term capital gains as having been distributed to our shareholders, paying the tax on the gain deemed distributed and allocating the tax paid as a credit to our shareholders. Generally, and subject to our ongoing qualification as a REIT, no provisions for income taxes are necessary except for taxes on undistributed taxable income and taxes on the income generated by our taxable REIT subsidiary ("TRS"). Our TRS is subject to corporate federal and state income tax on its taxable income at regular statutory rates. As of both March 31, 2024 and December 31, 2023, our TRS had a deferred tax asset of $ 1.4 million that was fully reserved. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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View this 10-Q filing on SEC EDGAR