Elme Communities Files Q2 2024 10-Q

TL;DR

Elme Communities Q2 10-Q is in: check financials for REIT performance.

AI Summary

Elme Communities filed its 10-Q for the period ending June 30, 2024, reporting on its real estate investment trust operations. The filing details financial performance and operational highlights for the second quarter of 2024, comparing it to the same period in 2023. Key financial data and disclosures relevant to shareholders and potential investors are provided.

Why It Matters

This filing provides crucial financial and operational data for Elme Communities, allowing investors to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Elme Communities is subject to market fluctuations, interest rate changes, and property-specific risks that can impact its financial performance.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial performance)
• 2023 — Comparison Period (Financial performance comparison for Q2 2023)

Key Players & Entities

• Elme Communities (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240802 (date) — Filing date
• WASHINGTON REAL ESTATE INVESTMENT TRUST (company) — Former company name

FAQ

Filing Documents

• elme-20240630.htm (10-Q) — 1180KB
• elme-thirdamendedandrestat.htm (EX-10.1) — 1314KB
• elme-063024exhibit311.htm (EX-31.1) — 10KB
• elme-063024exhibit312.htm (EX-31.2) — 11KB
• elme-063024exhibit313.htm (EX-31.3) — 11KB
• elme-063024exhibit32.htm (EX-32) — 9KB
• elme-20240630_g1.jpg (GRAPHIC) — 75KB
• image_0a.jpg (GRAPHIC) — 57KB
• 0000104894-24-000077.txt ( ) — 7346KB
• elme-20240630.xsd (EX-101.SCH) — 36KB
• elme-20240630_cal.xml (EX-101.CAL) — 59KB
• elme-20240630_def.xml (EX-101.DEF) — 153KB
• elme-20240630_lab.xml (EX-101.LAB) — 491KB
• elme-20240630_pre.xml (EX-101.PRE) — 332KB
• elme-20240630_htm.xml (XML) — 690KB

: 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 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

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 21

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 36

: Other Information

Part II: Other Information

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 37

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 38

Signatures

Signatures 39 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 ) June 30, 2024 December 31, 2023 (Unaudited) Assets Land $ 383,808 $ 384,097 Income producing property 1,976,127 1,960,020 2,359,935 2,344,117 Accumulated depreciation and amortization ( 573,054 ) ( 528,024 ) Net income producing property 1,786,881 1,816,093 Properties under development or held for future development 30,980 30,980 Total real estate held for investment, net 1,817,861 1,847,073 Cash and cash equivalents 5,629 5,984 Restricted cash 2,263 2,554 Rents and other receivables 12,575 17,642 Prepaid expenses and other assets 23,147 26,775 Total assets $ 1,861,475 $ 1,900,028 Liabilities Notes payable, net $ 522,734 $ 522,345 Line of credit 156,000 157,000 Accounts payable and other liabilities 37,283 38,997 Dividend payable 15,905 15,863 Advance rents 5,074 5,248 Tenant security deposits 6,334 6,225 Total liabilities 743,330 745,678 Equity Shareholders' equity Preferred shares; $ 0.01 par value; 10,000 shares authorized; no shares issued or outstanding — — Shares of beneficial interest, $ 0.01 par value; 150,000 shares authorized; 88,011 and 87,867 shares

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 June 30, 2024 and June 30, 2023 as the "2024 Quarter" and the "2023 Quarter," respectively, and the six months ended June 30, 2024 and June 30, 2023 as the "2024 Period" and the "2023 Period," 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 June 30, 2024 and December 31, 2023, our TRS had a def

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