Elme Communities Files Q3 2024 10-Q

Ticker: ELME · Form: 10-Q · Filed: Nov 5, 2024 · CIK: 104894

Elme Communities 10-Q Filing Summary
FieldDetail
CompanyElme Communities (ELME)
Form Type10-Q
Filed DateNov 5, 2024
Risk Levellow
Pages16
Reading Time19 min
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, REIT, financials

TL;DR

Elme Communities (formerly WRIT) filed its Q3 2024 10-Q. REIT financials are in.

AI Summary

Elme Communities filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Washington Real Estate Investment Trust, reported its financial performance for the third quarter of 2024. The filing details its real estate investment trust operations and financial position.

Why It Matters

This filing provides investors with a detailed look at Elme Communities' financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the nine months ended September 30, 2024.

What was Elme Communities' former name?

Elme Communities was formerly known as Washington Real Estate Investment Trust.

When was the company's name changed?

The company's name was changed on July 3, 1992.

What is the company's fiscal year end?

The company's fiscal year ends on December 31.

What is the SIC code for Elme Communities?

The Standard Industrial Classification (SIC) code for Elme Communities is 6798, which corresponds to Real Estate Investment Trusts.

Filing Stats: 4,778 words · 19 min read · ~16 pages · Grade level 17 · Accepted 2024-11-05 16:10:45

Filing Documents

: 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 36

Controls and Procedures

Item 4. Controls and Procedures 37

: Other Information

Part II: Other Information

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39

Signatures

Signatures 40 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 ) September 30, 2024 December 31, 2023 (Unaudited) Assets Land $ 383,808 $ 384,097 Income producing property 1,986,596 1,960,020 2,370,404 2,344,117 Accumulated depreciation and amortization ( 595,533 ) ( 528,024 ) Net income producing property 1,774,871 1,816,093 Properties under development or held for future development 30,980 30,980 Total real estate held for investment, net 1,805,851 1,847,073 Cash and cash equivalents 4,840 5,984 Restricted cash 2,358 2,554 Rents and other receivables 12,676 17,642 Prepaid expenses and other assets 27,434 26,775 Total assets $ 1,853,159 $ 1,900,028 Liabilities Notes payable, net $ 522,914 $ 522,345 Line of credit 168,000 157,000 Accounts payable and other liabilities 36,295 38,997 Dividend payable 15,906 15,863 Advance rents 4,801 5,248 Tenant security deposits 6,270 6,225 Total liabilities 754,186 745,678 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 sh

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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 September 30, 2024 and September 30, 2023 as the "2024 Quarter" and the "2023 Quarter," respectively, and the nine months ended September 30, 2024 and September 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 September 30, 2024 and Decem

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