Elme Communities

Elme Communities has updated its estimated total liquidating distributions to a range of $16.41 to $16.61 per share, including the initial $14.67 per share distribution paid in January 2026. The company has sold six properties in 2026 for aggregate gross proceeds of approximately $294 million, and the remaining four properties are under contract, including a new purchase and sale agreement for Riverside Apartments at a contract price of $250 million. The revised estimate is lower than the May 2026 range of $16.74 to $17.02 per share, primarily due to a reduced contract price for Riverside Apartments amid prolonged softening in the D.C. market. Elme targets completing all remaining sales during the third and fourth quarters of 2026, with delisting and dissolution expected in the fourth quarter of 2026. The company intends to repay the remaining $251 million balance of its term loan using net proceeds from the remaining property sales and may make additional liquidating distributions before delisting.

Elme Communities' planned liquidation hit a snag when a subsidiary of The Beitel Group terminated the purchase and sale agreement for the 1,222-unit Riverside Apartments in Alexandria, Virginia, and related undeveloped land, at a contract sale price of $280 million. The termination occurred on June 17 after an extended inspection period, and Elme refunded Beitel's earnest money. Elme has recommenced sales efforts for Riverside, expecting to market it to a different buyer pool given its size, while three other property sales—Elme Bethesda, The Kenmore, and 3801 Connecticut Avenue—remain under contract for aggregate gross proceeds of $168 million, though closings are subject to conditions. The REIT completed the sale of the 210-unit Elme Watkins Mill to RailField Partners on June 10, using net proceeds to repay part of a $520 million term loan, leaving $251 million outstanding. Following the Riverside termination, Elme withdrew its previously estimated liquidating distribution range of $16.74 to $17.02 per common share and is not providing an update at this time.