Elme Communities Exceeds Q1 FFO Expectations, Reiterates 2025 Guidance

Elme Communities reported Q1 FFO of $0.24, beating the consensus by $0.01. Real estate rental revenue increased to $61.49M, up from $59.51M YoY. The company reiterated its 2025 guidance, expecting Core FFO to range from $0.91 to $0.97 per fully diluted share, slightly below the consensus of $0.94.

Elme Communities (NYSE: ELME), a multifamily REIT, reported its first-quarter (Q1) 2025 financial results, showcasing robust performance across key metrics. The company's core funds from operations (FFO) per diluted share for Q1 2025 was $0.24, beating the consensus estimate by $0.01. This marked a 3.7% increase compared to the same period last year, driven by strong same-store net operating income (NOI) and occupancy growth.

Real estate rental revenue for the quarter stood at $61.49 million, representing a year-over-year (YoY) increase of 3.3%. The company attributed this growth to higher rental revenue and successful property tax assessment appeals. The average occupancy rate for the quarter was 94.8%, up 0.5% from the prior year period.

Elme Communities also announced that its board of trustees had initiated a formal review to evaluate strategic alternatives for maximizing shareholder value. This review remains ongoing, and there is no definitive timetable for its completion.

The company reiterated its 2025 guidance, expecting core FFO to range from $0.91 to $0.97 per fully diluted share. This range is slightly below the consensus estimate of $0.94. The guidance is based on several assumptions, including same-store multifamily revenue growth of 2.1% to 3.6% and same-store multifamily expense growth of 2.75% to 4.25%.

Elme Communities' strong balance sheet, with $324 million in available liquidity and only $125 million in debt maturing before 2028, provides a solid foundation for future growth. The company's focus on mid-market rents and its strong presence in Northern Virginia, where job growth is leading the region, positions it well to sustain resilient performance as the effects of federal workforce reductions unfold.

References:
[1] https://www.globenewswire.com/news-release/2025/05/01/3072854/0/en/Elme-Communities-Announces-First-Quarter-2025-Results.html