Strategic Investments A/S Reports Q2 2025 Results: Extraordinary General Meeting Held

Strategic Investments A/S held an extraordinary general meeting on August 4, 2025, where the company's inner value as of July 31, 2025 was discussed. The meeting included an agenda and proposals, which are available on the company's website. The meeting was attended by shareholders who voted on the proposals presented. The outcome of the meeting and the decisions made by the shareholders will be announced in due course.

Elme Communities (NYSE: ELME) announced on August 4, 2025, that its Board of Trustees has completed a formal evaluation of strategic alternatives to maximize shareholder value. The company has entered into a Purchase and Sale Agreement (PSA) with an affiliate of Cortland Partners, LLC, under which Cortland will acquire a 19-asset portfolio from Elme for $1.6 billion in cash, subject to certain adjustments [1].

The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions including the receipt of approval from the Company’s shareholders. The sale of the 19-asset portfolio is the first step in a Plan of Sale and Liquidation, which also includes the sale of the company's remaining nine multifamily assets and Watergate 600. The Plan of Sale and Liquidation is subject to shareholder approval [1].

Elme intends to commence the marketing and sale of its remaining assets in the near future, with a view toward completing these asset sales within the next 12 months. The company expects to provide shareholders with total upfront distributions of between $14.68 and $15.00 per share, assuming the consummation of the Cortland Portfolio Transaction and the sale of the remaining assets [1].

The transaction marks Cortland’s second large-scale acquisition from a publicly traded REIT. Cortland intends to invest significant capital into the portfolio to enhance and elevate the resident experience. Elme's CEO, Paul McDermott, stated that the agreement with Cortland recognizes the greater value of the 19 Elme communities and their long-term potential when coupled with Cortland’s economies of scale [1].

Elme has also received a debt commitment of $520 million from Goldman Sachs Bank USA to provide debt financing secured by Elme’s assets not included in the closing under the Portfolio Sale Transaction. The availability of this debt financing is subject to closing on all 19 of the properties included in the Portfolio Sale Transaction and other customary closing conditions for financings of this type [1].

The company expects to suspend its regular quarterly distributions following the closing of the Portfolio Sale Transaction and payment of the initial special distribution. Instead, the company will make future liquidating distributions in connection with future asset sales [1].

The outcome of Elme Communities' extraordinary general meeting on August 4, 2025, where the company's inner value as of July 31, 2025 was discussed, will be announced in due course. The meeting included an agenda and proposals, which are available on the company's website.

References:
[1] https://ir.elmecommunities.com/news-events/press-releases/detail/372/elme-communities-concludes-strategic-alternatives-review