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Jun 30, 2023
Elme Communities Q2 2023 Earnings Report
Reported financial results for the quarter ended June 30, 2023.
Key Takeaways
Elme Communities reported a net loss of $2.6 million, or $0.03 per diluted share, for the second quarter of 2023. Core FFO was $21.4 million, up 14% from the prior year period, and NOI increased by 11% to $36.3 million.
Same-store multifamily NOI increased by 10.9% compared to the prior year period.
Effective blended Lease Rate Growth was 3.7% during the quarter for our same-store portfolio.
Average effective monthly rent per home increased 8.1% compared to the prior year period.
Available liquidity was more than $680 million as of June 30, 2023.
Forward Guidance
Management lowered the top end of its 2023 Core FFO guidance to $1.00 per fully diluted share. Core FFO for 2023 is now expected to range from $0.96 to $1.00 per fully diluted share. Same-store multifamily NOI growth is now expected to range from 8.0% to 9.0%.
Positive Outlook
- Strong occupancy trend and very strong renewal rates drove 9.6% revenue growth in the second quarter.
- Sequential improvement in new lease rates in July.
- Favorable trend into August.
- Good ability to achieve high single digit same-store NOI growth for the year.
- Acquisition capacity and will update guidance if an acquisition is identified.
Challenges Ahead
- Lower-than-expected new lease rate growth driven by lower-than-expected rent growth in our markets.
- Greater-than-expected impact from rebranding and transition activities on lead generation, which temporarily impacted the ability to push rental rates.
- Non-same-store multifamily NOI is now expected to range from $12.0 million to $12.75 million due to the same factors that impacted our same-store new lease rate growth
Historical Earnings Impact
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Avg. Return Before/After Earnings
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