Elme Communities, a Maryland-based real estate investment trust (REIT), reported its financial results for the quarter and nine months ended September 30, 2024. Total assets decreased to $1,853,159,000 from $1,900,028,000 at the end of 2023. Income-producing property increased to $1,986,596,000, while net income-producing property fell to $1,774,871,000. Total real estate held for investment, net, also declined to $1,805,851,000.
The company experienced a notable improvement in its financial performance. Real estate rental revenue for the three months ended September 30, 2024, was $61,055,000, up from $56,651,000 in the same period of 2023. For the nine months, rental revenue increased to $180,671,000 from $169,059,000. Real estate operating income for the quarter was $6,734,000, a significant recovery from a loss of $36,200,000 in the prior year. The net loss for the quarter narrowed to $2,970,000 from $43,618,000, while the nine-month net loss improved to $10,088,000 from $49,872,000.
The increase in revenue was driven by the acquisition of Elme Druid Hills, which contributed $2,478,000 in rental income, and higher same-store revenues. Net operating income (NOI) for the three months rose to $38,797,000, reflecting a 5.3% increase from the previous year. However, the company faced increased interest expenses, which rose to $9,557,000 for the quarter, attributed to higher effective interest rates on its debt.
Elme Communities also reported a decrease in total equity, which fell to $1,098,973,000 from $1,154,350,000 at the end of 2023. The line of credit liabilities increased to $168,000,000 from $157,000,000. The company declared dividends totaling $47,707,000 for the nine months, contributing to the decline in shareholders' equity.
Strategically, Elme Communities paused development activities at the Riverside Apartments property in Q2 2022 and has invested $30.4 million in a residential development adjacent to the property. The company entered into an amended credit agreement, providing for $500 million in revolving loan commitments, with a four-year term ending in July 2028.
Overall, Elme Communities demonstrated improved operational performance and revenue growth, primarily driven by strategic acquisitions and higher rental income, despite facing challenges related to interest expenses and equity declines.
About Elme Communities
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