Elme Communities Reports Growth in Core FFO and NOI for Full Year 2023
Net Loss: Reported a net loss of $53.0 million for the full year 2023.
NAREIT FFO: Increased by 27.9% year-over-year to $77.8 million.
Core FFO: Grew by 10.2% year-over-year to $85.2 million.
NOI: Rose by 9.4% from the prior year to $148.1 million.
Average Effective Monthly Rent: Increased by 6.5% for the Same-Store Portfolio.
Liquidity Position: Available liquidity stood at approximately $550 million as of December 31, 2023.
Dividends: Paid a quarterly dividend of $0.18 per share on January 4, 2024.
On February 15, 2024, Elme Communities (NYSE:ELME), a multifamily real estate investment trust (REIT) with properties primarily in the Washington, DC and Atlanta metro areas, released its 8-K filing, detailing its financial and operational results for the fourth quarter and full year ended December 31, 2023. The company's portfolio, which includes office, retail, and multifamily properties, is strategically located near major transportation nodes. Elme Communities' income is largely derived from rental revenue from tenants in long-term leases, with office assets contributing the majority of this income.
Full Year 2023 Financial and Operational Results
For the full year 2023, Elme Communities reported a net loss of $53.0 million, or $0.61 per diluted share. However, the company saw a significant increase in NAREIT FFO, which rose to $77.8 million, or $0.88 per diluted share, marking a 27.9% increase compared to the prior year. Core FFO also experienced growth, reaching $85.2 million, or $0.97 per diluted share, up 10.2% from the previous year. Net Operating Income (NOI) was another highlight, with a 9.4% increase to $148.1 million compared to the prior year.
Elme Communities' Same-Store multifamily NOI grew by 8.3%, and the Average Effective Monthly Rent per Home in the Same-Store Portfolio increased by 6.5%. The Same-Store multifamily Average Occupancy for the year was 95.6%, a slight improvement from the previous year.
Fourth Quarter Financial Highlights
The fourth quarter saw a net loss of $3.1 million, or $0.04 per diluted share. NAREIT FFO for the quarter was $21.0 million, or $0.24 per diluted share, up 14.3% compared to the same period in the prior year. Core FFO remained unchanged year-over-year at $20.9 million, or $0.24 per diluted share. NOI for the quarter increased by 4.6% to $38.6 million.
Operational highlights for the quarter included a 4.5% increase in Same-Store multifamily NOI and a 3.8% increase in Average Effective Monthly Rent Per Home for the Same-Store Portfolio. The Same-Store multifamily Average Occupancy was 95.5%, with Ending Occupancy at 95.9%, both showing improvements from the prior year.
Looking Ahead: 2024 Guidance and Strategic Focus
Elme Communities' CEO, Paul T. McDermott, expressed confidence in the company's ability to achieve NOI growth in 2024, citing operational enhancements and new technology to enhance profitability. The company anticipates an improving capital markets environment as interest rates stabilize. For 2024, Elme Communities expects Core FFO to range from $0.90 to $0.96 per fully diluted share, with Same-Store multifamily NOI growth projected to be between 0.25% and 2.0%.
"We delivered solid fourth quarter performance, closing out a year of exceptional growth," said Paul T. McDermott, President and CEO. "Looking forward, our primary emphasis will be on implementing operational enhancements and utilizing our new technology to enhance profitability."
Elme Communities' financial position remains strong, with no debt maturities until 2025 and a robust liquidity position. The company's focus on providing quality, affordable homes to a solid base of mid-market demand positions it well for continued shareholder value creation.
For more detailed information, investors and interested parties are encouraged to view the full earnings release and financial statements available on Elme Communities' website or contact their Investor Relations department.
Explore the complete 8-K earnings release (here) from Elme Communities for further details.
This article first appeared on GuruFocus.
