Elme Communities Sells Five Properties for $252.7M, Cuts Payout to $16.74–$17.02
ELME•Elme Communities sold five properties in 2026 for $252.7 million and secured agreements to sell four others for $431.3 million, aiming to complete all closings by mid-2026 with delisting and dissolution in Q3. The company now estimates total liquidating distributions of $16.74–$17.02 per share, down from $17.02–$17.47.
1. Sale Progress and Proceeds
In the first five months of 2026, Elme Communities completed the sale of five properties—four multifamily assets and its Watergate 600 office—for aggregate gross proceeds of $252.7 million. The company has also entered contracts for four additional properties that, subject to adjustments and prorations, are expected to deliver approximately $431.3 million in gross proceeds.
2. Revised Distribution Estimates
Following the initial special distribution of $14.67 per share paid in January, Elme now forecasts additional liquidating distributions between $2.07 and $2.35 per share. This brings the total estimated payout to $16.74–$17.02 per share, narrowed from the prior $17.02–$17.47 range due to lower-than-expected DC property proceeds and updated expense assumptions.
3. Pending Sales and Timeline
Subject to customary closing conditions—including Tenant Opportunity to Purchase Act clearances on two Washington, DC, assets—Elme targets completing the four contracted property sales by mid-2026. Negotiations for its final remaining asset in Bethesda are underway, with a purchase agreement expected within weeks and all sales slated for mid-year to support planned delisting.
4. Term Loan and Liquidation Plan
Elme’s liquidation follows a $520 million senior secured term loan, of which $288.5 million remained outstanding as of May 11, 2026. Net proceeds from property sales will repay the loan and fund distributions, after which Elme Communities intends to pursue delisting and dissolution in the third quarter of 2026.
