Elme Communities (ELME)

Elme Communities, a Maryland real estate investment trust formerly known as Washington Real Estate Investment Trust and successor to a trust organized in 1960, is a self-administered equity REIT whose business primarily consists of owning apartment communities in the greater Washington, DC metro and Sunbelt regions. As of December 31, 2024, it owned 28 apartment communities (22 in the Washington, DC metro region and six in the Atlanta metro region, where it expanded in 2021), comprising approximately 9,400 residential apartment homes, plus one office property, Watergate 600, and approximately 300,000 square feet of commercial space in the Washington, DC metro region. Its strategy is to provide quality, affordably priced housing to mid-market renters, targeting markets with diverse, innovative industries that drive job creation, wage growth and in-migration, and middle-income renters for whom new apartment supply and homeownership are unaffordable.

It acquires, develops and renovates communities, executing value-add renovations tailored to each submarket, and classifies its communities as Class A, Class A-, Class B Value-Add and Class B based on building age, rent growth drivers and rents relative to market. Residential properties generated about 92% of total real estate rental revenue in 2024 and 2023, with other properties making up the remainder, and total real estate rental revenue was $241.9 million, $227.9 million and $209.4 million for 2024, 2023 and 2022. No single tenant accounted for more than 5% of rental revenue.

The company completed the internalization of its community management in July 2023, having previously relied on Bozzuto Management Company and Greystar Real Estate Partners; all residential communities are now managed by Elme, while Stream Realty Partners manages the office property. It had 255 employees as of February 2025, most of them community management staff. Elme also pursues ESG initiatives such as energy and emissions tracking, BREEAM and Fitwel certifications, and a rent-reporting and housing stability loan program for residents, and it operates to qualify as a REIT, distributing at least 90% of its REIT taxable income to shareholders, with a taxable REIT subsidiary subject to corporate income tax.