NYSE$ELME

Elme Communities · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by rental rate growth and full deployment of commercial sale proceeds.

Elme Communities reported a net loss of $3.6 million, but Core FFO was $21.5 million, up 20% from the prior year period. Same-store multifamily NOI increased by 10.7% compared to the prior year period. The company is tightening its 2023 Core FFO guidance to $0.96 to $1.02 per fully diluted share.

  • Net loss was $3.6 million, or $0.04 per diluted share
  • Core FFO was $21.5 million, or $0.24 per diluted share, up 20% from the prior year period
  • Net Operating Income (NOI) was $36.3 million up 18% from the prior year period
  • Same-store multifamily NOI increased by 10.7% compared to the prior year period

Headline financials

Total Revenue

$55.8M

Previous: $47.8M+16.7%
EPS (adj)

$0.24

Previous: $0.20+20.0%
Effective Blended Lease Rate Growth

4.5%

Previous: 9.5%-52.6%
Capital Expenditures

-$5.57M

Previous: -$115M+95.1%
Free Cash Flow

-$9.21M

Previous: -$122M+92.5%
Net Income

-$3.64M

Previous: -$7.72M+52.8%
Operating Income

$3.24M

Previous: -$2.46M+231.8%
Gross Profit

$36.3M

Previous: $30.7M+18.4%
Cash & Equivalents

$7.04M

Previous: $140M-95.0%
Total Assets

$1.85B

Previous: $1.88B-1.2%
Stock-Based Comp

$1.19M

Previous: $2.08M-42.9%

Revenue & EPS history

Elme Communities · Revenue · Quarterly

$55.8M

Q1 2023+16.7%vs Q1 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Elme Communities · $21M total across 1 segment · Q1 2021

  • Multifamily NOI
    $21M

Forward guidance

Management is tightening the range of its 2023 Core FFO guidance to $0.96 to $1.02 per fully diluted share.

Tailwinds

  • Same-store multifamily NOI growth is now expected to range from 9.0% to 10.5%
  • Non-same-store multifamily NOI is now expected to range from $12.75 million to $13.5 million
  • Other same-store NOI, which consists solely of Watergate 600, is now expected to range from $12.5 million to $13.25 million due to higher-than-expected operating expenses
  • G&A, net of core adjustments, is now expected to range from $25.25 million to $26.25 million, reflecting a $0.6 million decline compared to our prior guidance range driven by our focus on cost saving initiatives and higher allocation of internal time to transition activities including community-level training, expansion of our resident experience technology offerings, and community recruiting efforts
  • Interest expense is now expected to range from $28.5 million to $29.25 million, which represents a $0.6 million decline at the midpoint as it incorporates our term loan swap execution, which fixes our term loan interest rate to 4.73% for the second half of 2023

Headwinds

  • Transformation costs are now expected to range from $5.0 to $6.0 million due to higher allocation of internal time to transformation activities, higher transition expenses, and higher consulting and marketing expenses related to our rebranding
  • Non-same-store multifamily NOI is now expected to range from $12.75 million to $13.5 million
  • Other same-store NOI, which consists solely of Watergate 600, is now expected to range from $12.5 million to $13.25 million due to higher-than-expected operating expenses
  • G&A, net of core adjustments, is now expected to range from $25.25 million to $26.25 million, reflecting a $0.6 million decline compared to our prior guidance range driven by our focus on cost saving initiatives and higher allocation of internal time to transition activities including community-level training, expansion of our resident experience technology offerings, and community recruiting efforts
  • Interest expense is now expected to range from $28.5 million to $29.25 million, which represents a $0.6 million decline at the midpoint as it incorporates our term loan swap execution, which fixes our term loan interest rate to 4.73% for the second half of 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+11.2%

Q4 2024

Best reaction

-5.3%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.3%-4.3%-2.9%
Q4 2025+0.0%+0.0%+6.4%
Q3 2025-1.0%-2.8%+0.4%
Q1 2025+1.0%-0.3%+0.9%
Q4 2024+11.2%+8.1%+11.4%
Q3 2024+2.5%+7.2%+0.5%
Q2 2024+2.9%+2.7%+7.3%
Q1 2024+1.0%+0.5%+1.6%
Q4 2023-0.7%-4.2%-6.0%
Q3 2023-3.9%-4.9%-2.5%
Q2 2023-4.3%-3.2%-5.1%
Q1 2023-0.9%-5.0%-13.0%
Q4 2022+0.1%-0.8%-8.4%
Q3 2022+2.6%+2.5%+6.6%
Q2 2022+2.6%-1.6%-8.2%
Q1 2022-0.3%-5.5%-2.7%
Q4 2021-4.4%-4.9%+1.2%
Q3 2021+0.4%+0.5%+0.8%
Q2 2021-0.6%-3.5%+2.0%
Q1 2021-0.8%+0.7%+2.7%
Q4 2020-0.9%-1.8%+5.2%
Q3 2020+1.1%+10.9%+39.0%
Q2 2020+5.0%+4.4%+6.1%
Q1 2020+0.8%+5.4%-3.1%
Q4 2019-0.8%-1.7%-16.2%
Q3 2019+2.5%+2.4%+3.4%
Q2 2019-1.4%-1.7%-5.7%
Q1 2019-0.4%+0.3%-4.0%
Q4 2018+3.6%+4.0%+6.5%
Q3 2018-3.2%-2.4%-2.2%
Q2 2018-1.6%+1.1%+3.6%
Q1 2018+1.6%+2.8%+2.8%
Q4 2017+2.8%+1.1%+3.0%
Q3 2017+0.4%-0.9%+0.2%
Q2 2017+2.9%+5.2%+2.5%
Q1 2017-1.0%-1.2%+0.4%
Q4 2016+1.7%+2.6%-3.4%
Q3 2016-1.0%-3.2%+5.4%
Q2 2016+2.3%+3.7%-3.2%
Q1 2016-0.6%
Q4 2015+2.7%
Q3 2015-1.9%
Q2 2015-3.1%
Q1 2015+0.1%
Q4 2014-1.3%
Q3 2014+2.3%
Q2 2014+1.2%
Q1 2014+0.0%
Q4 2013-2.3%
Q3 2013-1.5%
Q2 2013-0.9%
Q1 2013-2.8%
Q4 2012-0.9%
Q3 2012-3.4%
Q2 2012-5.3%
Q1 2012+0.4%
Q4 2011-0.3%
Q3 2011-2.3%
Q2 2011-0.1%
Q1 2010+0.3%
Q1 2011+1.6%
Q4 2008+3.9%
Q4 2010+3.9%
Q3 2010+1.0%
Q3 2009+1.0%
Q4 2009+0.3%
Q2 2009+0.3%
Q2 2010+0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro