NYSE$ELME

Elme Communities · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial and operating results.

WashREIT reported a net loss of $8.9 million, or $0.10 per diluted share, NAREIT FFO was $15.2 million, or $0.17 per diluted share and Core FFO was $18.2 million, or $0.21 per diluted share. Same-store multifamily NOI increased by 5.1% compared to the prior year period. Available liquidity was approximately $745 million as of June 30, 2022.

  • Net loss was $8.9 million, or $0.10 per diluted share
  • NAREIT FFO was $15.2 million, or $0.17 per diluted share
  • Core FFO was $18.2 million, or $0.21 per diluted share
  • Net Operating Income (NOI) was $32.8 million

Headline financials

Total Revenue

$51.4M

Previous: $41.3M+24.4%
EPS (adj)

$0.21

Previous: $0.35-40.0%
Effective Blended Lease Rate Growth

11.2%

No prior period
Capital Expenditures

-$216M

Previous: -$18.2M-1091.8%
Free Cash Flow

-$225M

Previous: -$25.2M-795.9%
Net Income

-$8.87M

Previous: -$6.99M-26.9%
Operating Income

-$2.72M

Previous: -$2.34M-16.1%
Gross Profit

$32.8M

Previous: $25.1M+30.8%
Cash & Equivalents

$44.8M

Previous: $5.44M+724.0%
Total Assets

$1.93B

Previous: $2.37B-18.3%
Stock-Based Comp

$2.16M

Previous: $2.09M+3.5%

Revenue & EPS history

Elme Communities · Revenue · Quarterly

$51.4M

Q2 2022+24.4%vs Q2 2021
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

Core FFO for 2022 is expected to range from $0.86 to $0.90 per fully diluted share. Same-store multifamily NOI growth is expected to range between 8.5% to 9.5%. Approximately $125 million of additional multifamily acquisitions are expected to be completed in the Southeast during the fourth quarter of 2022.

Tailwinds

  • Same-store multifamily NOI growth is expected to range between 8.5% to 9.5% which represents a 25 basis point increase at the midpoint compared to our prior guidance
  • Same-store multifamily and Trove NOI, which was fully delivered and invested by the start of 2021, is now expected to grow between 12.25% and 13.25%
  • Non-same-store multifamily NOI is expected to range from $22.0 million to $23.0 million in 2022, which represents a $0.5 million decrease at the midpoint resulting primarily from slightly higher operating and bad debt expenses and lower capitalized costs for development
  • We have raised the midpoint of our guidance for Other same-store NOI, which consists solely of Watergate 600, which is now expected to range from $13.25 million to $13.75 million
  • Approximately $125 million of additional multifamily acquisitions are expected to be completed in the Southeast during the fourth quarter of 2022, which is higher than the prior targeted acquisition level but later than previously assumed

Headwinds

  • delay in timing of further acquisitions
  • increased interest costs
  • lower capitalized interest
  • higher interest rates
  • The effect of higher interest rates and no longer capitalizing interest reduced our 2022 Core FFO guidance range by approximately one cent per share.

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 Q2 2022

Historical avgQ2 2022

+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%

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