NYSE$ELME

Elme Communities · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended September 30, 2022.

Elme Communities reported a net loss of $10.7 million, or $0.12 per diluted share, NAREIT FFO was $12.9 million, or $0.15 per diluted share and Core FFO was $20.5 million, or $0.23 per diluted share. Same-store multifamily NOI increased by 10.4% compared to the prior year period.

  • Net loss was $10.7 million, or $0.12 per diluted share
  • NAREIT FFO was $12.9 million, or $0.15 per diluted share
  • Core FFO was $20.5 million, or $0.23 per diluted share
  • Net Operating Income (NOI) was $35.0 million

Headline financials

Total Revenue

$54.6M

Previous: $42.5M+28.5%
EPS (adj)

$0.23

Previous: $0.20+15.0%
Effective Blended Lease Rate Growth

10.3%

No prior period
Capital Expenditures

-$224M

Previous: -$74.5M-200.9%
Free Cash Flow

-$235M

Previous: -$43.2M-443.9%
Net Income

-$10.7M

Previous: $31.3M-134.3%
Operating Income

$692K

Previous: -$1.62M+142.7%
Gross Profit

$35M

Previous: $27.1M+29.5%
Cash & Equivalents

$8.44M

Previous: $308M-97.3%
Total Assets

$1.88B

Previous: $1.85B+1.4%
Stock-Based Comp

$1.92M

Previous: $2.73M-29.7%

Revenue & EPS history

Elme Communities · Revenue · Quarterly

$54.6M

Q3 2022+28.5%vs Q3 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

Management is maintaining the midpoint of its 2022 Core FFO guidance and tightening the range by $0.02 per fully diluted share to $0.87 to $0.89 per fully diluted share. Management is reaffirming its 2023 Core FFO, which is expected to range from $0.96 to $1.04 per fully diluted share.

Tailwinds

  • Same-store multifamily NOI growth is now expected to range between 8.75% to 9.25%, which represents a tightened range and continues to represent 9.0% at the midpoint
  • Same-store multifamily and Trove NOI, which was fully delivered and invested by the start of 2021, is now expected to grow between 12.5% and 13.0%, which represents a tightened range and continues to represent 12.75% at the midpoint
  • Non-same-store multifamily NOI is now expected to range from $22.25 million to $22.75 million in 2022, which represents a tightened range and continues to represent $22.5 million at the midpoint
  • Other same-store NOI, which consists solely of Watergate 600, is expected to range from $13.25 million to $13.75 million
  • Property management expense is now expected to be approximately $7.5 million, which reflects a $0.25 million decline at the midpoint

Headwinds

  • G&A, net of core adjustments, is now expected to range from $26.0 million to $26.5 million, which reflects an increase of $0.25 million at the midpoint
  • Interest expense is now expected to range from $24.5 million to $25.0 million, which reflects a lower midpoint of $24.75 million following the determination that the Company will not complete additional acquisitions in this year
  • Transformation costs are now expected to be approximately $10.0 million, which reflects a decrease of $1.0 million compared to prior guidance
  • No additional acquisitions are assumed in 2022 due to changing market conditions
  • Core AFFO payout ratio is expected to be in the mid-70% range

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 Q3 2022

Historical avgQ3 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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