Elme Communities is “elevating home” for underserved mid-market renters
New identify marks the ultimate step within the Company’s transformation right into a strategy-led, business-to-consumer, value-driven multifamily firm
WASHINGTON, Oct. 17, 2022 (GLOBE NEWSWIRE) — WashREIT (NYSE: WRE), a value-driven multifamily proprietor and operator, introduced at present that it has modified its identify and rebranded as Elme Communities, reflecting its ongoing dedication to elevating the value-living expertise for its residents. The identify change culminates the Company’s transformation right into a centered multifamily firm, and subsequent geographic enlargement into Sunbelt markets. The Company, which has additionally modified its authorized identify to Elme Communities, will proceed buying and selling on the New York Stock Exchange beneath its current ticker image till October 20, 2022, when its new ticker image, “ELME,” is anticipated to grow to be efficient.
“Our previous name, WashREIT, spoke more to our past than our future. As we considered our company today and how it has evolved, we wanted to choose a name that represents our commitment to multifamily and our residents,” stated Paul T. McDermott, President and CEO. “Elme Communities is about elevating what home can be – with a higher level of quality, service, and experience at mid-market price points.”
The identify “Elme” represents a mixing of the phrases, “elevate” and “home,” reflecting the Company’s new mission: to raise the worth residing expertise by repeatedly specializing in service, effectivity, and innovation, to create a spot our residents are proud to name house. Elme is dedicated to enhancing the residing expertise for median earnings renters and offering wonderful worth to its residents.
“Our successful transformation has equipped us to further embrace the unique opportunity to be a differentiated provider of multifamily homes,” stated Stephen E. Riffee, Executive Vice President and CFO. “Our business model is predicated on serving a deep, solid, and underserved base of mid-market demand. This strategy is already delivering great results, and we expect to continue generating strong returns for investors.”
The Company’s new identify and model unveiling coincides with a number of current achievements related to its multifamily transformation and geographic enlargement, together with the next:
- Positioned its portfolio to ship vital progress in 2023 with anticipated year-over-year Core FFO progress of roughly 14% in 2023 (highest in over 20 years) primarily based on respective midpoints of the beforehand disclosed Core FFO steerage ranges, pushed by anticipated same-store multifamily NOI progress of roughly 9.0% to 11.0%
- Achieved geographic diversification with 20% of condominium houses situated within the Sunbelt in comparison with 3% a yr in the past
- Successfully executed main infrastructure and expertise overhaul forward of internalizing community-level operations. Community onboarding is anticipated to be accomplished in phases beginning this month and operating by mid-2023
- Recruited excellent new expertise, together with key portfolio-level operational positions
“We are excited to create a noticeable, positive difference in how our residents are treated and respected when it comes to one of the most important aspects of their life: their home,” stated Susan Lilly Gerock, Senior Vice President, and CIO. “Following the complete internalization of community-level operations in 2023, we expect to realize significant operational benefits which will further improve the value proposition for our residents and our shareholders.”
For a extra detailed overview of Elme Communities’ business technique and progress outlook, please consult with the Elevating Home presentation which is out there on the Company’s newly launched IR web site at ir.elmecommunities.com.
2022 ESG Report
ESG is integral to Elme Communities and the Company’s method to environmental stewardship, social initiatives, and governance will be present in its 2022 Environmental, Social, and Governance (ESG) Report, which was launched at present and is situated on the Company’s newly launched web site at www.elmecommunities.com.
Additional branding initiatives, together with property signage and new leasing and advertising supplies, can be applied over the subsequent a number of months as community-level operations are internalized.
About Elme Communities
Elme Communities (previously referred to as Washington Real Estate Investment Trust or WashREIT) is dedicated to elevating what house will be for middle-income renters by offering a better stage of high quality, service, and expertise. The firm is a multifamily actual property funding belief that owns and operates roughly 8,900 condominium houses within the Washington, DC metro and the Sunbelt, and roughly 300,000 sq. ft of economic area. Focused on offering high quality, reasonably priced houses to a deep, strong, and underserved base of mid-market demand, Elme Communities is constructing long-term worth for shareholders.
Forward Looking Statements
Certain statements on this launch are “forward-looking statements” throughout the which means of the Private Securities Litigation Reform Act of 1995 and contain dangers and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and methods, anticipated occasions or traits and comparable expressions regarding issues that aren’t historic information. In some instances, you may establish ahead trying statements by means of forward-looking terminology similar to “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the detrimental of those phrases and phrases or comparable phrases or phrases that are predictions of or point out future occasions or traits and which don’t relate solely to historic issues. Such statements contain identified and unknown dangers, uncertainties, and different elements which can trigger the precise outcomes, efficiency, or achievements of Elme Communities to be materially completely different from future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Such dangers and uncertainties embody, however will not be restricted to: dangers related to our capability to execute on our methods, together with new methods with respect to our operations, our portfolio and our rebranding, together with the acquisition of condominium houses within the Southeastern markets, on the phrases anticipated, or in any respect, the operational advantages from our working mannequin redesign on the timing contemplated or in any respect, and to comprehend any anticipated returns and advantages, together with the efficiency of any acquired residential properties on the ranges anticipated; whether or not precise same-store multifamily NOI progress and Core FFO can be according to expectations; and different dangers and uncertainties detailed sometimes in our filings with the SEC, together with our 2021 Form 10-Okay filed on February 18, 2022. While forward-looking statements mirror our good religion beliefs, they aren’t ensures of future efficiency. We undertake no obligation to replace our forward-looking statements or threat elements to mirror new info, future occasions, or in any other case.
This launch additionally consists of sure forward-looking non-GAAP info. Due to the excessive variability and problem in making correct forecasts and projections of a few of the info excluded from these estimates, along with a few of the excluded info not being ascertainable or accessible, the Company is unable to quantify sure quantities that might be required to be included in essentially the most straight comparable GAAP monetary measures with out unreasonable efforts.
Net Operating Income (“NOI”), outlined as actual property rental income much less direct actual property working bills, is a non-GAAP measure. NOI is calculated as internet earnings, much less non-real property income and the outcomes of discontinued operations (together with the acquire or loss on sale, if any), plus curiosity expense, depreciation and amortization, lease origination bills, common and administrative bills, acquisition prices, actual property impairment, casualty acquire and losses and acquire or loss on extinguishment of debt. NOI doesn’t embody administration bills, which include company property administration prices and property administration charges paid to 3rd events. They are the first efficiency measures we use to evaluate the outcomes of our operations on the property stage. NOI excludes sure elements from internet earnings so as to present outcomes extra carefully associated to a property’s outcomes of operations. For instance, curiosity expense is not essentially linked to the working efficiency of an actual property asset. In addition, depreciation and amortization, due to historic value accounting and helpful life estimates, could distort working efficiency on the property stage. As a results of the foregoing, we offer NOI as a complement to internet earnings, calculated in accordance with GAAP. NOI doesn’t symbolize internet earnings or earnings from persevering with operations calculated in accordance with GAAP. As such, neither needs to be thought-about an alternative choice to these measures as a sign of our working efficiency.
Core Funds From Operations (“Core FFO”) is calculated by adjusting NAREIT FFO for the next objects (which we consider will not be indicative of the efficiency of Washington REIT’s working portfolio and have an effect on the comparative measurement of Washington REIT’s working efficiency over time): (1) positive aspects or losses on extinguishment of debt and positive aspects or losses on rate of interest derivatives, (2) bills associated to acquisition and structuring actions, (3) govt transition prices, severance bills and different bills associated to company restructuring and govt retirements or resignations, (4) property impairments, casualty positive aspects and losses, and positive aspects or losses on sale not already excluded from NAREIT FFO, as applicable, (5) relocation expense and (6) transformation prices. These objects can range vastly from interval to interval, relying upon the quantity of our acquisition exercise and debt retirements, amongst different elements. We consider that by excluding these things, Core FFO serves as a helpful, supplementary measure of Washington REIT’s capability to incur and repair debt and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure and could also be calculated otherwise by different REITs.
NAREIT Funds From Operations (“FFO”) is outlined by 2018 National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) FFO White Paper Restatement, as internet earnings (computed in accordance with typically accepted accounting ideas (“GAAP”)) excluding positive aspects (or losses) related to gross sales of properties, impairments of depreciable actual property and actual property depreciation and amortization. We take into account NAREIT FFO to be a normal supplemental measure for fairness actual property funding trusts (“REITs”) as a result of it facilitates an understanding of the working efficiency of our properties with out giving impact to actual property depreciation and amortization, which traditionally assumes that the worth of actual property belongings diminishes predictably over time. Since actual property values have as a substitute traditionally risen or fallen with market circumstances, we consider that NAREIT FFO extra precisely offers traders a sign of our capability to incur and repair debt, make capital expenditures and fund different wants. Our FFO is probably not corresponding to FFO reported by different actual property funding trusts. These different REITs could not outline the time period in accordance with the present NAREIT definition or could interpret the present NAREIT definition otherwise. NAREIT FFO is a non-GAAP measure.
Same-store Portfolio Properties embody properties that had been owned for the whole lot of the years being in contrast and exclude properties beneath redevelopment or improvement and properties acquired, bought or categorised as held on the market throughout the years being in contrast. We categorize our properties as “same-store” or “non-same-store” for functions of evaluating comparative working efficiency. We outline improvement properties as these for which we’ve got deliberate or ongoing main development actions on current or acquired land pursuant to a licensed improvement plan. Development properties are categorized as same-store after they have reached stabilized occupancy (90%) earlier than the beginning of the prior yr. We outline redevelopment properties as these for which have deliberate or ongoing vital improvement and development actions on current or acquired buildings pursuant to a licensed plan, which has an impression on present working outcomes, occupancy and the power to lease area with the meant outcome of a better financial return on the property. We categorize a redevelopment property as same-store when redevelopment actions have been full for almost all of every yr being in contrast. We at present have two same-store portfolios: “Same-store multifamily” which is comprised of our same-store condominium communities and “Other same-store” which is comprised of our Watergate 600 industrial property.
Contact:
Investor Relations
Amy Hopkins
202-774-3253
[email protected]
Media Relations
Deanna Schmidt
202-774-3131
[email protected]
