New name marks the final step in the Company’s transformation into a strategy-led, business-to-consumer, value-driven multifamily company
“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,” said
The name “Elme” represents a blending of the words, “elevate” and “home,” reflecting the Company’s new mission: to elevate the value living experience by continuously focusing on service, efficiency, and innovation, to create a place our residents are proud to call home. Elme is committed to improving the living experience for median income renters and providing excellent value to its residents.
“Our successful transformation has equipped us to further embrace the unique opportunity to be a differentiated provider of multifamily homes,” said
The Company’s new name and brand unveiling coincides with several recent achievements associated with its multifamily transformation and geographic expansion, including the following:
- Positioned its portfolio to deliver significant growth in 2023 with expected year-over-year Core FFO growth of approximately 14% in 2023 (highest in over 20 years) based on respective midpoints of the previously disclosed Core FFO guidance ranges, driven by expected same-store multifamily NOI growth of approximately 9.0% to 11.0%
- Achieved geographic diversification with 20% of apartment homes located in the Sunbelt compared to 3% a year ago
- Successfully executed major infrastructure and technology overhaul ahead of internalizing community-level operations. Community onboarding is expected to be completed in phases starting this month and running through mid-2023
- Recruited outstanding new talent, including 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,” said
For a more detailed overview of Elme Communities’ business strategy and growth outlook, please refer to the Elevating Home presentation which is available on the Company’s newly launched IR website at ir.elmecommunities.com.
2022 ESG Report
ESG is integral to
Additional branding initiatives, including property signage and new leasing and marketing materials, will be implemented over the next several months as community-level operations are internalized.
About
Forward Looking Statements
Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of
This release also includes certain forward-looking non-GAAP information. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these estimates, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable efforts.
Net Operating Income (“NOI”), defined as real estate rental revenue less direct real estate operating expenses, is a non-GAAP measure. NOI is calculated as net income, less non-real estate revenue and the results of discontinued operations (including the gain or loss on sale, if any), plus interest expense, depreciation and amortization, lease origination expenses, general and administrative expenses, acquisition costs, real estate impairment, casualty gain and losses and gain or loss on extinguishment of debt. NOI does not include management expenses, which consist of corporate property management costs and property management fees paid to third parties. They are the primary performance measures we use to assess the results of our operations at the property level. NOI excludes certain components from net income in order to provide results more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. As a result of the foregoing, we provide NOI as a supplement to net income, calculated in accordance with GAAP. NOI does not represent net income or income from continuing operations calculated in accordance with GAAP. As such, neither should be considered an alternative to these measures as an indication of our operating performance.
Core Funds From Operations (“Core FFO”) is calculated by adjusting NAREIT FFO for the following items (which we believe are not indicative of the performance of Washington REIT’s operating portfolio and affect the comparative measurement of Washington REIT’s operating performance over time): (1) gains or losses on extinguishment of debt and gains or losses on interest rate derivatives, (2) expenses related to acquisition and structuring activities, (3) executive transition costs, severance expenses and other expenses related to corporate restructuring and executive retirements or resignations, (4) property impairments, casualty gains and losses, and gains or losses on sale not already excluded from NAREIT FFO, as appropriate, (5) relocation expense and (6) transformation costs. These items can vary greatly from period to period, depending upon the volume of our acquisition activity and debt retirements, among other factors. We believe that by excluding these items, Core FFO serves as a useful, supplementary measure of Washington REIT’s ability to incur and service debt and distribute dividends to its shareholders. Core FFO is a non-GAAP and non-standardized measure and may be calculated differently by other REITs.
NAREIT Funds From Operations (“FFO”) is defined by 2018
Contact:
Investor Relations
202-774-3253
ahopkins@elmecommunities.com
Media Relations
202-774-3131
dschmidt@elmecommunities.com
Source:
2022 GlobeNewswire, Inc., source