Elme Communities Updated estimate of $1.80 for NAV/final distribution

Research evidence excerpt

Elme Communities Updated estimate of $1.80 for NAV/final distribution

J P M O R G A N North America Equity Research

26 June 2026

Elme Communities Neutral

ELME, ELME US

Updated estimate of $1.80 for NAV/final distribution Price (25 Jun 26):$1.35

REITs & Real Estate Services

Earlier this week ELME released an 8-K providing an update regarding the status Anthony Paolone, CFA AC

of its liquidation activities,highlighted by the buyer’s termination of the $280 (1-212) 622-6682

million PSA for Riverside Apartments (1,222 units in Alexandria, VA) during the anthony.paolone@jpmorgan.com

inspection period; ELME has restarted marketing the asset. This was very Michael W. Mueller, CFA

disappointing and drove the stock down 33% yesterday, compared to the RMZ (1-212) 622-6689

Index, which was up 58bps, from $2.02 at the prior day close to $1.35. With michael.w.mueller@jpmorgan.com

Riverside’s sale timing and proceeds now uncertain, management withdrew its Hong Zhang

previously disclosed estimated distribution range of $2.07-2.35 ($2.21 midpoint). (1-212) 622-6416

hongliang.zhang@jpmorgan.com

Nahom TesfazghiTo hazard an updated estimate for the final distribution, we updated our NAV

(1-212) 622 4884

model and now arrive at a remaining value of $1.80/share ($2.13 prior). As Elme nahom.tesfazghi@jpmchase.com

Bethesda, The Kenmore, and 3801 Connecticut Avenue are under PSAs that total

Daniella De Armas Rosales

$168 million (we previously estimated $168.8 million) and no longer subject to an (1-212) 622-0050

ongoing inspection period, Riverside remains by far the largest swing factor. We daniella.dearmasrosales@jpmchase.com

now estimate a value of $250.6 million ($205k/unit) for the property (purchased J.P. Morgan Securities LLC