ELME Earnings Prediction
The chart below shows how ELME performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ELME sees a -1.26% change in stock price 10 days leading up to the earnings, and a -1.93% change 10 days following the report. On the earnings day itself, the stock moves by +0.94%. This data can give you a slight idea of what to expect for the next quarter's release.
ELME Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
61.26M
4.10%
0.34%
Gross Margin
59.23%
-4.16%
-1.09%
Operating Margin
10.42%
-2.34%
-5.53%
Net Margin
-4.92%
-6.82%
1.23%
EPS
-0.03
-25.00%
-0.00%
No Data Available
ELME Earnings Analysis
Elme Communities Corporation (ELME.N) Earnings Conference Call
Positive
Strategic Alternatives Review: Elme Communities launched a formal review to evaluate strategic alternatives, aiming to maximize shareholder value, indicating confidence in the long-term prospects of their portfolio.
Shared Services Launch: The company successfully launched its shared services department, Elme Resident Services, which streamlined operations and improved efficiency.
Washington Metro Portfolio Performance: Elme's Washington Metro area portfolio is performing well, with solid demand trends and low net inventory ratios, positioning it for continued growth in 2025.
Favorable Supply-Demand Dynamics: The company anticipates favorable supply-demand dynamics in the DMV, with lower projected inventory growth compared to national averages, supporting stable occupancy rates.
Lease Rate and Occupancy Growth: Same-store blended lease rate growth averaged 1.3% in Q4 2024, with occupancy rates averaging 95%, reflecting strong demand and retention rates.
Renovation Performance and Plans: Elme completed about 500 full renovations in 2024, achieving an average renovation ROI of approximately 17%, with plans for another 500 renovations in 2025.
NOI Growth Initiatives: The company captured approximately $1.8 million of additional NOI growth from operational initiatives in 2024, with expectations to achieve similar growth in 2025.
Multifamily Revenue Projections: Elme expects same-store multifamily revenue growth to range from 2.1% to 3.6% in 2025, driven by their Washington Metro portfolio and operational initiatives.
Negative
Market Value Discount: Shares of Elme continue to trade at a discount to the company’s private market value, indicating potential undervaluation and investor concerns.
Strategic Alternatives Review: The company has initiated a formal review to evaluate strategic alternatives, which may signal underlying issues or dissatisfaction with current performance.
Modest Revenue Growth Projections: Projected same-store multifamily revenue growth for 2025 is relatively modest, ranging from 2.1% to 3.6%, suggesting limited growth potential.
NOI Decline Challenges: Watergate 600 NOI is expected to decline by approximately 6% at the midpoint due to anticipated occupancy decline and higher utility expenses, indicating challenges in that property.
Occupancy Rate Decline: Expected occupancy for Watergate 600 is projected to drop to between 81% and 82%, representing a decline of approximately 3% compared to current levels, which raises concerns about tenant retention and demand.
FFO Per Share Decline: Core FFO per share is expected to decline by $0.01 from Watergate 600 and $0.05 from other items, indicating potential pressures on profitability.
Expense Growth Impact: Controllable expenses are projected to grow between 4% and 5%, which may impact overall profitability if revenue growth does not keep pace.
ELME FAQs
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ELME Earning Call Sentiment
Elme Communities (NYSE:ELME) Q4 2024 Earnings Call Transcript
ELME.N
-0.35%Positive
Earnings call summary shows mixed signals: stable financial performance and strategic plans, but risks like occupancy decline and high expenses. The Q&A revealed cautious optimism, but management's vague responses on strategic alternatives and costs raise concerns. Market cap is $1.38 billion, suggesting moderate reaction. Overall, neutral impact expected.
