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 -1.01% change in stock price 10 days leading up to the earnings, and a -3.15% change 10 days following the report. On the earnings day itself, the stock moves by +0.92%. 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
61.05M
7.77%
1.58%
Gross Margin
59.88%
-2.86%
0.12%
Operating Margin
11.03%
-5.97%
12.09%
Net Margin
-4.86%
-93.69%
-15.92%
EPS
-0.03
-94.00%
-25.00%
No Data Available
ELME Earnings Analysis
Elme Communities Corporation (ELME.N) Earnings Conference Call
Positive
Key Market Demand Surge: 1. Strong Demand in Key Markets: Absorption in the Washington Metro and Atlanta Metro regions reached the highest levels since Q4 2021, driven by wage growth and stable employment, with Atlanta's in-migration projected to increase by over 20% by year-end 2024 compared to 2023.
Same-Store Occupancy Increase: 2. Improved Same-Store Occupancy: Same-store average occupancy increased by 60 basis points sequentially to 95.2%, with Washington Metro communities showing particularly strong performance.
Improved Retention Rates: 3. High Retention Rates: Same-store retention rates improved to 66% during the quarter, up from 61% in the same period last year, indicating a stable and loyal resident base.
Renovation Return on Investment: 4. Positive Renovation ROI: The company completed renovations on 188 units with an average ROI of approximately 17%, and is on track to meet its target of 475 full renovations for the year.
Liquidity Strength and Flexibility: 5. Strong Liquidity Position: Elme Communities maintained a robust liquidity position with over $330 million available on its revolving credit facility, ensuring financial flexibility for future initiatives.
Negative
Lease Rate Decline: 1. Declining New Lease Rates: New lease rate growth for the same-store portfolio was negative 3.1% in October, reflecting ongoing competitive pressures in the Atlanta market.
Rising Bad Debt Levels: 2. Increased Bad Debt: Bad debt in Atlanta was approximately 2% of revenue in October, significantly higher than the normalized level of below 1% seen in Washington, D.C.
Same-Store NOI Growth Update: 3. Negative Same-Store NOI Growth Guidance: The company tightened its same-store multifamily NOI growth assumption to a range of 1% to 1.5%, indicating weaker performance than previously expected due to rental pressure from new supply.
Atlanta Rental Concessions: 4. High Concession Rates in Atlanta: Approximately 58% of new leases in Atlanta received concessions in the third quarter, averaging around 12 days, highlighting the competitive rental environment.
Operational Expense Rise: 5. Operational Expense Increase: Operating expenses in Atlanta increased by 10.5% in Q3, driven by higher taxes, legal fees, and eviction-related costs, which are expected to continue impacting profitability.
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ELME Earning Call Sentiment
Elme Communities (ELME) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ELME.N
0.26%Positive
The earnings call presents a mixed picture. Financial performance shows tight guidance, stable debt, and liquidity, but rental pressure in Atlanta and bad debt issues are concerning. The Q&A highlights management's cautious stance on future guidance and uncertainty in bad debt stabilization. Despite some positive factors like liquidity and no secured debt, the challenges in Atlanta and cautious guidance lead to a neutral sentiment. With a market cap of $1.37 billion, the stock's reaction is expected to be moderate, aligning with the neutral rating.