Elme Communities (symbol: ELME) experienced significant movement in its stock price between July 31, 2025, and November 8, 2025, with a reported increase of 12.2%. The key factors contributing to this movement are highlighted below: 1. Strategic Alternatives Review and Portfolio Sale Announcement. On August 4, 2025, Elme Communities announced the completion of its strategic alternatives review, leading to a significant plan to sell 19 multifamily properties to Cortland Partners for approximately $1.6 billion. The company also declared its intention to sell its remaining nine multifamily assets and Watergate 600, along with a plan for voluntary liquidation and dissolution. This announcement was a major catalyst, as it outlined a path to return substantial capital to shareholders. 2. Expected Shareholder Distributions. Following the announcement of the portfolio sale and liquidation plan, Elme Communities anticipated initial special distributions of $14.68 to $15.00 per share, alongside a regular quarterly dividend of $0.18. Further liquidating distributions of $2.90 to $3.50 per share are expected from the sale of remaining assets, projecting total estimated distributions between $17.58 and $18.50 per share. This clear outlook on shareholder returns likely boosted investor confidence. 3.

Elme Communities (symbol: ELME) experienced significant movement in its stock price between July 31, 2025, and November 8, 2025, with a reported increase of 12.2%. The key factors contributing to this movement are highlighted below: 1. Strategic Alternatives Review and Portfolio Sale Announcement. On August 4, 2025, Elme Communities announced the completion of its strategic alternatives review, leading to a significant plan to sell 19 multifamily properties to Cortland Partners for approximately $1.6 billion. The company also declared its intention to sell its remaining nine multifamily assets and Watergate 600, along with a plan for voluntary liquidation and dissolution. This announcement was a major catalyst, as it outlined a path to return substantial capital to shareholders. 2. Expected Shareholder Distributions. Following the announcement of the portfolio sale and liquidation plan, Elme Communities anticipated initial special distributions of $14.68 to $15.00 per share, alongside a regular quarterly dividend of $0.18. Further liquidating distributions of $2.90 to $3.50 per share are expected from the sale of remaining assets, projecting total estimated distributions between $17.58 and $18.50 per share. This clear outlook on shareholder returns likely boosted investor confidence. 3. Withdrawal of 2025 Guidance and Suspension of Future Dividends. Concurrently with the strategic plan, Elme Communities withdrew its prior 2025 guidance and announced that it does not intend to declare and pay future regular quarterly dividends if the Plan of Sale and Liquidation is approved by shareholders. This move, while indicating a shift in the company's operational future, is a direct consequence of the liquidation strategy aiming to maximize shareholder value through asset sales rather than ongoing operations. 4. Third Quarter 2025 Earnings Release. On October 23, 2025, Elme Communities reported its third-quarter 2025 earnings. The company posted an EPS of $0.22, which was slightly below the consensus estimate of $0.23. Quarterly revenue increased by 1.7% year-over-year to $62.10 million, also missing the consensus estimate of $62.17 million. Despite missing estimates, the operational performance aligned with expectations and was consistent with typical seasonal patterns. The earnings report also included an aggregate impairment charge of $111.7 million related to several properties not included in the announced portfolio sale. 5. Analyst Ratings and Price Targets. As of late October and early November 2025, financial analysts maintained a "Hold" consensus rating for ELME, with an average 12-month price target of $18.50, suggesting a potential upside from the stock's price at that time. While some analysts issued more conservative targets, the overall sentiment reflected the potential value realization from the liquidation strategy.