Elme Communities reported its first quarter 2025 financial and operating results on May 1, 2025, with a net loss of $4.7 million, compared to a net loss of $3.6 million in the prior year quarter. Total real estate rental revenue increased to $61.5 million in Q1 2025 from $59.5 million in Q1 2024. Net Operating Income (NOI) increased 4.5% to $39.5 million from $37.8 million.
Same-store NOI increased by 5.5%, primarily due to higher rental rates, and same-store multifamily occupancy averaged 94.8%, a 50 basis point improvement from 94.3% in Q1 2024. Blended lease rate growth for the same-store portfolio was 1.9%. The company completed 88 renovations in Q1 2025 at an average return on investment of approximately 18%.
Elme reiterated its Core FFO guidance for 2025, expecting a range of $0.91 to $0.97 per fully diluted share. Management noted that the managed Wi-Fi rollout income is ramping up more quickly than anticipated, and Atlanta bad debt continues to decline year-over-year, expected to be a larger contributor to revenue growth. The ongoing strategic review incurred professional fees, contributing to higher general and administrative expenses of $9.2 million in Q1 2025.
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