Elme Communities announced on August 4, 2025, the conclusion of its formal evaluation of strategic alternatives, leading to a definitive agreement to sell a 19-asset multifamily portfolio to an affiliate of Cortland Partners, LLC for $1.6 billion in cash. This transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including shareholder approval.
Concurrently, the Board of Trustees approved a plan of sale and liquidation, which contemplates the voluntary liquidation and dissolution of the company through the sale or disposition of all its remaining assets. Elme intends to market its remaining nine multifamily assets and the Watergate 600 commercial property for sale, aiming to complete these sales within the next 12 months.
The company estimates total upfront distributions to shareholders of approximately $14.68 to $15.00 per share, assuming the Cortland portfolio transaction closes. Additionally, Elme projects aggregate additional liquidating distributions of approximately $2.90 to $3.50 per share. Following the closing of the Cortland transaction and initial special distribution, the company expects to suspend its regular quarterly distributions.
Paul McDermott, President and CEO, stated that market conditions had not allowed the company to lower its cost of capital to support accretive growth, leading the Board to conclude that the asset sales and liquidation plan offer the greatest value for shareholders compared to other strategic alternatives. The company has withdrawn its prior 2025 guidance due to this announcement.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.