Bethesda, Maryland-based Elme Communities (NYSE: ELME) provided an update regarding its ongoing liquidation activities that were first announced last summer.
The company said that it completed the sale of five of its remaining properties this year, a quartet of multifamily properties and an office property, for aggregate gross proceeds of approximately $252.7 million.
Following last November’s 19-property portfolio sale to an affiliate of Cortland Partners LLC and entry into a $520 million senior secured term loan with Goldman Sachs Bank USA, Elme’s board of trustees declared an initial special liquidating distribution of $14.67 per common share, which was paid on Jan. 7 to Elme shareholders of record on Dec. 22, 2025. A portion of the term loan was repaid using a portion of the net proceeds from the sales of the aforementioned five properties, each of which had secured the term loan.
The company said in a statement that the remaining outstanding balance of the term loan, which is $288.5 million, is “intended to be repaid using a portion of the net proceeds from the sales of the remaining properties which secure the term loan, and such properties are expected to be released from the mortgages securing the term loan as they are sold. The company intends to return net proceeds from the sale of its assets to Elme shareholders when appropriate and in the board’s discretion.” The total amount of liquidating distributions is estimated to be between $16.74 and $17.02 per common share.
Elme added that it will continue to list common shares on the New York Stock Exchange while it is still in compliance with listing requirements “until such time in the future as the board determines to voluntarily delist its common shares from the NYSE in order to reduce operating expenses and maximize liquidating distributions.”
0 Comments