The following is a summary of the Elme Communities (ELME) Q4 2023 Earnings Call Transcript:
Financial Performance:
Elme Communities revealed Q4 effective blended lease rate growth of 2.5%, with a renewal lease rate growth of 6.2% and an average new lease rate decline of 2.4%.
The company maintained an average same-store occupancy of 95.5% during Q4, which is a growth of 50 basis points compared to the prior year.
The company completed over 300 full renovations and 77 partial renovations in 2023 with a total cost of $5 million, achieving an average renovation ROI of approx. 15%.
Q4 growth included 8.3% same-store multifamily NOI growth and 10.2% core FFO per share growth.
Expectations for 2024 include same store multifamily NOI growth between 0.25% to 2% and a core FFO implying a 4% year-over-year decline to between $0.90 and $0.96 per fully diluted share.
Business Progress:
The Washington Metro portfolio, comprising over 80% of its multifamily NOI, is expected to be the primary NOI growth driver due to favorable demand trends and rent growth.
Expansion into DFW corridor and the Carolinas is being considered for geographic diversification and balance sheet strength.
Over 400 full renovations and over 100 partial renovations are planned for 2024.
A managed Wi-Fi roll-out across the portfolio is in the works, starting with seven communities in 2024.
The company has a strong liquidity position with approximately $550 million or 80% capacity on its line of credit, no secured debt and no debt maturities until 2025.
It also plans to drive growth from its same-store and non-same-store multifamily portfolios.
It anticipates higher property management fees due to portfolio growth.
More details: Elme Communities IR
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