Elme Communities Declares $14.67 Per Share Liquidating Dividend
The initial special distribution is the first major step in the REIT's plan to liquidate its assets and return capital to shareholders, following a $1.6 billion property sale.
Elme Communities (NYSE: ELME) announced Tuesday that its Board of Trustees has declared an initial special liquidating distribution of $14.67 per share, a significant move in the real estate investment trust's previously announced plan of complete liquidation.
The distribution will be paid on January 7, 2026, to shareholders of record as of the close of business on December 22, 2025. Shares of Elme Communities saw a modest rise on the news, climbing 0.70% to $17.15 in afternoon trading, approaching the stock's 52-week high of $17.50.
This shareholder payout stems from the company's recent strategic decision to unlock its underlying asset value by winding down operations. The funds for this substantial distribution were generated primarily by the completion of a $1.6 billion sale of a 19-property multifamily portfolio to Cortland Partners, which closed on November 12.
The plan to voluntarily liquidate was approved by shareholders on October 30, 2025, following the board's determination that the public market was undervaluing its assets compared to private market valuations. "The plan of liquidation is the most effective way to maximize value for our shareholders," the company stated in a previous announcement regarding the strategy.
Based in Bethesda, Maryland, Elme Communities has focused on multifamily properties primarily in the Washington, D.C. metro area. The decision to liquidate reflects a broader challenge for some publicly traded REITs whose stock prices have not kept pace with the appreciating value of their physical real estate holdings. By selling its properties and returning the proceeds directly to investors, Elme is aiming to close that valuation gap.
This initial $14.67 distribution represents a major portion, but not the entirety, of the total expected payout for shareholders. According to regulatory filings, Elme anticipates making one or more additional liquidating distributions as it sells its remaining assets, which include interests in another 13 multifamily properties.
While the company has not provided a definitive total, earlier estimates from August suggested total distributions could fall in a range of approximately $17.58 to $18.50 per share. The final amount will depend on the sale prices of the remaining assets and the costs associated with the wind-down process.
Following the payment in January, Elme Communities plans to delist its shares from the New York Stock Exchange and suspend its reporting obligations with the Securities and Exchange Commission, which are standard steps in a corporate liquidation. The company's stock will then be de-registered, and any further distributions will be handled privately.
Analyst ratings on the stock are predominantly a "Hold," with a consensus price target of $12.67, which reflects the special situation nature of the investment. With the company in liquidation, future growth prospects are no longer a factor; instead, the investment thesis is based on the total cash value that will be returned to shareholders upon the final sale of all assets.