Q1 2024 Elme Communities Earnings Call Transcript
Key Points
- Elme Communities reported solid effective blended lease rate growth of 2.3% for its same-store portfolio, with renewal lease rate growth at 6.2%.
- The company has a strong liquidity position with about $540 million or approximately 80% of the total capacity available on its line of credit, with no secured debt and no debt maturities until 2025.
- Elme Communities is seeing positive momentum in the Washington Metro area, which comprises roughly 85% of their multifamily NOI, showing strong demand and stable performance.
- The company has implemented successful marketing initiatives and operational efficiencies that are expected to generate between $1.7 million and $1.9 million of additional NOI and FFO in 2024.
- Elme Communities is experiencing strong absorption rates in its markets, particularly in Atlanta, where annual absorption increased almost three times in Q1 2024 compared to the prior year period.
- In Atlanta, elevated supply and the timing of evictions have led to a slight decline in occupancy rates, although improvements are expected as the year progresses.
- The company faces occupancy pressure due to an unprecedented level of supply in Atlanta, although this is being mitigated by strong market-level absorption.
- Elme Communities reported an average new lease rate decline of 2.1% during the first quarter.
- Bad debt in the Atlanta portfolio remains a challenge, although it is showing month-over-month improvement.
- Interest rate expectations have shifted, putting some upward pressure on interest expenses, although the company believes its current guidance range remains appropriate.
Greetings and welcome to Elme Communities first quarter 2024 earnings conference call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Amy Hopkins, Vice President of Investor Relations. You may begin.
Good morning and thank you for joining our first quarter earnings call. Today's event is being webcast with a slide presentation that is available on the Investors section of our website and will also be available on our webcast replay.
Before we begin our prepared remarks, I would like to remind everyone that this conference call contains forward-looking statements that involve known and unknown risks and uncertainties, which may cause actual results to differ materially, and we undertake no duty to update them as actual events unfold as we refer to certain of these risks in our SEC filings.
Reconciliations of the GAAP and non-GAAP financial measures discussed on the call are available in our most recent
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