Elme Communities Shares Rise on New $250 Million Asset Sale Amid Liquidation

Shares of Elme Communities (NYSE:ELME) rose more than 9% on Monday after the real estate investment trust provided an update on its ongoing liquidation, including a new sale agreement for a major property and a revised estimate for shareholder distributions.

New Sale and Revised Forecast

Elme Communities announced it entered into a purchase and sale agreement for its Riverside Apartments on July 23, 2026, with a new buyer for a contract price of $250.0 million. This development follows the termination of a previous agreement by the initial buyer on June 17, 2026.

Following the new agreement, the company updated its total estimated liquidating distributions to a range of $16.41 to $16.61 per share. This is a reduction from its May 2026 estimate of $16.74 to $17.02 per share, which the company attributed primarily to the lower contract price for the Riverside Apartments compared to the prior deal.

Progress on Liquidation Plan

The asset sales are part of a Plan of Sale and Liquidation approved by Elme shareholders on October 30, 2025. The company has made significant progress in 2026, selling six properties for aggregate gross proceeds of approximately $294 million.

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Four properties remain under contract for sale, including Riverside Apartments. The other three assets—Elme Bethesda, The Kenmore, and 3801 Connecticut Avenue—are expected to generate gross proceeds of approximately $168 million. Elme anticipates completing all remaining sales during the third and fourth quarters of 2026, with a targeted delisting from the New York Stock Exchange and company dissolution in the fourth quarter.

Implications for Shareholders

The market's positive reaction suggests investors welcomed the increased certainty of the new sale agreement, despite the slightly lower overall distribution forecast. Shareholders have already received an initial special liquidating distribution of $14.67 per share, which was paid on January 7, 2026.

Based on the updated guidance, the sale of the remaining assets is expected to generate additional liquidating distributions of $1.74 to $1.94 per share for investors.