SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2025

We operate in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities (the “Residential segment”). Within the Residential segment, we do not distinguish or group our consolidated operations based on size (only one community, Riverside Apartments, comprises more than 10% of consolidated revenues), type (all assets in the segment are residential) or geography (all but six communities are within the Washington, DC metro region). Further, our apartment communities have similar long-term economic characteristics and provide similar products and services to our residents.

We have one office property, Watergate 600, which does not meet the quantitative or qualitative criteria for a reportable segment and has been classified within “Other”, along with business activities that are not part of an operating segment, on our segment disclosure tables.

Our CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of assessing the performance and allocating resources to the operating segment. The CODM uses net operating income (“NOI”), defined as real estate rental revenue less real estate expenses (the significant segment expense), as the key basis of measurement for the reported segment profit or loss.

We evaluate performance based upon NOI of the combined properties in the segment. Our reportable operating segment consolidates similar properties. GAAP requires that segment disclosures present the measure(s) used by the CODM for purposes of assessing each segment’s performance.

The following tables present revenues, NOI, capital expenditures and total assets for the three and six months ended June 30, 2025 and 2024 from our Residential segment as well as Other, and reconcile NOI to net loss as reported (in thousands):


	Three Months Ended June 30, 2025
	Residential		Other		Consolidated
Real estate rental revenue	$	57,683	$	4,416	$	62,099
Real estate expenses	21,261		1,401		22,662
Net operating income	$	36,422	$	3,015	$	39,437
Other expense:
Property management expenses					(2,256)
General and administrative expenses					(7,689)

Depreciation and amortization					(23,560)

Interest expense					(9,498)











Net loss					$	(3,566)


Capital expenditures	$	8,707	$	46	$	8,753
Total assets	$	1,692,236	$	117,968	$	1,810,204


	Three Months Ended June 30, 2024
	Residential		Other		Consolidated
Real estate rental revenue	$	55,492	$	4,611	$	60,103
Real estate expenses	20,622		1,360		21,982
Net operating income	$	34,870	$	3,251	$	38,121
Other expense:
Property management expenses					(2,175)
General and administrative expenses					(6,138)

Depreciation and amortization					(23,895)

Interest expense					(9,384)











Net loss					$	(3,471)


Capital expenditures	$	7,872	$	52	$	7,924
Total assets	$	1,738,354	$	123,121	$	1,861,475


	Six Months Ended June 30, 2025
	Residential		Other		Consolidated
Real estate rental revenue	$	114,690	8,902		$	123,592
Real estate expenses	41,870		2,786		44,656
Net operating income	$	72,820	$	6,116	$	78,936
Other income (expense):
Property management expenses					(4,502)
General and administrative expenses					(16,918)

Depreciation and amortization					(46,799)

Interest expense					(18,958)












Net loss					$	(8,241)


Capital expenditures	$	14,370	$	81	$	14,451


	Six Months Ended June 30, 2024
	Residential		Other		Consolidated
Real estate rental revenue	$	110,363	9,253		$	119,616
Real estate expenses	40,980		2,721		43,701
Net operating income	$	69,383	$	6,532	$	75,915
Other income (expense):
Property management expenses					(4,393)
General and administrative expenses					(12,334)

Depreciation and amortization					(48,838)

Interest expense					(18,878)





Other income					1,410



Net loss					$	(7,118)


Capital expenditures	$	21,437	$	109	$	21,546

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Elme Communities 10-Q