Elme Communities 8-K

What Happened

• Elme Communities (the Trust) filed an 8-K on May 11, 2026 providing an update on its Plan of Sale and Liquidation approved Oct. 30, 2025. The Trust reported it has sold five of the ten properties remaining after the Nov. 12, 2025 19-asset portfolio sale to a Cortland affiliate, and it has entered into four purchase-and-sale agreements (three past inspection periods) under which it expects to sell four of the five remaining properties for aggregate gross proceeds of about $431.3 million.
• The update also revised assumptions and estimates used to calculate the projected range of liquidating distributions (including “Additional Liquidating Distributions”), reflecting actual proceeds and costs to date. Those estimates assume full disposition of the ten properties by mid-2026 and were calculated using ~88.9 million fully diluted common shares (as of May 8, 2026). The Trust’s outstanding senior secured Term Loan has an original principal amount of $520 million and repayment and covenants factor into distribution estimates.

Key Details

• Filing date: May 11, 2026; Plan of Sale and Liquidation approved Oct. 30, 2025.
• Properties: 5 of 10 remaining sold; 4 under contract expected to generate ~ $431.3 million gross proceeds.
• Debt: $520 million original principal senior secured Term Loan will be repaid incrementally as properties sell.
• Shares / timing: Distribution estimates based on ~88.9 million fully diluted shares and assume sales complete by mid-2026.

Why It Matters

• These developments are material to shareholders because completed and expected property sales drive the cash available for liquidating distributions. The updated estimates give a clearer view of potential additional distributions but are not guarantees.
• Actual distributions depend on realized sale prices, transaction and operating costs, Term Loan repayments and covenants, reserves for liabilities, and timing of closings. The Board will determine final distribution amounts and timing, and Elme warns estimates may change and are subject to risks and uncertainties.