Liquidation Update Overview
Elme Communities (NYSE:ELME), a real‑estate investment trust, saw its shares rise 9.1% on Monday, July 27, 2026, after the company refreshed its liquidation distribution outlook and disclosed a new sale agreement for Riverside Apartments.
The REIT entered into a purchase‑and‑sale agreement for Riverside Apartments on July 23, 2026, with a contract price of $250.0 million. This agreement replaced the earlier May 2026 deal after the previous buyer exercised its right to terminate that agreement on June 17, 2026.
Elme updated its total estimated liquidating distributions to a range of $16.41 to $16.61 per share, down from the May 2026 estimate of $16.74 to $17.02 per share. The downward revision primarily reflects the lower contract price for Riverside Apartments relative to the prior agreement.
To date in 2026, the company has sold six properties—five multifamily assets and the office building Watergate 600—for aggregate gross proceeds of approximately $294 million. Four properties remain under contract: Riverside Apartments, Elme Bethesda, The Kenmore, and 3801 Connecticut Avenue. The existing agreements for the three properties other than Riverside provide for gross proceeds of roughly $168 million in total.
Elme expects to complete all remaining sales during the third and fourth quarters of 2026, with a planned delisting from the New York Stock Exchange and corporate dissolution targeted for the fourth quarter of 2026.
The REIT paid an initial special liquidating distribution of $14.67 per share on January 7, 2026. The updated estimate indicates additional liquidating distributions of $1.74 to $1.94 per share will be paid from the sale of the remaining assets.
Shareholders approved Elme’s Plan of Sale and Liquidation on October 30, 2025.