Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-06622 | ||
Entity Registrant Name | ELME COMMUNITIES | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 53-0261100 | ||
Entity Address, Address Line One | 7550 WISCONSIN AVE | ||
Entity Address, Address Line Two | SUITE 900 | ||
Entity Address, City or Town | BETHESDA | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20814 | ||
City Area Code | 202 | ||
Local Phone Number | 774-3200 | ||
Title of 12(b) Security | Shares of Beneficial Interest | ||
Trading Symbol | ELME | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,429,202,578 | ||
Entity Common Stock, Shares Outstanding | 87,867,059 | ||
Documents Incorporated by Reference | Portions of our definitive Proxy Statement relating to the 2024 Annual Meeting of Shareholders, to be filed with the Securities and Exchange Commission, are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K as indicated herein. | ||
Entity Central Index Key | 0000104894 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Land | $ 384,097 | $ 373,171 |
Income producing property | 1,960,020 | 1,897,835 |
Income producing property, at cost | 2,344,117 | 2,271,006 |
Accumulated depreciation and amortization | (528,024) | (481,588) |
Net income producing property | 1,816,093 | 1,789,418 |
Properties under development or held for future development | 30,980 | 31,260 |
Total real estate held for investment, net | 1,847,073 | 1,820,678 |
Cash and cash equivalents | 5,984 | 8,389 |
Restricted cash | 2,554 | 1,463 |
Rents and other receivables | 17,642 | 16,346 |
Prepaid expenses and other assets | 26,775 | 25,730 |
Total assets | 1,900,028 | 1,872,606 |
Liabilities | ||
Notes payable, net | 522,345 | 497,359 |
Line of credit | 157,000 | 55,000 |
Accounts payable and other liabilities | 38,997 | 34,386 |
Dividend payable | 15,863 | 14,934 |
Advance rents | 5,248 | 1,578 |
Tenant security deposits | 6,225 | 5,563 |
Total liabilities | 745,678 | 608,820 |
Shareholders’ equity | ||
Preferred shares; $0.01 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Shares of beneficial interest, $0.01 par value; 150,000 shares authorized: 87,867 and 87,534 shares issued and outstanding, as of December 31, 2023 and 2022, respectively | 879 | 875 |
Additional paid in capital | 1,735,530 | 1,729,854 |
Distributions in excess of net income | (569,391) | (453,008) |
Accumulated other comprehensive loss | (12,958) | (14,233) |
Total shareholders’ equity | 1,154,060 | 1,263,488 |
Noncontrolling interests in subsidiaries | 290 | 298 |
Total equity | 1,154,350 | 1,263,786 |
Total liabilities and equity | $ 1,900,028 | $ 1,872,606 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares of beneficial interest, authorized (in shares) | 150,000,000 | 150,000,000 |
Shares of beneficial interest, issued (in shares) | 87,867,000 | 87,534,000 |
Shares of beneficial interest, outstanding (in shares) | 87,867,000 | 87,534,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue | ||||
Revenue, type [Extensible Enumeration] | Real Estate [Member] | Real Estate [Member] | Real Estate [Member] | |
Real estate rental revenue | $ 227,911 | $ 209,380 | $ 169,151 | |
Expenses | ||||
Property operating and maintenance | 50,985 | 47,384 | 38,573 | |
Real estate taxes and insurance | 28,845 | 26,617 | 22,209 | |
Property management | 8,108 | 7,436 | 6,133 | |
General and administrative | 25,887 | 28,258 | 27,538 | |
Transformation costs | 6,339 | 9,686 | 6,635 | |
Depreciation and amortization | 88,950 | 91,722 | 72,656 | |
Real estate impairment | 41,860 | 0 | 0 | |
Total expenses | 250,974 | 211,103 | 173,744 | |
Real estate operating loss | (23,063) | (1,723) | (4,593) | |
Other income (expense) | ||||
Interest expense | (30,429) | (24,940) | (34,063) | |
Loss on interest rate derivatives | 0 | 0 | (5,866) | |
Loss on extinguishment of debt, net | (54) | (4,917) | (12,727) | |
Other income | 569 | 712 | 4,109 | |
Total other income (expense) | (29,914) | (29,145) | (48,547) | |
Loss from continuing operations | (52,977) | (30,868) | (53,140) | |
Discontinued operations: | ||||
Income from operations of properties sold or held for sale | 0 | 0 | 23,083 | |
Gain on sale of real estate, net | 0 | 0 | 46,441 | |
Income from discontinued operations | 0 | 0 | 69,524 | |
Net (loss) income | $ (52,977) | $ (30,868) | $ 16,384 | |
Basic net (loss) income per share | ||||
Continuing operations (in dollars per share) | $ (0.61) | $ (0.36) | $ (0.63) | |
Discontinued operations (in dollars per share) | 0 | 0 | 0.82 | |
Basic net (loss) income per share (in dollars per share) | [1] | (0.61) | (0.36) | 0.19 |
Diluted net (loss) income per share | ||||
Continuing operations (in dollars per share) | (0.61) | (0.36) | (0.63) | |
Discontinued operations (in dollars per share) | 0 | 0 | 0.82 | |
Diluted net (loss) income per share (in dollars per share) | [1] | $ (0.61) | $ (0.36) | $ 0.19 |
Weighted average shares outstanding – basic (in shares) | 87,735 | 87,388 | 84,544 | |
Weighted average shares outstanding – diluted (in shares) | 87,735 | 87,388 | 84,544 | |
[1]Earnings per share may not sum due to rounding |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (52,977) | $ (30,868) | $ 16,384 |
Other comprehensive income (loss): | |||
Unrealized (loss) gain on interest rate derivatives | (764) | 2,819 | 3,673 |
Reclassification of unrealized loss on interest rate derivatives to earnings | 2,039 | 2,039 | 7,799 |
Comprehensive (loss) income | $ (51,702) | $ (26,010) | $ 27,856 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Total Shareholders’ Equity | Shares of Beneficial Interest at Par Value | Additional Paid in Capital | Distributions in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests in Subsidiary |
Beginning balance (in shares) at Dec. 31, 2020 | 84,409 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,321,109 | $ 1,320,787 | $ 844 | $ 1,649,366 | $ (298,860) | $ (30,563) | $ 322 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 16,384 | 16,384 | 16,384 | ||||
Unrealized (loss) gain on interest rate derivatives | 3,673 | 3,673 | 3,673 | ||||
Loss on interest rate derivatives | 5,760 | 5,760 | 5,760 | ||||
Amortization of swap settlements | 2,039 | 2,039 | 2,039 | ||||
Distributions to noncontrolling interests | (15) | (15) | |||||
Dividends | (80,018) | (80,018) | (80,018) | ||||
Equity offerings, net of issuance costs (in shares) | 1,636 | ||||||
Equity offerings, net of issuance costs | $ 40,462 | 40,462 | $ 17 | 40,445 | |||
Shares issued under Dividend Reinvestment Program (in shares) | 75 | 75 | |||||
Shares issued under Dividend Reinvestment Program | $ 1,744 | 1,744 | 1,744 | ||||
Share grants, net of forfeitures and tax withholdings (in shares) | 141 | ||||||
Share grants, net of forfeitures and tax withholdings | 5,924 | 5,924 | $ 2 | 5,922 | |||
Ending balance (in shares) at Dec. 31, 2021 | 86,261 | ||||||
Ending balance at Dec. 31, 2021 | 1,317,062 | 1,316,755 | $ 863 | 1,697,477 | (362,494) | (19,091) | 307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (30,868) | (30,868) | (30,868) | ||||
Unrealized (loss) gain on interest rate derivatives | 2,819 | 2,819 | 2,819 | ||||
Amortization of swap settlements | 2,039 | 2,039 | 2,039 | ||||
Distributions to noncontrolling interests | (9) | (9) | |||||
Dividends | (59,646) | (59,646) | (59,646) | ||||
Equity offerings, net of issuance costs (in shares) | 1,032 | ||||||
Equity offerings, net of issuance costs | $ 26,849 | 26,849 | $ 10 | 26,839 | |||
Shares issued under Dividend Reinvestment Program (in shares) | 47 | 47 | |||||
Shares issued under Dividend Reinvestment Program | $ 1,030 | 1,030 | 1,030 | ||||
Share grants, net of forfeitures and tax withholdings (in shares) | 194 | ||||||
Share grants, net of forfeitures and tax withholdings | $ 4,510 | 4,510 | $ 2 | 4,508 | |||
Ending balance (in shares) at Dec. 31, 2022 | 87,534 | 87,534 | |||||
Ending balance at Dec. 31, 2022 | $ 1,263,786 | 1,263,488 | $ 875 | 1,729,854 | (453,008) | (14,233) | 298 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (52,977) | (52,977) | (52,977) | ||||
Unrealized (loss) gain on interest rate derivatives | (764) | (764) | (764) | ||||
Amortization of swap settlements | 2,039 | 2,039 | 2,039 | ||||
Distributions to noncontrolling interests | (8) | (8) | |||||
Dividends | $ (63,406) | (63,406) | (63,406) | ||||
Equity offerings, net of issuance costs (in shares) | 0 | ||||||
Shares issued under Dividend Reinvestment Program (in shares) | 28 | 28 | |||||
Shares issued under Dividend Reinvestment Program | $ 497 | 497 | 497 | ||||
Share grants, net of forfeitures and tax withholdings (in shares) | 305 | ||||||
Share grants, net of forfeitures and tax withholdings | $ 5,183 | 5,183 | $ 4 | 5,179 | |||
Ending balance (in shares) at Dec. 31, 2023 | 87,867 | 87,867 | |||||
Ending balance at Dec. 31, 2023 | $ 1,154,350 | $ 1,154,060 | $ 879 | $ 1,735,530 | $ (569,391) | $ (12,958) | $ 290 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per common share (in dollars per share) | $ 0.72 | $ 0.68 | $ 0.94 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Cash flows from operating activities | |||
Net (loss) income | $ (52,977) | $ (30,868) | $ 16,384 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 88,950 | 91,722 | 95,560 |
Credit losses on lease related receivables | 4,833 | 2,483 | 2,482 |
Real estate impairment | 41,860 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | (46,441) |
Share-based compensation expense | 5,538 | 7,988 | 8,553 |
Amortization of debt premiums, discounts and related financing costs | 4,218 | 4,052 | 4,325 |
Loss on interest rate derivatives | 0 | 0 | 5,866 |
Loss on extinguishment of debt, net | 54 | 4,917 | 12,727 |
Changes in other assets | (11,294) | (1,602) | (4,681) |
Changes in other liabilities | 3,487 | (5,481) | (5,619) |
Net cash provided by operating activities | 84,669 | 73,211 | 89,156 |
Cash flows from investing activities | |||
Real estate acquisitions, net | (107,595) | (204,433) | (153,748) |
Net cash received from sale of real estate | 0 | 0 | 897,783 |
Capital improvements to real estate | (38,218) | (36,513) | (32,410) |
Development in progress | 0 | (698) | (8,406) |
Non-real estate capital improvements | (408) | (1,743) | (49) |
Insurance proceeds | 0 | 2,224 | 0 |
Real estate deposits | 0 | 0 | (1,000) |
Net cash (used in) provided by investing activities | (146,221) | (241,163) | 702,170 |
Cash flows from financing activities | |||
Line of credit borrowings (repayments), net | 102,000 | 55,000 | (42,000) |
Dividends paid | (64,335) | (59,363) | (90,728) |
Principal payments – mortgage notes payable | 0 | (76,598) | 0 |
Repayments of notes payable | 0 | 0 | (311,894) |
Repayments of unsecured term loan debt | (100,000) | 0 | (150,000) |
Proceeds from term loan | 125,000 | 0 | 0 |
Settlement of interest rate derivatives | 0 | 0 | (5,866) |
Payment of financing costs | (844) | (39) | (4,858) |
Distributions to noncontrolling interests | (8) | (9) | (15) |
Proceeds from dividend reinvestment program | 497 | 1,030 | 1,744 |
Net proceeds from equity issuances | 0 | 26,849 | 40,462 |
Payment of tax withholdings for restricted share awards | (2,072) | (3,286) | (2,241) |
Net cash provided by (used in) financing activities | 60,238 | (56,416) | (565,396) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,314) | (224,368) | 225,930 |
Cash, cash equivalents and restricted cash at beginning of year | 9,852 | 234,220 | 8,290 |
Cash, cash equivalents and restricted cash at end of year | 8,538 | 9,852 | 234,220 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of capitalized interest expense | 23,502 | 20,842 | 27,166 |
Change in accrued capital improvements and development costs | 9,556 | 609 | (6,949) |
Dividend payable | 15,863 | 14,934 | 14,650 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 5,984 | 8,389 | 233,600 |
Restricted cash | 2,554 | 1,463 | 620 |
Cash, cash equivalents and restricted cash | $ 8,538 | $ 9,852 | $ 234,220 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | NOTE 1: NATURE OF BUSINESS Elme Communities, a Maryland real estate investment trust, formerly known as Washington Real Estate Investment Trust, is a self-administered equity real estate investment trust, successor to a trust organized in 1960. Our business primarily consists of the ownership and operation of apartment communities in the greater Washington, DC metro and Sunbelt regions. U.S. Federal Income Taxes We believe that we qualify as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"), and intend to continue to qualify as such. To maintain our status as a REIT, we are, among other things, required to distribute 90% of our REIT taxable income (which is generally our ordinary taxable income, with certain modifications), excluding any net capital gains and any deductions for dividends paid to our shareholders on an annual basis. When selling a property, we generally have the option of (a) reinvesting the sales proceeds of property sold in a way that allows us to defer recognition of some or all taxable gain realized on the sale, (b) distributing gains to the shareholders with no tax to us or (c) treating net long-term capital gains as having been distributed to our shareholders, paying the tax on the gain deemed distributed and allocating the tax paid as a credit to our shareholders. We sold no properties in 2023 or 2022. We sold twelve office and eight retail properties for an aggregate gain of $46.4 million during the year ended December 31, 2021. Generally, and subject to our ongoing qualification as a REIT, no provisions for income taxes are necessary except for taxes on undistributed taxable income and taxes on the income generated by our taxable REIT subsidiaries (“TRSs”). Our TRSs are subject to corporate federal and state income tax on their taxable income at regular statutory rates. As of both December 31, 2023 and 2022, our TRSs had a deferred tax asset of $1.4 million that was fully reserved. Beginning in 2018, ordinary taxable income per share is equal to the Section 199A dividend that was created by the Tax Cuts and Jobs Act. The following is a breakdown of the taxable percentage of our dividends for the three years ended December 31, 2023 (unaudited): 2023 2022 2021 Ordinary income/Section 199A dividends 33 % 20 % — % Return of capital 67 % 80 % 100 % Qualified dividends — % — % — % Unrecaptured Section 1250 gain — % — % — % Capital gain — % — % — % |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform ("Topic 848"), which was amended in December 2022 by ASU 2022-06, Reference Rate Reform (Topic 848). Topic 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in Topic 848 is optional and may be elected through December 31, 2024 as reference rate reform activities occur. During the first quarter of 2023, we executed an amendment to the $700.0 million unsecured revolving credit facility (“Revolving Credit Facility”) to convert the benchmark interest rate from LIBOR to an adjusted SOFR ("Secured Overnight Financing Rate"). We elected to apply the optional expedients in Topic 848 to (i) assert that the hedged interest payments remain probable regardless of any expected modification in terms related to reference rate reform, and (ii) continue the method of assessing effectiveness as documented in the original hedge documentation so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The impact of this guidance did not have a material impact on our consolidated financial statements. Principles of Consolidation and Basis of Presentation The accompanying audited consolidated financial statements include the consolidated accounts of Elme Communities and our subsidiaries and entities in which Elme Communities has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation. The primary changes to the consolidated statements of operations are reclassifications between property operating and maintenance expense and real estate taxes and insurance expense . We have prepared the accompanying audited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. Use of Estimates in the Financial Statements The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition We primarily lease residential properties under operating leases with terms of generally one year or less. Rental revenues are recognized in accordance with ASC Topic 842, Leases , using a method that represents straight-line basis over the term of the leases. In circumstances where a lease concession is provided to the resident, primarily in lease-up, we recognize a reduction of rental revenues on a straight-line basis. We also generate other property-related revenue associated with the leasing of apartment homes, including parking income, move-in charges, pet rent and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from residents and recognized monthly as they are earned. We recognize cost reimbursement income at our residential properties from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are primarily comprised of utility costs which are reimbursed by residents in accordance with specific allowable costs per resident lease agreements. We recognize gains on sales of real estate when we have executed a contract for sale of the asset, transferred controlling financial interest in the asset to the buyer and determined that it is probable that we will collect substantially all of the consideration for the asset. Our real estate sale transactions typically meet these criteria at closing. Rents and Other Receivables Lease related receivables, which include contractual amounts accrued and unpaid from residents and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. We evaluate the collectability of lease receivables on a lease-by-lease basis. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income recognized subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. Debt Issuance Costs We amortize external debt issuance costs using the effective interest rate method or the straight-line method, which approximates the effective interest rate method over the estimated life of the related debt. We record debt issuance costs related to notes, net of amortization, on our consolidated balance sheets as an offset to their related debt. We record debt issuance costs related to revolving lines of credit on our consolidated balance sheets with Prepaid expenses and other assets, regardless of whether a balance on the line of credit is outstanding. We record the amortization of all debt issuance costs as interest expense. Real Estate and Depreciation We depreciate buildings on a straight-line basis over an estimated useful life of 26 to 40 years. We capitalize all capital improvements associated with replacements, improvements or major repairs to real property that extend its useful life and depreciate them using the straight-line method over their estimated useful lives ranging from 3 to 40 years. We also capitalize costs incurred in connection with our development projects, including interest incurred on borrowing obligations and other internal costs during periods in which qualifying expenditures have been made and activities necessary to get the development projects ready for their intended use are in progress. Capitalization of these costs begins when the activities and related expenditures commence and ceases when the project is substantially complete and ready for its intended use, at which time the project is placed into service and depreciation commences. Real estate depreciation expense from continuing operations was $82.7 million, $77.2 million and $66.2 million during the years ended December 31, 2023, 2022 and 2021, respectively. We charge maintenance and repair costs that do not extend an asset’s useful life to expense as incurred. Interest expense from continuing operations and interest capitalized to real estate assets related to development and major renovation activities for the three years ended December 31, 2023 were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Total interest incurred $ 30,429 $ 25,223 $ 34,813 Capitalized interest — (283) (750) Interest expense, net of capitalized interest $ 30,429 $ 24,940 $ 34,063 We recognize impairment losses on long-lived assets used in operations, development assets or land held for future development if indicators of impairment are present and the net undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. Estimates of undiscounted cash flows are based on forward-looking assumptions, including annual and residual cash flows and our estimated holding period for each property. Such assumptions involve a high degree of judgment and could be affected by future economic and market conditions. When determining if a property has indicators of impairment, we evaluate the property's occupancy, our expected holding period for the property, strategic decisions regarding the property's future operations or development and other market factors. If such carrying amount is in excess of the estimated undiscounted cash flows from the operation and disposal of the property, we would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its estimated fair value, calculated in accordance with current GAAP fair value provisions. Assets held for sale are recorded at the lower of cost or fair value less costs to sell. Asset Acquisitions The properties we acquire typically are not businesses as defined by ASC 805 ("Topic 805") - Clarifying the Definition of a Business. Per this definition, a set of transferred assets and activities is not a business when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. We therefore account for such acquisitions as asset acquisitions. Acquisition costs are capitalized and identifiable assets (including physical assets and in-place leases), liabilities assumed and any noncontrolling interests are measured by allocating the cost of the acquisition on a relative fair value basis. We determine the fair values of acquired buildings on an “as-if-vacant” basis considering a variety of factors, including the replacement cost of the property, estimated rental and absorption rates, estimated future cash flows and valuation assumptions consistent with current market conditions. We determine the fair value of land acquired based on comparisons to similar properties that have been recently marketed for sale or sold. The fair value of in-place leases are based upon our evaluation of the specific characteristics of the leases. Factors considered in the fair value analysis include the estimated cost to replace the leases, including foregone rent and expense reimbursements during the hypothetical expected lease-up periods (referred to as “absorption cost”), consideration of current market conditions and costs to execute similar leases. We classify leasing absorption costs as other assets and amortize absorption costs as amortization expense on a straight-line basis over the remaining life of the underlying leases. Software Developed for Internal Use The costs of software developed for internal use that qualify for capitalization are included with Prepaid expenses and other assets on our consolidated balance sheets. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and continues until the project is substantially complete and is ready for its intended purpose. Completed projects are amortized on a straight-line basis over their estimated useful lives. Held for Sale and Discontinued Operations We classify properties as held for sale when they meet the necessary criteria, which include: (a) senior management commits to a plan to sell the assets; (b) the assets are available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such assets; (c) an active program to locate a buyer and other actions required to complete the plan to sell the assets has been initiated; (d) the sale of the assets is probable and transfer of the assets is expected to qualify for recognition as a completed sale within one year; (e) the assets are being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Depreciation on these properties is discontinued at the time they are classified as held for sale, but operating revenues, operating expenses and interest expense continue to be recognized until the date of sale. Revenues and expenses of properties that are either sold or classified as held for sale are presented as discontinued operations for all periods presented in the consolidated statements of operations if the dispositions represent a strategic shift that has (or will have) a major effect on our operations and financial results. Interest on debt that can be identified as specifically attributed to these properties is included in discontinued operations. If the dispositions do not represent a strategic shift that has (or will have) a major effect on our operations and financial results, then the revenues and expenses of the properties that are classified as sold or held for sale are presented as continuing operations in the consolidated statements of operations for all periods presented. Segments We evaluate performance based upon net operating income from the combined properties in each segment. Our reportable operating segment is a consolidation of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash and commercial paper with original maturities of 90 days or less. We maintain cash deposits with financial institutions that at times exceed applicable insurance limits. We reduce this risk by maintaining such deposits with high quality financial institutions that management believes are credit-worthy. Restricted cash includes funds escrowed for tenant security deposits. Transformation Costs Transformation costs include costs related to the strategic shift away from the commercial sector to residential sector, including the allocation of internal costs, consulting, advisory and termination benefits. Earnings Per Common Share We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards and units have non-forfeitable rights to dividends and are therefore considered participating securities. We compute basic earnings per share by dividing net income less the allocation of undistributed earnings to unvested restricted share awards and units by the weighted-average number of common shares outstanding for the period. We also determine “Diluted earnings per share” under the two-class method with respect to the unvested restricted share awards. We further evaluate any other potentially dilutive securities at the end of the period and adjust the basic earnings per share calculation for the impact of those securities that are dilutive. Our dilutive earnings per share calculation includes the dilutive impact of operating partnership units under the if-converted method and our share based awards with performance conditions prior to the grant date and all market condition awards under the contingently issuable method. Share-Based Compensation We currently maintain equity based compensation plans for trustees, officers and employees. We recognize compensation expense for service-based share awards ratably over the period from the service inception date through the vesting period based on the fair market value of the shares on the date of grant. We account for forfeitures as they occur. If an award's service inception date precedes the grant date, we initially measure compensation expense for awards with performance conditions at fair value at the service inception date based on probability of payout, and we remeasure compensation expense at subsequent reporting dates until all of the award’s key terms and conditions are known and the grant date is established. We amortize awards with performance conditions using the graded expense method. We measure compensation expense for awards with market conditions based on the grant date fair value, as determined using a Monte Carlo simulation, and we amortize the expense ratably over the requisite service period, regardless of whether the market conditions are achieved and the awards ultimately vest. Compensation expense for the trustee grants, which fully vest immediately, is fully recognized upon issuance based upon the fair market value of the shares on the date of grant. Accounting for Uncertainty in Income Taxes We can recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent that the “more likely than not” standard has been satisfied, the benefit associated with a tax position is measured as the largest amount that is greater than 50% likely of being recognized upon settlement. As of December 31, 2023 and 2022, we did not have any unrecognized tax benefits. We do not believe that there will be any material changes to our uncertain tax positions over the next twelve months. We are subject to federal income tax as well as income tax of the states of Maryland, Virginia and Georgia, and the District of Columbia. However, as a REIT, we generally are not subject to income tax on our taxable income to the extent it is distributed as dividends to our shareholders. Tax returns filed for 2020 through 2022 tax years are subject to examination by taxing authorities. We classify interest and penalties related to uncertain tax positions, if any, in our financial statements as a component of general and administrative expenses. Derivatives |
Real Estate
Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate | NOTE 3: REAL ESTATE As of December 31, 2023 and 2022, our real estate investment portfolio classified as income producing property that is held and used, at cost, consists of properties valued as follows (in thousands): December 31, 2023 2022 Residential $ 2,249,833 $ 2,098,010 Other (1) 94,284 172,996 $ 2,344,117 $ 2,271,006 ______________________________ (1) Consists of Watergate 600 Our results of operations are dependent on the overall economic health of our markets and residents which are affected by external economic factors, such as inflation, consumer confidence and unemployment rates, as well as changing residents and consumer requirements. As of December 31, 2023, one property, Riverside Apartments, accounted for more than approximately 10% of total assets and more than approximately 10% of real estate rental revenue. From time to time, we have properties under development/redevelopment and held for current or future development. The cost of our real estate portfolio under development or held for future development as of December 31, 2023 and 2022 was $31.0 million and $31.3 million, respectively. As of December 31, 2023, we have invested $30.4 million, including the cost of acquired land, in a residential development adjacent to Riverside Apartments. During the second quarter of 2022, we paused development activities at the aforementioned property and ceased associated capitalization of interest on spending and real estate taxes, though we still consider the future completion of this development to be probable. We also continue to capitalize qualifying costs on several other projects with minor development activity necessary to ready each project for its intended use. Acquisitions Properties and land for development acquired during the three years ended December 31, 2023 were as follows: Acquisition Date Property Type # of Homes (unaudited) Ending Occupancy Contract September 29, 2023 Elme Druid Hills Residential 500 93.8% $ 108,000 500 $ 108,000 February 1, 2022 Elme Sandy Springs Residential 389 91.3% $ 105,586 May 5, 2022 Elme Marietta Residential 420 90.7% 107,900 May 5, 2022 Elme Cumberland Residential 270 91.1% 69,750 1,079 $ 283,236 August 10, 2021 Elme Conyers Residential 240 93.3% $ 48,000 November 19, 2021 Elme Eagles Landing Residential 490 89.0% 106,000 730 $ 154,000 The results of operations from acquired operating properties are included in the consolidated statements of operations as of their acquisition dates. The revenue and earnings of our acquisitions during their year of acquisition for the three years ended December 31, 2023 are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Real estate rental revenue $ 2,549 $ 14,937 $ 2,262 Net loss (1,511) (11,126) (1,921) As discussed in note 2, we record the acquired physical assets (land and building) and in-place leases (absorption costs) and any other assumed liabilities by allocating the total cost of the acquisitions on a relative fair value basis. We recorded the total cost of the above acquisitions as follows (in thousands): 2023 2022 2021 Land $ 25,249 $ 50,547 $ 20,914 Building 79,281 220,825 128,540 Absorption costs 3,660 7,300 4,786 Aggregate discount on assumed mortgages — 5,042 — Total acquisition cost 108,190 283,714 154,240 Outstanding balance on assumed mortgages — (76,554) — Total carrying amounts recorded $ 108,190 $ 207,160 $ 154,240 The weighted average remaining life for the absorption costs is four months. The difference in the total acquisition cost of $108.2 million for the 2023 acquisition and the cash paid for the 2023 acquisition per the consolidated statements of cash flows of $107.6 million is due to net credits received at settlement totaling $0.6 million. The difference in the total cost of the 2022 acquisitions of $283.7 million for the 2022 acquisitions and the cash paid for the acquisitions per the consolidated statements of cash flows of $204.4 million is due to the assumption of two mortgage notes secured by Elme Marietta and Elme Cumberland for an aggregate outstanding balance of $76.6 million and credits received at settlement totaling $2.8 million. In September 2022, we extinguished the liabilities associated with the two mortgage notes though defeasance arrangements. The difference in the total cost of the 2021 acquisitions of $154.2 million and the cash paid for the 2021 acquisitions per the consolidated statements of cash flows of $153.7 million is primarily due to credits received at settlement totaling $0.5 million. Fair Value of In-place Leases Balances, net of accumulated depreciation or amortization, as appropriate, of the components of the fair value of in-place leases at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 2022 Gross Carrying Value Accumulated Amortization Net Gross Carrying Value Accumulated Amortization Net Tenant origination costs $ 2,262 $ 281 $ 1,981 $ 11,723 $ 8,000 $ 3,723 Leasing commissions/absorption costs 67,504 60,887 6,617 63,064 56,416 6,648 Net lease intangible liabilities 13,055 10,499 2,556 13,055 9,683 3,372 Amortization of these combined components during the three years ended December 31, 2023, was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Depreciation and amortization expense $ 4,530 $ 12,604 $ 4,378 Real estate rental revenue increase, net (806) (944) (765) $ 3,724 $ 11,660 $ 3,613 Amortization of these combined components over the next four years is projected to be as follows (in thousands): Depreciation and amortization expense Real estate rental revenue, net increase Total 2024 $ 3,870 $ (708) $ 3,162 2025 2,011 (710) 1,301 2026 1,698 (662) 1,036 2027 1,019 (476) 543 2028 — — — Properties Sold and Held for Sale We intend to hold our properties for investment with a view to long-term appreciation, to engage in the business of acquiring, developing and owning our properties, and to make occasional sales of the properties that no longer meet our long-term strategy or return objectives and where market conditions for sale are favorable. The proceeds from the sales may be reinvested into other properties, used to fund development operations or to support other corporate needs or distributed to our shareholders. Depreciation on these properties is discontinued when classified as held for sale, but operating revenues, other operating expenses and interest continue to be recognized through the date of sale. We sold no properties in 2023 and 2022. We sold twelve office and eight retail properties for an aggregate gain of $46.4 million during the year ended December 31, 2021. The dispositions of the office and retail properties in 2021 represented a strategic shift that had a major effect on our financial results, and we accordingly reported them as discontinued operations. We have fully transferred control of the assets associated with these disposed properties and do not have continuing involvement in the operations of these properties. Real Estate Impairment During 2023, we recognized an impairment charge of $41.9 million on Watergate 600 in order to reduce its carrying value to its estimated fair value, which declined due to changes in market conditions in the Washington, DC metro region office market. The estimated fair value is inherently subjective because there are few observable market transactions for similar office properties. This fair valuation fell into Level 3 in the fair value hierarchy due to its reliance on significant unobservable inputs (see note 9). In accordance with ASC 820, we estimated the fair value using a discounted cash flow model which required certain significant assumptions, including a discounted cash flow term of 5 years, an average economic occupancy of 80.5%, and a terminal capitalization rate of 7.5%. No other properties, including assets held for development, had any recognized impairment charges during 2023. Should external or internal circumstances change requiring the need to shorten holding periods or adjust future estimated cash flows from our properties, we could be required to record additional impairment charges in the future. Discontinued Operations The results of the twelve office and eight retail properties sold in 2021 are classified as discontinued operations and are summarized as follows (amounts in thousands, except for share data): Year Ended December 31, 2021 Real estate rental revenue $ 70,519 Expenses: Property operating and maintenance (11,201) Real estate taxes and insurance (11,136) Property management (2,195) Depreciation and amortization (22,904) Gain on sale of real estate, net 46,441 Income from discontinued operations $ 69,524 Basic net income per share $ 0.82 Diluted net income per share $ 0.82 Capital expenditures $ 3,316 All assets and liabilities related to the twelve office properties (the “Office Portfolio”) and eight retail properties (the “Retail Portfolio”) were sold as of December 31, 2021. |
Lease Accounting
Lease Accounting | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Accounting | NOTE 4: LEASE ACCOUNTING Leasing as a Lessee For leases where we are the lessee, primarily in our corporate office operating lease, we recognize a right-of-use asset and a lease liability in accordance with ASC Topic 842. The right-of-use asset and associated liability is equal to the present value of the minimum lease payments, applying our incremental borrowing rate. Our borrowing rate is computed based on observable borrowing rates taking into consideration our credit quality and adjusting to a secured borrowing rate for similar assets and term. Our right-of-use asset and lease liability are recorded within Prepaid expenses and other assets and Accounts payable and other liabilities on our consolidated balance sheets, respectively. Lease expense for the operating lease is recognized on a straight-line basis over the expected lease term and is included in “General and administrative expense.” Leasing as a Lessor Future Minimum Rental Income As of December 31, 2023, non-cancelable commercial operating leases provide for future minimum rental income from continuing operations as follows (in thousands): 2024 $ 16,351 2025 15,151 2026 15,084 2027 13,340 2028 6,134 Thereafter 42,636 $ 108,696 |
Lease Accounting | NOTE 4: LEASE ACCOUNTING Leasing as a Lessee For leases where we are the lessee, primarily in our corporate office operating lease, we recognize a right-of-use asset and a lease liability in accordance with ASC Topic 842. The right-of-use asset and associated liability is equal to the present value of the minimum lease payments, applying our incremental borrowing rate. Our borrowing rate is computed based on observable borrowing rates taking into consideration our credit quality and adjusting to a secured borrowing rate for similar assets and term. Our right-of-use asset and lease liability are recorded within Prepaid expenses and other assets and Accounts payable and other liabilities on our consolidated balance sheets, respectively. Lease expense for the operating lease is recognized on a straight-line basis over the expected lease term and is included in “General and administrative expense.” Leasing as a Lessor Future Minimum Rental Income As of December 31, 2023, non-cancelable commercial operating leases provide for future minimum rental income from continuing operations as follows (in thousands): 2024 $ 16,351 2025 15,151 2026 15,084 2027 13,340 2028 6,134 Thereafter 42,636 $ 108,696 |
Mortgage Note Payable
Mortgage Note Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Mortgage Note Payable | NOTE 5: MORTGAGE NOTE PAYABLE In May 2022, we assumed a $42.8 million mortgage note in connection with the acquisition of Elme Marietta. This mortgage note bore interest at 3.36% per annum. The effective interest rate on this mortgage note was 4.50% based on quotes obtained for similar loans. We recorded the mortgage note at its estimated fair value of $40.0 million. Principal and interest were payable monthly until May 1, 2030, at which time all unpaid principal and interest were payable in full. In May 2022, we assumed a $33.7 million mortgage note in connection with the acquisition of Elme Cumberland. This mortgage note bore interest at 2.93% per annum. The effective interest rate on this mortgage note was 4.00% based on quotes obtained for similar loans. We recorded the mortgage note at its estimated fair value of $31.5 million. Principal and interest were payable monthly until May 1, 2030, at which time all unpaid principal and interest were payable in full. In September 2022, we extinguished the liabilities associated with both of the mortgage notes through defeasance arrangements, recognizing aggregate losses on extinguishment of debt of $4.9 million. |
Unsecured Lines of Credit Payab
Unsecured Lines of Credit Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Unsecured Lines of Credit Payable | NOTE 6: UNSECURED LINES OF CREDIT PAYABLE During the third quarter of 2021, we entered into an amended and restated credit agreement (“Credit Agreement”) which provides for a $700 million unsecured revolving credit facility (the “Revolving Credit Facility”) and the continuation of an existing $250.0 million unsecured term loan (“2018 Term Loan”). The Revolving Credit Facility has a four-year term ending in August 2025, with two six-month extension options. The Credit Agreement has an accordion feature that allows us to increase the aggregate facility to $1.5 billion, subject to the lenders’ agreement to provide additional revolving loan commitments or term loans. As a result of the transaction, we recognized a loss on extinguishment of debt of $0.2 million related to the write off of unamortized loan origination costs. We incurred $4.8 million of additional loan origination costs which are amortized as interest expense over the term of the Revolving Credit Facility. On September 27, 2021, we prepaid a $150.0 million portion of the 2018 Term Loan using proceeds from the sale of the Office Portfolio and Retail Portfolio (see note 3). As a result of the prepayment, we recognized a loss on extinguishment of debt of $0.3 million related to the write-off of unamortized loan origination costs. Simultaneous with the prepayment, we terminated five interest rate swap arrangements. During the first quarter of 2023, we prepaid the remaining $100.0 million portion of the 2018 Term Loan and executed an amendment to the Revolving Credit Facility to convert the benchmark interest rate from LIBOR to an adjusted SOFR, with no change in the applicable interest rate margins. The Revolving Credit Facility bears interest at a rate of daily SOFR plus 0.10% plus a margin ranging from 0.70% to 1.40%. In addition, the Revolving Credit Facility requires the payment of a facility fee ranging from 0.10% to 0.30% (in each case, depending on Elme Communities’ credit rating) on the $700.0 million committed revolving loan capacity, without regard to usage. As of December 31, 2023, the interest rate on the Revolving Credit Facility is based on an adjusted daily SOFR (inclusive of the 0.10% credit spread adjustment) plus 0.85% applicable margin, the daily SOFR is 5.38% and the facility fee is 0.20%. The amount of the Revolving Credit Facility unused and available at December 31, 2023 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (157,000) Unused and available $ 543,000 We executed borrowings and repayments on the Revolving Credit Facility during 2023 as follows (in thousands): Balance, December 31, 2022 $ 55,000 Borrowings 322,000 Repayments (220,000) Balance, December 31, 2023 $ 157,000 All outstanding advances for the Revolving Credit Facility are due and payable upon maturity in August 2025, unless extended pursuant to one or both of the two six-month extension options. Interest only payments are due and payable generally on a monthly basis. For the three years ended December 31, 2023, we recognized interest expense (excluding facility fees) and facility fees as follows (in thousands): Year Ended December 31, 2023 2022 2021 Interest expense (excluding facility fees) $ 4,419 $ 912 $ 390 Facility fees 1,454 1,454 1,419 The Revolving Credit Facility contains and the prior unsecured credit facility that it replaced contained certain financial and non-financial covenants, all of which we have met as of December 31, 2023 and 2022. Included in these covenants are limits on our total indebtedness, secured and unsecured indebtedness and required debt service payments. Information related to revolving credit facilities for the three years ended December 31, 2023 as follows (in thousands, except percentage amounts): Year Ended December 31, 2023 2022 2021 Total revolving credit facilities at December 31 $ 700,000 $ 700,000 $ 700,000 Borrowings outstanding at December 31 157,000 55,000 — Weighted average daily borrowings during the year 70,578 21,636 34,803 Maximum daily borrowings during the year 164,000 67,000 79,000 Weighted average interest rate during the year 6.17 % 4.22 % 1.12 % Weighted average interest rate on borrowings outstanding at December 31 6.26 % 5.20 % — % The covenants under our Credit Agreement require us to insure our properties against loss or damage in amounts customarily maintained by similar businesses or as they may be required by applicable law. The covenants for the notes require us to keep all of our insurable properties insured against loss or damage at least equal to their then full insurable value. We have an insurance policy that has no terrorism exclusion, except for non-certified nuclear, chemical and biological acts of terrorism. Our financial condition and results of operations are subject to the risks associated with acts of terrorism and the potential for uninsured losses as the result of any such acts. Effective November 26, 2002, under this existing coverage, any losses caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance provider, and insurers pay 10% until aggregate insured losses from all insurers reach $100 billion in a calendar year. If the aggregate amount of insured losses under this program exceeds $100 billion during the applicable period for all insured and insurers combined, then each insurance provider will not be liable for payment of any amount which exceeds the aggregate amount of $100 billion. On December 20, 2019, The Terrorism Risk Insurance Program Reauthorization Act of 2019 was signed into law, extending the program through December 31, 2027. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 7: NOTES PAYABLE Our unsecured notes and term loans outstanding as of December 31, 2023 and 2022 are as follows (in thousands): Effective December 31, Payoff Date/ Coupon/Stated Rate Rate (1) 2023 2022 Maturity Date (2) 2018 Term Loan 1 Month LIBOR + 110 basis points 2.31 % $ — $ 100,000 1/10/2023 2023 Term Loan 1 Month SOFR + 95 basis points 4.73 % 125,000 — 1/10/2025 30-Year Unsecured Notes 7.25 % 7.36 % 50,000 50,000 2/25/2028 Green Bonds 3.44 % 4.09 % 350,000 350,000 12/29/2030 Total principal 525,000 500,000 Premiums and discounts, net (94) (116) Deferred issuance costs, net (2,561) (2,525) Total $ 522,345 $ 497,359 ______________________________ (1) For fixed rate notes, the effective rate represents the yield on issuance date, including the effects of discounts on the notes. For variable rate notes, the effective rate represents the rate as fixed by interest rate derivatives (see note 8). (2) No principal amounts are due prior to maturity. During 2023, we executed a $125.0 million unsecured term loan ("2023 Term Loan") with an interest rate of SOFR (subject to a credit spread adjustment of 10 basis points) plus a margin of 95 basis points (subject to adjustment depending on Elme Communities’ credit rating). The 2023 Term Loan has a two-year term ending in January 2025, with two one year extension options. We used the proceeds to prepay the 2018 Term Loan in full and a portion of our borrowings under our unsecured credit facility. In August 2021, we redeemed $300.0 million of our existing unsecured notes that were scheduled to mature in 2022. As a result of the prepayment, we recognized a loss on extinguishment of debt of $12.3 million comprised of a prepayment penalty of $11.9 million and the write-off of unamortized loan origination costs of $0.4 million. On September 29, 2020, we entered into a note purchase agreement to issue $350.0 million aggregate principal amount of 3.44% senior unsecured 10-year notes payable (the “Green Bonds”). The effective interest rate under the Green Bonds, including amortization of the associated interest rate swaps (see note 8), is 4.09%. The closing and full funding of the Green Bonds occurred on December 17, 2020. We incurred $2.6 million of debt issuance costs associated with the Green Bonds which are reported on our consolidated balance sheets as an offset to their related debt. The Green Bonds are senior unsecured obligations of Elme Communities and rank equal in right to payment with all other senior unsecured indebtedness of Elme Communities. The proceeds of the sale of the Green Bonds were used to finance or refinance recently completed and future green building and energy efficiency, sustainable water and wastewater management and renewable energy projects. The note purchase agreement contains customary financial covenants, including a maximum total leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, and a maximum unencumbered leverage ratio. The note purchase agreement also contains restrictive covenants that, among other things, restrict the ability of Elme Communities and its subsidiaries to enter into transactions with affiliates, consolidate or merge or transfer or lease all or substantially all of its assets, create liens, make dividends and distributions if an event of default exists, or substantially change the general nature of our business. Such financial and restrictive covenants are substantially similar to the corresponding covenants contained in our Credit Agreement. The note purchase agreement also contains customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of certain covenants and bankruptcy events. In the case of an event of default, we will generally be prohibited from paying any dividends, subject to certain exceptions including payment of dividends necessary to maintain REIT status, and the Purchasers may, among other remedies, accelerate the payment of all obligations. In the event of a change in control of Elme Communities, we must offer to prepay the Green Bonds at par. The required principal payments on the unsecured notes and term loans as of December 31, 2023 are as follows (in thousands): 2024 $ — 2025 125,000 2026 — 2027 — 2028 50,000 Thereafter 350,000 $ 525,000 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 8: DERIVATIVE INSTRUMENTS We had one interest rate swap arrangement with a notional amount of $100.0 million that had effectively fixed the remaining $100.0 million portion of the 2018 Term Loan prior to the prepayment. During the first quarter of 2023, we prepaid the 2018 Term Loan using proceeds from the $125.0 million 2023 Term Loan (see note 7). Subsequent to this transaction, our interest rate swap arrangement effectively fixed the interest rate on a $100.0 million portion of the 2023 Term Loan through the interest rate swap arrangement’s expiration date of July 21, 2023. During the first quarter of 2023, we entered into two interest rate swap arrangements with an aggregate notional amount of $125.0 million that effectively fixed the interest at 4.73% for the 2023 Term Loan beginning on July 21, 2023 through the 2023 Term Loan’s maturity date of January 10, 2025. The interest rate swap arrangement is recorded at fair value in accordance with GAAP, based on discounted cash flow methodologies and observable inputs. We record the effective portion of changes in fair value of the cash flow hedge in Other comprehensive income (loss). We assess the effectiveness of a cash flow hedge both at inception and on an ongoing basis. If a cash flow hedge is no longer expected to be effective, hedge accounting is discontinued. Hedge ineffectiveness of our cash flow hedges is recorded in earnings. The fair values of the interest rate swap as of December 31, 2023 and 2022, were as follows (in thousands): Aggregate Effective Date Fair Value Derivative Liabilities December 31, Derivative Instrument Maturity Date 2023 2022 Interest rate swap $ 100,000 March 31, 2017 July 21, 2023 $ — $ 1,998 Interest rate swap 75,000 July 21, 2023 January 10, 2025 740 — Interest rate swap 50,000 July 21, 2023 January 10, 2025 494 — $ 1,234 $ 1,998 We record interest rate swaps on our consolidated balance sheets with prepaid expenses and other assets when in a net asset position, and with accounts payable and other liabilities when in a net liability position. The current interest rate swaps have been effective since inception. The gains or losses on the effective swaps are recognized in other comprehensive income, as follows (in thousands): Year Ending December 31, 2023 2022 2021 Unrealized (gain) loss on interest rate hedges $ (764) $ 2,819 $ 3,673 Amounts reported in Accumulated other comprehensive loss related to effective cash flow hedges will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that an additional $1.2 million related to our two outstanding interest rate swap arrangements will be reclassified as a decrease to interest expense. The losses reclassified from Accumulated other comprehensive income into interest expense for the three years ended December 31, 2023, were as follows (in thousands): Year Ending December 31, 2023 2022 2021 Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ 2,039 $ 2,039 $ 2,039 During the next twelve months, we estimate that an additional $2.0 million related to the previously settled interest rate swap arrangements will be reclassified as an increase to interest expense. We have agreements with each of our derivative counterparties that contain a provision whereby we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of December 31, 2023, the fair value of derivative assets, including accrued interest, was $1.2 million and we did not have any derivatives in a liability position. As of December 31, 2023, we have not posted any collateral related to these agreements. Derivative instruments expose us to credit risk in the event of non-performance by the counterparty under the terms of the interest rate hedge agreement. We believe that we minimize our credit risk on these transactions by dealing with major, creditworthy financial institutions. We monitor the credit ratings of counterparties and our exposure to any single entity, thus minimizing our credit risk concentration. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | NOTE 9: FAIR VALUE DISCLOSURES Assets and Liabilities Measured at Fair Value For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements are required to be disclosed separately for each major category of assets and liabilities, as follows: Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs Level 3: Significant unobservable inputs The only assets or liabilities we had at December 31, 2023 and 2022 that are recorded at fair value on a recurring basis are the assets held in the Supplemental Executive Retirement Plan ("SERP"), which primarily consists of investments in mutual funds, and the interest rate swaps (see note 8). We base the valuations related to the SERP on assumptions derived from significant other observable inputs and accordingly these valuations fall into Level 2 in the fair value hierarchy. The valuation of the interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each interest rate swap. This analysis reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of ASC 820, we incorporate credit valuation adjustments in the fair value measurements to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk. These credit valuation adjustments were concluded to not be significant inputs for the fair value calculations for the periods presented. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as the posting of collateral, thresholds, mutual puts and guarantees. The valuation of interest rate swaps falls into Level 2 in the fair value hierarchy. The fair values of these assets at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 December 31, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: SERP $ 1,984 $ — $ 1,984 $ — $ 2,142 $ — $ 2,142 $ — Interest rate swaps 1,234 — 1,234 — 1,998 — 1,998 — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets not measured at fair value on an ongoing basis but subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment, are measured at fair value on a nonrecurring basis. In the third quarter of 2023, we measured the fair value of Watergate 600 using Level 3 inputs as there was evidence of impairment (see note 3). Financial Assets and Liabilities Not Measured at Fair Value The following disclosures of estimated fair value were determined by management using available market information and established valuation methodologies, including discounted cash flow models. Many of these estimates involve significant judgment. The estimated fair value disclosed may not necessarily be indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have an effect on the estimated fair value amounts. In addition, fair value estimates are made at a point in time and thus, estimates of fair value subsequent to December 31, 2023 may differ significantly from the amounts presented. Below is a summary of significant methodologies used in estimating fair values and a schedule of fair values at December 31, 2023. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents and restricted cash include cash and commercial paper with original maturities of less than 90 days, which are valued at the carrying value, which approximates fair value due to the short maturity of these instruments (Level 1 inputs). Debt Mortgage notes payable consist of instruments in which certain of our real estate assets are used for collateral. We estimate the fair value of the mortgage notes payable by discounting the contractual cash flows at a rate equal to the relevant treasury rates (with respect to the timing of each cash flow) plus credit spreads estimated through independent comparisons to real estate assets or loans with similar characteristics. Line of credit payable consist of bank facilities which we use for various purposes including working capital, acquisition funding and capital improvements. The line of credit advances and term loans with floating interest rates are priced at a specified rate plus a spread. We estimate the market value based on a comparison of the spreads of the advances to market given the adjustable base rate. We estimate the fair value of the notes payable by discounting the contractual cash flows at a rate equal to the relevant treasury rates (with respect to the timing of each cash flow) plus credit spreads derived using the relevant securities’ market prices. We classify these fair value measurements as Level 3 as we use significant unobservable inputs and management judgment due to the absence of quoted market prices. As of December 31, 2023 and 2022, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): December 31, 2023 2022 Carrying Fair Value Carrying Fair Value Cash and cash equivalents $ 5,984 $ 5,984 $ 8,389 $ 8,389 Restricted cash 2,554 2,554 1,463 1,463 Line of credit payable 157,000 157,000 55,000 55,000 Notes payable 522,345 466,668 497,359 454,564 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | NOTE 10: SHARE-BASED COMPENSATION Elme Communities maintains short-term and long-term incentive plans that allow for share-based awards to officers and non-officer employees. Share-based awards are provided to officers and non-officer employees, as well as trustees, under the Washington Real Estate Investment Trust 2016 Omnibus Incentive Plan which allows for awards in the form of restricted shares, restricted share units, options, and other awards up to an aggregate of 2,400,000 shares over the ten-year period in which the plan will be in effect. Restricted share units are converted into shares of our stock upon full vesting through the issuance of new shares. There were no options issued or outstanding as of December 31, 2023 and 2022. On February 14, 2020, the board of trustees adopted an Amended and Restated Executive Officer Short-Term Incentive Plan (the “Officer STIP”) and an Amended and Restated Executive Officer Long-Term Incentive Plan (the “Officer LTIP”). Upon adoption by the board of trustees, both plans became effective for the performance periods beginning January 1, 2020. Officer STIP Under the Officer STIP, as revised, all named executive officers will have the opportunity to receive an annual cash bonus based on the achievement of certain performance measures that will be established for each performance period. Each year, the Compensation Committee will establish the threshold, target and high performance goals for each performance measure, as well as the weighting attributable to each such performance measure, with the aggregate weighting for all such performance measures to total 100%. Such performance measures will consist of one or more financial performance measures and, if determined by the Compensation Committee, individual performance measures. Upon or following completion of a performance period, the degree of achievement of each performance measure will be determined by the Compensation Committee. The degree of achievement of any individual financial performance measures will be determined by the Compensation Committee in its discretion with respect to the Chief Executive Officer, and by the Chief Executive Officer or other immediate supervisor in his or her discretion with respect to all other participants (subject to final approval by the Compensation Committee), and the Compensation Committee will evaluate the degree of achievement of the individual performance measures on a scale of below 1 (below threshold), 1 (threshold), 2 (target) or 3 (high) or any fractional number between 1 and 3. Each participant’s total award under the Officer STIP with respect to a performance period will be stated as a percentage of the participant’s annual base salary determined as of the first day of that performance period, which percentage will depend upon the participant’s position and the degree of achievement of threshold, target, and high performance goals for the performance period. The percentages for the performance period beginning January 1, 2023 are as set forth in the table below: Threshold Target High President and Chief Executive Officer 63% 125% 188% Chief Financial Officer 41% 75% 133% Chief Operating Officer (1) 23% 45% 76% Chief Information Officer 35% 65% 115% Chief Administrative Officer (1) 28% 54% 96% ______________________________ (1) For both the Chief Operating Officer and the Chief Administrative Officer, the percentages include the effects of prorations for the amount of time in 2023 that they were in their respective positions. If a Change in Control (as defined in the Officer STIP) occurs during a performance period while the participant is employed, the participant will receive a prorated award under the Officer STIP calculated based on the actual levels of achievement of the prorated performance goals as of the date of the Change in Control. Bonuses payable under the short-term incentive plans for non-executive officers and staff are payable 100% in cash. Officer LTIP Under the Officer LTIP, as revised, all named executive officers will have the opportunity to receive awards based on (i) the achievement of performance measures, which will be established for each performance period, and (ii) continued employment with the Company. The aggregate weighting for the performance measures and the time-based measures, as determined by the Compensation Committee, will total 100%. The performance measures will consist of one or more shareholder return measures and one or more strategic measures. The awards earned under the Officer LTIP, if any, are payable in our common shares of beneficial interest. Each participant’s total award under the Officer LTIP with respect to a performance period will be stated as a percentage of the participant’s annual base salary determined as of the beginning of that performance period. The percentages for the performance period beginning January 1, 2023 are as set forth in the table below: Threshold Target High President and Chief Executive Officer 198% 275% 440% Chief Financial Officer 95% 135% 196% Chief Operating Officer (1) 110% 157% 231% Chief Information Officer 100% 143% 207% Chief Administrative Officer (1) 65% 92% 134% ______________________________ (1) For both the Chief Operating Officer and the Chief Administrative Officer, the percentages include the effects of prorations for the amount of time in 2023 that they were in their respective positions. Any time-based awards under the Officer LTIP will be subject to a three-year vesting schedule, with any award vesting in one-third increments on December 15 of each year of the applicable performance period if the participant remains employed by the Company on each of such dates. The Officer LTIP provides that following a performance period, 100% of any performance-based award will vest immediately upon grant. Each year, the Compensation Committee will establish the threshold, target and high performance goals for each performance measure. Upon or following completion of a performance period, the degree of achievement of each performance measure will be determined by the Compensation Committee in its discretion. If a Change in Control (as defined in the Officer LTIP) occurs during a performance period while the participant is employed, the Officer LTIP provides that all time-based awards which are unvested will become vested, and the participant will receive a pro-rated portion of the shareholder return measure-based awards and the strategic measure-based awards will be calculated at target. We use a binomial model which employs the Monte Carlo method as of the grant date to determine the fair value of the Officer LTIP awards. For three-year performance periods commencing on or after January 1, 2023, the market performance condition is based on total shareholder return relative to the FTSE Nareit Residential Index (60% weighting) and a defined population of peer companies (40% weighting). For three-year performance period commencing on January 1, 2022, the market condition performance measurement is based on total shareholder return relative to a defined population of peer companies (100% weighting). For three-year performance period commencing on January 1, 2021, the market condition performance measurement is based on total shareholder return relative to a defined population of peer companies (50% weighting), relative to the FTSE Nareit Residential Index (42.5% weighting) and the FTSE Office Index (7.5% weighting). The model evaluates the awards for changing total shareholder return over the term of the vesting, relative to the peer companies and relative to the FTSE indexes, and uses random simulations that are based on past stock characteristics as well as dividend growth and other factors for Elme Communities and each of the peer companies. The assumptions used to value the TSR portion of the officer LTIP awards were as follows: 2023 Awards 2022 Awards 2021 Awards Expected volatility (1) 32.3 % 35.2 % 35.5 % Risk-free interest rate (2) 4.2 % 1.7 % 0.3 % Expected term (3) 3 years 3 years 3 years Share price at grant date $19.04 $24.54 $ 23.20 ______________________________ (1) Expected volatility based upon historical volatility of our daily closing share price. (2) Risk-free interest rate based on U.S. treasury constant maturity bonds on the measurement date with a maturity equal to the market condition performance period. (3) Expected term based on the market condition performance period. The calculated grant date fair value as a percentage of base salary for the officers for the three-year performance period that commenced in 2023 ranged from approximately 27% to 137% for the 60% of the LTIP based on TSR relative to the FTSE Nareit Residential Index and from approximately 32% to 159% for the 40% of the LTIP based on TSR relative to a defined population of peer companies. The calculated grant date fair value as a percentage of base salary for the officers for the three-year performance period that commenced in 2022 ranged from approximately 32% to 248% for the 100% of the LTIP based on TSR relative to a defined population of peer companies. The calculated grant date fair value as a percentage of base salary for the officers for the three-year performance period that commenced in 2021 ranged from approximately 37% to 78% for the 50% of the LTIP based on TSR relative to a defined population of peer companies and from 38% to 80% for the 50% of the LTIP based on TSR relative to the FTSE Nareit Diversified Index. During 2022, our chief executive officer was granted a one-time equity award of 100,000 restricted shares. None of the restricted shares vest until the earlier of the fifth anniversary of the grant date or when our chief executive officer become retirement-eligible, at which time 100% of the restricted shares will vest, subject to Mr. McDermott's continued employment with Elme Communities until such vesting date. Our non-executive officers and other employees earn restricted share unit awards under a long-term incentive plan for non-executive officers and staff based upon various percentages of their salaries and annual performance calculations. The restricted share unit awards vest ratably over three years beginning on the December 15 following the grant date based upon continued employment. We recognize compensation expense for these awards according to a graded vesting schedule over the three-year requisite service period. Restricted share awards made to retirement-eligible employees fully vest on the grant date. Employees are considered retirement-eligible when they are both over the age of 55 and have been employed by Elme Communities for at least 20 years, or over the age of 65. We fully recognize compensation expense for such awards as of the grant date. Trustee Awards We award share based compensation to our trustees in the form of restricted shares which vest immediately and are restricted from sale for the period of the trustees' service. The value of share-based compensation for each trustee was $100,000 for each of three years ended December 31, 2023. Total Compensation Expense Total compensation expense recognized in the consolidated financial statements for each of the three years ended December 31, 2023 for all share based awards was $5.5 million, $8.0 million and $8.6 million, respectively, net of capitalized share-based compensation expense of $0.1 million, $0.2 million and $0.3 million, respectively. Restricted Share Awards with Performance and Service Conditions The activity for the three years ended December 31, 2023 related to our restricted share awards, excluding those subject to market conditions, was as follows: Shares Weighted Average Grant Fair Value Unvested at December 31, 2020 306,995 $ 30.96 Granted 238,134 23.53 Vested during year (277,967) 26.39 Forfeited (7,467) 26.73 Unvested at December 31, 2021 259,695 29.16 Granted 408,606 22.33 Vested during year (408,118) 27.13 Forfeited (17,814) 25.31 Unvested at December 31, 2022 242,369 21.35 Granted 410,928 18.40 Vested during year (367,109) 19.79 Forfeited (28,453) 20.85 Unvested at December 31, 2023 257,735 18.89 The total fair value of share grants vested for each of the three years ended December 31, 2023 was $7.3 million, $11.1 million and $7.6 million, respectively. As of December 31, 2023, the total compensation cost related to non-vested share awards not yet recognized was $4.2 million, which we expect to recognize over a weighted average period of 25 months. Unrestricted Shares with Market Conditions Share-based awards with market conditions under the LTIP were awarded in 2023, 2022 and 2021 with fair market values, as determined using a Monte Carlo simulation, as follows (in thousands): 2023 Awards (1) 2022 Awards (1) 2021 Awards (1) Relative Peer TSR $ 831 $ 1,480 $ 951 Absolute/Index TSR (2) 1,048 N/A 971 The unamortized value of these awards with market conditions as of December 31, 2023 was as follows (in thousands): 2023 Awards (1) 2022 Awards (1) 2021 Awards (1) Relative Peer TSR $ 592 $ 385 $ — Absolute/Index TSR (2) 743 N/A — ______________________________ (1) The 2023, 2022 and 2021 Awards were granted under the Officer LTIP, whereby all of the shares vest immediately at the end of the three-year performance period. (2) |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Other Benefit Plans | NOTE 11: OTHER BENEFIT PLANS We have a Retirement Savings Plan (the “401(k) Plan”), which permits all eligible employees to defer a portion of their compensation in accordance with the Code. Under the 401(k) Plan, we may make discretionary contributions on behalf of eligible employees. For each of the three years ended December 31, 2023, we made contributions to the 401(k) plan of $0.6 million, $0.3 million and $0.4 million, respectively. We have adopted non-qualified deferred compensation plans for the officers and members of the board of trustees. The plans allow for a deferral of a percentage of annual cash compensation and trustee fees. The plans are unfunded, and payments are to be made out of the general assets of Elme Communities. The deferred compensation liability was $0.1 million and $0.2 million at December 31, 2023 and 2022, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | NOTE 12: EARNINGS PER COMMON SHARE We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards and units have non-forfeitable rights to dividends and are therefore considered participating securities. We compute basic earnings per share by dividing net income less the allocation of undistributed earnings to unvested restricted share awards and units by the weighted-average number of common shares outstanding for the period. We also determine “Diluted earnings per share” as the more dilutive of the two-class method or the treasury stock method with respect to the unvested restricted share awards. We further evaluate any other potentially dilutive securities at the end of the period and adjust the basic earnings per share calculation for the impact of those securities that are dilutive. Our dilutive earnings per share calculation includes the dilutive impact of operating partnership units under the if-converted method and our share based awards with performance conditions prior to the grant date and all market condition awards under the contingently issuable method. The computation of basic and diluted earnings per share for the three years ended December 31, 2023 was as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Numerator: Loss from continuing operations $ (52,977) $ (30,868) $ (53,140) Allocation of earnings to unvested restricted share awards (255) (232) (393) Adjusted loss from continuing operations (53,232) (31,100) (53,533) Income from discontinued operations, including gain on sale of real estate — — 69,524 Adjusted net (loss) income $ (53,232) $ (31,100) $ 15,991 Denominator: Weighted average shares outstanding – basic and diluted 87,735 87,388 84,544 Earnings per common share, basic: Continuing operations $ (0.61) $ (0.36) $ (0.63) Discontinued operations — — 0.82 Basic net (loss) income per common share (1) $ (0.61) $ (0.36) $ 0.19 Earnings per common share, diluted: Continuing operations $ (0.61) $ (0.36) $ (0.63) Discontinued operations — — 0.82 Diluted net (loss) income per common share (1) $ (0.61) $ (0.36) $ 0.19 Dividends declared per common share $ 0.72 $ 0.68 $ 0.94 ______________________________ (1) Earnings per share may not sum due to rounding |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 13: COMMITMENTS AND CONTINGENCIES Development Commitments At December 31, 2023, we had no committed contracts outstanding with third parties in connection with our development and redevelopment projects. Litigation We are involved from time to time in various legal proceedings, lawsuits, examinations by various tax authorities and claims that have arisen in the ordinary course of business. Management believes that the resolution of any such current matters will not have a material adverse effect on our financial condition or results of operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 14: SEGMENT INFORMATION We operate in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities. 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. As a result, our operating properties are aggregated into a single reportable segment: residential. Prior to the end of the second quarter of 2021, we had two reportable segments: office and residential. During the third quarter of 2021, we closed on the sales of the Office Portfolio and the Retail Portfolio (see note 3), and following such sales, we have one remaining office property, Watergate 600, which does not meet the criteria for a reportable segment and has been classified within “Other” on our segment disclosure tables. We evaluate performance based upon net operating income ("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 chief operating decision maker for purposes of assessing each segment’s performance. NOI is a key measurement of our segment profit and loss and is defined as real estate rental revenue less real estate expenses. Real estate rental revenue as a percentage of the total for each of the reportable operating segments for the three years ended December 31, 2023 was as follows: Year Ended December 31, 2023 2022 2021 Multifamily 92 % 91 % 89 % Other 8 % 9 % 11 % The percentage of income producing real estate assets classified as held and used, at cost, for each of the reportable operating segments as of December 31, 2023 and 2022 was as follows: 2023 2022 Multifamily 96 % 92 % Other 4 % 8 % The following tables present revenues, net operating income, capital expenditures and total assets for the three years ended December 31, 2023 from these segments, and reconciles net operating income of reportable segments to net (loss) income as reported (in thousands): Twelve Months Ended December 31, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 209,311 $ 18,600 $ 227,911 Real estate expenses 74,535 5,295 79,830 Net operating income $ 134,776 $ 13,305 $ 148,081 Property management expenses (8,108) General and administrative expenses (25,887) Transformation costs (6,339) Depreciation and amortization (88,950) Interest expense (30,429) Loss on extinguishment of debt (54) Other income 569 Real estate impairment (41,860) Net loss $ (52,977) Capital expenditures $ 37,782 $ 844 $ 38,626 Total assets $ 1,768,426 $ 131,602 $ 1,900,028 Twelve Months Ended December 31, 2022 Residential Other (1) Consolidated Real estate rental revenue $ 190,500 18,880 $ 209,380 Real estate expenses 68,735 5,266 74,001 Net operating income $ 121,765 $ 13,614 $ 135,379 Property management expenses (7,436) General and administrative expenses (28,258) Transformation costs (9,686) Depreciation and amortization (91,722) Interest expense (24,940) Loss on extinguishment of debt (4,917) Other income 712 Net loss $ (30,868) Capital expenditures $ 35,081 $ 3,175 $ 38,256 Total assets $ 1,691,176 $ 181,430 $ 1,872,606 Twelve Months Ended December 31, 2021 Residential Other (1), (2) Consolidated Real estate rental revenue $ 150,965 $ 18,186 $ 169,151 Real estate expenses 55,527 5,255 60,782 Net operating income $ 95,438 $ 12,931 $ 108,369 Property management expenses (6,133) General and administrative expenses (27,538) Transformation costs (6,635) Depreciation and amortization (72,656) Interest expense (34,063) Loss on interest rate derivatives (5,866) Loss on extinguishment of debt (12,727) Other income 4,109 Discontinued operations: Income from properties sold or held for sale 23,083 Gain on sale of real estate 46,441 Net income $ 16,384 Capital expenditures $ 27,953 $ 4,506 $ 32,459 Total assets $ 1,455,328 $ 420,666 $ 1,875,994 ______________________________ (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment. (2) Total capital expenditures include office and retail properties classified as discontinued operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | NOTE 15: SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) While the Company previously owned a combination of commercial and residential assets, we disposed of all but one of our commercial assets in 2021. These commercial assets are classified as discontinued operations as of December 31, 2023. Unaudited financial data by quarter in each of the years ended December 31, 2023 and 2022 were as follows (in thousands, except for per share data): Quarter (1) First Second Third Fourth 2023 Real estate rental revenue $ 55,809 $ 56,599 $ 56,651 $ 58,852 Loss from continuing operations $ (3,643) $ (2,611) $ (43,618) $ (3,105) Net loss $ (3,643) $ (2,611) $ (43,618) $ (3,105) Loss from continuing operations per share Basic $ (0.04) $ (0.03) $ (0.50) $ (0.04) Diluted $ (0.04) $ (0.03) $ (0.50) $ (0.04) Net loss per share Basic $ (0.04) $ (0.03) $ (0.50) $ (0.04) Diluted $ (0.04) $ (0.03) $ (0.50) $ (0.04) 2022 Real estate rental revenue $ 47,804 $ 51,380 $ 54,603 $ 55,593 Loss from continuing operations $ (7,724) $ (8,874) $ (10,739) $ (3,531) Net loss $ (7,724) $ (8,874) $ (10,739) $ (3,531) Loss from continuing operations per share Basic $ (0.09) $ (0.10) $ (0.12) $ (0.04) Diluted $ (0.09) $ (0.10) $ (0.12) $ (0.04) Net loss per share Basic $ (0.09) $ (0.10) $ (0.12) $ (0.04) Diluted $ (0.09) $ (0.10) $ (0.12) $ (0.04) ______________________________ (1) With regard to per share calculations, the sum of the quarterly results may not equal full year results due to rounding. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 16: SHAREHOLDERS' EQUITY On October 26, 2023, the Board authorized and approved a share repurchase program of up to $50.0 million of the Company’s common shares of beneficial interest over a period of two years, subject to any applicable limitations or restrictions set forth in our existing credit facility and other debt agreements. The share repurchase program is scheduled to expire on October 25, 2025, unless extended by the Board. On February 17, 2021, we entered into separate amendments to each of our existing equity distribution agreements (“Original Equity Distribution Agreements”) with each of Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and Truist Securities, Inc. (f/k/a SunTrust Robinson Humphrey, Inc.), each dated May 4, 2018 (collectively, as amended, the “Equity Distribution Agreements”). Also on February 17, 2021, we entered into a separate equity distribution agreement with BTIG, LLC on the same terms as the Amended Equity Distribution Agreements (the “BTIG Equity Distribution Agreement”). On September 22, 2021, BTIG, LLC notified us that it was terminating the BTIG Equity Distribution Agreement, effective as of September 27, 2021. Pursuant to the Equity Distribution Agreements, we may sell, from time to time, up to an aggregate price of $550.0 million of our common shares of beneficial interest, $0.01 par value per share. Issuances of our common shares are made at market prices prevailing at the time of issuance. We may use net proceeds from the issuance of common shares under this program for general business purposes, including, without limitation, working capital, the acquisition, renovation, expansion, improvement, development or redevelopment of income producing properties or the repayment of debt. Our issuances and net proceeds on the Equity Distribution Agreements in 2022 and 2021 and the Original Equity Distribution Agreements in 2021 for the three years ended December 31, 2023 were as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Issuance of common shares — 1,032 1,636 Weighted average price per share $ — $ 26.27 $ 25.44 Net proceeds $ — $ 26,849 $ 40,462 We have a dividend reinvestment program, whereby shareholders may use their dividends and optional cash payments to purchase common shares. The common shares sold under this program may either be common shares issued by us or common shares purchased in the open market. Net proceeds under this program are used for general corporate purposes. Our issuances and net proceeds on the dividend reinvestment program for the three years ended December 31, 2023 were as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Issuance of common shares 28 47 75 Weighted average price per share $ 17.64 $ 22.40 $ 23.37 Net proceeds $ 497 $ 1,030 $ 1,744 |
Deferred Costs
Deferred Costs | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs | NOTE 17: DEFERRED COSTS As of December 31, 2023 and 2022, deferred leasing costs and deferred leasing incentives were included in prepaid expenses and other assets as follows (in thousands): December 31, 2023 2022 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Deferred leasing costs $ 9,048 $ 5,537 $ 3,511 $ 8,992 $ 5,132 $ 3,860 Amortization, including write-offs, of deferred leasing costs and deferred leasing incentives for the three years ended December 31, 2023 were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Deferred leasing costs amortization $ 351 $ 406 $ 535 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 (IN THOUSANDS) Balance at Beginning of Year Additions Charged to Expenses Net Recoveries Balance at End of Year Valuation allowance for deferred tax assets 2023 $ 1,399 $ — $ — $ 1,399 2022 $ 1,392 $ 7 $ — $ 1,399 2021 $ 1,402 $ — $ (10) $ 1,392 |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | SCHEDULE III Initial Cost (a) Net Improvements (Retirement) since Acquisition Gross Amounts at Which Carried at December 31, 2023 Accumulated Depreciation at December 31, 2023 Properties Location Land Buildings and Improvements Land Buildings and Improvements Total (c) Year of Construction Date of Acquisition Depreciation Life (d) Residential Properties 3801 Connecticut Avenue Washington, DC $ 420,000 $ 2,678,000 $ 23,494,000 $ 420,000 $ 26,172,000 $ 26,592,000 $ 18,112,000 1951 Jan 1963 30 years Roosevelt Towers Virginia 336,000 1,996,000 14,761,000 336,000 16,757,000 17,093,000 13,970,000 1964 May 1965 40 years Park Adams Virginia 287,000 1,654,000 17,029,000 287,000 18,683,000 18,970,000 13,563,000 1959 Jan 1969 35 years The Ashby at McLean (f) Virginia 4,356,000 17,102,000 35,968,000 4,356,000 53,070,000 57,426,000 37,011,000 1982 Aug 1996 30 years Bethesda Hill Apartments Maryland 3,900,000 13,412,000 18,064,000 3,900,000 31,476,000 35,376,000 24,995,000 1986 Nov 1997 30 years Bennett Park Virginia 2,861,000 917,000 83,551,000 4,774,000 82,555,000 87,329,000 52,189,000 2007 Feb 2001 28 years The Clayborne Virginia 269,000 — 32,103,000 699,000 31,673,000 32,372,000 20,797,000 2008 Jun 2003 26 years Kenmore Apartments Washington, DC 28,222,000 33,955,000 22,258,000 28,222,000 56,213,000 84,435,000 26,795,000 1948 Sep 2008 30 years The Maxwell Virginia 12,787,000 — 38,993,000 12,850,000 38,930,000 51,780,000 17,137,000 2014 Jun 2011 30 years Yale West Washington, DC 14,684,000 62,069,000 2,530,000 14,684,000 64,599,000 79,283,000 22,468,000 2011 Feb 2014 30 years The Paramount (f) Virginia 8,568,000 38,716,000 4,554,000 8,568,000 43,270,000 51,838,000 17,598,000 1984 Oct 2013 30 years The Wellington Virginia 30,548,000 116,563,000 25,251,000 30,548,000 141,814,000 172,362,000 44,342,000 1960 Jul 2015 30 years Trove Virginia 15,000,000 — 118,826,000 15,000,000 118,826,000 133,826,000 23,393,000 2020 Jul 2015 30 years Riverside Apartments Virginia 38,924,000 184,854,000 54,251,000 38,864,000 239,165,000 278,029,000 72,196,000 1971 May 2016 30 years Riverside Apartments land parcel (e) Virginia 15,968,000 — 14,419,000 — 30,387,000 30,387,000 — n/a May 2016 n/a Elme Alexandria Virginia 23,942,000 93,672,000 19,263,000 23,942,000 112,935,000 136,877,000 19,611,000 1990 Jun 2019 30 years Elme Manassas Virginia 13,586,000 68,802,000 8,468,000 13,586,000 77,270,000 90,856,000 14,293,000 1986 Jun 2019 30 years Elme Dulles Virginia 12,476,000 66,852,000 10,415,000 12,476,000 77,267,000 89,743,000 14,082,000 2000 Jun 2019 30 years Elme Leesburg Virginia 4,113,000 21,286,000 1,832,000 4,113,000 23,118,000 27,231,000 4,937,000 1986 Jun 2019 30 years Elme Herndon Virginia 11,225,000 51,534,000 8,295,000 11,225,000 59,829,000 71,054,000 11,369,000 1991 Jun 2019 30 years Elme Germantown Maryland 7,609,000 34,431,000 4,838,000 7,609,000 39,269,000 46,878,000 7,569,000 1990 Jun 2019 30 years Elme Watkins Mill Maryland 7,151,000 30,851,000 2,548,000 7,151,000 33,399,000 40,550,000 6,900,000 1975 Jun 2019 30 years Cascade at Landmark Virginia 12,289,000 56,235,000 5,115,000 12,289,000 61,350,000 73,639,000 10,979,000 1988 Jul 2019 30 years Elme Conyers Georgia 4,798,000 42,122,000 4,001,000 4,798,000 46,123,000 50,921,000 4,843,000 1999 Aug 2021 30 years Elme Eagles Landing Georgia 16,117,000 86,460,000 5,345,000 16,117,000 91,805,000 107,922,000 8,688,000 2000 Nov 2021 30 years Elme Sandy Springs Georgia 17,423,000 85,817,000 5,558,000 17,423,000 91,375,000 108,798,000 7,226,000 1972 Feb 2022 30 years Elme Marietta Georgia 19,019,000 83,319,000 2,737,000 19,019,000 86,056,000 105,075,000 5,945,000 1975 May 2022 30 years Elme Cumberland Georgia 14,106,000 51,689,000 3,705,000 14,106,000 55,394,000 69,500,000 4,098,000 1982 May 2022 30 years Elme Druid Hills Georgia 25,249,000 79,281,000 141,000 25,249,000 79,422,000 104,671,000 1,215,000 1987 Sep 2023 30 years $ 366,233,000 $ 1,326,267,000 $ 588,313,000 $ 352,611,000 $ 1,928,202,000 $ 2,280,813,000 $ 526,321,000 Office Building Watergate 600 (b) Washington, DC $ 45,981,000 $ 78,325,000 $ (30,022,000) $ 31,486,000 $ 62,798,000 $ 94,284,000 $ 1,703,000 1972 Apr 2017 30 years Total $ 412,214,000 $ 1,404,592,000 $ 558,291,000 $ 384,097,000 $ 1,991,000,000 $ 2,375,097,000 $ 528,024,000 ______________________________ a) The purchase cost of real estate investments has been divided between land and buildings and improvements on the basis of management’s determination of the fair values. b) During 2023, we recognized an impairment charge of $41.9 million on Watergate 600 in order to reduce its carrying value to its estimated fair value, which declined due to changes in market conditions in the Washington, DC metro region office market. c) At December 31, 2023, total land, buildings and improvements are carried at $1.5 billion for federal income tax purposes. d) The useful life shown is for the main structure. Buildings and improvements are depreciated over various useful lives ranging from 3 to 40 years. e) As of December 31, 2023, Elme Communities had one residential property under development, the Riverside Apartments land parcel. The value not yet placed into service at December 31, 2023 was $30.4 million. The following is a reconciliation of real estate assets and accumulated depreciation for the three years ended December 31, 2023 (in thousands): Year Ended December 31, 2023 2022 2021 Real estate assets Balance, beginning of period $ 2,299,712 $ 1,990,810 $ 3,021,232 Additions: Property acquisitions (1) 104,530 271,373 149,497 Improvements (1) 48,075 37,539 34,095 Deductions: Impairment write-down (77,220) — — Write-off of disposed assets — (10) (619) Property sales — — (1,213,395) Balance, end of period $ 2,375,097 $ 2,299,712 $ 1,990,810 Accumulated depreciation Balance, beginning of period $ 479,846 $ 401,926 $ 749,014 Additions: Depreciation 83,538 78,267 86,399 Deductions: Impairment write-down (35,360) — — Write-off of disposed assets — (347) (27) Property sales — — (433,460) Balance, end of period $ 528,024 $ 479,846 $ 401,926 ______________________________ (1) Includes non-cash accruals for capital items. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net (loss) income | $ (3,105) | $ (43,618) | $ (2,611) | $ (3,643) | $ (3,531) | $ (10,739) | $ (8,874) | $ (7,724) | $ (52,977) | $ (30,868) | $ 16,384 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform ("Topic 848"), which was amended in December 2022 by ASU 2022-06, Reference Rate Reform (Topic 848). Topic 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in Topic 848 is optional and may be elected through December 31, 2024 as reference rate reform activities occur. During the first quarter of 2023, we executed an amendment to the $700.0 million unsecured revolving credit facility (“Revolving Credit Facility”) to convert the benchmark interest rate from LIBOR to an adjusted SOFR ("Secured Overnight Financing Rate"). We elected to apply the optional expedients in Topic 848 to (i) assert that the hedged interest payments remain probable regardless of any expected modification in terms related to reference rate reform, and (ii) continue the method of assessing effectiveness as documented in the original hedge documentation so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The impact of this guidance did not have a material impact on our consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying audited consolidated financial statements include the consolidated accounts of Elme Communities and our subsidiaries and entities in which Elme Communities has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Certain immaterial amounts in prior periods have been reclassified to conform with the current period presentation. The primary changes to the consolidated statements of operations are reclassifications between property operating and maintenance expense and real estate taxes and insurance expense . |
Use of Estimates in the Financial Statements | Use of Estimates in the Financial Statements |
Revenue Recognition | Revenue Recognition We primarily lease residential properties under operating leases with terms of generally one year or less. Rental revenues are recognized in accordance with ASC Topic 842, Leases , using a method that represents straight-line basis over the term of the leases. In circumstances where a lease concession is provided to the resident, primarily in lease-up, we recognize a reduction of rental revenues on a straight-line basis. We also generate other property-related revenue associated with the leasing of apartment homes, including parking income, move-in charges, pet rent and other miscellaneous revenue. Similar to rental income, such revenues are recorded when due from residents and recognized monthly as they are earned. We recognize cost reimbursement income at our residential properties from pass-through expenses on an accrual basis over the periods in which the expenses were incurred. Pass-through expenses are primarily comprised of utility costs which are reimbursed by residents in accordance with specific allowable costs per resident lease agreements. We recognize gains on sales of real estate when we have executed a contract for sale of the asset, transferred controlling financial interest in the asset to the buyer and determined that it is probable that we will collect substantially all of the consideration for the asset. Our real estate sale transactions typically meet these criteria at closing. |
Rents and Other Receivables | Rents and Other Receivables Lease related receivables, which include contractual amounts accrued and unpaid from residents and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. We evaluate the collectability of lease receivables on a lease-by-lease basis. We recognize the credit loss on lease related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income recognized subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. |
Debt Issuance Costs | Debt Issuance Costs |
Real Estate and Depreciation | Real Estate and Depreciation We depreciate buildings on a straight-line basis over an estimated useful life of 26 to 40 years. We capitalize all capital improvements associated with replacements, improvements or major repairs to real property that extend its useful life and depreciate them using the straight-line method over their estimated useful lives ranging from 3 to 40 years. We also capitalize costs incurred in connection with our development projects, including interest incurred on borrowing obligations and other internal costs during periods in which qualifying expenditures have been made and activities necessary to get the development projects ready for their intended use are in progress. Capitalization of these costs begins when the activities and related expenditures commence and ceases when the project is substantially complete and ready for its intended use, at which time the project is placed into service and depreciation commences. Real estate depreciation expense from continuing operations was $82.7 million, $77.2 million and $66.2 million during the years ended December 31, 2023, 2022 and 2021, respectively. We charge maintenance and repair costs that do not extend an asset’s useful life to expense as incurred. Interest expense from continuing operations and interest capitalized to real estate assets related to development and major renovation activities for the three years ended December 31, 2023 were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Total interest incurred $ 30,429 $ 25,223 $ 34,813 Capitalized interest — (283) (750) Interest expense, net of capitalized interest $ 30,429 $ 24,940 $ 34,063 We recognize impairment losses on long-lived assets used in operations, development assets or land held for future development if indicators of impairment are present and the net undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. Estimates of undiscounted cash flows are based on forward-looking assumptions, including annual and residual cash flows and our estimated holding period for each property. Such assumptions involve a high degree of judgment and could be affected by future economic and market conditions. When determining if a property has indicators of impairment, we evaluate the property's occupancy, our expected holding period for the property, strategic decisions regarding the property's future operations or development and other market factors. If such carrying amount is in excess of the estimated undiscounted cash flows from the operation and disposal of the property, we would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its estimated fair value, calculated in accordance with current GAAP fair value provisions. Assets held for sale are recorded at the lower of cost or fair value less costs to sell. |
Asset Acquisitions | Asset Acquisitions The properties we acquire typically are not businesses as defined by ASC 805 ("Topic 805") - Clarifying the Definition of a Business. Per this definition, a set of transferred assets and activities is not a business when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. We therefore account for such acquisitions as asset acquisitions. Acquisition costs are capitalized and identifiable assets (including physical assets and in-place leases), liabilities assumed and any noncontrolling interests are measured by allocating the cost of the acquisition on a relative fair value basis. We determine the fair values of acquired buildings on an “as-if-vacant” basis considering a variety of factors, including the replacement cost of the property, estimated rental and absorption rates, estimated future cash flows and valuation assumptions consistent with current market conditions. We determine the fair value of land acquired based on comparisons to similar properties that have been recently marketed for sale or sold. The fair value of in-place leases are based upon our evaluation of the specific characteristics of the leases. Factors considered in the fair value analysis include the estimated cost to replace the leases, including foregone rent and expense reimbursements during the hypothetical expected lease-up periods (referred to as “absorption cost”), consideration of current market conditions and costs to execute similar leases. We classify leasing absorption costs as other assets and amortize absorption costs as amortization expense on a straight-line basis over the remaining life of the underlying leases. |
Software Developed for Internal Use | Software Developed for Internal Use The costs of software developed for internal use that qualify for capitalization are included with Prepaid expenses and other assets on our consolidated balance sheets. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and continues until the project is substantially complete and is ready for its intended purpose. Completed projects are amortized on a straight-line basis over their estimated useful lives. |
Held for Sale and Discontinued Operations | Held for Sale and Discontinued Operations We classify properties as held for sale when they meet the necessary criteria, which include: (a) senior management commits to a plan to sell the assets; (b) the assets are available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such assets; (c) an active program to locate a buyer and other actions required to complete the plan to sell the assets has been initiated; (d) the sale of the assets is probable and transfer of the assets is expected to qualify for recognition as a completed sale within one year; (e) the assets are being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Depreciation on these properties is discontinued at the time they are classified as held for sale, but operating revenues, operating expenses and interest expense continue to be recognized until the date of sale. |
Segments | Segments We evaluate performance based upon net operating income from the combined properties in each segment. Our reportable operating segment is a consolidation of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash and commercial paper with original maturities of 90 days or less. We maintain cash deposits with financial institutions that at times exceed applicable insurance limits. We reduce this risk by maintaining such deposits with high quality financial institutions that management believes are credit-worthy. Restricted cash includes funds escrowed for tenant security deposits. |
Transformation Costs | Transformation Costs Transformation costs include costs related to the strategic shift away from the commercial sector to residential sector, including the allocation of internal costs, consulting, advisory and termination benefits. |
Earnings Per Common Share | Earnings Per Common Share We determine “Basic earnings per share” using the two-class method as our unvested restricted share awards and units have non-forfeitable rights to dividends and are therefore considered participating securities. We compute basic earnings per share by dividing net income less the allocation of undistributed earnings to unvested restricted share awards and units by the weighted-average number of common shares outstanding for the period. |
Share-Based Compensation | Share-Based Compensation We currently maintain equity based compensation plans for trustees, officers and employees. We recognize compensation expense for service-based share awards ratably over the period from the service inception date through the vesting period based on the fair market value of the shares on the date of grant. We account for forfeitures as they occur. If an award's service inception date precedes the grant date, we initially measure compensation expense for awards with performance conditions at fair value at the service inception date based on probability of payout, and we remeasure compensation expense at subsequent reporting dates until all of the award’s key terms and conditions are known and the grant date is established. We amortize awards with performance conditions using the graded expense method. We measure compensation expense for awards with market conditions based on the grant date fair value, as determined using a Monte Carlo simulation, and we amortize the expense ratably over the requisite service period, regardless of whether the market conditions are achieved and the awards ultimately vest. Compensation expense for the trustee grants, which fully vest immediately, is fully recognized upon issuance based upon the fair market value of the shares on the date of grant. |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes We can recognize a tax benefit only if it is “more likely than not” that a particular tax position will be sustained upon examination or audit. To the extent that the “more likely than not” standard has been satisfied, the benefit associated with a tax position is measured as the largest amount that is greater than 50% likely of being recognized upon settlement. As of December 31, 2023 and 2022, we did not have any unrecognized tax benefits. We do not believe that there will be any material changes to our uncertain tax positions over the next twelve months. We are subject to federal income tax as well as income tax of the states of Maryland, Virginia and Georgia, and the District of Columbia. However, as a REIT, we generally are not subject to income tax on our taxable income to the extent it is distributed as dividends to our shareholders. Tax returns filed for 2020 through 2022 tax years are subject to examination by taxing authorities. We classify interest and penalties related to uncertain tax positions, if any, in our financial statements as a component of general and administrative expenses. |
Derivatives | Derivatives |
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements are required to be disclosed separately for each major category of assets and liabilities, as follows: Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs Level 3: Significant unobservable inputs The only assets or liabilities we had at December 31, 2023 and 2022 that are recorded at fair value on a recurring basis are the assets held in the Supplemental Executive Retirement Plan ("SERP"), which primarily consists of investments in mutual funds, and the interest rate swaps (see note 8). We base the valuations related to the SERP on assumptions derived from significant other observable inputs and accordingly these valuations fall into Level 2 in the fair value hierarchy. The valuation of the interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each interest rate swap. This analysis reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of ASC 820, we incorporate credit valuation adjustments in the fair value measurements to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk. These credit valuation adjustments were concluded to not be significant inputs for the fair value calculations for the periods presented. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as the posting of collateral, thresholds, mutual puts and guarantees. The valuation of interest rate swaps falls into Level 2 in the fair value hierarchy. |
Nature of Business (Tables)
Nature of Business (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Breakdown of Taxable Percentage of Dividends | The following is a breakdown of the taxable percentage of our dividends for the three years ended December 31, 2023 (unaudited): 2023 2022 2021 Ordinary income/Section 199A dividends 33 % 20 % — % Return of capital 67 % 80 % 100 % Qualified dividends — % — % — % Unrecaptured Section 1250 gain — % — % — % Capital gain — % — % — % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Interest and Interest Capitalized | Interest expense from continuing operations and interest capitalized to real estate assets related to development and major renovation activities for the three years ended December 31, 2023 were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Total interest incurred $ 30,429 $ 25,223 $ 34,813 Capitalized interest — (283) (750) Interest expense, net of capitalized interest $ 30,429 $ 24,940 $ 34,063 |
Real Estate (Tables)
Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investment Portfolio | As of December 31, 2023 and 2022, our real estate investment portfolio classified as income producing property that is held and used, at cost, consists of properties valued as follows (in thousands): December 31, 2023 2022 Residential $ 2,249,833 $ 2,098,010 Other (1) 94,284 172,996 $ 2,344,117 $ 2,271,006 ______________________________ (1) Consists of Watergate 600 |
Schedule of Real Estate Properties and Land Acquired | Properties and land for development acquired during the three years ended December 31, 2023 were as follows: Acquisition Date Property Type # of Homes (unaudited) Ending Occupancy Contract September 29, 2023 Elme Druid Hills Residential 500 93.8% $ 108,000 500 $ 108,000 February 1, 2022 Elme Sandy Springs Residential 389 91.3% $ 105,586 May 5, 2022 Elme Marietta Residential 420 90.7% 107,900 May 5, 2022 Elme Cumberland Residential 270 91.1% 69,750 1,079 $ 283,236 August 10, 2021 Elme Conyers Residential 240 93.3% $ 48,000 November 19, 2021 Elme Eagles Landing Residential 490 89.0% 106,000 730 $ 154,000 |
Schedule of Revenue and Earnings from Acquired Operating Properties | The revenue and earnings of our acquisitions during their year of acquisition for the three years ended December 31, 2023 are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Real estate rental revenue $ 2,549 $ 14,937 $ 2,262 Net loss (1,511) (11,126) (1,921) |
Schedule of Recorded Cost of Asset Acquisitions | We recorded the total cost of the above acquisitions as follows (in thousands): 2023 2022 2021 Land $ 25,249 $ 50,547 $ 20,914 Building 79,281 220,825 128,540 Absorption costs 3,660 7,300 4,786 Aggregate discount on assumed mortgages — 5,042 — Total acquisition cost 108,190 283,714 154,240 Outstanding balance on assumed mortgages — (76,554) — Total carrying amounts recorded $ 108,190 $ 207,160 $ 154,240 |
Schedule of Components of Fair Value of In-Place Leases | Balances, net of accumulated depreciation or amortization, as appropriate, of the components of the fair value of in-place leases at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 2022 Gross Carrying Value Accumulated Amortization Net Gross Carrying Value Accumulated Amortization Net Tenant origination costs $ 2,262 $ 281 $ 1,981 $ 11,723 $ 8,000 $ 3,723 Leasing commissions/absorption costs 67,504 60,887 6,617 63,064 56,416 6,648 Net lease intangible liabilities 13,055 10,499 2,556 13,055 9,683 3,372 Amortization of these combined components during the three years ended December 31, 2023, was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Depreciation and amortization expense $ 4,530 $ 12,604 $ 4,378 Real estate rental revenue increase, net (806) (944) (765) $ 3,724 $ 11,660 $ 3,613 |
Schedule of Future Amortization of Components of Fair Value of In-Place Leases | Amortization of these combined components over the next four years is projected to be as follows (in thousands): Depreciation and amortization expense Real estate rental revenue, net increase Total 2024 $ 3,870 $ (708) $ 3,162 2025 2,011 (710) 1,301 2026 1,698 (662) 1,036 2027 1,019 (476) 543 2028 — — — |
Schedule of Properties Held-for-Sale or Sold and Discontinued Operations | The results of the twelve office and eight retail properties sold in 2021 are classified as discontinued operations and are summarized as follows (amounts in thousands, except for share data): Year Ended December 31, 2021 Real estate rental revenue $ 70,519 Expenses: Property operating and maintenance (11,201) Real estate taxes and insurance (11,136) Property management (2,195) Depreciation and amortization (22,904) Gain on sale of real estate, net 46,441 Income from discontinued operations $ 69,524 Basic net income per share $ 0.82 Diluted net income per share $ 0.82 Capital expenditures $ 3,316 |
Lease Accounting (Tables)
Lease Accounting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Income | As of December 31, 2023, non-cancelable commercial operating leases provide for future minimum rental income from continuing operations as follows (in thousands): 2024 $ 16,351 2025 15,151 2026 15,084 2027 13,340 2028 6,134 Thereafter 42,636 $ 108,696 |
Unsecured Lines of Credit Pay_2
Unsecured Lines of Credit Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facilities | The amount of the Revolving Credit Facility unused and available at December 31, 2023 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (157,000) Unused and available $ 543,000 We executed borrowings and repayments on the Revolving Credit Facility during 2023 as follows (in thousands): Balance, December 31, 2022 $ 55,000 Borrowings 322,000 Repayments (220,000) Balance, December 31, 2023 $ 157,000 For the three years ended December 31, 2023, we recognized interest expense (excluding facility fees) and facility fees as follows (in thousands): Year Ended December 31, 2023 2022 2021 Interest expense (excluding facility fees) $ 4,419 $ 912 $ 390 Facility fees 1,454 1,454 1,419 Information related to revolving credit facilities for the three years ended December 31, 2023 as follows (in thousands, except percentage amounts): Year Ended December 31, 2023 2022 2021 Total revolving credit facilities at December 31 $ 700,000 $ 700,000 $ 700,000 Borrowings outstanding at December 31 157,000 55,000 — Weighted average daily borrowings during the year 70,578 21,636 34,803 Maximum daily borrowings during the year 164,000 67,000 79,000 Weighted average interest rate during the year 6.17 % 4.22 % 1.12 % Weighted average interest rate on borrowings outstanding at December 31 6.26 % 5.20 % — % |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Unsecured Notes and Term Loans Outstanding | Our unsecured notes and term loans outstanding as of December 31, 2023 and 2022 are as follows (in thousands): Effective December 31, Payoff Date/ Coupon/Stated Rate Rate (1) 2023 2022 Maturity Date (2) 2018 Term Loan 1 Month LIBOR + 110 basis points 2.31 % $ — $ 100,000 1/10/2023 2023 Term Loan 1 Month SOFR + 95 basis points 4.73 % 125,000 — 1/10/2025 30-Year Unsecured Notes 7.25 % 7.36 % 50,000 50,000 2/25/2028 Green Bonds 3.44 % 4.09 % 350,000 350,000 12/29/2030 Total principal 525,000 500,000 Premiums and discounts, net (94) (116) Deferred issuance costs, net (2,561) (2,525) Total $ 522,345 $ 497,359 ______________________________ (1) For fixed rate notes, the effective rate represents the yield on issuance date, including the effects of discounts on the notes. For variable rate notes, the effective rate represents the rate as fixed by interest rate derivatives (see note 8). (2) No principal amounts are due prior to maturity. |
Schedule of Required Principal Payments on Unsecured Notes and Term Loans | The required principal payments on the unsecured notes and term loans as of December 31, 2023 are as follows (in thousands): 2024 $ — 2025 125,000 2026 — 2027 — 2028 50,000 Thereafter 350,000 $ 525,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair values of the interest rate swap as of December 31, 2023 and 2022, were as follows (in thousands): Aggregate Effective Date Fair Value Derivative Liabilities December 31, Derivative Instrument Maturity Date 2023 2022 Interest rate swap $ 100,000 March 31, 2017 July 21, 2023 $ — $ 1,998 Interest rate swap 75,000 July 21, 2023 January 10, 2025 740 — Interest rate swap 50,000 July 21, 2023 January 10, 2025 494 — $ 1,234 $ 1,998 |
Schedule of Unrealized Gain (Loss) and Reclassification of Interest Rate Swap | The gains or losses on the effective swaps are recognized in other comprehensive income, as follows (in thousands): Year Ending December 31, 2023 2022 2021 Unrealized (gain) loss on interest rate hedges $ (764) $ 2,819 $ 3,673 The losses reclassified from Accumulated other comprehensive income into interest expense for the three years ended December 31, 2023, were as follows (in thousands): Year Ending December 31, 2023 2022 2021 Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ 2,039 $ 2,039 $ 2,039 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The fair values of these assets at December 31, 2023 and 2022 were as follows (in thousands): December 31, 2023 December 31, 2022 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: SERP $ 1,984 $ — $ 1,984 $ — $ 2,142 $ — $ 2,142 $ — Interest rate swaps 1,234 — 1,234 — 1,998 — 1,998 — |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | As of December 31, 2023 and 2022, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): December 31, 2023 2022 Carrying Fair Value Carrying Fair Value Cash and cash equivalents $ 5,984 $ 5,984 $ 8,389 $ 8,389 Restricted cash 2,554 2,554 1,463 1,463 Line of credit payable 157,000 157,000 55,000 55,000 Notes payable 522,345 466,668 497,359 454,564 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Award Valuation Performance Period Metrics | Each participant’s total award under the Officer STIP with respect to a performance period will be stated as a percentage of the participant’s annual base salary determined as of the first day of that performance period, which percentage will depend upon the participant’s position and the degree of achievement of threshold, target, and high performance goals for the performance period. The percentages for the performance period beginning January 1, 2023 are as set forth in the table below: Threshold Target High President and Chief Executive Officer 63% 125% 188% Chief Financial Officer 41% 75% 133% Chief Operating Officer (1) 23% 45% 76% Chief Information Officer 35% 65% 115% Chief Administrative Officer (1) 28% 54% 96% ______________________________ (1) For both the Chief Operating Officer and the Chief Administrative Officer, the percentages include the effects of prorations for the amount of time in 2023 that they were in their respective positions. Threshold Target High President and Chief Executive Officer 198% 275% 440% Chief Financial Officer 95% 135% 196% Chief Operating Officer (1) 110% 157% 231% Chief Information Officer 100% 143% 207% Chief Administrative Officer (1) 65% 92% 134% ______________________________ (1) |
Schedule of Assumptions Used to Value TSR Portion of LTIP Awards | The assumptions used to value the TSR portion of the officer LTIP awards were as follows: 2023 Awards 2022 Awards 2021 Awards Expected volatility (1) 32.3 % 35.2 % 35.5 % Risk-free interest rate (2) 4.2 % 1.7 % 0.3 % Expected term (3) 3 years 3 years 3 years Share price at grant date $19.04 $24.54 $ 23.20 ______________________________ (1) Expected volatility based upon historical volatility of our daily closing share price. (2) Risk-free interest rate based on U.S. treasury constant maturity bonds on the measurement date with a maturity equal to the market condition performance period. (3) Expected term based on the market condition performance period. |
Schedule of Restricted Share Awards Activity | The activity for the three years ended December 31, 2023 related to our restricted share awards, excluding those subject to market conditions, was as follows: Shares Weighted Average Grant Fair Value Unvested at December 31, 2020 306,995 $ 30.96 Granted 238,134 23.53 Vested during year (277,967) 26.39 Forfeited (7,467) 26.73 Unvested at December 31, 2021 259,695 29.16 Granted 408,606 22.33 Vested during year (408,118) 27.13 Forfeited (17,814) 25.31 Unvested at December 31, 2022 242,369 21.35 Granted 410,928 18.40 Vested during year (367,109) 19.79 Forfeited (28,453) 20.85 Unvested at December 31, 2023 257,735 18.89 |
Schedule of Performance Share Units with Market Conditions | Share-based awards with market conditions under the LTIP were awarded in 2023, 2022 and 2021 with fair market values, as determined using a Monte Carlo simulation, as follows (in thousands): 2023 Awards (1) 2022 Awards (1) 2021 Awards (1) Relative Peer TSR $ 831 $ 1,480 $ 951 Absolute/Index TSR (2) 1,048 N/A 971 |
Schedule Of Unamortized Value Of Awards With Market Conditions | The unamortized value of these awards with market conditions as of December 31, 2023 was as follows (in thousands): 2023 Awards (1) 2022 Awards (1) 2021 Awards (1) Relative Peer TSR $ 592 $ 385 $ — Absolute/Index TSR (2) 743 N/A — ______________________________ (1) The 2023, 2022 and 2021 Awards were granted under the Officer LTIP, whereby all of the shares vest immediately at the end of the three-year performance period. (2) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share for the three years ended December 31, 2023 was as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Numerator: Loss from continuing operations $ (52,977) $ (30,868) $ (53,140) Allocation of earnings to unvested restricted share awards (255) (232) (393) Adjusted loss from continuing operations (53,232) (31,100) (53,533) Income from discontinued operations, including gain on sale of real estate — — 69,524 Adjusted net (loss) income $ (53,232) $ (31,100) $ 15,991 Denominator: Weighted average shares outstanding – basic and diluted 87,735 87,388 84,544 Earnings per common share, basic: Continuing operations $ (0.61) $ (0.36) $ (0.63) Discontinued operations — — 0.82 Basic net (loss) income per common share (1) $ (0.61) $ (0.36) $ 0.19 Earnings per common share, diluted: Continuing operations $ (0.61) $ (0.36) $ (0.63) Discontinued operations — — 0.82 Diluted net (loss) income per common share (1) $ (0.61) $ (0.36) $ 0.19 Dividends declared per common share $ 0.72 $ 0.68 $ 0.94 ______________________________ (1) Earnings per share may not sum due to rounding |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Real Estate Rental Revenue as a Percentage | Real estate rental revenue as a percentage of the total for each of the reportable operating segments for the three years ended December 31, 2023 was as follows: Year Ended December 31, 2023 2022 2021 Multifamily 92 % 91 % 89 % Other 8 % 9 % 11 % |
Schedule of Percentage of Income Producing Real Estate Assets by Segment | The percentage of income producing real estate assets classified as held and used, at cost, for each of the reportable operating segments as of December 31, 2023 and 2022 was as follows: 2023 2022 Multifamily 96 % 92 % Other 4 % 8 % |
Schedule of Reconciliation of Net Operating Income of Reportable Segments | The following tables present revenues, net operating income, capital expenditures and total assets for the three years ended December 31, 2023 from these segments, and reconciles net operating income of reportable segments to net (loss) income as reported (in thousands): Twelve Months Ended December 31, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 209,311 $ 18,600 $ 227,911 Real estate expenses 74,535 5,295 79,830 Net operating income $ 134,776 $ 13,305 $ 148,081 Property management expenses (8,108) General and administrative expenses (25,887) Transformation costs (6,339) Depreciation and amortization (88,950) Interest expense (30,429) Loss on extinguishment of debt (54) Other income 569 Real estate impairment (41,860) Net loss $ (52,977) Capital expenditures $ 37,782 $ 844 $ 38,626 Total assets $ 1,768,426 $ 131,602 $ 1,900,028 Twelve Months Ended December 31, 2022 Residential Other (1) Consolidated Real estate rental revenue $ 190,500 18,880 $ 209,380 Real estate expenses 68,735 5,266 74,001 Net operating income $ 121,765 $ 13,614 $ 135,379 Property management expenses (7,436) General and administrative expenses (28,258) Transformation costs (9,686) Depreciation and amortization (91,722) Interest expense (24,940) Loss on extinguishment of debt (4,917) Other income 712 Net loss $ (30,868) Capital expenditures $ 35,081 $ 3,175 $ 38,256 Total assets $ 1,691,176 $ 181,430 $ 1,872,606 Twelve Months Ended December 31, 2021 Residential Other (1), (2) Consolidated Real estate rental revenue $ 150,965 $ 18,186 $ 169,151 Real estate expenses 55,527 5,255 60,782 Net operating income $ 95,438 $ 12,931 $ 108,369 Property management expenses (6,133) General and administrative expenses (27,538) Transformation costs (6,635) Depreciation and amortization (72,656) Interest expense (34,063) Loss on interest rate derivatives (5,866) Loss on extinguishment of debt (12,727) Other income 4,109 Discontinued operations: Income from properties sold or held for sale 23,083 Gain on sale of real estate 46,441 Net income $ 16,384 Capital expenditures $ 27,953 $ 4,506 $ 32,459 Total assets $ 1,455,328 $ 420,666 $ 1,875,994 ______________________________ (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment. (2) Total capital expenditures include office and retail properties classified as discontinued operations. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Unaudited financial data by quarter in each of the years ended December 31, 2023 and 2022 were as follows (in thousands, except for per share data): Quarter (1) First Second Third Fourth 2023 Real estate rental revenue $ 55,809 $ 56,599 $ 56,651 $ 58,852 Loss from continuing operations $ (3,643) $ (2,611) $ (43,618) $ (3,105) Net loss $ (3,643) $ (2,611) $ (43,618) $ (3,105) Loss from continuing operations per share Basic $ (0.04) $ (0.03) $ (0.50) $ (0.04) Diluted $ (0.04) $ (0.03) $ (0.50) $ (0.04) Net loss per share Basic $ (0.04) $ (0.03) $ (0.50) $ (0.04) Diluted $ (0.04) $ (0.03) $ (0.50) $ (0.04) 2022 Real estate rental revenue $ 47,804 $ 51,380 $ 54,603 $ 55,593 Loss from continuing operations $ (7,724) $ (8,874) $ (10,739) $ (3,531) Net loss $ (7,724) $ (8,874) $ (10,739) $ (3,531) Loss from continuing operations per share Basic $ (0.09) $ (0.10) $ (0.12) $ (0.04) Diluted $ (0.09) $ (0.10) $ (0.12) $ (0.04) Net loss per share Basic $ (0.09) $ (0.10) $ (0.12) $ (0.04) Diluted $ (0.09) $ (0.10) $ (0.12) $ (0.04) ______________________________ (1) With regard to per share calculations, the sum of the quarterly results may not equal full year results due to rounding. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Issuances and Net Proceeds from 2018 Equity Distribution Agreements | Our issuances and net proceeds on the Equity Distribution Agreements in 2022 and 2021 and the Original Equity Distribution Agreements in 2021 for the three years ended December 31, 2023 were as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Issuance of common shares — 1,032 1,636 Weighted average price per share $ — $ 26.27 $ 25.44 Net proceeds $ — $ 26,849 $ 40,462 |
Schedule of Issuances and Net Proceeds from Dividend Reinvestment Program | Our issuances and net proceeds on the dividend reinvestment program for the three years ended December 31, 2023 were as follows (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 Issuance of common shares 28 47 75 Weighted average price per share $ 17.64 $ 22.40 $ 23.37 Net proceeds $ 497 $ 1,030 $ 1,744 |
Deferred Costs (Tables)
Deferred Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Leasing Costs and Deferred Leasing Incentives | As of December 31, 2023 and 2022, deferred leasing costs and deferred leasing incentives were included in prepaid expenses and other assets as follows (in thousands): December 31, 2023 2022 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Deferred leasing costs $ 9,048 $ 5,537 $ 3,511 $ 8,992 $ 5,132 $ 3,860 |
Schedule of Amortization and Write-offs of Deferred Leasing Costs and Deferred Leasing Incentives | Amortization, including write-offs, of deferred leasing costs and deferred leasing incentives for the three years ended December 31, 2023 were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Deferred leasing costs amortization $ 351 $ 406 $ 535 |
Nature of Business - Narrative
Nature of Business - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties sold | property | 0 | 0 | |
Gain on sale of real estate, net | $ 0 | $ 0 | $ 46,441 |
2021 Properties | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of real estate, net | $ 46,400 | ||
Office Buildings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of office properties | property | 12 | ||
Retail Centers | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of retail properties sold | property | 8 | ||
TRS | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Deferred tax asset | 1,400 | 1,400 | |
Deferred tax asset valuation allowance | $ 1,400 | $ 1,400 |
Nature of Business - Taxable Pe
Nature of Business - Taxable Percentage of Dividends (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Ordinary income/Section 199A dividends | 33% | 20% | 0% |
Return of capital | 67% | 80% | 100% |
Qualified dividends | 0% | 0% | 0% |
Unrecaptured Section 1250 gain | 0% | 0% | 0% |
Capital gain | 0% | 0% | 0% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Revolving credit facility borrowing capacity | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | |
Real estate depreciation | $ 82,700,000 | $ 77,200,000 | $ 66,200,000 | |
Buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 26 years | |||
Buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Capital improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 3 years | |||
Capital improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life (in years) | 40 years | |||
Residential | ||||
Property, Plant and Equipment [Line Items] | ||||
Lessor operating lease term (in years) | 1 year | |||
Revolving Credit Facility | ||||
Property, Plant and Equipment [Line Items] | ||||
Revolving credit facility borrowing capacity | $ 700,000,000 | $ 700,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Total interest incurred | $ 30,429 | $ 25,223 | $ 34,813 |
Capitalized interest | 0 | (283) | (750) |
Interest expense, net of capitalized interest | $ 30,429 | $ 24,940 | $ 34,063 |
Real Estate - Real Estate Inves
Real Estate - Real Estate Investment Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Real Estate [Line Items] | ||
Income producing property, at cost | $ 2,344,117 | $ 2,271,006 |
Residential | ||
Real Estate [Line Items] | ||
Income producing property, at cost | 2,249,833 | 2,098,010 |
Other | ||
Real Estate [Line Items] | ||
Income producing property, at cost | $ 94,284 | $ 172,996 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 note | Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | |
Real Estate [Line Items] | ||||
Properties under development or held for future development | $ 30,980 | $ 31,260 | ||
Weighted average remaining life for absorption costs | 4 months | |||
Total cost of acquisition | $ 108,200 | 283,700 | $ 154,200 | |
Real estate acquisitions, net | 107,595 | 204,433 | 153,748 | |
Credits received at settlement | $ 600 | 2,800 | 500 | |
Number of mortgage notes | note | 2 | |||
Asset acquisition, mortgages assumed | $ 76,600 | |||
Number of properties sold | property | 0 | 0 | ||
Gain on sale of real estate, net | $ 0 | $ 0 | 46,441 | |
Real estate impairment | 41,860 | 0 | 0 | |
2021 Properties | Discontinued Operations, Disposed of by Sale | ||||
Real Estate [Line Items] | ||||
Gain on sale of real estate, net | $ 46,400 | |||
Residential | ||||
Real Estate [Line Items] | ||||
Properties under development or held for future development | $ 31,000 | $ 31,300 | ||
Retail Centers | ||||
Real Estate [Line Items] | ||||
Number of retail properties sold | property | 8 | |||
Office Buildings | ||||
Real Estate [Line Items] | ||||
Number of office properties | property | 12 | |||
Riverside Apartments | Total Assets | Property Concentration Risk | ||||
Real Estate [Line Items] | ||||
Concentration risk percentage (more than) | 10% | |||
Riverside Apartments | Rental Revenue | Property Concentration Risk | ||||
Real Estate [Line Items] | ||||
Concentration risk percentage (more than) | 10% | |||
Riverside Developments | ||||
Real Estate [Line Items] | ||||
Properties under development or held for future development | $ 30,400 | |||
Watergate 600 | Measurement Input, Discounted Cash Flow Term | ||||
Real Estate [Line Items] | ||||
Measurement input | 5 | |||
Watergate 600 | Measurement Input, Average Economic Occupancy | ||||
Real Estate [Line Items] | ||||
Measurement input | 0.805 | |||
Watergate 600 | Measurement Input, Cap Rate | ||||
Real Estate [Line Items] | ||||
Measurement input | 0.075 |
Real Estate - Acquisitions (Det
Real Estate - Acquisitions (Details) $ in Thousands | 12 Months Ended | |||||||
Sep. 29, 2023 USD ($) home | May 05, 2022 USD ($) home | Feb. 01, 2022 USD ($) home | Nov. 19, 2021 USD ($) home | Aug. 10, 2021 USD ($) home | Dec. 31, 2023 USD ($) home | Dec. 31, 2022 USD ($) home | Dec. 31, 2021 USD ($) home | |
2021 Acquisitions | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 730 | |||||||
Contract purchase price | $ | $ 154,000 | |||||||
Residential | 2023 Acquisitions | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 500 | |||||||
Contract purchase price | $ | $ 108,000 | |||||||
Residential | 2023 Acquisitions | Elme Druid Hills | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 500 | |||||||
Asset acquisition, occupancy percentage | 93.80% | |||||||
Contract purchase price | $ | $ 108,000 | |||||||
Residential | 2022 Acquisitions | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 1,079 | |||||||
Contract purchase price | $ | $ 283,236 | |||||||
Residential | 2022 Acquisitions | Elme Sandy Springs | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 389 | |||||||
Asset acquisition, occupancy percentage | 91.30% | |||||||
Contract purchase price | $ | $ 105,586 | |||||||
Residential | 2022 Acquisitions | Elme Marietta | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 420 | |||||||
Asset acquisition, occupancy percentage | 90.70% | |||||||
Contract purchase price | $ | $ 107,900 | |||||||
Residential | 2022 Acquisitions | Elme Cumberland | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 270 | |||||||
Asset acquisition, occupancy percentage | 91.10% | |||||||
Contract purchase price | $ | $ 69,750 | |||||||
Residential | 2021 Acquisitions | Elme Conyers | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 240 | |||||||
Asset acquisition, occupancy percentage | 93.30% | |||||||
Contract purchase price | $ | $ 48,000 | |||||||
Residential | 2021 Acquisitions | Elme Eagles Landing | ||||||||
Real Estate [Line Items] | ||||||||
Number of homes | home | 490 | |||||||
Asset acquisition, occupancy percentage | 89% | |||||||
Contract purchase price | $ | $ 106,000 |
Real Estate - Revenue and Incom
Real Estate - Revenue and Income (Loss) for Acquired Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2023 Acquisitions | |||
Real Estate [Line Items] | |||
Real estate rental revenue | $ 2,549 | ||
Net loss | $ (1,511) | ||
2022 Acquisitions | |||
Real Estate [Line Items] | |||
Real estate rental revenue | $ 14,937 | ||
Net loss | $ (11,126) | ||
2021 Acquisitions | |||
Real Estate [Line Items] | |||
Real estate rental revenue | $ 2,262 | ||
Net loss | $ (1,921) |
Real Estate - Cost Allocation o
Real Estate - Cost Allocation of Asset Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Line Items] | |||
Total acquisition cost | $ 108,200 | $ 283,700 | $ 154,200 |
Outstanding balance on assumed mortgages | (76,600) | ||
2023 Acquisitions | |||
Real Estate [Line Items] | |||
Aggregate discount on assumed mortgages | 0 | ||
Total acquisition cost | 108,190 | ||
Outstanding balance on assumed mortgages | 0 | ||
Total carrying amounts recorded | 108,190 | ||
2023 Acquisitions | Absorption costs | |||
Real Estate [Line Items] | |||
Absorption costs | 3,660 | ||
2023 Acquisitions | Land | |||
Real Estate [Line Items] | |||
Property, plant and equipment | 25,249 | ||
2023 Acquisitions | Building | |||
Real Estate [Line Items] | |||
Property, plant and equipment | $ 79,281 | ||
2022 Acquisitions | |||
Real Estate [Line Items] | |||
Aggregate discount on assumed mortgages | 5,042 | ||
Total acquisition cost | 283,714 | ||
Outstanding balance on assumed mortgages | (76,554) | ||
Total carrying amounts recorded | 207,160 | ||
2022 Acquisitions | Absorption costs | |||
Real Estate [Line Items] | |||
Absorption costs | 7,300 | ||
2022 Acquisitions | Land | |||
Real Estate [Line Items] | |||
Property, plant and equipment | 50,547 | ||
2022 Acquisitions | Building | |||
Real Estate [Line Items] | |||
Property, plant and equipment | $ 220,825 | ||
2021 Acquisitions | |||
Real Estate [Line Items] | |||
Aggregate discount on assumed mortgages | 0 | ||
Total acquisition cost | 154,240 | ||
Outstanding balance on assumed mortgages | 0 | ||
Total carrying amounts recorded | 154,240 | ||
2021 Acquisitions | Absorption costs | |||
Real Estate [Line Items] | |||
Absorption costs | 4,786 | ||
2021 Acquisitions | Land | |||
Real Estate [Line Items] | |||
Property, plant and equipment | 20,914 | ||
2021 Acquisitions | Building | |||
Real Estate [Line Items] | |||
Property, plant and equipment | $ 128,540 |
Real Estate - Net Balances of C
Real Estate - Net Balances of Components of Fair Value of In-Place Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Tenant origination costs | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 2,262 | $ 11,723 |
Accumulated Amortization | 281 | 8,000 |
Net | 1,981 | 3,723 |
Absorption costs | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 67,504 | 63,064 |
Accumulated Amortization | 60,887 | 56,416 |
Net | 6,617 | 6,648 |
Net lease intangible liabilities | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 13,055 | 13,055 |
Accumulated Amortization | 10,499 | 9,683 |
Net | $ 2,556 | $ 3,372 |
Real Estate - Amortization of C
Real Estate - Amortization of Combined Components (Details) - Acquired-in-place leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Depreciation and amortization expense | $ 4,530 | $ 12,604 | $ 4,378 |
Real estate rental revenue increase, net | (806) | (944) | (765) |
Depreciation and amortization expense, net of revenue effect | $ 3,724 | $ 11,660 | $ 3,613 |
Real Estate - Amortization of_2
Real Estate - Amortization of Combined Components Over Next Five Years (Details) - Acquired-in-place leases $ in Thousands | Dec. 31, 2023 USD ($) |
Depreciation and amortization expense | |
2024 | $ 3,870 |
2025 | 2,011 |
2026 | 1,698 |
2027 | 1,019 |
2028 | 0 |
Real estate rental revenue, net increase | |
2024 | (708) |
2025 | (710) |
2026 | (662) |
2027 | (476) |
2028 | 0 |
Total | |
2024 | 3,162 |
2025 | 1,301 |
2026 | 1,036 |
2027 | 543 |
2028 | $ 0 |
Real Estate - Discontinued Oper
Real Estate - Discontinued Operations Results of Retail Portfolio (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Abstract] | |||
Real estate rental revenue | $ 70,519 | ||
Expenses: | |||
Property operating and maintenance | (11,201) | ||
Real estate taxes and insurance | (11,136) | ||
Property management | (2,195) | ||
Depreciation and amortization | (22,904) | ||
Gain on sale of real estate, net | $ 0 | $ 0 | 46,441 |
Income from discontinued operations | $ 0 | $ 0 | $ 69,524 |
Discontinued operations, basic (in dollars per share) | $ 0 | $ 0 | $ 0.82 |
Discontinued operations, diluted (in dollars per share) | $ 0 | $ 0 | $ 0.82 |
Capital expenditures | $ 3,316 |
Lease Accounting - Schedule of
Lease Accounting - Schedule of Future Minimum Rental Income (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Future Minimum Rental Income | |
2024 | $ 16,351 |
2025 | 15,151 |
2026 | 15,084 |
2027 | 13,340 |
2028 | 6,134 |
Thereafter | 42,636 |
Total | $ 108,696 |
Lease Accounting - Leasing as a
Lease Accounting - Leasing as a Lessee Narrative (Details) | Dec. 31, 2023 |
Residential | |
Lessor, Lease, Description [Line Items] | |
Lessor operating lease term (in years) | 1 year |
Mortgage Note Payable - Narrati
Mortgage Note Payable - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2022 | |
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 522,345 | $ 497,359 | |||
Loss on extinguishment of debt | $ 4,900 | $ (54) | $ (4,917) | $ (12,727) | |
Mortgages | Elme Marietta | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 42,800 | ||||
Stated interest rate (percent) | 3.36% | ||||
Mortgages | Elme Marietta | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 40,000 | ||||
Stated interest rate (percent) | 4.50% | ||||
Mortgages | Elme Cumberland | Carrying Value | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 33,700 | ||||
Stated interest rate (percent) | 2.93% | ||||
Mortgages | Elme Cumberland | Fair Value | |||||
Debt Instrument [Line Items] | |||||
Notes payable, net | $ 31,500 | ||||
Stated interest rate (percent) | 4% |
Unsecured Lines of Credit Pay_3
Unsecured Lines of Credit Payable - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 27, 2021 USD ($) arrangement | Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2021 USD ($) extension_option | Dec. 31, 2023 USD ($) extension_option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||||||
Revolving credit facility borrowing capacity | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | ||||
Loss on extinguishment of debt, net | $ (4,900,000) | $ 54,000 | $ 4,917,000 | $ 12,727,000 | |||
Terminated interest swap arrangements | arrangement | 5 | ||||||
U.S. covered terrorism losses (percent) | 0.85 | ||||||
Insurance provider covered terrorism loss (percent) | 0.10 | ||||||
Aggregate insured losses from all insurers in covered terrorism metric | $ 100,000,000,000 | ||||||
Credit Agreement | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit agreement, aggregate maximum borrowing capacity including accordion feature | $ 1,500,000,000 | ||||||
Term loan | 2018 Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument face amount | $ 250,000,000 | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving credit facility borrowing capacity | $ 700,000,000 | $ 700,000,000 | |||||
Debt instrument term (in years) | 4 years | ||||||
Number of extensions allowed | extension_option | 2 | 2 | |||||
Term of allowable extension (in months) | 6 months | 6 months | |||||
Loss on extinguishment of debt, net | $ 200,000 | ||||||
Loan origination costs | 4,800,000 | ||||||
Repayments of outstanding borrowings | $ 220,000,000 | ||||||
Revolving Credit Facility | Variable Rate Component Two | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility fee (percent) | 0.20% | ||||||
Revolving Credit Facility | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility fee (percent) | 0.10% | ||||||
Revolving Credit Facility | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Facility fee (percent) | 0.30% | ||||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.85% | ||||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Variable Rate Component One | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.10% | 0.10% | |||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.70% | ||||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 1.40% | ||||||
Revolving Credit Facility | 2018 Term Loan B | |||||||
Line of Credit Facility [Line Items] | |||||||
Revolving credit facility borrowing capacity | $ 700,000,000 | ||||||
Repayments of outstanding borrowings | $ 150,000,000 | ||||||
Gross amount of debt extinguished | $ 100,000,000 | ||||||
Revolving Credit Facility | Term loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt, net | $ 300,000 |
Unsecured Lines of Credit Pay_4
Unsecured Lines of Credit Payable - Revolving Credit Facility Unused and Available Credit (Details) - USD ($) | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||||
Committed capacity | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | |
Borrowings outstanding | (157,000,000) | (55,000,000) | $ 0 | |
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Committed capacity | 700,000,000 | $ 700,000,000 | ||
Borrowings outstanding | (157,000,000) | $ (55,000,000) | ||
Unused and available | $ 543,000,000 |
Unsecured Lines of Credit Pay_5
Unsecured Lines of Credit Payable - Borrowings and Repayments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Line of Credit [Roll Forward] | |
Balance, beginning | $ 55,000 |
Balance, ending | 157,000 |
Revolving Credit Facility | |
Line of Credit [Roll Forward] | |
Balance, beginning | 55,000 |
Borrowings | 322,000 |
Repayments | (220,000) |
Balance, ending | $ 157,000 |
Unsecured Lines of Credit Pay_6
Unsecured Lines of Credit Payable - Recognized Interest Expense and Facility Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Interest expense (excluding facility fees) | $ 4,419 | $ 912 | $ 390 |
Facility fees | $ 1,454 | $ 1,454 | $ 1,419 |
Unsecured Lines of Credit Pay_7
Unsecured Lines of Credit Payable - Information Related to Revolving Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Total revolving credit facilities at December 31 | $ 700,000 | $ 700,000 | $ 700,000 |
Borrowings outstanding at December 31 | 157,000 | 55,000 | 0 |
Weighted average daily borrowings during the year | 70,578 | 21,636 | 34,803 |
Maximum daily borrowings during the year | $ 164,000 | $ 67,000 | $ 79,000 |
Weighted average interest rate during the year | 6.17% | 4.22% | 1.12% |
Weighted average interest rate on borrowings outstanding at December 31 | 6.26% | 5.20% | 0% |
Notes Payable - Unsecured Notes
Notes Payable - Unsecured Notes and Term Loans Outstanding (Details) - Unsecured notes and term loans - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total principal | $ 525,000,000 | $ 500,000,000 |
Premiums and discounts, net | (94,000) | (116,000) |
Deferred issuance costs, net | (2,561,000) | (2,525,000) |
Total | 522,345,000 | 497,359,000 |
Principal amounts due prior to maturity | $ 0 | |
2018 Term Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 2.31% | |
Total principal | $ 0 | 100,000,000 |
2018 Term Loan | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 1.10% | |
2023 Term Loan | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 4.73% | |
Total principal | $ 125,000,000 | 0 |
2023 Term Loan | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 0.95% | |
30 Year Unsecured Notes 7.25% | ||
Debt Instrument [Line Items] | ||
Coupon/Stated Rate | 7.25% | |
Effective interest rate (percent) | 7.36% | |
Total principal | $ 50,000,000 | 50,000,000 |
Green Bonds | ||
Debt Instrument [Line Items] | ||
Coupon/Stated Rate | 3.44% | |
Effective interest rate (percent) | 4.09% | |
Total principal | $ 350,000,000 | $ 350,000,000 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 29, 2020 USD ($) | Sep. 30, 2022 USD ($) | Aug. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) extension_option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |||||||
Redeemed unsecured notes | $ 300,000,000 | ||||||
Loss on extinguishment of debt | $ 4,900,000 | $ (54,000) | $ (4,917,000) | $ (12,727,000) | |||
Unsecured notes and term loans | |||||||
Short-term Debt [Line Items] | |||||||
Debt issuance costs | 2,561,000 | $ 2,525,000 | |||||
Unsecured notes and term loans | 2023 Term Loan | |||||||
Short-term Debt [Line Items] | |||||||
Debt instrument face amount | $ 125,000,000 | $ 125,000,000 | |||||
Debt instrument term (in years) | 2 years | ||||||
Term loan facility, number of extensions allowed | extension_option | 2 | ||||||
Term loan, extension, term | 1 year | ||||||
Effective interest rate (percent) | 4.73% | ||||||
Unsecured notes and term loans | 2023 Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.95% | ||||||
Unsecured notes and term loans | 2023 Term Loan | Secured Overnight Financing Rate (SOFR) | Variable Rate Component One | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.10% | ||||||
Unsecured notes and term loans | 2023 Term Loan | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Two | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.95% | ||||||
Unsecured notes and term loans | Green Bonds | |||||||
Short-term Debt [Line Items] | |||||||
Stated interest rate (percent) | 3.44% | ||||||
Effective interest rate (percent) | 4.09% | ||||||
Notes payable | |||||||
Short-term Debt [Line Items] | |||||||
Loss on extinguishment of debt | 12,300,000 | ||||||
Prepayment penalty | 11,900,000 | ||||||
Write-off of unamortized premium | $ 400,000 | ||||||
Notes payable | Green Bonds | |||||||
Short-term Debt [Line Items] | |||||||
Debt instrument face amount | $ 350,000,000 | ||||||
Debt instrument term (in years) | 10 years | ||||||
Stated interest rate (percent) | 3.44% | ||||||
Effective interest rate (percent) | 4.09% | ||||||
Debt issuance costs | $ 2,600,000 |
Notes Payable - Required Princi
Notes Payable - Required Principal Payments on Unsecured Notes and Term Loans (Details) - Unsecured notes and term loans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Required Principal Payments [Abstract] | ||
2024 | $ 0 | |
2025 | 125,000 | |
2026 | 0 | |
2027 | 0 | |
2028 | 50,000 | |
Thereafter | 350,000 | |
Total principal | $ 525,000 | $ 500,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) arrangement | Jul. 21, 2023 | Mar. 31, 2023 USD ($) arrangement | Dec. 31, 2022 arrangement | Sep. 27, 2021 USD ($) | |
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Number of interest rate derivatives held | arrangement | 2 | 2 | 1 | ||
Derivative notional amount | $ 100,000,000 | $ 125,000,000 | |||
Derivative fixed interest rate (percent) | 4.73% | ||||
Estimated amount to be reclassified within next twelve months as an increase to interest expense | (1,200,000) | ||||
Fair value of derivative assets | 1,200,000 | ||||
Fair value of derivative liabilities | 0 | ||||
Interest Rate Swap, Previously Held | |||||
Derivative [Line Items] | |||||
Estimated amount to be reclassified within next twelve months as an increase to interest expense | 2,000,000 | ||||
2018 Term Loan B | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 100,000,000 | ||||
2023 Term Loan | Unsecured notes and term loans | |||||
Derivative [Line Items] | |||||
Debt instrument face amount | $ 125,000,000 | 125,000,000 | |||
2023 Term Loan | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative notional amount | $ 100,000,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Interest Rate Swaps (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 100,000 | $ 125,000 | |
Derivative Assets (Liabilities) | 1,234 | $ 1,998 | |
2018 Term Loan A | Interest Rate Swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | 100,000 | ||
2018 Term Loan A | Interest Rate Swap | Accounts payable and other liabilities | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities) | 0 | 1,998 | |
2023 Term Loan | Interest Rate Swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 100,000 | ||
2023 Term Loan | Interest Rate Swap One | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | 75,000 | ||
2023 Term Loan | Interest Rate Swap One | Accounts payable and other liabilities | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities) | 740 | 0 | |
2023 Term Loan | Interest Rate Swap Two | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | 50,000 | ||
2023 Term Loan | Interest Rate Swap Two | Accounts payable and other liabilities | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities) | $ 494 | $ 0 |
Derivative Instruments - Unreal
Derivative Instruments - Unrealized Gains and Losses and Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Unrealized (loss) gain on interest rate derivatives | $ (764) | $ 2,819 | $ 3,673 |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ 2,039 | $ 2,039 | $ 2,039 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest Rate Swap | ||
Assets: | ||
Interest rate swaps | $ 1,200 | |
Recurring | ||
Assets: | ||
SERP | 1,984 | $ 2,142 |
Recurring | Interest Rate Swap | ||
Assets: | ||
Interest rate swaps | 1,234 | 1,998 |
Recurring | Level 1 | ||
Assets: | ||
SERP | 0 | 0 |
Recurring | Level 1 | Interest Rate Swap | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
SERP | 1,984 | 2,142 |
Recurring | Level 2 | Interest Rate Swap | ||
Assets: | ||
Interest rate swaps | 1,234 | 1,998 |
Recurring | Level 3 | ||
Assets: | ||
SERP | 0 | 0 |
Recurring | Level 3 | Interest Rate Swap | ||
Assets: | ||
Interest rate swaps | $ 0 | $ 0 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 5,984 | $ 8,389 |
Restricted cash | 2,554 | 1,463 |
Line of credit payable | 157,000 | 55,000 |
Notes payable | 522,345 | 497,359 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 5,984 | 8,389 |
Restricted cash | 2,554 | 1,463 |
Line of credit payable | 157,000 | 55,000 |
Notes payable | $ 466,668 | $ 454,564 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) age shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 5.5 | $ 8 | $ 8.6 |
Capitalized stock-based compensation expense | 0.1 | 0.2 | 0.3 |
Trustee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of share-based compensation for each trustee | $ 0.1 | $ 0.1 | $ 0.1 |
Restricted share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
One-time equity award granted (shares) | shares | 410,928 | 408,606 | 238,134 |
Retirement age with 20 years employment | age | 55 | ||
Years of employment for retirement age metric | 20 years | ||
Retirement age | age | 65 | ||
Fair value of restricted share units vested | $ 7.3 | $ 11.1 | $ 7.6 |
Compensation costs not yet recognized | $ 4.2 | ||
Recognition period for compensation expense | 25 months | ||
Restricted share awards | Chief executive officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
One-time equity award granted (shares) | shares | 100,000 | ||
Percentage of equity award that vests on fifth anniversary of grant date | 100% | ||
Washington Real Estate Investment Trust 2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | shares | 2,400,000 | ||
Incentive plan, period in effect (in years) | 10 years | ||
Options outstanding (in shares) | shares | 0 | 0 | |
Officer STIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Short-term incentive plan, aggregate weighting of performance measures and time-based measures | 100% | ||
Officer LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate weighting of performance and time-based measures (percent) | 100% | ||
Long-term incentive plan, percentage of performance-based award vested upon grant | 100% | ||
Officer LTIP | Time-based award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Vesting percentage per year over three-year vesting period (percent) | 33.33% | ||
Prior STIP | Non-executive officer and staff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incentive plan bonuses payable in cash (percent) | 100% | ||
Prior LTIP | Executive officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period (in years) | 3 years | 3 years | 3 years |
Performance evaluated on relative TSR to FTSE Residential Index | 60% | 42.50% | |
Performance evaluated on relative TSR to defined population of peer companies | 40% | 100% | 50% |
Performance evaluated on relative TSR to FTSE Office Index | 7.50% | ||
Performance evaluated on relative TSR to FTSE Residential Index weighting | 40% | ||
Performance based on relative total shareholder return to peer companies, weighting, percentage | 100% | ||
Performance evaluated on relative TSR to FTSE NAREIT Diversified Index | 50% | ||
Prior LTIP | Executive officers | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value as a percentage of base salary for awards evaluated on relative TSR to defined population of peer companies | 27% | 32% | 37% |
Grant date fair value as a percentage of base salary for awards evaluated on on relative TSR to FTSE NAREIT Diversified Index | 32% | 38% | |
Prior LTIP | Executive officers | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value as a percentage of base salary for awards evaluated on relative TSR to defined population of peer companies | 137% | 248% | |
Grant date fair value as a percentage of base salary for awards evaluated on on relative TSR to FTSE NAREIT Diversified Index | 159% | ||
Grant date fair value as a percentage of base salary for awards evaluated on on relative TSR | 78% | ||
Grant date fair value as a percentage of base salary for awards evaluated on on absolute TSR | 80% | ||
LTIP for non-executive officers and staff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance period (in years) | 3 years |
Share-Based Compensation - Offi
Share-Based Compensation - Officer STIP and LTIP Performance Metrics (Details) - Performance award | Dec. 31, 2023 |
Officer STIP | President and Chief Executive Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 63% |
Award as percentage of base salary, target performance goal (percent) | 125% |
Award as percentage of base salary, high performance goal (percent) | 188% |
Officer STIP | Chief Financial Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 41% |
Award as percentage of base salary, target performance goal (percent) | 75% |
Award as percentage of base salary, high performance goal (percent) | 133% |
Officer STIP | Chief Operating Officer (1) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 23% |
Award as percentage of base salary, target performance goal (percent) | 45% |
Award as percentage of base salary, high performance goal (percent) | 76% |
Officer STIP | Chief Information Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 35% |
Award as percentage of base salary, target performance goal (percent) | 65% |
Award as percentage of base salary, high performance goal (percent) | 115% |
Officer STIP | Chief Administrative Officer (1) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 28% |
Award as percentage of base salary, target performance goal (percent) | 54% |
Award as percentage of base salary, high performance goal (percent) | 96% |
Officer LTIP | President and Chief Executive Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 198% |
Award as percentage of base salary, target performance goal (percent) | 275% |
Award as percentage of base salary, high performance goal (percent) | 440% |
Officer LTIP | Chief Financial Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 95% |
Award as percentage of base salary, target performance goal (percent) | 135% |
Award as percentage of base salary, high performance goal (percent) | 196% |
Officer LTIP | Chief Operating Officer (1) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 110% |
Award as percentage of base salary, target performance goal (percent) | 157% |
Award as percentage of base salary, high performance goal (percent) | 231% |
Officer LTIP | Chief Information Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 100% |
Award as percentage of base salary, target performance goal (percent) | 143% |
Award as percentage of base salary, high performance goal (percent) | 207% |
Officer LTIP | Chief Administrative Officer (1) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award as percentage of base salary, threshold performance goal (percent) | 65% |
Award as percentage of base salary, target performance goal (percent) | 92% |
Award as percentage of base salary, high performance goal (percent) | 134% |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions for LTIP Awards (Details) - Officer LTIP - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (percent) | 32.30% | 35.20% | 35.50% |
Risk-free interest rate (percent) | 4.20% | 1.70% | 0.30% |
Expected term (in years) | 3 years | 3 years | 3 years |
Share price at grant date (in dollars per share) | $ 19.04 | $ 24.54 | $ 23.2 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Share Awards with Performance and Service Conditions (Details) - Restricted share awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | |||
Unvested, beginning (in shares) | 242,369 | 259,695 | 306,995 |
Granted (in shares) | 410,928 | 408,606 | 238,134 |
Vested during year (in shares) | (367,109) | (408,118) | (277,967) |
Forfeited (in shares) | (28,453) | (17,814) | (7,467) |
Unvested, ending (in shares) | 257,735 | 242,369 | 259,695 |
Weighted Average Grant Fair Value | |||
Unvested, beginning (in dollars per share) | $ 21.35 | $ 29.16 | $ 30.96 |
Granted (in dollars per share) | 18.40 | 22.33 | 23.53 |
Vested during year (in dollars per share) | 19.79 | 27.13 | 26.39 |
Forfeited (in dollars per share) | 20.85 | 25.31 | 26.73 |
Unvested, ending (in dollars per share) | $ 18.89 | $ 21.35 | $ 29.16 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrestricted Shares with Market Conditions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Unrestricted Relative Peer TSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 831 | $ 1,480 | $ 951 |
Unrestricted Relative Peer TSR | 2023 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested value | 592 | ||
Unrestricted Relative Peer TSR | 2022 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested value | 385 | ||
Unrestricted Relative Peer TSR | 2021 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested value | 0 | ||
Unrestricted Absolute/Index TSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | 1,048 | $ 971 | |
Unrestricted Absolute/Index TSR | 2023 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested value | $ 743 | ||
Performance period (in years) | 3 years | ||
Unrestricted Absolute/Index TSR | 2022 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period (in years) | 3 years | ||
Unrestricted Absolute/Index TSR | 2021 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested value | $ 0 | ||
Performance period (in years) | 3 years | ||
Absolute/Index TSR | 2023 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance evaluated on relative TSR to FTSE Residential Index weighting | 40% | ||
Performance evaluated on relative TSR to FTSE Residential Index | 60% | ||
Absolute/Index TSR | 2022 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance evaluated on relative TSR to defined population of peer companies | 100% | ||
Absolute/Index TSR | 2021 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance evaluated on relative TSR to defined population of peer companies | 50% | ||
Performance evaluated on relative TSR to FTSE Multifamily and Office indexes | 50% |
Other Benefit Plans (Details)
Other Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
401I(k) plan contributions by employer | $ 0.6 | $ 0.3 | $ 0.4 |
Liability, Other Postretirement Defined Benefit Plan, Noncurrent | 0.1 | 0.2 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | 0.3 | 0.2 | $ 0.2 |
Officer | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Accrued benefit liability | $ 2 | $ 2.1 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Numerator: | ||||||||||||||
Loss from continuing operations | $ (3,105) | $ (43,618) | $ (2,611) | $ (3,643) | $ (3,531) | $ (10,739) | $ (8,874) | $ (7,724) | $ (52,977) | $ (30,868) | $ (53,140) | |||
Allocation of earnings to unvested restricted share awards | (255) | (232) | (393) | |||||||||||
Adjusted loss from continuing operations | (53,232) | (31,100) | (53,533) | |||||||||||
Income from discontinued operations, including gain on sale of real estate | 0 | 0 | 69,524 | |||||||||||
Adjusted net (loss) income | $ (53,232) | $ (31,100) | $ 15,991 | |||||||||||
Denominator: | ||||||||||||||
Weighted average shares outstanding – basic (in shares) | 87,735 | 87,388 | 84,544 | |||||||||||
Weighted average shares outstanding – diluted (in shares) | 87,735 | 87,388 | 84,544 | |||||||||||
Earnings per common share, basic: | ||||||||||||||
Continuing operations (in dollars per share) | $ (0.04) | $ (0.50) | $ (0.03) | $ (0.04) | $ (0.04) | $ (0.12) | $ (0.10) | $ (0.09) | $ (0.61) | $ (0.36) | $ (0.63) | |||
Discontinued operations, basic (in dollars per share) | 0 | 0 | 0.82 | |||||||||||
Basic net (loss) income per common share (in dollars per share) | (0.04) | (0.50) | (0.03) | (0.04) | (0.04) | (0.12) | (0.10) | (0.09) | (0.61) | [1] | (0.36) | [1] | 0.19 | [1] |
Earnings per common share, diluted: | ||||||||||||||
Continuing operations (in dollars per share) | (0.04) | (0.50) | (0.03) | (0.04) | (0.04) | (0.12) | (0.10) | (0.09) | (0.61) | (0.36) | (0.63) | |||
Discontinued operations, diluted (in dollars per share) | 0 | 0 | 0.82 | |||||||||||
Diluted net (loss) income per common share (in dollars per share) | $ (0.04) | $ (0.50) | $ (0.03) | $ (0.04) | $ (0.04) | $ (0.12) | $ (0.10) | $ (0.09) | (0.61) | [1] | (0.36) | [1] | 0.19 | [1] |
Dividends declared per common share (in dollars per share) | $ 0.72 | $ 0.68 | $ 0.94 | |||||||||||
[1]Earnings per share may not sum due to rounding |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 segment | Dec. 31, 2023 property segment community | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | 1 |
Outside Of Washington, DC Metro Region | ||
Segment Reporting Information [Line Items] | ||
Number of properties | community | 6 | |
Riverside Apartments | Rental Revenue | Property Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage (more than) | 10% | |
Office Buildings | ||
Segment Reporting Information [Line Items] | ||
Number of properties that do not meet criteria for reportable segment | property | 1 |
Segment Information - Schedule
Segment Information - Schedule of Real Estate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Multifamily | |||
Segment Reporting Information [Line Items] | |||
Real estate rental revenue as a percentage of total | 0.92 | 0.91 | 0.89 |
Percentage of total income producing real estate assets | 0.96 | 0.92 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Real estate rental revenue as a percentage of total | 0.08 | 0.09 | 0.11 |
Percentage of total income producing real estate assets | 0.04 | 0.08 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||||||||
Real estate rental revenue | $ 58,852 | $ 56,651 | $ 56,599 | $ 55,809 | $ 55,593 | $ 54,603 | $ 51,380 | $ 47,804 | $ 227,911 | $ 209,380 | $ 169,151 | |
Real estate expenses | 79,830 | 74,001 | 60,782 | |||||||||
Net operating income | 148,081 | 135,379 | 108,369 | |||||||||
Property management expenses | (8,108) | (7,436) | (6,133) | |||||||||
General and administrative expenses | (25,887) | (28,258) | (27,538) | |||||||||
Transformation costs | (6,339) | (9,686) | (6,635) | |||||||||
Depreciation and amortization | (88,950) | (91,722) | (72,656) | |||||||||
Interest expense | (30,429) | (24,940) | (34,063) | |||||||||
Loss on interest rate derivatives | 0 | 0 | (5,866) | |||||||||
Loss on extinguishment of debt | $ 4,900 | (54) | (4,917) | (12,727) | ||||||||
Other income | 569 | 712 | 4,109 | |||||||||
Real estate impairment | (41,860) | 0 | 0 | |||||||||
Discontinued operations: | ||||||||||||
Income from operations of properties sold or held for sale | 0 | 0 | 23,083 | |||||||||
Gain on sale of real estate, net | 0 | 0 | 46,441 | |||||||||
Net (loss) income | (3,105) | $ (43,618) | $ (2,611) | $ (3,643) | (3,531) | $ (10,739) | $ (8,874) | $ (7,724) | (52,977) | (30,868) | 16,384 | |
Capital expenditures | 38,626 | 38,256 | 32,459 | |||||||||
Total assets | 1,900,028 | 1,872,606 | 1,900,028 | 1,872,606 | 1,875,994 | |||||||
Residential | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Real estate rental revenue | 209,311 | 190,500 | 150,965 | |||||||||
Real estate expenses | 74,535 | 68,735 | 55,527 | |||||||||
Net operating income | 134,776 | 121,765 | 95,438 | |||||||||
Discontinued operations: | ||||||||||||
Capital expenditures | 37,782 | 35,081 | 27,953 | |||||||||
Total assets | 1,768,426 | 1,691,176 | 1,768,426 | 1,691,176 | 1,455,328 | |||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Real estate rental revenue | 18,600 | 18,880 | 18,186 | |||||||||
Real estate expenses | 5,295 | 5,266 | 5,255 | |||||||||
Net operating income | 13,305 | 13,614 | 12,931 | |||||||||
Discontinued operations: | ||||||||||||
Capital expenditures | 844 | 3,175 | 4,506 | |||||||||
Total assets | $ 131,602 | $ 181,430 | $ 131,602 | $ 181,430 | $ 420,666 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Real estate rental revenue | $ 58,852 | $ 56,651 | $ 56,599 | $ 55,809 | $ 55,593 | $ 54,603 | $ 51,380 | $ 47,804 | $ 227,911 | $ 209,380 | $ 169,151 | |||
Loss from continuing operations | (3,105) | (43,618) | (2,611) | (3,643) | (3,531) | (10,739) | (8,874) | (7,724) | (52,977) | (30,868) | (53,140) | |||
Net loss | $ (3,105) | $ (43,618) | $ (2,611) | $ (3,643) | $ (3,531) | $ (10,739) | $ (8,874) | $ (7,724) | $ (52,977) | $ (30,868) | $ 16,384 | |||
Loss from continuing operations per share | ||||||||||||||
Income (loss) from continuing operations - Basic (in dollars per share) | $ (0.04) | $ (0.50) | $ (0.03) | $ (0.04) | $ (0.04) | $ (0.12) | $ (0.10) | $ (0.09) | $ (0.61) | $ (0.36) | $ (0.63) | |||
Income (loss) from continuing operations - Diluted (in dollars per share) | (0.04) | (0.50) | (0.03) | (0.04) | (0.04) | (0.12) | (0.10) | (0.09) | (0.61) | (0.36) | (0.63) | |||
Net loss per share | ||||||||||||||
Basic net income (loss) per share (in dollars per share) | (0.04) | (0.50) | (0.03) | (0.04) | (0.04) | (0.12) | (0.10) | (0.09) | (0.61) | [1] | (0.36) | [1] | 0.19 | [1] |
Net income (loss) per share - Diluted (in dollars per share) | $ (0.04) | $ (0.50) | $ (0.03) | $ (0.04) | $ (0.04) | $ (0.12) | $ (0.10) | $ (0.09) | $ (0.61) | [1] | $ (0.36) | [1] | $ 0.19 | [1] |
[1]Earnings per share may not sum due to rounding |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Dec. 31, 2023 | Oct. 26, 2023 | Dec. 31, 2022 |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 50,000,000 | ||
Common shares reserved for future issuance | $ 550,000,000 | ||
Shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuances and Net Proceeds on Equity Distribution Agreements (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Distribution Agreement [Abstract] | |||
Weighted average price per share (in dollars per share) | $ 0 | $ 26.27 | $ 25.44 |
Net proceeds | $ 0 | $ 26,849 | $ 40,462 |
Common Stock | |||
Equity Distribution Agreement [Abstract] | |||
Issuance of common shares (in shares) | 0 | 1,032 | 1,636 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividend Reinvestment Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dividend Reinvestment Program | |||
Issuance of common shares (in shares) | 28 | 47 | 75 |
Weighted average price per share (in dollars per share) | $ 17.64 | $ 22.40 | $ 23.37 |
Net proceeds | $ 497 | $ 1,030 | $ 1,744 |
Deferred Costs - Deferred Lease
Deferred Costs - Deferred Lease Costs and Incentives in Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred leasing costs, gross | $ 9,048 | $ 8,992 |
Deferred leasing costs, accumulated amortization | 5,537 | 5,132 |
Deferred leasing costs, net | $ 3,511 | $ 3,860 |
Deferred Costs - Amortization a
Deferred Costs - Amortization and Write-Offs of Deferred Leasing Costs and Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred leasing costs amortization | $ 351 | $ 406 | $ 535 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,399 | $ 1,392 | $ 1,402 |
Additions Charged to Expenses | 0 | 7 | 0 |
Net Recoveries | 0 | 0 | (10) |
Balance at End of Year | $ 1,399 | $ 1,399 | $ 1,392 |
Schedule III (Details)
Schedule III (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Initial Cost | ||||
Land | $ 412,214,000 | |||
Buildings and Improvements | 1,404,592,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 558,291,000 | |||
Gross Amounts at Which Carried | ||||
Land | 384,097,000 | |||
Buildings and Improvements | 1,991,000,000 | |||
Total | 2,375,097,000 | $ 2,299,712,000 | $ 1,990,810,000 | $ 3,021,232,000 |
Accumulated Depreciation | 528,024,000 | 479,846,000 | 401,926,000 | $ 749,014,000 |
Real estate impairment | 41,860,000 | 0 | $ 0 | |
Carrying value for federal income tax purposes | 1,500,000,000 | |||
Properties under development or held for future development | $ 30,980,000 | 31,260,000 | ||
Building | Minimum | ||||
Gross Amounts at Which Carried | ||||
Useful life (in years) | 3 years | |||
Building | Maximum | ||||
Gross Amounts at Which Carried | ||||
Useful life (in years) | 40 years | |||
Various development projects | ||||
Gross Amounts at Which Carried | ||||
Properties under development or held for future development | $ 600,000 | |||
Residential | ||||
Initial Cost | ||||
Land | 366,233,000 | |||
Buildings and Improvements | 1,326,267,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 588,313,000 | |||
Gross Amounts at Which Carried | ||||
Land | 352,611,000 | |||
Buildings and Improvements | 1,928,202,000 | |||
Total | 2,280,813,000 | |||
Accumulated Depreciation | $ 526,321,000 | |||
Number of residential properties under development | property | 1 | |||
Properties under development or held for future development | $ 31,000,000 | $ 31,300,000 | ||
Residential | 3801 Connecticut Avenue | Washington, D.C. | ||||
Initial Cost | ||||
Land | 420,000 | |||
Buildings and Improvements | 2,678,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 23,494,000 | |||
Gross Amounts at Which Carried | ||||
Land | 420,000 | |||
Buildings and Improvements | 26,172,000 | |||
Total | 26,592,000 | |||
Accumulated Depreciation | $ 18,112,000 | |||
Depreciation Life | 30 years | |||
Residential | Roosevelt Towers | Virginia | ||||
Initial Cost | ||||
Land | $ 336,000 | |||
Buildings and Improvements | 1,996,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 14,761,000 | |||
Gross Amounts at Which Carried | ||||
Land | 336,000 | |||
Buildings and Improvements | 16,757,000 | |||
Total | 17,093,000 | |||
Accumulated Depreciation | $ 13,970,000 | |||
Depreciation Life | 40 years | |||
Residential | Park Adams | Virginia | ||||
Initial Cost | ||||
Land | $ 287,000 | |||
Buildings and Improvements | 1,654,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 17,029,000 | |||
Gross Amounts at Which Carried | ||||
Land | 287,000 | |||
Buildings and Improvements | 18,683,000 | |||
Total | 18,970,000 | |||
Accumulated Depreciation | $ 13,563,000 | |||
Depreciation Life | 35 years | |||
Residential | The Ashby at McLean | Virginia | ||||
Initial Cost | ||||
Land | $ 4,356,000 | |||
Buildings and Improvements | 17,102,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 35,968,000 | |||
Gross Amounts at Which Carried | ||||
Land | 4,356,000 | |||
Buildings and Improvements | 53,070,000 | |||
Total | 57,426,000 | |||
Accumulated Depreciation | $ 37,011,000 | |||
Depreciation Life | 30 years | |||
Residential | Bethesda Hill Apartments | Maryland | ||||
Initial Cost | ||||
Land | $ 3,900,000 | |||
Buildings and Improvements | 13,412,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 18,064,000 | |||
Gross Amounts at Which Carried | ||||
Land | 3,900,000 | |||
Buildings and Improvements | 31,476,000 | |||
Total | 35,376,000 | |||
Accumulated Depreciation | $ 24,995,000 | |||
Depreciation Life | 30 years | |||
Residential | Bennett Park | Virginia | ||||
Initial Cost | ||||
Land | $ 2,861,000 | |||
Buildings and Improvements | 917,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 83,551,000 | |||
Gross Amounts at Which Carried | ||||
Land | 4,774,000 | |||
Buildings and Improvements | 82,555,000 | |||
Total | 87,329,000 | |||
Accumulated Depreciation | $ 52,189,000 | |||
Depreciation Life | 28 years | |||
Residential | The Clayborne | Virginia | ||||
Initial Cost | ||||
Land | $ 269,000 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 32,103,000 | |||
Gross Amounts at Which Carried | ||||
Land | 699,000 | |||
Buildings and Improvements | 31,673,000 | |||
Total | 32,372,000 | |||
Accumulated Depreciation | $ 20,797,000 | |||
Depreciation Life | 26 years | |||
Residential | The Kenmore | Washington, D.C. | ||||
Initial Cost | ||||
Land | $ 28,222,000 | |||
Buildings and Improvements | 33,955,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 22,258,000 | |||
Gross Amounts at Which Carried | ||||
Land | 28,222,000 | |||
Buildings and Improvements | 56,213,000 | |||
Total | 84,435,000 | |||
Accumulated Depreciation | $ 26,795,000 | |||
Depreciation Life | 30 years | |||
Residential | The Maxwell | Virginia | ||||
Initial Cost | ||||
Land | $ 12,787,000 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 38,993,000 | |||
Gross Amounts at Which Carried | ||||
Land | 12,850,000 | |||
Buildings and Improvements | 38,930,000 | |||
Total | 51,780,000 | |||
Accumulated Depreciation | $ 17,137,000 | |||
Depreciation Life | 30 years | |||
Residential | Yale West | Washington, D.C. | ||||
Initial Cost | ||||
Land | $ 14,684,000 | |||
Buildings and Improvements | 62,069,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 2,530,000 | |||
Gross Amounts at Which Carried | ||||
Land | 14,684,000 | |||
Buildings and Improvements | 64,599,000 | |||
Total | 79,283,000 | |||
Accumulated Depreciation | $ 22,468,000 | |||
Depreciation Life | 30 years | |||
Residential | The Paramount | Virginia | ||||
Initial Cost | ||||
Land | $ 8,568,000 | |||
Buildings and Improvements | 38,716,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 4,554,000 | |||
Gross Amounts at Which Carried | ||||
Land | 8,568,000 | |||
Buildings and Improvements | 43,270,000 | |||
Total | 51,838,000 | |||
Accumulated Depreciation | $ 17,598,000 | |||
Depreciation Life | 30 years | |||
Residential | The Wellington | Virginia | ||||
Initial Cost | ||||
Land | $ 30,548,000 | |||
Buildings and Improvements | 116,563,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 25,251,000 | |||
Gross Amounts at Which Carried | ||||
Land | 30,548,000 | |||
Buildings and Improvements | 141,814,000 | |||
Total | 172,362,000 | |||
Accumulated Depreciation | $ 44,342,000 | |||
Depreciation Life | 30 years | |||
Residential | The Trove | Virginia | ||||
Initial Cost | ||||
Land | $ 15,000,000 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 118,826,000 | |||
Gross Amounts at Which Carried | ||||
Land | 15,000,000 | |||
Buildings and Improvements | 118,826,000 | |||
Total | 133,826,000 | |||
Accumulated Depreciation | $ 23,393,000 | |||
Depreciation Life | 30 years | |||
Residential | Riverside Apartments | Virginia | ||||
Initial Cost | ||||
Land | $ 38,924,000 | |||
Buildings and Improvements | 184,854,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 54,251,000 | |||
Gross Amounts at Which Carried | ||||
Land | 38,864,000 | |||
Buildings and Improvements | 239,165,000 | |||
Total | 278,029,000 | |||
Accumulated Depreciation | $ 72,196,000 | |||
Depreciation Life | 30 years | |||
Residential | Riverside Apartments land parcel | Virginia | ||||
Initial Cost | ||||
Land | $ 15,968,000 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 14,419,000 | |||
Gross Amounts at Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 30,387,000 | |||
Total | 30,387,000 | |||
Accumulated Depreciation | 0 | |||
Properties under development or held for future development | 30,400,000 | |||
Residential | Elme Alexandria | Virginia | ||||
Initial Cost | ||||
Land | 23,942,000 | |||
Buildings and Improvements | 93,672,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 19,263,000 | |||
Gross Amounts at Which Carried | ||||
Land | 23,942,000 | |||
Buildings and Improvements | 112,935,000 | |||
Total | 136,877,000 | |||
Accumulated Depreciation | $ 19,611,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Manassas | Virginia | ||||
Initial Cost | ||||
Land | $ 13,586,000 | |||
Buildings and Improvements | 68,802,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 8,468,000 | |||
Gross Amounts at Which Carried | ||||
Land | 13,586,000 | |||
Buildings and Improvements | 77,270,000 | |||
Total | 90,856,000 | |||
Accumulated Depreciation | $ 14,293,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Dulles | Virginia | ||||
Initial Cost | ||||
Land | $ 12,476,000 | |||
Buildings and Improvements | 66,852,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 10,415,000 | |||
Gross Amounts at Which Carried | ||||
Land | 12,476,000 | |||
Buildings and Improvements | 77,267,000 | |||
Total | 89,743,000 | |||
Accumulated Depreciation | $ 14,082,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Leesburg | Virginia | ||||
Initial Cost | ||||
Land | $ 4,113,000 | |||
Buildings and Improvements | 21,286,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 1,832,000 | |||
Gross Amounts at Which Carried | ||||
Land | 4,113,000 | |||
Buildings and Improvements | 23,118,000 | |||
Total | 27,231,000 | |||
Accumulated Depreciation | $ 4,937,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Herndon | Virginia | ||||
Initial Cost | ||||
Land | $ 11,225,000 | |||
Buildings and Improvements | 51,534,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 8,295,000 | |||
Gross Amounts at Which Carried | ||||
Land | 11,225,000 | |||
Buildings and Improvements | 59,829,000 | |||
Total | 71,054,000 | |||
Accumulated Depreciation | $ 11,369,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Germantown | Maryland | ||||
Initial Cost | ||||
Land | $ 7,609,000 | |||
Buildings and Improvements | 34,431,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 4,838,000 | |||
Gross Amounts at Which Carried | ||||
Land | 7,609,000 | |||
Buildings and Improvements | 39,269,000 | |||
Total | 46,878,000 | |||
Accumulated Depreciation | $ 7,569,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Watkins Mill | Maryland | ||||
Initial Cost | ||||
Land | $ 7,151,000 | |||
Buildings and Improvements | 30,851,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 2,548,000 | |||
Gross Amounts at Which Carried | ||||
Land | 7,151,000 | |||
Buildings and Improvements | 33,399,000 | |||
Total | 40,550,000 | |||
Accumulated Depreciation | $ 6,900,000 | |||
Depreciation Life | 30 years | |||
Residential | Cascade at Landmark | Virginia | ||||
Initial Cost | ||||
Land | $ 12,289,000 | |||
Buildings and Improvements | 56,235,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 5,115,000 | |||
Gross Amounts at Which Carried | ||||
Land | 12,289,000 | |||
Buildings and Improvements | 61,350,000 | |||
Total | 73,639,000 | |||
Accumulated Depreciation | $ 10,979,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Conyers | Georgia | ||||
Initial Cost | ||||
Land | $ 4,798,000 | |||
Buildings and Improvements | 42,122,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 4,001,000 | |||
Gross Amounts at Which Carried | ||||
Land | 4,798,000 | |||
Buildings and Improvements | 46,123,000 | |||
Total | 50,921,000 | |||
Accumulated Depreciation | $ 4,843,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Eagles Landing | Georgia | ||||
Initial Cost | ||||
Land | $ 16,117,000 | |||
Buildings and Improvements | 86,460,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 5,345,000 | |||
Gross Amounts at Which Carried | ||||
Land | 16,117,000 | |||
Buildings and Improvements | 91,805,000 | |||
Total | 107,922,000 | |||
Accumulated Depreciation | $ 8,688,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Sandy Springs | Georgia | ||||
Initial Cost | ||||
Land | $ 17,423,000 | |||
Buildings and Improvements | 85,817,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 5,558,000 | |||
Gross Amounts at Which Carried | ||||
Land | 17,423,000 | |||
Buildings and Improvements | 91,375,000 | |||
Total | 108,798,000 | |||
Accumulated Depreciation | $ 7,226,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Marietta | Georgia | ||||
Initial Cost | ||||
Land | $ 19,019,000 | |||
Buildings and Improvements | 83,319,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 2,737,000 | |||
Gross Amounts at Which Carried | ||||
Land | 19,019,000 | |||
Buildings and Improvements | 86,056,000 | |||
Total | 105,075,000 | |||
Accumulated Depreciation | $ 5,945,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Cumberland | Georgia | ||||
Initial Cost | ||||
Land | $ 14,106,000 | |||
Buildings and Improvements | 51,689,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 3,705,000 | |||
Gross Amounts at Which Carried | ||||
Land | 14,106,000 | |||
Buildings and Improvements | 55,394,000 | |||
Total | 69,500,000 | |||
Accumulated Depreciation | $ 4,098,000 | |||
Depreciation Life | 30 years | |||
Residential | Elme Druid Hills | Georgia | ||||
Initial Cost | ||||
Land | $ 25,249,000 | |||
Buildings and Improvements | 79,281,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | 141,000 | |||
Gross Amounts at Which Carried | ||||
Land | 25,249,000 | |||
Buildings and Improvements | 79,422,000 | |||
Total | 104,671,000 | |||
Accumulated Depreciation | $ 1,215,000 | |||
Depreciation Life | 30 years | |||
Office Buildings | Watergate 600 | Washington, D.C. | ||||
Initial Cost | ||||
Land | $ 45,981,000 | |||
Buildings and Improvements | 78,325,000 | |||
Net Improvements (Retirement) since Acquisition | ||||
Net Improvements (Retirement) since Acquisition | (30,022,000) | |||
Gross Amounts at Which Carried | ||||
Land | 31,486,000 | |||
Buildings and Improvements | 62,798,000 | |||
Total | 94,284,000 | |||
Accumulated Depreciation | $ 1,703,000 | |||
Depreciation Life | 30 years |
Schedule III - Reconciliation o
Schedule III - Reconciliation of Real Estate Assets and Accumulated Depreciation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real estate assets | |||
Balance, beginning of period | $ 2,299,712,000 | $ 1,990,810,000 | $ 3,021,232,000 |
Property acquisitions | 104,530,000 | 271,373,000 | 149,497,000 |
Improvements | 48,075,000 | 37,539,000 | 34,095,000 |
Impairment write-down | (77,220,000) | 0 | 0 |
Write-off of disposed assets | 0 | (10,000) | (619,000) |
Property sales | 0 | 0 | (1,213,395,000) |
Balance, end of period | 2,375,097,000 | 2,299,712,000 | 1,990,810,000 |
Accumulated depreciation | |||
Balance, beginning of period | 479,846,000 | 401,926,000 | 749,014,000 |
Depreciation | 83,538,000 | 78,267,000 | 86,399,000 |
Impairment write-down | (35,360,000) | 0 | 0 |
Write-off of disposed assets | 0 | (347,000) | (27,000) |
Property sales | 0 | 0 | (433,460,000) |
Balance, end of period | $ 528,024,000 | $ 479,846,000 | $ 401,926,000 |