Elme Communities (NYSE:ELME) shares jumped 9.1% on Monday after the real estate investment trust revised its estimated liquidation distributions and announced a new agreement to sell its Riverside Apartments property.
The company said it signed a new purchase and sale agreement for Riverside Apartments on July 23, 2026, with the asset set to be sold for $250.0 million.
New Riverside agreement follows terminated sale
The latest transaction replaces an earlier agreement reached in May 2026 after the previous buyer exercised its contractual right to terminate the deal on June 17, 2026.
As a result of the lower sale price, Elme revised its estimated total liquidating distributions to between $16.41 and $16.61 per share, compared with its previous guidance of $16.74 to $17.02 per share issued in May.
The company said the reduced valuation for Riverside Apartments was the primary factor behind the updated estimate.
Property sales continue ahead of planned dissolution
Elme has completed the sale of six properties during 2026, generating approximately $294 million in gross proceeds. The transactions included five multifamily communities and the Watergate 600 office property.
Four additional assets remain under contract: Riverside Apartments, Elme Bethesda, The Kenmore and 3801 Connecticut Avenue.
The company said the agreements covering the three properties other than Riverside Apartments are expected to generate combined gross proceeds of approximately $168 million.
Liquidation process remains on schedule
Elme expects to complete the sale of its remaining assets during the third and fourth quarters of 2026.
The company continues to target a delisting from the New York Stock Exchange and formal dissolution during the fourth quarter.
Shareholders previously approved Elme’s Plan of Sale and Liquidation on October 30, 2025.
The REIT paid an initial special liquidating distribution of $14.67 per share on January 7, 2026. Based on the updated estimate, shareholders are expected to receive an additional $1.74 to $1.94 per share as the remaining assets are sold.
Elme Communities stock price
