Elme Communities (ELME) 10-Q 27 Oct 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 24, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	1-6622
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		87,832,608
Entity Central Index Key	0000104894
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Land	$ 384,097	$ 373,171
Income producing property	1,941,663	1,897,835
Net income producing property, at cost	2,325,760	2,271,006
Accumulated depreciation and amortization	(506,298)	(481,588)
Net income producing property	1,819,462	1,789,418
Properties under development or held for future development	31,095	31,260
Total real estate held for investment, net	1,850,557	1,820,678
Cash and cash equivalents	8,079	8,389
Restricted cash	2,104	1,463
Rents and other receivables	15,300	16,346
Prepaid expenses and other assets	34,233	25,730
Total assets	1,910,273	1,872,606
Liabilities
Notes payable, net	522,150	497,359
Line of credit	149,000	55,000
Accounts payable and other liabilities	40,666	34,386
Dividend payable	15,868	14,934
Advance rents	3,365	1,578
Tenant security deposits	6,171	5,563
Total liabilities	737,220	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; 87,832 and 87,534 shares issued and outstanding, as of September 30, 2023 and December 31, 2022, respectively	878	875
Additional paid in capital	1,734,657	1,729,854
Distributions in excess of net income	(550,442)	(453,008)
Accumulated other comprehensive loss	(12,332)	(14,233)
Total shareholders’ equity	1,172,761	1,263,488
Noncontrolling interests in subsidiaries	292	298
Total equity	1,173,053	1,263,786
Total liabilities and equity	$ 1,910,273	$ 1,872,606

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 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)	87,832,000	87,534,000
Shares of beneficial interest, outstanding (in shares)	87,832,000	87,534,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Revenue, type [Extensible Enumeration]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]
Real estate rental revenue	$ 56,651	$ 54,603	$ 169,059	$ 153,787
Expenses
Property operating and maintenance	12,747	13,092	38,510	35,404
Real estate taxes and insurance	7,050	6,469	21,066	19,893
Property management	1,935	1,916	5,882	5,462
General and administrative	6,370	6,403	19,891	20,998
Transformation costs	985	2,399	6,339	6,645
Depreciation and amortization	21,904	23,632	64,855	69,871
Real estate impairment	41,860	0	41,860	0
Expenses	92,851	53,911	198,403	158,273
Real estate operating (loss) income	(36,200)	692	(29,344)	(4,486)
Other income (expense)
Interest expense	(7,418)	(6,582)	(21,043)	(18,388)
Loss on extinguishment of debt	0	(4,917)	(54)	(4,917)
Other income	0	68	569	454
Total other income (expense)	(7,418)	(11,431)	(20,528)	(22,851)
Net loss	$ (43,618)	$ (10,739)	$ (49,872)	$ (27,337)
Basic net loss per common share (in dollars per share)	$ (0.50)	$ (0.12)	$ (0.57)	$ (0.32)
Diluted net loss per common share (in dollars per share)	$ (0.50)	$ (0.12)	$ (0.57)	$ (0.32)
Weighted average shares outstanding - basic (in shares)	87,759	87,453	87,717	87,354
Weighted average shares outstanding - diluted (in shares)	87,759	87,453	87,717	87,354

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (43,618)	$ (10,739)	$ (49,872)	$ (27,337)
Other comprehensive income:
Unrealized (loss) gain on interest rate hedges	(149)	442	372	3,284
Reclassification of unrealized loss on interest rate derivatives to earnings	510	509	1,529	1,529
Comprehensive loss	$ (43,257)	$ (9,788)	$ (47,971)	$ (22,524)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Total Shareholders’ Equity	Common Stock	Additional Paid in Capital	Distributions in Excess of Net Income	Accumulated Other Comprehensive Loss	Noncontrolling Interests in Subsidiaries
Beginning balance (in shares) at Dec. 31, 2021			86,261,000
Beginning 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	(27,337)	(27,337)			(27,337)
Unrealized gain (loss) on interest rate hedges	3,284	3,284				3,284
Amortization of swap settlements	1,529	1,529				1,529
Distributions to noncontrolling interests	(6)						(6)
Dividends	(44,708)	(44,708)			(44,708)
Equity issuances, net of issuance costs (in shares)			1,032,000
Equity issuances, net of issuance costs	$ 26,851	26,851	$ 10	26,841
Shares issued under Dividend Reinvestment Program (in shares)	32,000		32,000
Shares issued under Dividend Reinvestment Program	$ 777	777		777
Share grants, net of forfeitures and tax withholdings (in shares)			179,000
Share grants, net of forfeitures and tax withholdings	3,747	3,747	$ 2	3,745
Ending balance (in shares) at Sep. 30, 2022			87,504,000
Ending balance at Sep. 30, 2022	1,281,199	1,280,898	$ 875	1,728,840	(434,539)	(14,278)	301
Beginning balance (in shares) at Jun. 30, 2022			87,392,000
Beginning balance at Jun. 30, 2022	1,304,096	1,303,794	$ 874	1,727,031	(408,882)	(15,229)	302
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(10,739)	(10,739)			(10,739)
Unrealized gain (loss) on interest rate hedges	442	442				442
Amortization of swap settlements	509	509				509
Distributions to noncontrolling interests	(1)						(1)
Dividends	$ (14,918)	(14,918)			(14,918)
Shares issued under Dividend Reinvestment Program (in shares)	12,000		12,000
Shares issued under Dividend Reinvestment Program	$ 259	259		259
Share grants, net of forfeitures and tax withholdings (in shares)			100,000
Share grants, net of forfeitures and tax withholdings	1,551	1,551	$ 1	1,550
Ending balance (in shares) at Sep. 30, 2022			87,504,000
Ending balance at Sep. 30, 2022	1,281,199	1,280,898	$ 875	1,728,840	(434,539)	(14,278)	301
Beginning balance (in shares) at Dec. 31, 2022			87,534,000
Beginning 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	(49,872)	(49,872)			(49,872)
Unrealized gain (loss) on interest rate hedges	372	372				372
Amortization of swap settlements	1,529	1,529				1,529
Distributions to noncontrolling interests	(6)						(6)
Dividends	$ (47,562)	(47,562)			(47,562)
Shares issued under Dividend Reinvestment Program (in shares)	28,000		28,000
Shares issued under Dividend Reinvestment Program	$ 497	497		497
Share grants, net of forfeitures and tax withholdings (in shares)			270,000
Share grants, net of forfeitures and tax withholdings	4,309	4,309	$ 3	4,306
Ending balance (in shares) at Sep. 30, 2023			87,832,000
Ending balance at Sep. 30, 2023	1,173,053	1,172,761	$ 878	1,734,657	(550,442)	(12,332)	292
Beginning balance (in shares) at Jun. 30, 2023			87,809,000
Beginning balance at Jun. 30, 2023	1,230,928	1,230,634	$ 878	1,733,388	(490,939)	(12,693)	294
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(43,618)	(43,618)			(43,618)
Unrealized gain (loss) on interest rate hedges	(149)	(149)				(149)
Amortization of swap settlements	510	510				510
Distributions to noncontrolling interests	(2)						(2)
Dividends	$ (15,885)	(15,885)			(15,885)
Shares issued under Dividend Reinvestment Program (in shares)	0
Share grants, net of forfeitures and tax withholdings (in shares)			23,000
Share grants, net of forfeitures and tax withholdings	$ 1,269	1,269	$ 0	1,269
Ending balance (in shares) at Sep. 30, 2023			87,832,000
Ending balance at Sep. 30, 2023	$ 1,173,053	$ 1,172,761	$ 878	$ 1,734,657	$ (550,442)	$ (12,332)	$ 292

CONSOLIDATED STATEMENTS OF EQ_2

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.18	$ 0.17	$ 0.54	$ 0.51

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Cash flows from operating activities
Net loss	$ (10,739)	$ (49,872)	$ (27,337)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		64,855	69,871
Credit losses on lease related receivables		2,876	1,816
Real estate impairment	0	41,860	0
Share-based compensation expense		4,031	6,157
Net amortization of debt premiums, discounts and related financing costs		3,160	3,084
Loss on extinguishment of debt	4,917	54	4,917
Changes in operating other assets		(10,591)	(952)
Changes in operating other liabilities		5,443	(6,100)
Net cash provided by operating activities		61,816	51,456
Cash flows from investing activities
Real estate acquisitions, net		(107,595)	(204,433)
Capital improvements to real estate		(22,293)	(19,046)
Development in progress		0	(671)
Insurance proceeds		0	2,224
Non-real estate capital improvements		(395)	(1,322)
Net cash used in investing activities		(130,283)	(223,248)
Cash flows from financing activities
Line of credit repayments, net		94,000	43,000
Dividends paid		(48,495)	(44,440)
Repayments of mortgage notes payable		0	(76,598)
Repayments of unsecured term loan debt		(100,000)	0
Proceeds from term loan		125,000	0
Payment of financing costs		(844)	(39)
Distributions to noncontrolling interests		(6)	(6)
Proceeds from dividend reinvestment program	259	497	777
Net proceeds from equity issuances		0	26,851
Payment of tax withholdings for restricted share awards		(1,354)	(2,100)
Net cash provided by (used in) financing activities		68,798	(52,555)
Net decrease in cash, cash equivalents and restricted cash		331	(224,347)
Cash, cash equivalents and restricted cash at beginning of period		9,852	234,220
Cash, cash equivalents and restricted cash at end of period	9,873	10,183	9,873
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized		20,066	18,386
Change in accrued capital improvements and development costs		7,343	2,510
Dividend payable	14,919	15,868	14,919
Mortgage notes payable assumed in connection with the acquisition of real estate		0	76,554
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	8,436	8,079	8,436
Restricted cash	1,437	2,104	1,437
Cash, cash equivalents and restricted cash	$ 9,873	$ 10,183	$ 9,873

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NATURE OF BUSINESS Elme Communities, a Maryland real estate investment trust, is a self-administered equity real estate investment trust (“REIT”), and successor to a trust organized in 1960. Our business primarily consists of the ownership of apartment communities in the greater Washington, DC metro and Sunbelt regions. Within these notes to the financial statements, we refer to the three months ended September 30, 2023 and September 30, 2022 as the “2023 Quarter” and the “2022 Quarter,” respectively, and the nine months ended September 30, 2023 and September 30, 2022 as the “2023 Period” and the “2022 Period,” respectively. 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 (determined before the deduction for dividends paid and excluding net capital gains 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATIONS	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATIONS	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATIONS Significant Accounting Policies We have prepared our consolidated financial statements using the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2022. 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 unaudited 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. We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. In addition, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included. These unaudited financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. Lessee Accounting For leases where we are the lessee, primarily our corporate office operating lease, we recognize a right-of-use asset and a lease liability in accordance with Accounting Standards Codification (“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. 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.” Restricted Cash Restricted cash includes funds held in escrow for tenant security deposits. Transformation Costs Transformation costs include costs related to the strategic shift away from the commercial sector to the residential sector, including the allocation of internal costs, consulting, advisory and termination benefits. Use of Estimates in the Financial Statements The preparation of financial statements in conformity with 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.

REAL ESTATE

REAL ESTATE	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE Acquisitions We acquired the following community during the 2023 Quarter (the “2023 Acquisition”): Acquisition Date Community Type Number of Homes Ending Occupancy as of September 30, 2023 Contract Purchase Price (In thousands) September 29, 2023 Elme Druid Hills Residential 500 93.4 % $ 108,000 The results of operations from the acquired operating property for our period of ownership is included in the condensed consolidated statements of operations as of its acquisition date and was as follows (in thousands): Three and Nine Months Ended September 30, 2023 Real estate rental revenue $ 53 Net loss (403) We accounted for the 2023 Acquisition as an asset acquisition. We measured the value of the acquired physical assets (land and building) and in-place leases (absorption costs) by allocating the total cost of the acquisition on a relative fair value basis. The total cost of the 2023 Acquisition was as follows (in thousands): Contract purchase price $ 108,000 Capitalized acquisition costs 190 Total $ 108,190 We have recorded the 2023 Acquisition as follows (in thousands): Land $ 25,249 Building 79,281 Absorption costs 3,660 Total carrying amount recorded $ 108,190 The weighted remaining average life for the absorption costs is seven months. The difference in the total acquisition cost of $108.2 million for the 2023 Acquisition and the cash paid for the acquisition per the consolidated statements of cash flows of $107.6 million is due to net credits received at settlement totaling $0.6 million. Development/Redevelopment We have properties under development/redevelopment and held for current or future development. As of September 30, 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. However, we continue to capitalize qualifying costs on several other projects with minor development activity necessary to ready each project for its intended use. 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 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 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. We did not sell or classify any properties as held for sale during the 2023 Period or in 2022. Real Estate Impairment During the 2023 Quarter, 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 7). 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 the 2023 Quarter. 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 impairment charges in the future.

UNSECURED LINE OF CREDIT PAYABL

UNSECURED LINE OF CREDIT PAYABLE	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
UNSECURED LINE OF CREDIT PAYABLE	UNSECURED LINE OF CREDIT PAYABLE During the third quarter of 2021, we entered into an amended and restated credit agreement (“Credit Agreement”) which provides for 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. During the first quarter of 2023, we 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% (depending on Elme Communities’ credit rating) on the $700.0 million committed revolving loan capacity, without regard to usage. As of September 30, 2023, the interest rate on the Revolving Credit Facility is adjusted SOFR (inclusive of the 0.10% credit spread adjustment) plus 0.85%, the daily SOFR is 5.31% and the facility fee is 0.20%. 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. The amount of the Revolving Credit Facility’s unsecured line of credit unused and available at September 30, 2023 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (149,000) Unused and available $ 551,000 We executed borrowings and repayments on the Revolving Credit Facility during the 2023 Period as follows (in thousands): Balance, December 31, 2022 $ 55,000 Borrowings 294,000 Repayments (200,000) Balance, September 30, 2023 $ 149,000

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTES PAYABLE During the first quarter of 2023, we entered into 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 $100.0 million 2018 Term Loan in full and a portion of our borrowings under our Revolving Credit Facility.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS We had an 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 5). Subsequent to this transaction, the interest 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 arrangements are 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 hedges 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 swaps as of September 30, 2023 and December 31, 2022, were as follows (in thousands): Fair Value Derivative Assets Derivative Instrument Aggregate Notional Amount Effective Date Maturity Date September 30, 2023 December 31, 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 1,422 — Interest rate swap 50,000 July 21, 2023 January 10, 2025 948 — $ 2,370 $ 1,998 We record interest rate swaps on our consolidated balance sheets within Prepaid expenses and other assets when in a net asset position and within Accounts payable and other liabilities when in a net liability position. The net unrealized gains and losses on the effective swaps were recognized in Other comprehensive income (loss), as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized (loss) gain on interest rate hedges $ (149) $ 442 $ 372 $ 3,284 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 $2.0 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 loss into interest expense for the three and nine months ended September 30, 2023 and 2022, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Loss reclassified from accumulated other comprehensive loss into interest expense $ 510 $ 509 $ 1,529 $ 1,529 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 September 30, 2023, the fair value of derivative assets, including accrued interest, was $2.4 million and we did not have any derivatives in a liability position. As of September 30, 2023, we have not posted any collateral related to these agreements.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES Assets and Liabilities Measured at Fair Value on a Recurring Basis 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 September 30, 2023 and December 31, 2022 that are recorded at fair value on a recurring basis are the assets held in the Supplemental Executive Retirement Plan (“SERP”), which primarily consist of investments in mutual funds, and the interest rate derivatives (see note 6). 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 derivatives is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each interest rate derivative. This analysis reflects the contractual terms of the interest rate derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate derivatives 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, Fair Value Measurement , 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 derivatives fall into Level 2 in the fair value hierarchy. The fair values of these assets at September 30, 2023 and December 31, 2022 were as follows (in thousands): September 30, 2023 December 31, 2022 Fair Level 1 Level 2 Level 3 Fair Level 1 Level 2 Level 3 Assets: SERP $ 1,714 $ — $ 1,714 $ — $ 2,142 $ — $ 2,142 $ — Interest rate derivatives 2,370 — 2,370 — 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 2023 Quarter, we measured the fair value of Watergate 600 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 September 30, 2023 may differ significantly from the amounts presented. The valuations of cash and cash equivalents and restricted cash fall into Level 1 in the fair value hierarchy and the valuations of debt instruments fall into Level 3 in the fair value hierarchy. As of September 30, 2023 and December 31, 2022, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 8,079 $ 8,079 $ 8,389 $ 8,389 Restricted cash 2,104 2,104 1,463 1,463 Line of credit 149,000 149,000 55,000 55,000 Notes payable, net 522,150 459,471 497,359 454,564

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION Elme Communities maintains short-term (“STIP”) and long-term (“LTIP”) incentive plans that allow for stock-based awards to officers and non-officer employees. Stock 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. Total Compensation Expense Total compensation expense recognized in the consolidated financial statements for all outstanding share-based awards was $1.4 million and $1.9 million for the 2023 Quarter and 2022 Quarter, respectively, and $4.0 million and $6.2 million for the 2023 and 2022 Period, respectively. Restricted Share Awards The total fair values of restricted share awards vested was $4.0 million and $4.8 million for the 2023 Period and 2022 Period, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
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. 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 computations of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss $ (43,618) $ (10,739) $ (49,872) $ (27,337) Allocation of earnings to unvested restricted share awards (71) (68) (209) (191) Adjusted net loss $ (43,689) $ (10,807) $ (50,081) $ (27,528) Denominator: Weighted average shares outstanding – basic and diluted 87,759 87,453 87,717 87,354 Basic net loss per common share $ (0.50) $ (0.12) $ (0.57) $ (0.32) Diluted net loss per common share $ (0.50) $ (0.12) $ (0.57) $ (0.32) Dividends declared per common share $ 0.18 $ 0.17 $ 0.54 $ 0.51

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We operate in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities. None of our operating properties meet the criteria to be considered separate operating segments on a stand-alone basis. 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. 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. The following tables present revenues, NOI, capital expenditures and total assets for the three and nine months ended September 30, 2023 and 2022 from our Residential segment as well as Other, and reconcile NOI to net loss as reported (in thousands): Three Months Ended September 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 52,065 $ 4,586 $ 56,651 Real estate expenses 18,431 1,366 19,797 Net operating income $ 33,634 $ 3,220 $ 36,854 Other income (expense): Property management expenses (1,935) General and administrative expenses (6,370) Transformation costs (985) Depreciation and amortization (21,904) Interest expense (7,418) Real estate impairment (41,860) Net loss $ (43,618) Less: Net income attributable to noncontrolling interests in subsidiaries — Net loss attributable to the controlling interests $ (43,618) Capital expenditures $ 11,900 $ 605 $ 12,505 Total assets $ 1,770,921 $ 139,352 $ 1,910,273 Three Months Ended September 30, 2022 Residential Other (1) Consolidated Real estate rental revenue $ 49,889 $ 4,714 $ 54,603 Real estate expenses 18,198 1,363 19,561 Net operating income $ 31,691 $ 3,351 $ 35,042 Other income (expense): Property management expenses (1,916) General and administrative expenses (6,403) Transformation costs (2,399) Depreciation and amortization (23,632) Interest expense (6,582) Loss on extinguishment of debt (4,917) Other income 68 Net loss $ (10,739) Capital expenditures $ 7,764 $ 567 $ 8,331 Total assets $ 1,694,750 $ 184,784 $ 1,879,534 Nine Months Ended September 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 155,156 13,903 $ 169,059 Real estate expenses 55,629 3,947 59,576 Net operating income $ 99,527 $ 9,956 $ 109,483 Other income (expense): Property management expenses (5,882) General and administrative expenses (19,891) Transformation costs (6,339) Depreciation and amortization (64,855) Interest expense (21,043) Loss on extinguishment of debt (54) Other income 569 Real estate impairment (41,860) Net loss $ (49,872) Capital expenditures $ 21,447 $ 1,241 $ 22,688 Nine Months Ended September 30, 2022 Residential Other (1) Consolidated Real estate rental revenue 139,869 13,918 $ 153,787 Real estate expenses 51,411 3,886 55,297 Net operating income $ 88,458 $ 10,032 $ 98,490 Other income (expense): Property management expenses (5,462) General and administrative expenses (20,998) Transformation costs (6,645) Depreciation and amortization (69,871) Interest expense (18,388) Loss on extinguishment of debt (4,917) Other income 454 Net loss $ (27,337) Capital expenditures $ 17,623 $ 2,745 $ 20,368 ______________________________ (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS' EQUITY 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”) for our at-the-market program. 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, $0.01 par value per share. Issuances of our common shares are made at market prices prevailing at the time of issuance. We may use net proceeds from the issuance of common shares under this program for general business purposes, including, without limitation, working capital, the acquisition, renovation, expansion, improvement, development or redevelopment of income producing property or the repayment of debt. We did not issue common shares under the Equity Distribution Agreements during the 2023 Period and 2022 Quarter. Our issuances and net proceeds on the Equity Distribution Agreements for the 2022 Period were as follows ($ in thousands, except per share data): Nine Months Ended September 30, 2022 Issuance of common shares 1,032 Weighted average price per share $ 26.27 Net proceeds $ 26,851 We have a dividend reinvestment program whereby shareholders may use their dividends and optional cash payments to purchase common shares. The 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. We did not issue common shares under the dividend reinvestment program during the 2023 Quarter. Our issuances and net proceeds on the dividend reinvestment program for the three months ended September 30, 2022 and nine months ended September 30, 2023 and 2022 were as follows ($ in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2023 2022 Issuance of common shares 12 28 32 Weighted average price per share $ 21.15 $ 17.64 $ 24.01 Net proceeds $ 259 $ 497 $ 777

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (43,618)	$ (10,739)	$ (49,872)	$ (27,337)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 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 PRESENTATIONS (Policies)	9 Months Ended
	Sep. 30, 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	The accompanying unaudited 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.
Basis of Presentation	We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. In addition, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for the periods presented have been included. These unaudited financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Lessee Accounting	Lessee Accounting For leases where we are the lessee, primarily our corporate office operating lease, we recognize a right-of-use asset and a lease liability in accordance with Accounting Standards Codification (“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. 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.”
Restricted Cash	Restricted Cash Restricted cash includes funds held in escrow for tenant security deposits.
Transformation Costs	Transformation Costs Transformation costs include costs related to the strategic shift away from the commercial sector to the residential sector, including the allocation of internal costs, consulting, advisory and termination benefits.
Use of Estimates in the Financial Statements	Use of Estimates in the Financial Statements The preparation of financial statements in conformity with 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.

REAL ESTATE (Tables)

REAL ESTATE (Tables)	9 Months Ended
	Sep. 30, 2023
Real Estate [Abstract]
Schedule of Real Estate Property Acquired	We acquired the following community during the 2023 Quarter (the “2023 Acquisition”): Acquisition Date Community Type Number of Homes Ending Occupancy as of September 30, 2023 Contract Purchase Price (In thousands) September 29, 2023 Elme Druid Hills Residential 500 93.4 % $ 108,000
Schedule of Operations from the Acquired Operating Property	The results of operations from the acquired operating property for our period of ownership is included in the condensed consolidated statements of operations as of its acquisition date and was as follows (in thousands): Three and Nine Months Ended September 30, 2023 Real estate rental revenue $ 53 Net loss (403)
Schedule of Acquisition, Cost Valuation	The total cost of the 2023 Acquisition was as follows (in thousands): Contract purchase price $ 108,000 Capitalized acquisition costs 190 Total $ 108,190
Schedule of Acquisition, Asset Valuation	We have recorded the 2023 Acquisition as follows (in thousands): Land $ 25,249 Building 79,281 Absorption costs 3,660 Total carrying amount recorded $ 108,190

UNSECURED LINE OF CREDIT PAYA_2

UNSECURED LINE OF CREDIT PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Revolving Credit Facility's Unsecured Line of Credit Unused and Available and its Borrowings and Repayments	The amount of the Revolving Credit Facility’s unsecured line of credit unused and available at September 30, 2023 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (149,000) Unused and available $ 551,000 We executed borrowings and repayments on the Revolving Credit Facility during the 2023 Period as follows (in thousands): Balance, December 31, 2022 $ 55,000 Borrowings 294,000 Repayments (200,000) Balance, September 30, 2023 $ 149,000

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Values of Interest Rate Swaps	The fair values of the interest rate swaps as of September 30, 2023 and December 31, 2022, were as follows (in thousands): Fair Value Derivative Assets Derivative Instrument Aggregate Notional Amount Effective Date Maturity Date September 30, 2023 December 31, 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 1,422 — Interest rate swap 50,000 July 21, 2023 January 10, 2025 948 — $ 2,370 $ 1,998
Schedule of Net Unrealized Gain (Loss) in/from AOCL	The net unrealized gains and losses on the effective swaps were recognized in Other comprehensive income (loss), as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized (loss) gain on interest rate hedges $ (149) $ 442 $ 372 $ 3,284 The losses reclassified from Accumulated other comprehensive loss into interest expense for the three and nine months ended September 30, 2023 and 2022, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Loss reclassified from accumulated other comprehensive loss into interest expense $ 510 $ 509 $ 1,529 $ 1,529

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets	The fair values of these assets at September 30, 2023 and December 31, 2022 were as follows (in thousands): September 30, 2023 December 31, 2022 Fair Level 1 Level 2 Level 3 Fair Level 1 Level 2 Level 3 Assets: SERP $ 1,714 $ — $ 1,714 $ — $ 2,142 $ — $ 2,142 $ — Interest rate derivatives 2,370 — 2,370 — 1,998 — 1,998 —
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments	As of September 30, 2023 and December 31, 2022, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 8,079 $ 8,079 $ 8,389 $ 8,389 Restricted cash 2,104 2,104 1,463 1,463 Line of credit 149,000 149,000 55,000 55,000 Notes payable, net 522,150 459,471 497,359 454,564

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The computations of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss $ (43,618) $ (10,739) $ (49,872) $ (27,337) Allocation of earnings to unvested restricted share awards (71) (68) (209) (191) Adjusted net loss $ (43,689) $ (10,807) $ (50,081) $ (27,528) Denominator: Weighted average shares outstanding – basic and diluted 87,759 87,453 87,717 87,354 Basic net loss per common share $ (0.50) $ (0.12) $ (0.57) $ (0.32) Diluted net loss per common share $ (0.50) $ (0.12) $ (0.57) $ (0.32) Dividends declared per common share $ 0.18 $ 0.17 $ 0.54 $ 0.51

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Reconciliation of Net Operating Income of Reportable Segments	The following tables present revenues, NOI, capital expenditures and total assets for the three and nine months ended September 30, 2023 and 2022 from our Residential segment as well as Other, and reconcile NOI to net loss as reported (in thousands): Three Months Ended September 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 52,065 $ 4,586 $ 56,651 Real estate expenses 18,431 1,366 19,797 Net operating income $ 33,634 $ 3,220 $ 36,854 Other income (expense): Property management expenses (1,935) General and administrative expenses (6,370) Transformation costs (985) Depreciation and amortization (21,904) Interest expense (7,418) Real estate impairment (41,860) Net loss $ (43,618) Less: Net income attributable to noncontrolling interests in subsidiaries — Net loss attributable to the controlling interests $ (43,618) Capital expenditures $ 11,900 $ 605 $ 12,505 Total assets $ 1,770,921 $ 139,352 $ 1,910,273 Three Months Ended September 30, 2022 Residential Other (1) Consolidated Real estate rental revenue $ 49,889 $ 4,714 $ 54,603 Real estate expenses 18,198 1,363 19,561 Net operating income $ 31,691 $ 3,351 $ 35,042 Other income (expense): Property management expenses (1,916) General and administrative expenses (6,403) Transformation costs (2,399) Depreciation and amortization (23,632) Interest expense (6,582) Loss on extinguishment of debt (4,917) Other income 68 Net loss $ (10,739) Capital expenditures $ 7,764 $ 567 $ 8,331 Total assets $ 1,694,750 $ 184,784 $ 1,879,534 Nine Months Ended September 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 155,156 13,903 $ 169,059 Real estate expenses 55,629 3,947 59,576 Net operating income $ 99,527 $ 9,956 $ 109,483 Other income (expense): Property management expenses (5,882) General and administrative expenses (19,891) Transformation costs (6,339) Depreciation and amortization (64,855) Interest expense (21,043) Loss on extinguishment of debt (54) Other income 569 Real estate impairment (41,860) Net loss $ (49,872) Capital expenditures $ 21,447 $ 1,241 $ 22,688 Nine Months Ended September 30, 2022 Residential Other (1) Consolidated Real estate rental revenue 139,869 13,918 $ 153,787 Real estate expenses 51,411 3,886 55,297 Net operating income $ 88,458 $ 10,032 $ 98,490 Other income (expense): Property management expenses (5,462) General and administrative expenses (20,998) Transformation costs (6,645) Depreciation and amortization (69,871) Interest expense (18,388) Loss on extinguishment of debt (4,917) Other income 454 Net loss $ (27,337) Capital expenditures $ 17,623 $ 2,745 $ 20,368 ______________________________ (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment.

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Equity Distribution Agreements	Our issuances and net proceeds on the Equity Distribution Agreements for the 2022 Period were as follows ($ in thousands, except per share data): Nine Months Ended September 30, 2022 Issuance of common shares 1,032 Weighted average price per share $ 26.27 Net proceeds $ 26,851
Schedule of Dividend Reinvestment Program	Our issuances and net proceeds on the dividend reinvestment program for the three months ended September 30, 2022 and nine months ended September 30, 2023 and 2022 were as follows ($ in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2023 2022 Issuance of common shares 12 28 32 Weighted average price per share $ 21.15 $ 17.64 $ 24.01 Net proceeds $ 259 $ 497 $ 777

NATURE OF BUSINESS (Details)

NATURE OF BUSINESS (Details) - TRSs - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Properties Sold and Held for Sale [Line Items]
Deferred tax asset	$ 1.4	$ 1.4
Deferred tax valuation allowance	$ 1.4	$ 1.4

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATIONS (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023
Revolving Credit Facility
Line of Credit Facility [Line Items]
Committed capacity	$ 700,000,000	$ 700,000,000

REAL ESTATE - Schedule of Real

REAL ESTATE - Schedule of Real Estate Property Acquired (Details) - 2023 Acquisition $ in Thousands			9 Months Ended
	Sep. 30, 2023	Sep. 29, 2023 USD ($) home	Sep. 30, 2023 USD ($)
Real Estate [Line Items]
Contract purchase price			$ 108,000
Elme Druid Hills | Residential
Real Estate [Line Items]
Number of Homes | home		500
Ending Occupancy	93.40%
Contract purchase price		$ 108,000

REAL ESTATE - Schedule of Opera

REAL ESTATE - Schedule of Operations from the Acquired Operating Property (Details) - 2023 Acquisition - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Real Estate [Line Items]
Real estate rental revenue	$ 53	$ 53
Net loss	$ (403)	$ (403)

REAL ESTATE - Schedule of Acqui

REAL ESTATE - Schedule of Acquisition, Cost Valuation (Details) - 2023 Acquisition $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Real Estate [Line Items]
Contract purchase price	$ 108,000
Capitalized acquisition costs	190
Total	$ 108,190

REAL ESTATE - Schedule of Acq_2

REAL ESTATE - Schedule of Acquisition, Asset Valuation (Details) - 2023 Acquisition $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Real Estate [Line Items]
Total	$ 108,190
Absorption costs
Real Estate [Line Items]
Absorption costs	3,660
Land
Real Estate [Line Items]
Property, plant and equipment	25,249
Building
Real Estate [Line Items]
Property, plant and equipment	$ 79,281

REAL ESTATE - Narrative (Detail

REAL ESTATE - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) yr	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) yr	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Real Estate [Line Items]
Weighted average remaining life for absorption costs	7 months		7 months
Real estate acquisitions, net			$ 107,595	$ 204,433
Properties under development or held for future development	$ 31,095		31,095		$ 31,260
Real estate impairment	41,860	$ 0	41,860	$ 0
2023 Acquisition
Real Estate [Line Items]
Total cost of acquisition			108,190
Real estate acquisitions, net			107,600
Credits received at settlement			600
Riverside Developments
Real Estate [Line Items]
Properties under development or held for future development	30,400		$ 30,400
Watergate 600
Real Estate [Line Items]
Real estate impairment	$ 41,900
Watergate 600 | Measurement Input, Discounted Cash Flow Term
Real Estate [Line Items]
Measurement input | yr	5		5
Watergate 600 | Measurement Input, Average Economic Occupancy
Real Estate [Line Items]
Measurement input	0.805		0.805
Watergate 600 | Measurement Input, Cap Rate
Real Estate [Line Items]
Measurement input	0.075		0.075

UNSECURED LINE OF CREDIT PAYA_3

UNSECURED LINE OF CREDIT PAYABLE - Narrative (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2023 USD ($)	Sep. 30, 2021 USD ($) extension_option	Sep. 30, 2023 USD ($)
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]
Debt instrument term (in years)		4 years
Number of extensions allowed | extension_option		2
Term of allowable extension (in months)		6 months
Revolving credit facility borrowing capacity	$ 700,000,000		$ 700,000,000
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)			0.10%
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%
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Two
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)			0.85%
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | Variable Rate Component One
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	0.70%
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | Variable Rate Component One
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	1.40%

UNSECURED LINE OF CREDIT PAYA_4

UNSECURED LINE OF CREDIT PAYABLE - Schedule of Revolving Credit Facility's Unsecured Line of Credit Unused and Available (Details) - USD ($)	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Borrowings outstanding	$ (149,000,000)		$ (55,000,000)
Revolving Credit Facility
Line of Credit Facility [Line Items]
Committed capacity	700,000,000	$ 700,000,000
Borrowings outstanding	(149,000,000)		$ (55,000,000)
Unused and available	$ 551,000,000

UNSECURED LINE OF CREDIT PAYA_5

UNSECURED LINE OF CREDIT PAYABLE - Schedule of Revolving Credit Facility Borrowings and Repayments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Line of Credit [Roll Forward]
Beginning balance	$ 55,000
Ending balance	149,000
Revolving Credit Facility
Line of Credit [Roll Forward]
Beginning balance	55,000
Borrowings	294,000
Repayments	(200,000)
Ending balance	$ 149,000

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - Unsecured Debt	3 Months Ended
	Mar. 31, 2023 USD ($) extension_option	Sep. 30, 2023 USD ($)
2023 Term Loan
Debt Instrument [Line Items]
Debt instrument face amount	$ 125,000,000
Debt instrument term (in years)	2 years
Term loan, number of extensions allowed | extension_option	2
Term loan, extension, term	1 year
2023 Term Loan | Variable Rate Component One | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.10%
2023 Term Loan | Variable Rate Component Two | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.95%
2018 Term Loan
Debt Instrument [Line Items]
Long-term debt, gross		$ 100,000,000

DERIVATIVE INSTRUMENTS - Narrat

DERIVATIVE INSTRUMENTS - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 USD ($) arrangement	Jul. 21, 2023	Mar. 31, 2023 USD ($) arrangement
2023 Term Loan | Unsecured Debt
Derivative [Line Items]
Debt instrument face amount			$ 125,000,000
Interest rate derivatives
Derivative [Line Items]
Derivative notional amount			$ 125,000,000
Number of interest rate swap arrangements | arrangement	2		2
Fixed interest rate (percent)		4.73%
Estimated amount to be reclassified within next twelve months as an increase to interest expense	$ 2,000,000
Fair value of derivative assets	2,400,000
Fair value of derivative liabilities	0
Interest rate derivatives | 2018 Term Loan B
Derivative [Line Items]
Derivative notional amount	$ 100,000,000
Interest rate derivatives | 2023 Term Loan
Derivative [Line Items]
Derivative notional amount			$ 100,000,000

DERIVATIVE INSTRUMENTS - Schedu

DERIVATIVE INSTRUMENTS - Schedule of Fair Values of Interest Rate Swaps (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Interest rate derivatives
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount		$ 125,000
Derivative Assets	$ 2,370		$ 1,998
2018 Term Loan A | Interest rate derivatives
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	100,000
2018 Term Loan A | Interest rate derivatives | Accounts Payable and Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	0		1,998
2023 Term Loan | Interest rate derivatives
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount		$ 100,000
2023 Term Loan | Interest Rate Swap One
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	75,000
2023 Term Loan | Interest Rate Swap Two
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	50,000
2018 Term Loan B | Interest rate derivatives
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	100,000
2018 Term Loan B | Interest rate derivatives | Accounts Payable and Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	1,422		0
2018 Term Loan C | Interest rate derivatives | Accounts Payable and Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 948		$ 0

DERIVATIVE INSTRUMENTS - Sche_2

DERIVATIVE INSTRUMENTS - Schedule of Net Unrealized Gain (Loss) in/from AOCL (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized (loss) gain on interest rate hedges	$ (149)	$ 442	$ 372	$ 3,284
Loss reclassified from accumulated other comprehensive loss into interest expense	$ 510	$ 509	$ 1,529	$ 1,529

FAIR VALUE DISCLOSURES - Schedu

FAIR VALUE DISCLOSURES - Schedule of Fair Value of Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Interest rate derivatives
Assets:
Interest rate derivatives	$ 2,400
Recurring | Interest rate derivatives
Assets:
Interest rate derivatives	2,370	$ 1,998
Recurring | SERP
Assets:
SERP	1,714	2,142
Recurring | Level 1 | Interest rate derivatives
Assets:
Interest rate derivatives	0	0
Recurring | Level 1 | SERP
Assets:
SERP	0	0
Recurring | Level 2 | Interest rate derivatives
Assets:
Interest rate derivatives	2,370	1,998
Recurring | Level 2 | SERP
Assets:
SERP	1,714	2,142
Recurring | Level 3 | Interest rate derivatives
Assets:
Interest rate derivatives	0	0
Recurring | Level 3 | SERP
Assets:
SERP	$ 0	$ 0

FAIR VALUE DISCLOSURES - Sche_2

FAIR VALUE DISCLOSURES - Schedule of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Carrying Value
Carrying Value and Estimated Fair Values [Line Items]
Cash and cash equivalents	$ 8,079	$ 8,389
Restricted cash	2,104	1,463
Line of credit	149,000	55,000
Notes payable, net	522,150	497,359
Fair Value
Carrying Value and Estimated Fair Values [Line Items]
Cash and cash equivalents	8,079	8,389
Restricted cash	2,104	1,463
Line of credit	149,000	55,000
Notes payable, net	$ 459,471	$ 454,564

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1.4	$ 1.9	$ 4	$ 6.2
Restricted Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share awards vested			$ 4	$ 4.8
Total unvested restricted share awards (in shares)	391,777		391,777
Weighted average grant date fair value (in dollars per share)	$ 19.78		$ 19.78
Compensation costs not yet recognized	$ 5.3		$ 5.3
Recognition period for compensation expense			26 months
Washington Real Estate Investment Trust 2016 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares authorized for stock based awards (in shares)	2,400,000		2,400,000
Incentive plan, period in effect (in years)			10 years

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net loss	$ (43,618)	$ (10,739)	$ (49,872)	$ (27,337)
Allocation of earnings to unvested restricted share awards	(71)	(68)	(209)	(191)
Adjusted net loss, basic	(43,689)	(10,807)	(50,081)	(27,528)
Adjusted net loss, diluted	$ (43,689)	$ (10,807)	$ (50,081)	$ (27,528)
Denominator:
Weighted average shares outstanding - basic (in shares)	87,759	87,453	87,717	87,354
Weighted average shares outstanding - diluted (in shares)	87,759	87,453	87,717	87,354
Basic net loss per common share (in dollars per share)	$ (0.50)	$ (0.12)	$ (0.57)	$ (0.32)
Diluted net loss per common share (in dollars per share)	(0.50)	(0.12)	(0.57)	(0.32)
Dividends declared per common share (in dollars per share)	$ 0.18	$ 0.17	$ 0.54	$ 0.51

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 property community segment
Segment Reporting Information [Line Items]
Number of reportable segments | segment	1
Outside Of Washington, DC Metro Region
Segment Reporting Information [Line Items]
Number of properties | community	6
Office
Segment Reporting Information [Line Items]
Number of properties that do not meet criteria for reportable segment | property	1
Riverside Apartments | Revenue Benchmark | Property Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	10%

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Reconciliation of Net Operating Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Real estate rental revenue	$ 56,651	$ 54,603	$ 169,059	$ 153,787
Real estate expenses	19,797	19,561	59,576	55,297
Net operating income	36,854	35,042	109,483	98,490
Other income (expense):
Property management expenses	(1,935)	(1,916)	(5,882)	(5,462)
General and administrative expenses	(6,370)	(6,403)	(19,891)	(20,998)
Transformation costs	(985)	(2,399)	(6,339)	(6,645)
Depreciation and amortization	(21,904)	(23,632)	(64,855)	(69,871)
Interest expense	(7,418)	(6,582)	(21,043)	(18,388)
Loss on extinguishment of debt	0	(4,917)	(54)	(4,917)
Other income	0	68	569	454
Real estate impairment	(41,860)	0	(41,860)	0
Net loss	(43,618)
Less: Net income attributable to noncontrolling interests in subsidiaries	0
Net loss	(43,618)	(10,739)	(49,872)	(27,337)
Capital expenditures	12,505	8,331	22,688	20,368
Total assets	1,910,273	1,879,534	1,910,273	1,879,534	$ 1,872,606
Residential
Segment Reporting Information [Line Items]
Real estate rental revenue	52,065	49,889	155,156	139,869
Real estate expenses	18,431	18,198	55,629	51,411
Net operating income	33,634	31,691	99,527	88,458
Other income (expense):
Capital expenditures	11,900	7,764	21,447	17,623
Total assets	1,770,921	1,694,750	1,770,921	1,694,750
Other
Segment Reporting Information [Line Items]
Real estate rental revenue	4,586	4,714	13,903	13,918
Real estate expenses	1,366	1,363	3,947	3,886
Net operating income	3,220	3,351	9,956	10,032
Other income (expense):
Capital expenditures	605	567	1,241	2,745
Total assets	$ 139,352	$ 184,784	$ 139,352	$ 184,784

SHAREHOLDERS' EQUITY - Narrativ

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Common shares of beneficial interest reserved for future issuance	$ 550
Shares of beneficial interest, par value (in dollars per share)	$ 0.01	$ 0.01

SHAREHOLDERS' EQUITY - Schedule

SHAREHOLDERS' EQUITY - Schedule of Equity Distribution Agreements (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Equity Distribution Agreements
Weighted average price per share (in dollars per share) | $ / shares	$ 26.27
Net proceeds | $	$ 26,851
Common Stock
Equity Distribution Agreements
Issuance of common shares (in shares) | shares	1,032

SHAREHOLDERS' EQUITY - Schedu_2

SHAREHOLDERS' EQUITY - Schedule of Dividend Reinvestment Program (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Dividend Reinvestment Program
Issuance of common shares (in shares)	0	12,000	28,000	32,000
Weighted average price per share (in dollars per share)		$ 21.15	$ 17.64	$ 24.01
Net proceeds		$ 259	$ 497	$ 777