Elme Communities (ELME) 10-Q 2 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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		88,010,570
Entity Central Index Key	0000104894
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Land	$ 383,808	$ 384,097
Income producing property	1,976,127	1,960,020
Income producing property, at cost	2,359,935	2,344,117
Accumulated depreciation and amortization	(573,054)	(528,024)
Net income producing property	1,786,881	1,816,093
Properties under development or held for future development	30,980	30,980
Total real estate held for investment, net	1,817,861	1,847,073
Cash and cash equivalents	5,629	5,984
Restricted cash	2,263	2,554
Rents and other receivables	12,575	17,642
Prepaid expenses and other assets	23,147	26,775
Total assets	1,861,475	1,900,028
Liabilities
Notes payable, net	522,734	522,345
Line of credit	156,000	157,000
Accounts payable and other liabilities	37,283	38,997
Dividend payable	15,905	15,863
Advance rents	5,074	5,248
Tenant security deposits	6,334	6,225
Total liabilities	743,330	745,678
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; 88,011 and 87,867 shares issued and outstanding, as of June 30, 2024 and December 31, 2023, respectively	880	879
Additional paid in capital	1,737,941	1,735,530
Distributions in excess of net income	(608,310)	(569,391)
Accumulated other comprehensive loss	(12,651)	(12,958)
Total shareholders’ equity	1,117,860	1,154,060
Noncontrolling interests in subsidiaries	285	290
Total equity	1,118,145	1,154,350
Total liabilities and equity	$ 1,861,475	$ 1,900,028

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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)	88,011,000	87,867,000
Shares of beneficial interest, outstanding (in shares)	88,011,000	87,867,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Real estate rental revenue	$ 60,103	$ 56,599	$ 119,616	$ 112,408
Revenue, type [Extensible Enumeration]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]
Expenses
Property operating and maintenance	$ 13,996	$ 13,325	$ 27,460	$ 25,664
Real estate taxes and insurance	7,986	6,933	16,241	14,115
Property management	2,175	2,178	4,393	3,947
General and administrative	6,138	6,680	12,334	13,521
Transformation costs	0	2,454	0	5,354
Depreciation and amortization	23,895	21,415	48,838	42,951
Total expenses	54,190	52,985	109,266	105,552
Real estate operating income	5,913	3,614	10,350	6,856
Other income (expense)
Interest expense	(9,384)	(6,794)	(18,878)	(13,625)
Loss on extinguishment of debt	0	0	0	(54)
Other income	0	569	1,410	569
Total other income (expense)	(9,384)	(6,225)	(17,468)	(13,110)
Net loss	$ (3,471)	$ (2,611)	$ (7,118)	$ (6,254)
Basic net loss per common share (in dollars per share)	$ (0.04)	$ (0.03)	$ (0.08)	$ (0.07)
Diluted net loss per common share (in dollars per share)	$ (0.04)	$ (0.03)	$ (0.08)	$ (0.07)
Weighted average shares outstanding - basic (in shares)	87,910	87,741	87,898	87,695
Weighted average shares outstanding - diluted (in shares)	87,910	87,741	87,898	87,695

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,471)	$ (2,611)	$ (7,118)	$ (6,254)
Other comprehensive income:
Unrealized (loss) gain on interest rate hedges	(796)	854	(713)	521
Reclassification of unrealized loss on interest rate derivatives to earnings	510	509	1,020	1,019
Comprehensive loss	$ (3,757)	$ (1,248)	$ (6,811)	$ (4,714)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ 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 Loss	Noncontrolling Interests in Subsidiaries
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	(6,254)	(6,254)			(6,254)
Unrealized (loss) gain on interest rate hedges	521	521				521
Amortization of swap settlements	1,019	1,019				1,019
Distributions to noncontrolling interests	(4)						(4)
Dividends	$ (31,677)	(31,677)			(31,677)
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)			247,000
Share grants, net of forfeitures and tax withholdings	3,040	3,040	$ 3	3,037
Ending balance (in shares) at Jun. 30, 2023			87,809,000
Ending balance at Jun. 30, 2023	1,230,928	1,230,634	$ 878	1,733,388	(490,939)	(12,693)	294
Beginning balance (in shares) at Mar. 31, 2023			87,709,000
Beginning balance at Mar. 31, 2023	1,246,315	1,246,019	$ 877	1,731,701	(472,503)	(14,056)	296
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,611)	(2,611)			(2,611)
Unrealized (loss) gain on interest rate hedges	854	854				854
Amortization of swap settlements	509	509				509
Distributions to noncontrolling interests	(2)						(2)
Dividends	$ (15,825)	(15,825)			(15,825)
Shares issued under Dividend Reinvestment Program (in shares)	14,000		14,000
Shares issued under Dividend Reinvestment Program	$ 249	249		249
Share grants, net of forfeitures and tax withholdings (in shares)			86,000
Share grants, net of forfeitures and tax withholdings	1,439	1,439	$ 1	1,438
Ending balance (in shares) at Jun. 30, 2023			87,809,000
Ending balance at Jun. 30, 2023	$ 1,230,928	1,230,634	$ 878	1,733,388	(490,939)	(12,693)	294
Beginning balance (in shares) at Dec. 31, 2023	87,867,000		87,867,000
Beginning balance at Dec. 31, 2023	$ 1,154,350	1,154,060	$ 879	1,735,530	(569,391)	(12,958)	290
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,118)	(7,118)			(7,118)
Unrealized (loss) gain on interest rate hedges	(713)	(713)				(713)
Amortization of swap settlements	1,020	1,020				1,020
Distributions to noncontrolling interests	(5)						(5)
Dividends	$ (31,801)	(31,801)			(31,801)
Shares issued under Dividend Reinvestment Program (in shares)	0
Share grants, net of forfeitures and tax withholdings (in shares)			144,000
Share grants, net of forfeitures and tax withholdings	$ 2,412	2,412	$ 1	2,411
Ending balance (in shares) at Jun. 30, 2024	88,011,000		88,011,000
Ending balance at Jun. 30, 2024	$ 1,118,145	1,117,860	$ 880	1,737,941	(608,310)	(12,651)	285
Beginning balance (in shares) at Mar. 31, 2024			88,003,000
Beginning balance at Mar. 31, 2024	1,136,404	1,136,116	$ 880	1,736,524	(588,923)	(12,365)	288
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,471)	(3,471)			(3,471)
Unrealized (loss) gain on interest rate hedges	(796)	(796)				(796)
Amortization of swap settlements	510	510				510
Distributions to noncontrolling interests	(3)						(3)
Dividends	(15,916)	(15,916)			(15,916)
Share grants, net of forfeitures and tax withholdings (in shares)			8,000
Share grants, net of forfeitures and tax withholdings	$ 1,417	1,417		1,417
Ending balance (in shares) at Jun. 30, 2024	88,011,000		88,011,000
Ending balance at Jun. 30, 2024	$ 1,118,145	$ 1,117,860	$ 880	$ 1,737,941	$ (608,310)	$ (12,651)	$ 285

CONSOLIDATED STATEMENTS OF EQ_2

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.18	$ 0.18	$ 0.36	$ 0.36

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)
Cash flows from operating activities
Net loss	$ (2,611)	$ (7,118)	$ (6,254)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		48,838	42,951
Credit losses on lease related receivables		2,548	1,512
Share-based compensation expense		2,135	2,599
Net amortization of debt premiums, discounts and related financing costs		2,117	2,101
Loss on extinguishment of debt	0	0	54
Gain on land easements		(1,410)	0
Changes in operating other assets		(666)	119
Changes in operating other liabilities		3,629	3,168
Net cash provided by operating activities		50,073	46,250
Cash flows from investing activities
Capital improvements to real estate		(21,487)	(9,890)
Non-real estate capital improvements		(59)	(293)
Payments received for land easements		3,862	0
Net cash used in investing activities		(17,684)	(10,183)
Cash flows from financing activities
Line of credit repayments, net		(1,000)	(31,000)
Dividends paid		(31,843)	(30,777)
Repayments of unsecured term loan debt		0	(100,000)
Proceeds from term loan		0	125,000
Payment of financing costs		0	(844)
Distributions to noncontrolling interests		(5)	(4)
Proceeds from dividend reinvestment program	249	0	497
Payment of tax withholdings for restricted share awards		(187)	(1,350)
Net cash used in financing activities		(33,035)	(38,478)
Net decrease in cash, cash equivalents and restricted cash		(646)	(2,411)
Cash, cash equivalents and restricted cash at beginning of period		8,538	9,852
Cash, cash equivalents and restricted cash at end of period	7,441	7,892	7,441
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized		16,140	10,495
Change in accrued capital improvements and development costs		(5,339)	3,395
Dividend payable	15,834	15,905	15,834
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	5,554	5,629	5,554
Restricted cash	1,887	2,263	1,887
Cash, cash equivalents and restricted cash	$ 7,441	$ 7,892	$ 7,441

NATURE OF BUSINESS

NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024 and June 30, 2023 as the “2024 Quarter” and the “2023 Quarter,” respectively, and the six months ended June 30, 2024 and June 30, 2023 as the “2024 Period” and the “2023 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	6 Months Ended
	Jun. 30, 2024
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, 2023. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) 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. In November 2023, the FASB issued an amendment to the segment reporting standards which requires disclosure for each reportable segment, on an interim and annual basis, of the significant expense categories and amounts that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. Additionally, it requires a disclosure of the title and position of the individual or the name of the group or committee identified as the chief operating decision maker. The new standard will be effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025 on a retrospective basis. We are currently evaluating the impact of adopting the standard on our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) issued its final rule that requires registrants to provide climate disclosures in their annual reports and registration statements, beginning with annual reports for the year ending December 31, 2025. On April 4, 2024, the SEC voluntarily stayed the final rule pending the completion of judicial review of cases pending in the Eighth Circuit. We are continuing to evaluate the disclosure impact of the final rule. 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 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, 2023. 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 expenses.” 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	6 Months Ended
	Jun. 30, 2024
Real Estate [Abstract]
REAL ESTATE	REAL ESTATE Development/Redevelopment We have properties under development/redevelopment and held for current or future development. As of June 30, 2024, 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. 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 2024 Period or in 2023. As of June 30, 2024, we assessed our properties, including assets held for development, for impairment and did not recognize any impairment charges during the 2024 Quarter. We applied reasonable estimates and judgments in evaluating each of the properties as of June 30, 2024. 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	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
UNSECURED LINE OF CREDIT PAYABLE	UNSECURED LINE OF CREDIT PAYABLE During the third quarter of 2021, we entered into a second amended and restated credit agreement (the “2021 Credit Agreement”) which provided for the Revolving Credit Facility with aggregate revolving loan commitments of $700 million and the continuation of an existing $250.0 million unsecured term loan (“2018 Term Loan”). Under the 2021 Credit Agreement, the Revolving Credit Facility had a four-year term ending in August 2025, with two six-month extension options. The 2021 Credit Agreement included an accordion feature that allowed 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 2021 Credit Agreement to convert the benchmark interest rate from LIBOR to an adjusted SOFR, with no change in the applicable interest rate margins. Pursuant to this amendment, the Revolving Credit Facility accrued interest at a rate of adjusted 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 June 30, 2024, the interest rate on the Revolving Credit Facility was based on an adjusted daily SOFR (inclusive of the 0.10% credit spread adjustment) plus 0.85% applicable margin, the daily SOFR is 5.33% and the facility fee was 0.20%. As of June 30, 2024, all outstanding advances for the Revolving Credit Facility were 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 were due and payable generally on a monthly basis. The amount of the Revolving Credit Facility’s unsecured line of credit unused and available at June 30, 2024 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (156,000) Unused and available $ 544,000 We executed borrowings and repayments on the Revolving Credit Facility during the 2024 Period as follows (in thousands): Balance, December 31, 2023 $ 157,000 Borrowings 70,000 Repayments (71,000) Balance, June 30, 2024 $ 156,000 Subsequent to the 2024 Quarter, we entered into a third amended and restated credit agreement (the “Amended Credit Agreement”) which provides for aggregate revolving loan commitments of $500.0 million (the “Amended and Restated Revolving Credit Facility”) with an accordion feature that allows us to increase the aggregate revolving loan commitments or add term loans of up to $1.0 billion, subject to the lenders’ agreement to provide additional revolving commitments or term loans. The Amended and Restated Revolving Credit Facility has a four-year term ending in July 2028, with two six-month extension options. Borrowings under the Amended and Restated Revolving Credit Facility will bear interest, at Elme Communities’ option, at a rate of either (a)(i) daily SOFR plus 0.10% (the “Adjusted Daily Simple SOFR”) or (ii) term SOFR plus 0.10%, plus, in each case, a margin ranging from 0.70% to 1.40% (depending on Elme Communities’ credit rating) or (b) the base rate plus a margin ranging from 0.00% to 0.40% (based upon Elme Communities’ credit rating). The base rate is the highest of the administrative agent’s prime rate, the federal funds rate plus 0.50% and Adjusted Daily Simple SOFR plus 1.0%. In addition, the Amended Credit Agreement requires the payment of a facility fee equal to 0.10% to 0.30% (depending on Elme Communities’ credit rating) on the $500.0 million committed capacity in respect of the Amended and Restated Revolving Credit Facility, without regard to usage. The initial interest rate is based on Adjusted Daily Simple SOFR plus a margin of 0.85% and the initial facility fee equals 0.20%. All outstanding advances for the Amended and Restated Revolving Credit Facility are due and payable upon maturity in July 2028, 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.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2024
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 adjusted 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. Subsequent to the 2024 Quarter, we entered into a first amendment of the 2023 Term Loan (the “Term Loan Amendment”). The Term Loan Amendment implements various covenant and technical amendments to make the 2023 Term Loan consistent with corresponding provisions in the Amended Credit Agreement. The Term Loan Amendment does not change the maturity or any of the pricing terms of the term loan outstanding under the 2023 Term Loan.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS 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. During the 2024 Quarter, we entered into two forward interest rate swap arrangements with an aggregate notional amount of $150.0 million beginning on January 10, 2025 through January 10, 2026. These forward interest rate swap arrangements effectively fix a portion of our variable rate debt based on an adjusted daily SOFR at 4.72% (subject to applicable interest rate margins). 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 June 30, 2024 and December 31, 2023, were as follows (in thousands): Fair Value Derivative Assets (Liabilities) Derivative Instrument Aggregate Notional Amount Effective Date Maturity Date June 30, 2024 December 31, 2023 Interest rate swap $ 75,000 July 21, 2023 January 10, 2025 $ 587 $ 740 Interest rate swap 50,000 July 21, 2023 January 10, 2025 392 494 Interest rate swap 100,000 January 10, 2025 January 10, 2026 (305) — Interest rate swap 50,000 January 10, 2025 January 10, 2026 (153) — $ 521 $ 1,234 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Unrealized (loss) gain on interest rate hedges $ (796) $ 854 $ (713) $ 521 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 $0.9 million related to our outstanding interest rate swap arrangements will be reclassified as a net decrease to interest expense. The losses reclassified from Accumulated other comprehensive loss into interest expense for the three and six months ended June 30, 2024 and 2023, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Loss reclassified from accumulated other comprehensive loss into interest expense $ 510 $ 509 $ 1,020 $ 1,019 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 June 30, 2024, the fair value of derivative assets, including accrued interest, was $1.0 million and the fair value of derivative liabilities was $0.5 million. As of June 30, 2024, 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 agreements. 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	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024 and December 31, 2023 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 quoted prices in active markets and accordingly these valuations fall into Level 1 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 as of June 30, 2024 and December 31, 2023 were as follows (in thousands): June 30, 2024 December 31, 2023 Fair Level 1 Level 2 Level 3 Fair Level 1 Level 2 Level 3 Assets: SERP $ 2,371 $ 2,371 $ — $ — $ 1,984 $ 1,984 $ — $ — Interest rate derivatives 979 — 979 — 1,234 — 1,234 — Liabilities: Interest rate derivatives $ (458) $ — $ (458) $ — $ — $ — $ — $ — 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 2024 Quarter, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis. 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 June 30, 2024 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 June 30, 2024 and December 31, 2023, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 5,629 $ 5,629 $ 5,984 $ 5,984 Restricted cash 2,263 2,263 2,554 2,554 Line of credit 156,000 156,000 157,000 157,000 Notes payable, net 522,734 467,660 522,345 466,668

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2024
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 (the “Omnibus Incentive Plan”). An amendment and restatement of the Omnibus Incentive Plan was approved by our board of trustees in April 2024 and approved by our shareholders in May 2024 to, among other changes, increase the number of shares available to be issued by 2,900,000, from 2,400,000 shares to 5,300,000 shares (including shares issued pursuant to awards made under the Omnibus Incentive Plan prior to its amendment). The Omnibus Incentive Plan, as amended, allows for awards in the form of restricted shares, restricted share units, options and other awards up to an aggregate of 5,300,000 shares over the ten-year period in which the plan is 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 $1.0 million and $1.4 million for the 2024 Quarter and 2023 Quarter, respectively, and $2.1 million and $2.6 million for the 2024 Period and 2023 Period, respectively. Restricted Share Awards The total fair values of restricted share awards vested was $0.9 million and $4.0 million for the 2024 Period and 2023 Period, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2024
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 six months ended June 30, 2024 and 2023 were as follows (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net loss $ (3,471) $ (2,611) $ (7,118) $ (6,254) Allocation of earnings to unvested restricted share awards (79) (68) (158) (138) Adjusted net loss $ (3,550) $ (2,679) $ (7,276) $ (6,392) Denominator: Weighted average shares outstanding – basic and diluted 87,910 87,741 87,898 87,695 Basic net loss per common share $ (0.04) $ (0.03) $ (0.08) $ (0.07) Diluted net loss per common share $ (0.04) $ (0.03) $ (0.08) $ (0.07) Dividends declared per common share $ 0.18 $ 0.18 $ 0.36 $ 0.36

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2024
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 six months ended June 30, 2024 and 2023 from our Residential segment as well as Other, and reconcile NOI to net loss as reported (in thousands): Three Months Ended June 30, 2024 Residential Other (1) Consolidated Real estate rental revenue $ 55,492 $ 4,611 $ 60,103 Real estate expenses 20,622 1,360 21,982 Net operating income $ 34,870 $ 3,251 $ 38,121 Other income (expense): Property management expenses (2,175) General and administrative expenses (6,138) Depreciation and amortization (23,895) Interest expense (9,384) Net loss $ (3,471) Capital expenditures $ 7,872 $ 52 $ 7,924 Total assets $ 1,738,354 $ 123,121 $ 1,861,475 Three Months Ended June 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 52,100 $ 4,499 $ 56,599 Real estate expenses 19,054 1,204 20,258 Net operating income $ 33,046 $ 3,295 $ 36,341 Other expense: Property management expenses (2,178) General and administrative expenses (6,680) Transformation costs (2,454) Depreciation and amortization (21,415) Interest expense (6,794) Other income 569 Net loss $ (2,611) Capital expenditures $ 4,130 $ 262 $ 4,392 Total assets $ 1,664,947 $ 173,552 $ 1,838,499 (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment. Six Months Ended June 30, 2024 Residential Other (1) Consolidated Real estate rental revenue $ 110,363 9,253 $ 119,616 Real estate expenses 40,980 2,721 43,701 Net operating income $ 69,383 $ 6,532 $ 75,915 Other income (expense): Property management expenses (4,393) General and administrative expenses (12,334) Depreciation and amortization (48,838) Interest expense (18,878) Other income 1,410 Net loss $ (7,118) Capital expenditures $ 21,437 $ 109 $ 21,546 Six Months Ended June 30, 2023 Residential Other (1) Consolidated Real estate rental revenue 103,091 9,317 $ 112,408 Real estate expenses 37,198 2,581 39,779 Net operating income $ 65,893 $ 6,736 $ 72,629 Other income (expense): Property management expenses (3,947) General and administrative expenses (13,521) Transformation costs (5,354) Depreciation and amortization (42,951) Interest expense (13,625) Loss on extinguishment of debt (54) Other income 569 Net loss $ (6,254) Capital expenditures $ 9,547 $ 636 $ 10,183 ______________________________ (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	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS' EQUITY On February 20, 2024, we entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., TD Securities (USA) LLC and Truist Securities, Inc. as agents and forward sellers, as applicable, (collectively, the “Agents” or “Forward Sellers”, as applicable), and Wells Fargo Bank, National Association, The Bank of New York Mellon, Citibank, N.A., Goldman Sachs & Co. LLC, KeyBanc Capital Markets Inc., The Toronto-Dominion Bank and Truist Bank as forward purchasers pursuant to which up to an aggregate gross sales price of $350,000,000 of Elme Communities’ common shares of beneficial interest, $0.01 par value per share, may be offered and sold from time to time through the Agents, acting as the Company’s sales agents or, if applicable, the Forward Sellers, or directly to the Agents as principals for their own accounts. In connection with entry into the Equity Distribution Agreement, we terminated our prior at-the-market offering program. At the time of such termination, approximately $340.0 million remained unsold under such prior program. We did not issue common shares under the Equity Distribution Agreement or any prior equity distribution agreements during the 2024 Period or 2023 Period. We have a dividend reinvestment program whereby shareholders may use their dividends and optional cash payments to purchase common shares. The shares sold under this program may either be common shares issued by us or common shares purchased in the open market. Net proceeds under this program are used for general corporate purposes. We did not issue common shares under the dividend reinvestment program during the 2024 Period. Our issuances and net proceeds on the dividend reinvestment program for the three and six months ended June 30, 2023 were as follows ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2023 Issuance of common shares 14 28 Weighted average price per share $ 17.62 $ 17.64 Net proceeds $ 249 $ 497

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (3,471)	$ (2,611)	$ (7,118)	$ (6,254)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
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)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Recent Accounting Pronouncements	In March 2020, the Financial Accounting Standards Board (“FASB”) 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. In November 2023, the FASB issued an amendment to the segment reporting standards which requires disclosure for each reportable segment, on an interim and annual basis, of the significant expense categories and amounts that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. Additionally, it requires a disclosure of the title and position of the individual or the name of the group or committee identified as the chief operating decision maker. The new standard will be effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025 on a retrospective basis. We are currently evaluating the impact of adopting the standard on our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) issued its final rule that requires registrants to provide climate disclosures in their annual reports and registration statements, beginning with annual reports for the year ending December 31, 2025. On April 4, 2024, the SEC voluntarily stayed the final rule pending the completion of judicial review of cases pending in the Eighth Circuit. We are continuing to evaluate the disclosure impact of the final rule.
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 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, 2023.
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 expenses.”
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.
Fair Value Measurement	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 June 30, 2024 and December 31, 2023 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 quoted prices in active markets and accordingly these valuations fall into Level 1 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.

UNSECURED LINE OF CREDIT PAYA_2

UNSECURED LINE OF CREDIT PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024 was as follows (in thousands): Committed capacity $ 700,000 Borrowings outstanding (156,000) Unused and available $ 544,000 We executed borrowings and repayments on the Revolving Credit Facility during the 2024 Period as follows (in thousands): Balance, December 31, 2023 $ 157,000 Borrowings 70,000 Repayments (71,000) Balance, June 30, 2024 $ 156,000

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024 and December 31, 2023, were as follows (in thousands): Fair Value Derivative Assets (Liabilities) Derivative Instrument Aggregate Notional Amount Effective Date Maturity Date June 30, 2024 December 31, 2023 Interest rate swap $ 75,000 July 21, 2023 January 10, 2025 $ 587 $ 740 Interest rate swap 50,000 July 21, 2023 January 10, 2025 392 494 Interest rate swap 100,000 January 10, 2025 January 10, 2026 (305) — Interest rate swap 50,000 January 10, 2025 January 10, 2026 (153) — $ 521 $ 1,234
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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Unrealized (loss) gain on interest rate hedges $ (796) $ 854 $ (713) $ 521 The losses reclassified from Accumulated other comprehensive loss into interest expense for the three and six months ended June 30, 2024 and 2023, were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Loss reclassified from accumulated other comprehensive loss into interest expense $ 510 $ 509 $ 1,020 $ 1,019

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets	The fair values of these assets as of June 30, 2024 and December 31, 2023 were as follows (in thousands): June 30, 2024 December 31, 2023 Fair Level 1 Level 2 Level 3 Fair Level 1 Level 2 Level 3 Assets: SERP $ 2,371 $ 2,371 $ — $ — $ 1,984 $ 1,984 $ — $ — Interest rate derivatives 979 — 979 — 1,234 — 1,234 — Liabilities: Interest rate derivatives $ (458) $ — $ (458) $ — $ — $ — $ — $ —
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments	As of June 30, 2024 and December 31, 2023, the carrying values and estimated fair values of our financial instruments were as follows (in thousands): June 30, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 5,629 $ 5,629 $ 5,984 $ 5,984 Restricted cash 2,263 2,263 2,554 2,554 Line of credit 156,000 156,000 157,000 157,000 Notes payable, net 522,734 467,660 522,345 466,668

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2024
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 six months ended June 30, 2024 and 2023 were as follows (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net loss $ (3,471) $ (2,611) $ (7,118) $ (6,254) Allocation of earnings to unvested restricted share awards (79) (68) (158) (138) Adjusted net loss $ (3,550) $ (2,679) $ (7,276) $ (6,392) Denominator: Weighted average shares outstanding – basic and diluted 87,910 87,741 87,898 87,695 Basic net loss per common share $ (0.04) $ (0.03) $ (0.08) $ (0.07) Diluted net loss per common share $ (0.04) $ (0.03) $ (0.08) $ (0.07) Dividends declared per common share $ 0.18 $ 0.18 $ 0.36 $ 0.36

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2024
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 six months ended June 30, 2024 and 2023 from our Residential segment as well as Other, and reconcile NOI to net loss as reported (in thousands): Three Months Ended June 30, 2024 Residential Other (1) Consolidated Real estate rental revenue $ 55,492 $ 4,611 $ 60,103 Real estate expenses 20,622 1,360 21,982 Net operating income $ 34,870 $ 3,251 $ 38,121 Other income (expense): Property management expenses (2,175) General and administrative expenses (6,138) Depreciation and amortization (23,895) Interest expense (9,384) Net loss $ (3,471) Capital expenditures $ 7,872 $ 52 $ 7,924 Total assets $ 1,738,354 $ 123,121 $ 1,861,475 Three Months Ended June 30, 2023 Residential Other (1) Consolidated Real estate rental revenue $ 52,100 $ 4,499 $ 56,599 Real estate expenses 19,054 1,204 20,258 Net operating income $ 33,046 $ 3,295 $ 36,341 Other expense: Property management expenses (2,178) General and administrative expenses (6,680) Transformation costs (2,454) Depreciation and amortization (21,415) Interest expense (6,794) Other income 569 Net loss $ (2,611) Capital expenditures $ 4,130 $ 262 $ 4,392 Total assets $ 1,664,947 $ 173,552 $ 1,838,499 (1) Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment. Six Months Ended June 30, 2024 Residential Other (1) Consolidated Real estate rental revenue $ 110,363 9,253 $ 119,616 Real estate expenses 40,980 2,721 43,701 Net operating income $ 69,383 $ 6,532 $ 75,915 Other income (expense): Property management expenses (4,393) General and administrative expenses (12,334) Depreciation and amortization (48,838) Interest expense (18,878) Other income 1,410 Net loss $ (7,118) Capital expenditures $ 21,437 $ 109 $ 21,546 Six Months Ended June 30, 2023 Residential Other (1) Consolidated Real estate rental revenue 103,091 9,317 $ 112,408 Real estate expenses 37,198 2,581 39,779 Net operating income $ 65,893 $ 6,736 $ 72,629 Other income (expense): Property management expenses (3,947) General and administrative expenses (13,521) Transformation costs (5,354) Depreciation and amortization (42,951) Interest expense (13,625) Loss on extinguishment of debt (54) Other income 569 Net loss $ (6,254) Capital expenditures $ 9,547 $ 636 $ 10,183 ______________________________ (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)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Schedule of Dividend Reinvestment Program	Our issuances and net proceeds on the dividend reinvestment program for the three and six months ended June 30, 2023 were as follows ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2023 Issuance of common shares 14 28 Weighted average price per share $ 17.62 $ 17.64 Net proceeds $ 249 $ 497

NATURE OF BUSINESS (Details)

NATURE OF BUSINESS (Details) - TRSs - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Product Information [Line Items]
Deferred tax valuation allowance	$ 1.4	$ 1.4
Deferred tax asset	$ 1.4	$ 1.4

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATIONS (Details) - USD ($)	Jun. 30, 2024	Mar. 31, 2023	Sep. 30, 2021
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity			$ 1,500,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity	$ 700,000,000	$ 700,000,000	$ 700,000,000

REAL ESTATE (Details)

REAL ESTATE (Details) - USD ($)	3 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Real Estate [Line Items]
Properties under development or held for future development	$ 30,980,000	$ 30,980,000
Real estate impairment	0
Riverside Developments
Real Estate [Line Items]
Properties under development or held for future development	$ 30,400,000

UNSECURED LINE OF CREDIT PAYA_3

UNSECURED LINE OF CREDIT PAYABLE - Narrative (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 02, 2024 USD ($) extension_option	Mar. 31, 2023 USD ($)	Sep. 30, 2021 USD ($) extension_option	Jun. 30, 2024 USD ($) extension_option	Dec. 31, 2018 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity			$ 1,500,000,000
Credit agreement, aggregate maximum borrowing capacity including accordion feature			1,500,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity		$ 700,000,000	$ 700,000,000	$ 700,000,000
Debt instrument term			4 years
Number of extensions allowed | extension_option			2	2
Term of allowable extension (in months)			6 months	6 months
Credit agreement, aggregate maximum borrowing capacity including accordion feature		$ 700,000,000	$ 700,000,000	$ 700,000,000
Debt instrument, adjustment rate				0.10%
Revolving Credit Facility | Variable Rate Component One
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)		0.10%
Revolving Credit Facility | Variable Rate Component Two
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)				0.85%
Facility fee (percent)				0.20%
Revolving Credit Facility | Subsequent event
Line of Credit Facility [Line Items]
Revolving credit facility borrowing capacity	$ 500,000,000
Debt instrument term	4 years
Number of extensions allowed | extension_option	2
Term of allowable extension (in months)	6 months
Credit agreement, aggregate maximum borrowing capacity including accordion feature	$ 500,000,000
Basis spread on variable rate (percent)	0.85%
Facility fee (percent)	0.20%
Accordion feature, higher borrowing capacity option	$ 1,000,000,000
Revolving Credit Facility | Term Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Debt instrument, adjustment rate	0.10%
Revolving Credit Facility | Adjusted Daily Simple Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Debt instrument, adjustment rate	0.10%
Debt instrument base rate spread on variable rate (percent)	1%
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Facility fee (percent)		0.10%
Revolving Credit Facility | Minimum | Variable Rate Component One
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)		0.70%
Revolving Credit Facility | Minimum | Subsequent event
Line of Credit Facility [Line Items]
Facility fee (percent)	0.10%
Revolving Credit Facility | Minimum | Term Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	0.70%
Revolving Credit Facility | Minimum | Base Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	0%
Revolving Credit Facility | Minimum | Adjusted Daily Simple Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	0.70%
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Facility fee (percent)		0.30%
Revolving Credit Facility | Maximum | Variable Rate Component One
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)		1.40%
Revolving Credit Facility | Maximum | Subsequent event
Line of Credit Facility [Line Items]
Facility fee (percent)	0.30%
Revolving Credit Facility | Maximum | Term Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	1.40%
Revolving Credit Facility | Maximum | Base Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	0.40%
Revolving Credit Facility | Maximum | Adjusted Daily Simple Secured Overnight Financing Rate | Subsequent event
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	1.40%
Term Loan
Line of Credit Facility [Line Items]
Debt instrument face amount					$ 250,000,000
Unsecured Line of Credit Payable | Revolving Credit Facility | Federal Funds Rate | Subsequent event
Line of Credit Facility [Line Items]
Debt instrument base rate spread on variable rate (percent)	0.50%

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 ($)	Jun. 30, 2024	Dec. 31, 2023	Mar. 31, 2023	Sep. 30, 2021
Line of Credit Facility [Line Items]
Committed capacity				$ 1,500,000,000
Borrowings outstanding	$ (156,000,000)	$ (157,000,000)
Revolving Credit Facility
Line of Credit Facility [Line Items]
Committed capacity	700,000,000		$ 700,000,000	$ 700,000,000
Borrowings outstanding	(156,000,000)	$ (157,000,000)
Unused and available	$ 544,000,000

UNSECURED LINE OF CREDIT PAYA_5

UNSECURED LINE OF CREDIT PAYABLE - Schedule of Revolving Credit Facility's Borrowings and Repayments (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Line of Credit [Roll Forward]
Beginning balance	$ 157,000
Ending balance	156,000
Revolving Credit Facility
Line of Credit [Roll Forward]
Beginning balance	157,000
Borrowings	70,000
Repayments	(71,000)
Ending balance	$ 156,000

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - Unsecured Debt	3 Months Ended
	Mar. 31, 2023 USD ($) extension_option
2023 Term Loan
Debt Instrument [Line Items]
Debt instrument face amount	$ 125,000,000
Debt instrument term	2 years
Term loan, number of extensions allowed | extension_option	2
Term loan, extension, term	1 year
2023 Term Loan | Variable Rate Component One
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.10%
2023 Term Loan | Variable Rate Component Two
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) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) arrangement	Dec. 31, 2023 USD ($)	Jul. 21, 2023	Mar. 31, 2023 USD ($) arrangement
Interest rate derivatives | Recurring
Derivative [Line Items]
Interest rate derivatives	$ (458)	$ 0
Interest rate derivatives
Derivative [Line Items]
Number of interest rate swap arrangements | arrangement	2			2
Derivative notional amount	$ 150,000			$ 125,000
Fixed interest rate (percent)			4.73%
Variable interest rate (percent)	4.72%
Estimated amount to be reclassified within next twelve months as an increase to interest expense	$ 900
Fair value of derivative assets	1,000
Interest rate derivatives | Recurring
Derivative [Line Items]
Fair value of derivative assets	979	$ 1,234
Interest Rate Swap, Previously Settled
Derivative [Line Items]
Estimated amount to be reclassified within next twelve months as an increase to interest expense	$ (2,000)

DERIVATIVE INSTRUMENTS - Schedu

DERIVATIVE INSTRUMENTS - Schedule of Fair Values of Interest Rate Swaps (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Mar. 31, 2023
Interest rate derivatives
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	$ 150,000		$ 125,000
Derivative Assets (Liabilities)	521	$ 1,234
Interest Rate Swap Effective July 2023, One
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	75,000
Derivative Assets (Liabilities)	587	740
Interest Rate Swap Effective July 2023, Two
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	50,000
Derivative Assets (Liabilities)	392	494
Interest Rate Swap Effective January 2025, One
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	100,000
Derivative Assets (Liabilities)	(305)	0
Interest Rate Swap Effective January 2025, Two
Derivatives, Fair Value [Line Items]
Aggregate Notional Amount	50,000
Derivative Assets (Liabilities)	$ (153)	$ 0

DERIVATIVE INSTRUMENTS - Sche_2

DERIVATIVE INSTRUMENTS - Schedule of Net Unrealized Gain (Loss) in/from AOCL (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Unrealized (loss) gain on interest rate hedges	$ (796)	$ 854	$ (713)	$ 521
Loss reclassified from accumulated other comprehensive loss into interest expense	$ 510	$ 509	$ 1,020	$ 1,019

FAIR VALUE DISCLOSURES - Schedu

FAIR VALUE DISCLOSURES - Schedule of Fair Value of Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Interest rate derivatives
Assets:
Interest rate derivatives	$ 1,000
Recurring
Assets:
SERP	2,371	$ 1,984
Recurring | Interest rate derivatives
Liabilities:
Interest rate derivatives	(458)	0
Recurring | Interest rate derivatives
Assets:
Interest rate derivatives	979	1,234
Recurring | Level 1
Assets:
SERP	2,371	1,984
Recurring | Level 1 | Interest rate derivatives
Liabilities:
Interest rate derivatives	0	0
Recurring | Level 1 | Interest rate derivatives
Assets:
Interest rate derivatives	0	0
Recurring | Level 2
Assets:
SERP	0	0
Recurring | Level 2 | Interest rate derivatives
Liabilities:
Interest rate derivatives	(458)	0
Recurring | Level 2 | Interest rate derivatives
Assets:
Interest rate derivatives	979	1,234
Recurring | Level 3
Assets:
SERP	0	0
Recurring | Level 3 | Interest rate derivatives
Liabilities:
Interest rate derivatives	0	0
Recurring | Level 3 | Interest rate derivatives
Assets:
Interest rate derivatives	$ 0	$ 0

FAIR VALUE DISCLOSURES -Narrati

FAIR VALUE DISCLOSURES -Narrative (Details)	Jun. 30, 2024 USD ($)
Fair Value Disclosures [Abstract]
Fair value measurement of assets or liabilities	$ 0

FAIR VALUE DISCLOSURES - Sche_2

FAIR VALUE DISCLOSURES - Schedule of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Carrying Value
Carrying Value and Estimated Fair Values [Line Items]
Cash and cash equivalents	$ 5,629	$ 5,984
Restricted cash	2,263	2,554
Line of credit	156,000	157,000
Notes payable, net	522,734	522,345
Fair Value
Carrying Value and Estimated Fair Values [Line Items]
Cash and cash equivalents	5,629	5,984
Restricted cash	2,263	2,554
Line of credit	156,000	157,000
Notes payable, net	$ 467,660	$ 466,668

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Apr. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense		$ 1	$ 1.4	$ 2.1	$ 2.6
Restricted Share Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share awards vested				$ 0.9	$ 4
Total unvested restricted share awards (in shares)		436,834		436,834
Weighted average grant date fair value (in dollars per share)		$ 16.96		$ 16.96
Compensation costs not yet recognized		$ 5.2		$ 5.2
Recognition period for compensation expense				24 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 additional authorized for stock based awards (in shares)	2,900,000
Aggregate number of shares authorized for stock based awards (in shares)	5,300,000					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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss	$ (3,471)	$ (2,611)	$ (7,118)	$ (6,254)
Allocation of earnings to unvested restricted share awards	(79)	(68)	(158)	(138)
Adjusted net loss, basic	(3,550)	(2,679)	(7,276)	(6,392)
Adjusted net loss, diluted	$ (3,550)	$ (2,679)	$ (7,276)	$ (6,392)
Denominator:
Weighted average shares outstanding - basic (in shares)	87,910	87,741	87,898	87,695
Weighted average shares outstanding - diluted (in shares)	87,910	87,741	87,898	87,695
Basic net loss per common share (in dollars per share)	$ (0.04)	$ (0.03)	$ (0.08)	$ (0.07)
Diluted net loss per common share (in dollars per share)	(0.04)	(0.03)	(0.08)	(0.07)
Dividends declared per common share (in dollars per share)	$ 0.18	$ 0.18	$ 0.36	$ 0.36

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	6 Months Ended
	Jun. 30, 2024 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
Riverside Apartments | Revenue Benchmark | Property Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage (as a percent)	10%
Office
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 Reconciliation of Net Operating Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Real estate rental revenue	$ 60,103	$ 56,599	$ 119,616	$ 112,408
Real estate expenses	21,982	20,258	43,701	39,779
Net operating income	38,121	36,341	75,915	72,629
Other income (expense):
Property management expenses	(2,175)	(2,178)	(4,393)	(3,947)
General and administrative expenses	(6,138)	(6,680)	(12,334)	(13,521)
Transformation costs	0	(2,454)	0	(5,354)
Depreciation and amortization	(23,895)	(21,415)	(48,838)	(42,951)
Interest expense	(9,384)	(6,794)	(18,878)	(13,625)
Other income	0	569	1,410	569
Net loss	(3,471)
Net loss	(3,471)	(2,611)	(7,118)	(6,254)
Capital expenditures	7,924	4,392	21,546	10,183
Total assets	1,861,475	1,838,499	1,861,475	1,838,499	$ 1,900,028
Residential
Segment Reporting Information [Line Items]
Real estate rental revenue	55,492	52,100	110,363	103,091
Real estate expenses	20,622	19,054	40,980	37,198
Net operating income	34,870	33,046	69,383	65,893
Other income (expense):
Capital expenditures	7,872	4,130	21,437	9,547
Total assets	1,738,354	1,664,947	1,738,354	1,664,947
Other
Segment Reporting Information [Line Items]
Real estate rental revenue	4,611	4,499	9,253	9,317
Real estate expenses	1,360	1,204	2,721	2,581
Net operating income	3,251	3,295	6,532	6,736
Other income (expense):
Capital expenditures	52	262	109	636
Total assets	$ 123,121	$ 173,552	$ 123,121	$ 173,552

SHAREHOLDERS' EQUITY - Narrativ

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Feb. 20, 2024	Dec. 31, 2023
Equity Distribution Agreements [Line Items]
Shares of beneficial interest, par value (in dollars per share)		$ 0.01			$ 0.01
Shares issued under dividend reinvestment program (in shares)	14,000	0	28,000
Equity Distribution Agreement
Equity Distribution Agreements [Line Items]
Common shares of beneficial interest reserved for future issuance				$ 350,000,000
Shares of beneficial interest, par value (in dollars per share)				$ 0.01
At The Market Offering Program
Equity Distribution Agreements [Line Items]
Common stock, remained unsold upon termination		$ 340,000,000

SHAREHOLDERS' EQUITY - Schedule

SHAREHOLDERS' EQUITY - Schedule of Dividend Reinvestment Program (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Dividend Reinvestment Program
Issuance of common shares (in shares)	14,000	0	28,000
Weighted average price per share (in dollars per share)	$ 17.62		$ 17.64
Net proceeds	$ 249	$ 0	$ 497