Elme Communities : Investor Presentation - May

Investor Presentation

May 2024

Trove, Arlington, VA

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This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Elme Communities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the securities law of any such jurisdiction. If Elme Communities were to conduct an offering of securities in the future, it will be made under an effective registration statement filed with the Securities and Exchange Commission and only by means of a prospectus supplement and accompanying prospectus. In such an event, a copy of the prospectus and the applicable preliminary prospectus supplement and final prospectus supplement, as well as the final term sheet, if applicable, relating to such transaction will be able to be obtained from the Securities and Exchange Commission at www.sec.gov, from any underwriters in that offering, or by contacting Elme Communities at 202-774-3200. Before you invest in any such offering, you should read the applicable prospectus supplement related to such offering, the accompanying prospectus and the information incorporated by reference therein and other documents Elme Communities has then filed with the Securities and Exchange Commission for more complete information about Elme Communities and any such offering.

Forward-Looking Statements

Certain statements in this investor presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Elme Communities to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Additional factors which may cause the actual results, performance, or achievements of Elme Communities to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements include, but are not limited to: the risks associated with ownership of real estate in general and our real estate assets in particular; our current positioning leading into our busiest leasing months; our ability to work through elevated eviction backlogs; whether bad debt trends in Atlanta will improve; whether demand for value-oriented apartments in the Washington Metro region and improving bad debt trends will drive higher NOI growth; the ability of the price points within our portfolio to insulate our portfolio from the effects of new supply; the impact of renovation-led value creation and increased profitability created by our operational initiatives on our NOI this year; the economic health of the areas in which our properties are located, particularly with respect to the greater Washington, DC metro and Sunbelt regions; risks associated with our ability to execute on our strategies, including new strategies with respect to our operations and our portfolio, including the acquisition of apartment homes in the Sunbelt markets and our ability to realize any anticipated operational benefits from our internalization of community management functions; the risk of failure to enter into and/or complete acquisitions and dispositions; changes in the composition of our portfolio; reductions in or actual or threatened changes to the timing of federal government spending; the economic health of our residents; the impact from macroeconomic factors (including inflation, increases in interest rates, potential economic slowdowns or recessions and geopolitical conflicts); risks related to our ability to control our expenses if revenues decrease; compliance with applicable laws and corporate social responsibility goals, including those concerning the environment and access by persons with disabilities; risks related to not having adequate insurance to cover potential losses; changes in the market value of securities; terrorist attacks or actions and/or cyber- attacks; whether we will succeed in the day-to-day property management and leasing activities that we have previously outsourced; the availability and terms of financing and capital and the general volatility of securities markets; the risks related to our organizational structure and limitations of share ownership; failure to qualify and maintain our qualification as a REIT and the risks of changes in laws affecting REITs; and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2023 Form 10-K filed on February 16, 2024. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We undertake no obligation to update our forward-looking statements or risk factors to reflect new information, future events, or otherwise.

Use of Non-GAAPFinancial Measures and other Definitions This presentation contains certain non-GAAP financial measures and other terms that have particular definitions when used by us. The definitions and calculations of these non-GAAP financial measures and other terms may differ from those used by other REITs and, accordingly, may not be comparable. Please refer to the definitions and calculations of these terms and the reasons for their use included later in this investor presentation.

Definitions and Reconciliation of Certain Forward-Looking Non-GAAPinformation This presentation also includes certain forward-lookingnon-GAAP information. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these estimates, together with some of the excluded information not being ascertainable or accessible, the Company is

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unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable efforts.

Table of Contents

About Us	04
Q1 2024 Update	08
Portfolio Overview	17
Current Market Dynamics	24
Research-Led Capital Allocation	27
Multifamily Strategies and Target Market	34
Environmental, Social, Governance	38
Appendix	45

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About Us

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We are a research-led,value-oriented,

multifamily owner and operator.

Elme Communities "elevating home"

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Value Creation Strategy

Affordable Rents	Operational Upside
Value-oriented price points provide	Infrastructure transformation
insulation from new supply and	yielding significant operational
favorable long-term demand outlook	benefits and efficiencies

Investment Grade	~3.3k Home
Balance Sheet	Renovation Pipeline
Strong liquidity, a fully	Opportunity to renovate and generate
unencumbered balance sheet, and	solid cash on cash returns
no scheduled maturities until 2025

Washington Metro Stability

Allocation to Washington Metro should provide stability across business cycles

Research-led

Capital Allocation

Investment strategy targets deepest segments of demand curve in outperforming markets

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Apartment Portfolio Overview

Value-oriented apartment communities with strong long-term growth prospects

89% of our homes are affordable to households

earning the Area Median Income (AMI)

~9,400

Homes

~3,300

Renovation Pipeline (homes)

~$3.6M

Anticipated Operational

Upside

(2024-2025)

Atlanta

Metro

Washington

Metro

Washington Metro drives over 80% of our multifamily NOI, providing a solid foundation of employment stability

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Elme Marietta, Atlanta, GA

Q1 2024 Update

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Market Performance Highlights

Washington Metro

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Washington Metro portfolio positioned well

Stable Class B performance as anticipated with mid-market strategy Spring leasing season seeing increase in traffic

Market rents continue to trend favorably compared to broader US Significant Northern Virginia exposure enhances outlook

Atlanta Metro

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Absorption is improving

Lease rates improved in April compared to the first quarter but continue to reflect impact of elevated supply

Bad debt is improving on a month-to-month basis Tools in place to drive demand and improve profitability

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Operational Updates

Blended Effective	2.3%	1%-2%
Lease Rate Growth	Q1 2024	FY 2024

Average Assumption

Q1 Average	95.8%	94.4%
Occupancy	WSH Metro	Same-Store

Strategic Initiative	~$4.25M - $4.75M	in 2023
FFO Upside		20% captured
2023-2025 Assumption

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