Elme Communities (ELME) will transfer its remaining assets and liabilities to Elme Communities Liquidating Trust on November 6, 2026, and dissolve at 11:59 a.m. that day. Its outstanding common shares will be cancelled; shareholders will automatically receive trust beneficial interests proportional to their ownership at close of business November 5, 2026. Interests generally cannot be transferred and will not trade on an exchange or over the counter.
The company will transfer an additional cash reserve of approximately $9.5 million for liabilities and wind-down costs, including amounts exceeding estimates or arising unexpectedly. The trust will liquidate remaining assets and may distribute amounts left after liabilities, costs and expenses are satisfied. Mark E. Chertok, an FTI Consulting employee, will become sole trustee after the transfer, succeeding President and CEO Paul T. McDermott and Executive Vice President, Chief Financial Officer, Chief Administrative Officer, Secretary and Treasurer W. Drew Hammond. FTI will receive $10,000 per month for trustee services. Executive officers Tiffany Butcher and Hammond are expected to enter consulting agreements at $300 and $250 per hour, respectively, expected to expire April 30, 2027 unless ended earlier. The trust terminates upon distribution of all assets or after three years, whichever comes first, but may be extended if the trustee reasonably determines an extension is necessary.
Elme Communities’ Board approved termination of retention agreements for Officers Paul McDermott, Tiffany Butcher and W. Drew Hammond, effective November 6, 2026. They are to receive cash lump sums of $5,062,631, $1,029,484 and $1,661,939, respectively. The company expects dissolution on November 6 after transferring its remaining assets and liabilities to a Maryland common law trust. Following that transfer and dissolution, the Liquidating Trust is expected to enter individual, part-time, as-needed consulting agreements with Hammond and Butcher to assist its trustee with remaining liabilities.
ELME shares began trading over-the-counter (OTC) as ELMES on October 26, 2026. The NYSE filed a Form 25-NSE delisting notice that day, with delisting to become effective 10 calendar days after the filing.