Elme Communities filed a current report on November 2, 2026, disclosing the Board-approved termination of retention agreements with three senior officers and the NYSE delisting of its common shares of beneficial interest, both connected to the company's planned dissolution on November 6, 2026.

Key Highlights

  • Retention agreements terminated: The Board approved termination of agreements with Paul McDermott, Tiffany Butcher, and W. Drew Hammond, effective November 6, 2026.
  • Cash lump sums approved: McDermott will receive $5,062,631; Hammond will receive $1,029,484; Butcher will receive $1,661,939, per their respective agreements.
  • NYSE delisting filed: The New York Stock Exchange filed a Notification of Removal from Listing on October 26, 2026, with delisting effective 10 calendar days after that date.
  • OTC trading begun: Elme Communities' shares began trading over-the-counter under the symbol "ELMES" on October 26, 2026.
  • Share transfer books closing: The company disclosed it expects its share transfer books to close at the close of business (Eastern Time) on November 5, 2026.
  • Liquidating Trust consulting roles: The filing states the Liquidating Trust expects to enter into individual consulting agreements with Hammond and Butcher on a part-time, as-needed basis following dissolution.

Elme Communities Winds Down Operations as Dissolution Date Approaches

Elme Communities, a Maryland-incorporated real estate investment trust headquartered at 7550 Wisconsin Ave, Suite 900, Bethesda, MD, disclosed in the filing that its Board of Trustees approved a Plan of Sale and Liquidation on July 30, 2025, which shareholders subsequently approved on October 30, 2025. The company had previously sold 19 multifamily assets to an affiliate of Cortland Partners, LLC, and has been executing that plan in the period since. The retention agreements with McDermott, Butcher, and Hammond, originally entered on January 22, 2026, were designed, according to the filing, "to support the operations of the Company during the implementation of the Plan of Sale and Liquidation" and "to provide the Company with additional flexibility in retaining the services of the Officers as needed throughout the process."

According to the filing, following dissolution the company intends to transfer its remaining assets and liabilities to a Maryland common law trust referred to as the Liquidating Trust. The filing indicates the Liquidating Trust will then engage Hammond and Butcher individually through consulting agreements to assist the trustee with discharging the company's remaining liabilities. McDermott is not listed among those expected to enter into consulting arrangements with the Liquidating Trust. The company's shares, previously listed on NYSE under the symbol ELME, moved to over-the-counter trading under "ELMES" on October 26, 2026, following the NYSE's filing of a Notification of Removal from Listing with the SEC on that same date.

The filing contains forward-looking statements, which the company cautions are subject to risks and uncertainties including the timing of delisting, the availability of an OTC market for shares, and the outcome of legal proceedings related to completed asset sales and the Plan of Sale and Liquidation. The company states it undertakes no obligation to update those statements.

What Was Disclosed

Elme Communities reported the Board-approved termination of three officer retention agreements effective November 6, 2026, with specified cash lump-sum payments totaling approximately $7.75 million, alongside the NYSE delisting of its shares and the commencement of OTC trading under "ELMES."