Elme Communities CFO Steven Freishtat Expected To Step Down; W. Drew Hammond To Become CFO After Steven Freishtat's Departure; Does Not Currently Expect To Voluntarily Delist Prior To Completing Sale Of At Least A Substantial Portion Of Remaining Properties

NYSE Listing

While the New York Stock Exchange ("NYSE") has discretionary authority to delist the Company's common shares following shareholder approval of the Plan of Sale and Liquidation, Elme intends for its common shares to continue to be listed on the NYSE, subject to continued compliance with NYSE listing requirements, until such time in the future as the Board determines to voluntarily delist its common shares from the NYSE in order to reduce operating expenses and maximize liquidating distributions. The Company does not currently expect to voluntarily delist prior to completing the sale of at least a substantial portion of the remaining properties.

Personnel Matters

The Company also provided an update regarding its previously announced downsizing activities in connection with the property sale process, including the expected departures of two trustees and the Company's current chief financial officer. On January 21, 2026, Ellen M. Goitia and Ron D. Sturzenegger each notified the Company that they intended to resign from the Board, effective shortly after the filing of the Company's upcoming 2025 Annual Report on Form 10-K. Ms. Goitia's and Mr. Sturzenegger's resignations follow Board discussions regarding appropriate adjustments to Board size in light of the Trust's focus on wind-down and liquidation under the Plan of Sale and Liquidation, as well as progress to date regarding the marketing and sale process relating to the Trust's remaining properties.

"We are grateful to Ellen and Ron for their valuable service and contributions to Elme Communities and for voluntarily agreeing to step down from the Board," said Benjamin S. Butcher, Lead Independent Trustee. "They have been important contributors to our strategic review process and our Board more generally. On behalf of the Board, I want to thank Ellen for her years of dedicated service and contribution to our Board. Her leadership and dedication have been invaluable to both the Board and Elme. I'd also like to thank Ron. We benefitted from his expertise and perspective as we navigated our review of strategic alternatives over the past year. Given the completion of our Portfolio Sale to Cortland, and level of progress on the marketing and sale process for our remaining properties, we felt it was appropriate to adjust the size of our Board after the 10-K filing.  Following Ellen's and Ron's resignations, we expect to continue operating as a six-person Board."

The Company also announced that Steven M. Freishtat, the Company's Chief Financial Officer, was expected to step down, effective shortly after the filing of the Company's upcoming 2025 Annual Report on Form 10-K, and that W. Drew Hammond, the Company's Chief Administrative Officer, Treasurer and Secretary was expected to become the Company's Chief Financial Officer upon the effectiveness of Mr. Freishtat's departure. "Since joining the Company in 2015, Steve has been an instrumental part of the Elme team, including most recently as part of our leadership team, and we are grateful for all his guidance and contributions to Elme," said Paul T. McDermott. "While Steve will be missed, we are fortunate to have Drew to assume the role of Chief Financial Officer, and we are confident in his ability to continue to execute on the Plan of Sale and Liquidation."