- Elme announced a definitive agreement to sell a portfolio of 19 assets to Cortland, an Atlanta-based multifamily firm, expected to close in Q4 2025 pending shareholder approval.
- The sale is part of a broader strategic review process initiated in February, culminating in a plan of sale and liquidation for remaining assets.
- The transaction is valued at approximately $1.6 billion in cash, subject to adjustments, representing a significant liquidity event for Elme.
- This sale reflects a shift from the company's previous diversification efforts, focusing solely on multifamily assets after divesting office and retail portfolios in 2021.
- Management emphasizes that the sale aims to maximize shareholder value amid challenging market conditions for lowering the cost of capital.
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- GNL completed a $1.8 billion sale of its multi-tenant retail portfolio to RCG Ventures, streamlining into a pure-play single-tenant net lease company.
- The sale is expected to reduce G&A by approximately $6.5 million annually and generate $30 million in capital expenditure savings.
- The disposition improved occupancy to 98%, expanded NOI margin by 800 basis points, and increased liquidity to $1 billion from $492 million.
- Proceeds from asset sales were used to reduce leverage, including a $1.1 billion paydown on the revolving credit facility and $466 million in mortgage debt assumed by RCG Ventures.
- Total asset sales since the disposition initiative began in 2024 exceed $3 billion, with a pipeline of about $200 million as of August 2025.
- Farmland Partners liquidated nearly all of its Colorado portfolio, retaining only a cattle feedlot and a few row crop farms due to long-term water concerns and regulatory issues.
- In California, the company took significant impairments on farms, especially two farms with water access issues and crop viability concerns, with impairments reaching over 50%.
- The company is actively seeking to sell some of the impaired farms in California, with bids already received, indicating a strategic move to exit troubled markets.
- Sold 5 hotels with an average age of 25 years at a 6% cap rate on 2024 NOI levels for $83 million.
- Currently have 2 additional hotels listed for sale, focusing on opportunistic transactions.
- Sales targeted at low RevPAR hotels to enhance portfolio value and reduce leverage.
- Proceeds from sales to fund development, acquisitions, share repurchases, and shareholder value initiatives.
- The company signed a definitive agreement to sell the 369-room Marriott Seattle Waterfront for $145 million, representing an 8.1% cap rate on trailing 12-month net operating income.
- The sale aligns with the strategic objective to deleverage the portfolio and sharpen focus on the luxury hotel sector.
- Closing is expected in the next few weeks, subject to customary conditions.
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