Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Elme Communities's 3-Year RORE % for the quarter that ended in Mar. 2026 was 20.75%.
The industry rank for Elme Communities's 3-Year RORE % or its related term are showing as below:
ELME's 3-Year RORE % is ranked better than 64.8% of 841
companies
in the REITs industry
Industry Median: -0.22
vs ELME: 20.75
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Elme Communities 3-Year RORE % Related Terms
Elme Communities 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Elme Communities's 3-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ELME vs FREVS, MRTI, CLPR: 3-Year RORE % Comparison
For the REIT - Residential subindustry, Elme Communities's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Elme Communities 3-Year RORE % vs REITs Industry
For the REITs industry and Real Estate sector, Elme Communities's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Elme Communities's 3-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Elme Communities (ELME) has a 3-Year RORE % of 20.75 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Elme Communities and its competitors. According to the industry distribution chart, Elme Communities ranks #296 out of 841 companies in the REITs industry, placing it in the top 35.2%.
Is Elme Communities' 3-Year RORE % too high?
Elme Communities' current 3-Year RORE % is 20.75. Based on the distribution chart, Elme Communities ranks #296 out of 841 companies in the REITs industry, which is above the industry midpoint. Overall, Elme Communities has a GF Score™ of 36/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elme Communities' 3-Year RORE % compare to FREVS and MRTI?
According to the REITs industry distribution chart, Elme Communities ranks #296 out of 841 companies for 3-Year RORE %. This puts Elme Communities in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a REITs company?
A good 3-Year RORE % depends on the REITs industry context. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Elme Communities and its competitors. Elme Communities's current 3-Year RORE % is 20.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elme Communities stock overvalued right now?
Based on GuruFocus' analysis, Elme Communities (ELME) is currently considered Possible Value Trap. The stock's GF Value™ is $8.33, compared to a current price of $1.57 — trading 81.2% below its estimated fair value. The current 3-Year RORE % is 20.75. Elme Communities' overall GF Score™ is 36/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Elme Communities (ELME), the current 3-Year RORE % is 20.75 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Elme Communities (ELME) Overvalued in 2026?
Based on GuruFocus' analysis, Elme Communities stock appears to be undervalued.
The current stock price of $1.57 is trading 81.2% below its estimated GF Value™ of $8.33.
GuruFocus considers Elme Communities to be Possible Value Trap.
Key valuation signals for ELME:
3-Year RORE %: 20.75
GF Value™: $8.33 vs. price of $1.57 (81.2% below fair value)
No single metric tells the full story. See the ELME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elme Communities is a real estate investment trust engaged in owning and operating properties in the greater Washington DC metropolitan area. The company's real estate portfolio is comprised of office, retail, and multifamily properties located near transportation nodes. It derives nearly all of its income in the form of rental revenue from tenants organized into long-term leases. The company's office assets contribute the majority of this income, while the rest is split fairly evenly between its retail and multifamily locations. Elme Communities' tenants are banking, consulting, law, and financial services firms. The company operates in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities.
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