Elme Communities (ELME) has disclosed a new risk, in the Debt & Financing category.
Elme Communities faces significant financial peril with the prospect of escalating interest rates, which could inflate their interest expenses due to their variable rate indebtedness. This surge in costs threatens to impair their cash flow, undermining their capacity to manage and service debt obligations. To mitigate such risks, Elme may opt for derivative instruments like interest rate swaps or caps, but these strategies are not devoid of danger. They carry the potential of counterparty default and the risk of unenforceable contracts, further complicating their financial stability.
Overall, Wall Street has a Moderate Buy consensus rating on ELME stock based on 1 Buy and 2 Holds.
To learn more about Elme Communities’ risk factors, click here.
