As a standalone company, Douglas Elliman began trading Thursday on the New York Stock Exchange after a completed spin-off from its parent holding company, Vector Group Ltd., on the heels of some of the best two years in real estate.
Douglas Elliman Realty, LLC, one of the largest residential brokerages in the New York metropolitan area and the sixth-largest in the United States, has eight offices in the Hamptons and three on the North Fork.
“Today marks an exciting new chapter for Douglas Elliman,” said Howard M. Lorber, chairman and chief executive officer of Douglas Elliman who has longstanding ties to Southampton, in a statement. “As a standalone company, Douglas Elliman will leverage its differentiated approach, portfolio of innovative technology services and a best-in-class team of employees and agents to capitalize on growth opportunities in the highly attractive U.S. residential real estate market. We believe there is a bright future ahead for our company as a standalone entity.”
Douglas Elliman balance sheet has started strong with $200 million of net cash and significant operating leverage, supported by a track record of impressive revenue growth, disciplined expense management led by seasoned industry executives, healthy margins and limited capital expenditures.
A spinoff from Vector Group Ltd, a tobacco company, Elliman is now is trading under the symbol “DOUG” and has been added to the S&P SmallCap 600. It opened at $10 per share on Thursday and closed at $12.13 per share.
“Certain people owned Vector for the tobacco and didn’t really care about Douglas Elliman,” said Lorber in an interview with Bloomberg. “On the other hand, there are people who wouldn’t invested in Douglas Elliman but by charter can’t invest in tobacco.”
“We are thrilled that Douglas Elliman has reached this milestone – one that would not be possible without the hard work and dedication of our incredible agents and employees,” said Scott Durkin, chief executive officer of Douglas Elliman Realty. “As a standalone company, we look forward to building on Douglas Elliman’s leading luxury brand and longstanding tradition of excellence, while continuing to drive long-term value for stockholders.”
Douglas Elliman is looking to expand more in 2022, after already delving more into luxury markets in California, Texas and Florida. “We’ll do more business in Florida this year than we did in New York City,” Lorber told Bloomberg.
In addition, “Douglas Elliman will also source, use and invest in early-stage, disruptive property technology (“PropTech”) solutions and companies that easily integrate into its technology foundation, allowing Douglas Elliman to remain flexible, nimble and asset-light while providing cutting-edge solutions that improve client, customer and agent experience,” according to the statement.