Douglas Elliman had reason to celebrate on its first earnings call since going public last year.
On Tuesday, the brokerage reported consolidated operating income of $20.1 million, down from $25.1 million in the third quarter, before its spinoff from former parent company Vector Group, but up 44 percent from $14 million in the same period in 2020.
Net income for the full year was $98.7 million, compared to a $46.3 million loss reported in 2020.
“This is a meaningful milestone for our company, our employees and our agents nationwide,” chairman and CEO Howard Lorber, said on the earnings call Tuesday afternoon. “It’s also nice not to have any debt, like some of our competitors.”
As pent up demand fueled the housing market throughout the year, the brokerage’s revenues jumped to $1.35 billion, up 75 percent from $774 million in 2020. Revenues for the fourth quarter were $334.2 million, down slightly from the third quarter but up 25 percent year-over-year.
The brokerage facilitated $51.2 billion worth of property sales last year, according to SEC filings, $29.1 billion in 2020 and $28.8 billion in 2019.
New York City accounted for $16 billion worth of those transactions, Lorber told investors.
“This pick up is not just because of Covid,” Lorber said, referencing the new governor of New York and mayor of New York City. “People have renewed feelings about the city.”
South Florida accounted for $14.6 billion in gross transaction value. Elliman has been expanding in Florida, growing its offices in Naples and St. Petersburg, along with looking to expand on the Gulf Coast into Sarasota and Tampa. The brokerage also recently opened an outpost in Vero Beach in Jacksonville.
“We really are making a push just on the low cost states, low cost states as it relates to state taxes or no cost states like Florida,” Lorber said. “So we are looking at Arizona, we’re looking at Nevada, we’re going to consider Tennessee at some point.”
Elliman’s stock saw a boost in after-hours trading Tuesday, but is still down significantly from its debut price of $10 on Dec. 30. Its shares closed at $7.18 on Tuesday.
Elliman went public on the New York Stock Exchange in December, spinning off from parent holding company Vector Group, which also owns tobacco company Liggett Group.
The brokerage doled out $985 million in commissions last year, along with $77 million in sales and marketing and $15 million toward technology.
Despite inventory falling in many of Elliman’s markets, Lober said he remains bullish on 2022, referencing oncoming interest from international buyers, in addition to those already in the market.
“We believe fuel for future growth includes the growing importance of millennial buyers and the return of international buyers,” he said.