On this page of StockholderLetter.com we present the 6/16/2023 shareholder letter from Douglas Elliman Inc. — ticker symbol DOUG. Reading current and past DOUG letters to shareholders can bring important insights into the investment thesis.

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DOUG 6/16/2023 Shareholder/Stockholder Letter Transcript:

Douglas Elliman Inc.
2022 Stockholders    Report

June 12, 2023
Dear Fellow Stockholder:
After reaching a generational peak in 2021, the U.S. residential real estate industry faced significant challenges in 2022 due
to sharp increases in mortgage interest rates, ongoing market volatility and sustained listing inventory shortages in the luxury
markets we serve. Despite these challenges, Douglas Elliman continued to outperform the industry, driven by stable pricing in
our luxury markets, the competitive advantage from our strong development marketing business and the unwavering dedication
of our agents and employees.
We believe Douglas Elliman   s differentiated platform and approach continue to make us well-positioned to navigate this
dynamic operating environment and drive long-term success. As real estate markets stabilize, we are confident that the strength
of Douglas Elliman   s balance sheet, our global network of world-class agents and our leading luxury brand will enable us to
continue taking advantage of opportunities to create value for our stockholders.
Weathering Challenging Macroeconomic Environment
The residential real estate industry faced headwinds in 2022, including significant increases in mortgage interest rates,
volatility in the financial markets and listing inventory shortages. According to the National Association of Realtors,
transaction volume and the value of existing home sales each declined by more than 30%. Despite these challenges, Douglas
Elliman fared better than the industry, with transaction volume and gross transaction value declining by approximately 18%
and 16%, respectively. We attribute this to the limited inventory available in luxury markets, which has allowed pricing to remain
stable, as well as buyers in these markets being less mortgage reliant.
Our results in the second half of 2022 were impacted by this challenging operating environment, which has continued in
the first half of 2023. However, we are encouraged by some improvements in trends we are seeing thus far in 2023 and believe
the tight supply of inventory will gradually ease over time, as buyers adjust to higher interest rates and sellers adjust price
expectations. Importantly, in residential real estate, luxury markets are usually the last markets to enter a down cycle and the
first markets to emerge when the cycle ends.
Financial Profile
Douglas Elliman   s financial profile and cost reduction strategy makes us well-positioned to successfully navigate near-term
industry challenges. As of March 31, 2023, our liquidity consisted of $124 million of cash and cash equivalents and no
long-term debt. In recognition of the challenging operating environment, our Board of Directors recently suspended our
quarterly cash dividend, and declared a 5% annual stock dividend. Our balance sheet underscores Douglas Elliman   s long
history of success and provides us with the flexibility to adjust to various market conditions. In addition, this liquidity continues
to provide us with a competitive advantage in growing our core brokerage business as well as scaling our overhead expenses
when entering new markets.
We have also made thoughtful efforts to adjust our cost structure to fit our business more appropriately, including reducing
headcount, cutting costly sponsorships, streamlining advertising and commencing a program to consolidate office space. We
believe these changes will result in a nimbler Douglas Elliman, without significantly impacting the agent experience.
Leveraging Key Strengths to Drive Long-Term Growth
We continue to believe Douglas Elliman   s key strengths as well as significant opportunities in our luxury markets will allow
us to grow and capture market share. First, and most importantly, we continue to maintain outstanding relationships with our
agent network. In 2022, we increased our agent count by almost 400 agents and maintained a retention rate of 87%. Our
distinct approach to technology provides agents with state-of-the-art applications designed to increase their productivity and
business. Douglas Elliman   s agents continue to embrace these enhancements, and technology remains a critical component in
recruiting.
Our world-class development marketing business provides competitive differentiation and further incentive for agents to
join the Elliman team. In 2022, we added $3.2 billion of gross transaction value to the pipeline of our development marketing
business in Florida, New York, California, Boston and Texas, which will provide long-term value as these transactions close in
future years.

Finally, a critical part of our growth proposition is expanding the Douglas Elliman footprint by opportunistically pursuing
acquisitions and acqui-hires. In 2022, we entered the Las Vegas, Dallas and DC Metro markets, and we expanded our presence
in markets such as Ponte Vedra Beach, Vero Beach, Nantucket, New Canaan, Newport Beach and Basalt, Colorado. These
markets represent approximately $50 billion of total addressable annual gross transaction value.
Confidence in Our Future
Since our inception in 1911, Douglas Elliman has challenged the status quo of the real estate industry. More than a century
later, the Douglas Elliman brand is still associated with entrepreneurial service, luxury and forward-thinking
management     and we remain committed to upholding these core tenets of our DNA.
Looking ahead, in addition to driving operational efficiencies, Douglas Elliman is focused on strategic market expansion,
continued recruitment of outstanding talent and further adoption of innovative solutions to empower our agents. Our proven
management team has a successful history of navigating many economic cycles and applying financial discipline that balances
the importance of maintaining revenues and managing operating expenses to create long-term stockholder value.
Above all, it is the entire Douglas Elliman team   s successful response to the challenges of 2022 that gives me the utmost
confidence in our strong foundation and bright future. I deeply appreciate the support of all customers, partners and
stockholders as we continue to execute on our business plan in 2023.
Very truly yours,
Howard M. Lorber
Chairman, President and Chief Executive Officer
Douglas Elliman Inc.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Fiscal Year Ended December 31, 2022
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DOUGLAS ELLIMAN INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation
incorporation or organization)
1-41054
87-2176850
Commission File Number
(I.R.S. Employer
Identification No.)
4400 Biscayne Boulevard
Miami, Florida 33137
305-579-8000
(Address, including zip code and telephone number, including area code,
of the principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading Symbol(s)
Name of each exchange on which registered:
Common stock, par value $0.01 per share
DOUG
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.     Yes    No
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Exchange Act.     Yes     No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (the    Exchange Act   ), during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days.     Yes     No
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be
submitted pursuant to Rule 405 of Regulation S-T (   232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit such files).     Yes     No
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See
definition of    accelerated filer and large accelerated filer    in Rule 12b-2 of the Exchange Act.
    Large accelerated filer
    Accelerated filer
    Non-accelerated filer
    Smaller reporting company
    Emerging Growth Company
Indicate by check mark whether the registrant has filed a report on and attestation to its management   s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b))
by the registered public accounting firm that prepared or issued its audit report.    
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of
the registrant included in the filing reflect the correction of an error to previously issued financial statements.    
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of
incentive-based compensation received by any of the registrant   s executive officers during the relevant recovery period pursuant
to    240.10D-1(b)    
Indicate by check mark whether the Registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.     Yes     No
The aggregate market value of the common stock held by non-affiliates of Douglas Elliman Inc. as of June 30, 2022 was
approximately $359.0 million.
At March 14, 2023, Douglas Elliman Inc. had 84,416,022 shares of common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:
Part III (Items 10, 11, 12, 13 and 14) from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders to
be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant   s fiscal year
covered by this report.

Douglas Elliman Inc.
FORM 10-K
TABLE OF CONTENTS
Page
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
1
9
25
25
25
25


26
29


29
44
44





44
44
47
47


48
48


48
48
48
PART IV
Item 15. Exhibits and Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Item 16. Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
50
51
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 9C.
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.











PART I







Item 5.
Business . . . . . . . . . . . . . .
Risk Factors . . . . . . . . . . .
Unresolved Staff Comments
Properties . . . . . . . . . . . . .
Legal Proceedings . . . . . . .
Mine Safety Disclosures . . .


































































































PART II
Market for Registrant   s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management   s Discussion and Analysis of Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . .
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . .
Changes In and Disagreements with Accountants on Accounting and Financial
Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . .
PART III
Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . .
Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Relationships and Related Transactions, and Director Independence . . .
Principal Accountant Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i












 6/16/2023 Letter Continued (Full PDF)