Douglas Elliman Inc.DOUG

Douglas Elliman Inc. Leases Disclosure

10-KFiled Mar 16, 20262 min read
LEASES
The Company has operating leases for corporate and sales offices and equipment. The leases have remaining lease terms of less than one year to ten years, some of which include options to extend for up to five years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants.
The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred.
The components of lease expense were as follows:
Year Ended December 31,
202520242023
Operating lease cost$28,560 $30,890 $33,721 
Short-term lease cost740 802 1,188 
Variable lease cost4,131 4,143 4,234 
Less: Sublease income(270)(148)(688)
Total lease cost$33,161 $35,687 $38,455 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
202520242023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases$31,533 $32,596 $34,106 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases3,882 13,878 12,768 
Supplemental consolidated balance sheet information related to leases was as follows:
December 31,December 31,
20252024
Weighted average remaining lease term in years:
Operating leases5.185.73
Weighted average discount rate:
Operating leases8.66 %8.58 %
As of December 31, 2025, maturities of lease liabilities were as follows:
Operating Leases
Year Ending December 31: 
2026
$28,767 
2027
25,548 
2028
23,024 
2029
18,563 
2030
13,554 
Thereafter19,158 
Total lease payments128,614 
 Less imputed interest(25,642)
Total$102,972 
As of December 31, 2025, the Company had no executed real estate leases that have not yet commenced.
The Company’s rental expense for the years ended December 31, 2025, 2024 and 2023 was $28,560, $30,890 and $33,721, respectively. Rent expense for the year ended December 31, 2025 consisted of $19,237 of amortization and $9,323 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2024 consisted of $20,553 of amortization and $10,337 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2023 consisted of $22,369 of amortization and $11,352 of lease expense for interest accretion on operating lease liabilities.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 17, 2025
2023Mar 8, 2024
2022Mar 16, 2023
2021Mar 31, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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