President Scott Durkin Fired Following CEO Lorber’s Exit

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Scott Durkin

In a dramatic shake-up at Douglas Elliman Realty, Scott Durkin, the president, was fired on Friday, just days after the unexpected retirement of CEO Howard Lorber. The announcement came via a filing with the Securities and Exchange Commission, indicating that both departures, including Scott Durkin’s, are effective immediately.

While the SEC filing did not provide specific reasons for Scott Durkin’s termination, reports from the Wall Street Journal reveal that Lorber’s exit followed an internal investigation into serious concerns about the company’s culture. This investigation was triggered by allegations of sexual misconduct involving former brokers Tal and Oren Alexander, who were once standout stars at Douglas Elliman, closing billions in real estate deals. Scott Durkin had worked closely with the Alexanders during their tenure.

The Alexander brothers face multiple lawsuits from several women alleging sexual assault. Reports indicate that the FBI is now involved, investigating claims against all three brothers, including Tal Alexander, who was named in a subsequent lawsuit. Scott Durkin’s role as president placed him in proximity to these issues.

Financial troubles have also plagued Douglas Elliman. With a bear housing market currently—existing home sales at their lowest in nearly three decades—the company’s performance has suffered. Its stock is trading at a mere $1.94 per share, raising concerns among investors about Scott Durkin’s leadership and its financial impact.

In the wake of these changes, newly appointed CEO Michael Liebowitz addressed the transition, stating about his new choice for President, “With his impressive background in residential real estate, Richard Ferrari is a proven leader and the right choice to head corporate operations. His decades of executive and agent experience will help guide our brokerage, our agents, and our staff towards a bright new future and even greater success.” Liebowitz’s comments about Scott Durkin and his departure focused on the need for fresh leadership.

As Douglas Elliman grapples with these challenges, many questions remain about its future direction and Scott Durkin’s impact on its operations. The brokerage contest that these changes in leadership, including the exit of Scott Durkin, have nothing to do with company culture. However, Scott Durkin’s departure comes amid both financial and ethical controversies within Douglas Elliman, raising questions about the legacy of Scott Durkin’s leadership during a pivotal time in the company’s history.

Investors and agents will be closely watching how Douglas Elliman adjusts without Scott Durkin and under new leadership as it navigates an increasingly challenging housing market and high-profile legal issues.

Source: Link

Homeownership Drops for Under-35 Households

The National Association of Home Builders (NAHB) has highlighted a concerning trend: homeownership among households under 35 is at a four-year low. As housing affordability reaches multi-decade lows, the NAHB analyzed Census Bureau data to explore homeownership rates on a congressional district level.

The analysis reveals that young adults are facing significant challenges in becoming homeowners, largely due to high mortgage rates and a lack of available inventory. As the largest cohort of millennials enters peak homebuying years, understanding these trends is crucial.

Interestingly, districts with the highest rates of young adult homeownership also feature overall homeownership rates above 80%. For instance, in New York’s 1st and 4th districts, 65% of young adults own homes, but they represent only 8.9% and 9.8% of the overall population, respectively. Meanwhile, Michigan’s 9th and 2nd districts also boast young adult homeownership rates above 60%.

Conversely, the districts with the lowest rates are primarily in New York and California, with Washington, D.C. showing up as the 15th lowest. This trend indicates that West Coast regions generally have lower homeownership rates, further complicating the path to homeownership for young adults.

Source: Link

LTC Properties Beats Q3 FFO Estimates

LTC Properties has reported its third-quarter funds from operations, or FFO, surpassing estimates with a solid performance. The real estate investment trust posted an FFO of $0.78 per share, beating the Zacks Consensus Estimate of $0.71 and marking an increase from $0.65 per share a year ago. This represents an impressive FFO surprise of nearly 10%.

Just last quarter, LTC missed expectations slightly, but this time, favorable estimate revisions leading up to the earnings release have given the stock a Zacks Rank of #2, indicating a “Buy.” Analysts are optimistic about LTC outperforming the market in the near future.

The company reported revenues of $32.26 million for the quarter, slightly below the consensus estimate. Despite this, investors are eager to see how the FFO outlook evolves, especially with expectations of $0.66 for the next quarter.

LTC shares have risen about 10.5% year-to-date, lagging behind the S&P 500’s 21.8% gain. As the industry outlook remains strong, with the REIT and Equity Trust sector ranked in the top 25% of over 250 Zacks industries, investors are keenly watching for management’s commentary during the upcoming earnings call.

Earning season has just begun for the 3rd quarter reporting. OpenDoor, eXp World Holdings, Real Brokerage and Anywhere all report on November 7th.

Source: Link

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