Lacebark elm trees are deciduous, but, interestingly, they do not drop their leaves in fall as many deciduous trees do. Instead, the lacebark elm tree usually waits longer and drops its leaves during winter. This late leaf drop is the reason why the lacebark elm tree is sometimes referred to as a tardily deciduous tree. Surprisingly, some lacebark elms, especially those in warmer regions, may not lose their leaves at all or may be semi-evergreen.