We also filed a Form 10 with the SEC.
We maintained significant liquidity with cash and cash equivalents of $524 million, including cash of $159 million at Douglas Elliman and $133 million at Liggett.
We also held investment securities and investment partnership interests with a fair market value of $214 million at September 30, 2021.
Vector Group's revenues were $652.6 million compared to $547.8 million in the 2020 period, the 104.8 million increase in revenues was a result of an increase of $125.7 million in the real estate segment, partially offset by a decline of $20.9 million in the tobacco segment.
Moving on to -- excuse me, net income attributed to Vector Group was $48.9 or $0.32 per diluted common share compared to $38.1 million or $0.25 per diluted common share in the third quarter of 2020.
The company recorded adjusted EBITDA of $116.5 million compared to $103.3 million in the prior year.
Adjusted net income was $52.6 million by $0.34 per diluted share compared to $38.3 million or $0.25 per diluted share in the 2020 period.
Vector Group's revenues were $1.93 billion compared to $1.45 billion in the 2020 period.
The $478 million increase in revenues was a result of an increase of $500.4 million in the real estate segment offset by a decline of $22.5 million in the tobacco segment.
Net income attributed vector Group was $174.2 million or $1.13 per diluted common share compared to $60.7 million or $0.39 per diluted common share in the 2020 period.
The company recorded adjusted EBITDA of $355.1 million compared to $240 million in the prior year.
Adjusted net income was $194.3 million or $1.26 per diluted share compared to $106.9 million or $0.70 per diluted share in the 2020 period.
Moving on to the results for the last 12 months ended September 30, 2021.
Vector Group reported revenues of $2.48 billion, net income of $206.4 million and adjusted EBITDA of $44.8 million [Phonetic].
Eagle 20's continues to deliver significantly higher margins, while Pyramid delivers both substantial profit and market presence and we continue to be pleased with the performance of our price-fighting brand, Montego, as we expand its distribution into targeted geographies across the country.
Based on Management Science Associates retail data, the discount category increased approximately 80 basis points in the third quarter from a year ago, now comprising 26.5% of the total market as compared to 25.7% for the same period last year.
For the three and nine months ended September 30, 2021, revenues were $297.9 million and $895.9 million respectively, compared to $318.9 million and $918.4 million for the corresponding 2020 period.
Tobacco adjusted operating income for the three and nine months ended September 30, 2021 was $91.8 million and $273.9 million compared to $91.6 million and $240.2 million for the corresponding periods a year ago.
According to Management Science Associates, overall industry wholesale shipments for the three months ended September 30, 2021 were down 11.8% compared to last year, while Liggett's wholesale shipments declined by 11.6% for the comparable period.
Liggett's retail shipments for the three months ended September 30, 2021 declined 6.1% from the year ago period, while industry retail shipments decreased 7% during the same timeframe.
As a result, Liggett's third quarter retail share increased to 4.22% from 4.18% in the corresponding period last year.
Sequentially, Liggett's retail share increased by 13 basis points in the third quarter over the second quarter.
Before Howard addresses the spin-off transaction, turning to Douglas Elliman's financial performance for the three, nine and last 12 months ended September 30, 2021.
For the three months ended September 30, 2021, Douglas Elliman reported $354.2 million in revenues compared to $208 million in revenues in the 2020 period.
Douglas Elliman reported net income of $25.1 million and adjusted EBITDA of $27.8 million in the third quarter compared to $11.8 million and $14.1 million in the year ago period.
For the nine months ended September 30, 2021, Douglas Elliman reported $1.02 billion in revenues compared to $506.5 million in revenues in the 2020 period.
Douglas Elliman reported net income of $82.2 million and adjusted EBITDA of $89.5 million for the nine months 2021 period compared to a net loss of $62.2 million and adjusted EBITDA of $5.3 million in the 2020 period.
The net loss in the 2020 period included pre-tax charges for non-cash impairments of $58.3 million and pre-tax restructuring charges up $3.3 million.
For the last 12 months ended September 30, 2021, Douglas Elliman reported $1.29 billion in revenues, $96.2 million of net income and $106.2 million in adjusted EBITDA.
In addition, Douglas Elliman reported closed sales of $47.7 billion in the last 12 months ended September 30, 2021.
In addition, Douglas Elliman's gross margin or company dollar increased to $94.5 million in the third quarter 2021, up from $58.9 million in the third quarter of 2020.
For the nine months ended September 30, 2021, Douglas Elliman's gross margin or company dollar increased to $274.1 million or $154.8 million for the same period in 2020.
Moving to Page 4, let's discuss our plan to separate Vector Group's real estate brokerage business and it's PropTech investments into an independent publicly traded company.
Moving to Page 5, this is planned as a tax-free spin-off of Douglas Elliman to Vector Group stockholders.
We also expect subject to Board approval that Spinco will initially pay $0.05 per share quarterly dividend to holders of Douglas Elliman common stock and if Vector were to continue its $0.20 per share quarterly dividend.
Now, let us turn to Page 6 for an overview of Elliman's business.
Founded in 1911, Douglas Elliman is one of the preeminent cutting edge residential brokerage companies in the United States.
Douglas Elliman has an attractive financial profile with a balance sheet strength of $200 million of net cash at significant operating leverage, currently Douglas Elliman has approximately 6,600 agents and for the 12 months ended September 30, 2021, it had gross transaction volume of $47.7 billion, revenue of $1.29 billion and adjusted EBITDA of $106.2 million.
Turning to page 7, Douglas Elliman is one of the largest residential brokerage companies in the New York metropolitan area, which includes New York City, Long Island, Westchester and the Hamptons and is sixth largest in the United States by sales value according to HousingWire.
Note, this is sixth among brokerage such as Realogy, Berkshire Hathaway and Compass, for example, all of which opposed to tens of thousands of agents compared to Elliman 6,600.
Turning to Page 9 to review the investment highlights for Spinco.
Turning to Page 10, which highlights the attractive characteristics of the U.S. residential market.
Since the beginning of 2020, U.S. homeowner equity has grown 17.6% to $23.6 trillion.
New and existing home sales in the U.S. are forecast to grow to approximately 7.4 million units in 2022, up from 6.9 million units in 2021 and 6.5 million units in 2020.
Turning to Page 11, another contributing factor to long-term demand in the residential market arises from millennials, the largest population cohort, entering the housing market in large numbers as they hit family formation and peak homebuying age, making their first home purchases at an older age than prior generations, they now are an important and growing part of the demand and we anticipate them to prefer technology focused firm like Douglas Elliman.
They represent a very small piece of the market ended approximately 90% of all residential transactions an agent is involved.
Turning to Page 12, Douglas Elliman's comprehensive suite of real estate solutions provide for multiple revenue streams in addition to our residential brokerage business.
The firm ranks among New York City's and South Florida's most prominent marketing and sales firms with 75 in-house development professionals overseeing a $40 billion portfolio of buildings by such famed architects as Jean Nouvel and iconic brands, including the Waldorf Astoria, the St Regis and the Ritz-Carlton.
Our premium residential property management business, Douglas Elliman property management, provides a full range of fee-based management services for approximately 360 properties representing about 56,500 units in New York City.
Turning to Page 13.
Our 6,600 agents across the country are augmented by our exclusive relationship with Knight Frank with its international network with approximately 500 offices and 19,000 agents.
Our focus on the major U.S. luxury markets is reflected in Douglas Elliman having substantially higher average transaction value than any of our major competitors, approximately 1.6 million year-to-date, materially higher than Compass and Realogy.
Starting on Page 15, you'll start to see that our general approach to real estate technology is leveraging best of breed technology, leveraging proven technology around legacy investments, as well as leveraging new early stage disruptive PropTech companies from New Valley Ventures.
Turning to Page 16, leveraging this solution -- leveraging this strategy, we also can quickly incorporate innovative technology to meet our business requirements at a rapid pace.
Example in 2018 to 2020 on average, we were able to roll out about 2 to 4 major solutions needed to support our business in addition to just small changes that were required for our existing solutions.
Turning to Page 17.
I now return return back to Scott to go through Page 18 and 20.
Moving on to Page 18.
In the aggregate, the 18 markets shown represent approximately $180 billion in transaction value, which would represent a 50% increase in our addressable market.
Total revenues for this business was $66.7 million year-to-date and our pipeline is very strong.
Turning to Page 19, a final key to our continued growth lies in the retention and the recruitment of agents.
We have a very high retention rate for our industry equal to approximately 90% of our revenue and our agents are long tenured with 87% of our revenue coming from agents who have been with us for more than three years.
While we have all the technological assets and leadership acumen of any major corporation, our agents and employees often describe our completely close-knit culture as family like and probably have agents who have called Elliman home for 10, 20 and even 30 years.
Please turn to Page 22.
Page 22 provides a summary of the attractiveness of Douglas Elliman, strong operating performance with impressive revenue growth, disciplined expense management led by seasoned industry executives, healthy margins and limited capital expenditures that support strong future growth initiatives and a quarterly cash dividend from a balance sheet with $200 million of net cash.
Please turn to Page 23.
This slide shows our strong key performance indicators, a healthy number of principal agents, significant growth in transactions and transaction value and most importantly, an average sales price of $1.55 million per home over the last 12 months, well above the national average.
The fruits of our work from increasing revenues as well as expense reduction initiatives are demonstrated on page 24.
In addition to a healthy EBITDA margin of 8.2%, there is a solid conversion to free cash flow with low capital expenditures.
Please turn to pages 25 and 26, where the company's income statement and balance sheet are presented.
Now turning to page 27, a summary of the investment and some highlights are presented including Douglas Elliman operates in a highly attractive US real estate market.
It remains an important component of our capital allocation strategy and following the spin off, it is our expectation that our current policy of quarterly dividends of $0.20 per share will continue well into the future.

Summary:
Vector Group's revenues were $652.6 million compared to $547.8 million in the 2020 period, the 104.8 million increase in revenues was a result of an increase of $125.7 million in the real estate segment, partially offset by a decline of $20.9 million in the tobacco segment.
Moving on to -- excuse me, net income attributed to Vector Group was $48.9 or $0.32 per diluted common share compared to $38.1 million or $0.25 per diluted common share in the third quarter of 2020.