And so that's what we're seeing, where office is gonna be slow until we can define what's going to happen with tenants. Are there increased opportunities there? And we're very pleased with the velocity of sale transactions and the contribution of low interest rates has really helped us there. We're at this -- we're sort of at a second wave of this pandemic. global perspective and a nimble approach. As we stay focused on our working capital, we think that we continue to generate significant cash flow from the business. Additionally, for the full year 2020, we expect GAAP equity-based compensation and allocations of net income to decrease by approximately 50%. Investor Relations Hotline. And it sounds like things are, as you said, getting better as far as certainly, capital markets, everyone loves industrial and multifamily. So that takes your tangible book value up to $3.75 or $4.00 a share, it's -- to be precise, it's $3.77. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. Luis Alvarado -- Chief Revenue Officer and East Region Market Leader. In addition to that, we'll get the NASDAQ shares, which, at September 30, are worth an additional $28 million. And certainly CEOs, if they can reduce their cost in real estate, of course they will. I'm now happy to turn the call over to our host, Barry Gosin, CEO of Newmark Group, Inc.? Looking forward, we have a strong pipeline of lease renewals and corporate mandates, which we expect to reengage as the pandemic abates. Is this more buyback? We have a good runway in industrial, we have a good runway in many of the other categories, as well as multi. This compares to earnings of … And we're working with clients now that, as they repurpose, we're gonna be doing transactions, but it may not be retail. Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The two-year window for the spin-off ends on November 30. Your next question comes from Michael Funk with Bank of America. So it's not -- we're not -- it's not too distant before we see 40% to 50%. I think we're pretty well-positioned for either. Please go ahead. We may also refer to adjusted EBITDA. I think that we're considering and internally discussing how we're gonna best serve our shareholders with respect to the use of our capital, which could include all of the above. Despite the challenges facing commercial real estate, we saw sequential improvement and market share gains in several key business lines. While capital markets revenues fell, we outperformed industry investment sales volumes, as measured by real capital analytics. I would now like to turn the call back to Barry.? And it's a critical piece of getting people back to the offices and back to what we were before. Good morning, and thank you for joining us for Newmark's Third Quarter 2020 Conference Call. And -- so there are alternatives, and some of the investors who've been reticent on office or turning to other forms of investing. You must click the link in the email to activate your subscription. And we will adjust to whatever confidence. So areas like valuation advisory and the management services fee revenue. I'm extremely proud of our team. I would say it's a little -- it's just really some timing, some geographic mix. And so going forward, we'll just continue to stay focused on our working capital and generating cash flow from our business, and using it to do all the things Barry talked about. Sir, you may begin when you're ready. Any outlook discussed on today's call assumes no material acquisitions, share repurchases, or meaningful changes in the company's stock price. I'm trying to think about the business going forward. We expect leasing activity to remain challenged through the end of the pandemic as clients continue to defer long-term decision making. Your next question comes from Patrick O'Shaughnessy with Raymond James. For starters, we made a conscious effort to be a leader in the alternatives. We kinda consider ourselves more in the Navy Seal category. Stock Advisor launched in February of 2002. We've looked at specific areas to fill in white space to put members of the team on the field in things that help us on a holistic basis and create a multiplier. P.O. We expect our support and operational expenses to increase sequentially, consistent with an overall increase in activity. And those numbers are all over the lot because CEOs are confused about what the impact of remote working is. On the multifamily side, where we're seeing the strength predominantly is Sunbelt states in suburban markets. Do you expect similar incremental margin to what you laid out in decremental margin a few quarters ago in the deck? The question is, what's the impact on -- and what is the productivity slippage in respect of not being in the office and relying on remote working? Returns as of 12/24/2020. Thanks very much. That will come with some level of expenses sequentially going Q3 to Q4. Newmark Group (NMRK) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.43 per share. And by virtue of the expense cuts and some restructuring that we've done, we've improved margins as well. This is Lou Alvarado, Jade. That's a little bit worse than some of your publicly traded competitors who have already reported. Hey, good morning. We will be referring to our results on this call only on an adjusted earnings basis unless otherwise stated. Michael J. Rispoli is Chief Financial Officer for Newmark Group, Inc. and Chief Financial Officer at Newmark & Company Real Estate, Inc. and Senior VP-Strategic Planning & Investor Relations … And at the September 30 NASDAQ prices, and even given some of the monetizations we've done through 2022, it's close to $700 million of incremental capital to Newmark. We maintained strong liquidity and credit metrics. Can you comment on M&A in the space? And if we think we needed the capital, we could certainly go that route. But still, at the end of the day, this is -- we're in the middle of the pandemic. But the opportunity to design your business in the midst of a trough is one of those opportunities that you can take advantage of, and use it for the long-term sort of benefit of the company. So right now, we don't view that as a headwind or a structural challenge for the multifamily business. Companies with e-commerce are growing, and they're looking for distribution centers and so forth. So that's a really positive aspect for us. Other income for adjusted earnings was $94.5 million and reflects the annual NASDAQ earn-out. Description. So, I think the improvement in the revenue line items will come, primarily in capital markets, as we move into the fourth quarter, Michael. So I think that was probably hurt a little bit more. Please see the sections in the back of today's press release for the complete definitions of any such non-GAAP terms, reconciliations of these items to the corresponding GAAP results, and how, when, and why management uses them. About Newmark Group, Inc. (Nasdaq: NMRK) Newmark Group, Inc., together with its subsidiaries ("Newmark"), is a world leader in commercial real estate services, with a … And that's -- that is a significant impact to us because it is a -- it is the area where there's significant focus by our occupiers today. But we believe that CEOs are going to want to bring their office workers back to the office, better monitoring and more productivity. Sure. Got it. We will look for fill-ins and where opportunities for accretive acquisitions will occur. This concludes our question-and-answer session. NYU Stern School of Business. Newmark Group has relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. Jeff Day -- Chief Strategy Officer and President, Head of Multifamily Capital Markets. Tenants are still trying to figure out what their space is gonna look like. I also remind you that information on this call regarding our business that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements involve risks and uncertainties. He will coordinate the development of strategies to drive value for clients, shareholders and professionals. And just lastly, the comment around equity compensation on a GAAP basis, including allocations of net income. Join to Connect. Newmark Group has relationships with many of the world's largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. Is this more dividend? In your view, the amount that these tenants are claiming or clawing back, however you want to term it, have those been pretty consistent over the years, or are you seeing tenants claw back more of those commissions? Got you. Yeah, thanks. We'll continue to generate cash flow from the business through the end of the year, plus we'll get close to $30 million out of the NASDAQ share. We maintain our global reach through our partnership with Knight Frank, augmented by our international capital markets and global fundraising capabilities. Those are, as we mentioned, those are areas that we feel we can grow from 25% of our revenue to 33% of our revenue. We see a lot of velocity from lenders that have portfolios that need to be revalued. Head Of Investor Relations at Cantor Fitzgerald, BGC Partners, and Newmark Group Greater New York City Area 500+ connections. Q3 2020 Result presentation. There are continued restrictions around the two-year window. No, I think we can continue to generate cash flows from the business. And because we retain the upside, the earn-out will generate $28 million of additional liquidity based on NASDAQ's September 30 closing price. Just a few questions here. Please go ahead. Newmark, Grubb & Ellis, ARA, Computerized Facility Integration, Excess Space Retail Services, Inc., and Berkeley Point are trademarks/service marks, and/or registered trademarks/service marks and/or service marks of Newmark Group, Inc. and/or its affiliates. But you're seeing a lot of people now looking at their assets and saying, OK, if office is gonnabe slow for a while, what's my alternative method? Is it share losses? The second question is, Mike, appreciate the comments on the $62 million of cash flow in the quarter. We expect continuing sequential improvement in our earnings, exclusive of other income. Contacts. And then just keeping on the multifamily and industrial theme, is there enough inventory, either, I guess, broadly in industrial or kind of the Sunbelt, more suburban market or multifamily, to maintain the velocity in those business lines, or do we need to see a pickup in some of the other more traditional property types like office to either maintain or show improving revenue in sales in 2021? Sure. Valuation and advisory has continued to perform quite well. I know there's always a -- there's not only the shares you haven't contracted to sell at a rate, plus there's the upside on the contracted rate. Shareholder Information. The comment was around the full year 2020, Jade. Our DSOs are down year-to-date, over 10 days, so we really stay focused on that. But should we need more, NASDAQ monetization is always an option. So we have a very, very strong bench in the alternative: senior housing, self-storage, student housing, manufactured housing, data side, data and life science. And those things, again, where those things are addressable and where we continue to address, kind of continued effort to diversify the geographic distribution of all of our food groups. What is -- what's the impact of remote working? Our capital markets and debt volumes rebounded by 50% quarter-over-quarter. I wanna thank everybody for being on this call. I have a couple this morning, if I could. Investor Relations Newmark is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. But as soon as that discovery per se is there. Knight Frank is a service mark of Knight Frank (Nominees) Limited. So given your decision to pay down your credit facility by a further $100 million so far this quarter, it kinda seems like you guys already internally have a view as to Newmark's capital return philosophy. We remain committed to achieving permanent reductions in our expense base through technology and process improvements, which will drive margin expansion as the markets recover. Thank you, Lou. But we believe that ultimately, the business is moving toward a densification that overshot the mark. We're obviously thinking about it a lot internally. It could be conversion to industrial, it could be a conversion to medical, it could be a conversion of multifamily. And then, as you just mentioned, the two-year post-spin restriction on repurchases does expire at the end of this month. We have built a company that has remained strongly profitable during the quarter. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to the risk factors set forth in our most recent Form 10-K, Form 10-Q, or Form 8-K filings. So I think, as Barry mentioned, we're gonna get into a little bit more detail on our thoughts around the capital distribution policy on our next earnings call. Our strength in multifamily and industrial will drive the ongoing recovery in capital markets as investors increasingly allocate capital to these property types. Additional information with respect to our GAAP and non-GAAP results mentioned on today's call is available on our website and in our investor presentation. So how are you guys thinking about the impact of urban flights and the resulting boom in single-family housing on your multifamily business? Do you think those create value? Due to strong GSE originations, gains from mortgage banking increased 26.1%. So it remains to be a pretty substantial off-balance sheet asset for us. Our integrated platform seamlessly powers every phase of owning or occupying a property. But what are you thinking about that right now? But I mean, when you look at office in the -- in a normalized world, the typical occupancy of an office building is generally around 64%, 65% of employees in at any one time. Newmark, Grubb & Ellis, ARA, Computerized Facility Integration, Excess Space Retail Services, Inc., and Berkeley Point are trademarks/service marks, and/or registered trademarks/service marks and/or service marks of Newmark Group, Inc. and/or its affiliates. Adjusted earnings per share were $0.44, down 27.2%, and adjusted EBITDA was $152.1 million, down 25.2%. Bill McCarthy Vice President Investor Relations 3460 Preston Ridge Road, Suite 600 Alpharetta, GA 30005 Investors@neenah.com And let me add my congratulations. You can sign up for additional subscriptions at any time. Newmark generated substantial cash flow, and we continue to pay down debt. Is there any consideration being given to accelerating the monetization of the remaining NASDAQ shares to fund share repurchases? Please go ahead. So, we're continuing to look at that. Jeff, I'll let you address valuations. Investors Home; About Newmark. independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a But we've done fairly well by doing acquisitions of the right people that fill the right space in our company. And all those, there is no definitive answer on that. Newmark Group, Inc. (NASDAQ:NMRK)Q3 2020 Earnings CallNov 5, 2020, 10:00 a.m. And I think that we will be one of those winners that comes through this -- to the other side and in all of the categories, and do better. ... Jason Harbes-- Head of Investor Relations… It's pretty consistent. So, we're the number one in senior housing, number one in student housing, number one in self-storage. There is a wide spectrum of views on that. I would like to begin by thanking our employees for the dedication and ingenuity they have shown throughout the pandemic. So, it's encouraging to watch. Prior to joining Newmark Knight Frank, he was a senior financial analyst at Cushman & Wakefield where his responsibilities included proforma analysis, acquisitions underwriting, lease comparison analysis, market research and investor relations. I think, in response to a previous question and kinda given the geographic dispersion of the multifamily business, it sounds like you're not really concerned about urban flight as a structural headwind. But Mike, just on that point, the balance sheet improvements that you took in the quarter that improved cash flow, are those all sustainable in that $62 million, or that $62 million was enhanced by those measures, in which case, we wanna start with a lower run rate? Overview; FAQ; Fact Sheet; Investor Toolkit; Stock Information. Yeah. We don't -- we're not as pessimistic as some of our peers. Our leasing revenues were down 46.1%. The CMU presententation will presents the Group’s strategic development, ambitions and outlook after completion of the strategy process initiated in the second half of 2019 Please read more and find all relevant material in the CMU page. Got it. We've also -- in the last quarter, we've hired 30 industrial brokers. To receive notifications via email, enter your email address and select at least one subscription below. Good morning, and thanks for joining us. Thank you very much. Are we going to see brokers sort of earning less because the tenants are taking more of it, or those trends have been pretty consistent, and therefore, we shouldn't really expect any change? Thank you, Jason. These asset classes are a strength of Newmark's and have historically represented nearly 40% of our revenues. Management services, servicing fees and other declined by 6.1% due to lower interest income on escrow balances and yield maintenance fees in the company servicing business. Yeah. Let me just -- let me add to that. Can you provide some color on your non-transactional revenue during the quarter? We think earnings will be sequentially better in the fourth quarter when you take out the other income in the third quarter. Newmark provides a fully integrated platform of services to prominent multinational corporations and institutional investors across the globe, as well as to occupiers, owners and developers of real estate on a local, regional and national level. Michael Funk -- Bank of America -- Analyst. Cumulative Growth of a $10,000 Investment in Stock Advisor, Newmark Group, Inc. (NMRK) Q3 2020 Earnings Call Transcript @themotleyfool #stocks $NMRK, Newmark Group, Inc. (NMRK) Q2 2020 Earnings Call Transcript, Newmark Group, Inc. (NMRK) Q1 2020 Earnings Call Transcript, Newmark Group, Inc. (NMRK) Q4 2019 Earnings Call Transcript, Newmark Group, Inc. (NMRK) Q3 2019 Earnings Call Transcript, Newmark Group, Inc. (NMRK) Q2 2019 Earnings Call Transcript, Copyright, Trademark and Patent Information. During the third quarter, the company repaid $75 million on our revolving credit facility. [Operator Instructions]. And in areas where we typically, for example, in the Boston market, there's been substantial growth in the industrial, where in the past, that wasn't a heavy food group area. Our entrepreneurial culture, flat organizational structure and efficient decision-making processes have enabled us to quickly acclimate and to continue to provide best-in-class service to our clients. And we think we have a really still very good runway to do that. Please go ahead. Total cash and cash equivalents were $273 million. Thank you very much. And then we'll let you know where we're at on the next call. Investor Relations Global Contacts Newmark Group Inc Class A NMRK Morningstar Rating Rating as of Dec 21, 2020. In 2019, Newmark generated revenues in excess of $2.2 billion. We're also -- there's lots of people who wanna jump on the bandwagon. Investor relations. And so that's just been very, very consistent across all markets across the country. Overview; FAQ; Fact Sheet; Investor Toolkit; Stock Information ... Newmark Group, Inc. Reports Third Quarter 2020 Financial Results. I think there'll be some level of price capitulation in certain of the categories where people accept the relationship of the market to values, and we'll start repricing some of their assets. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. No, I agree. We increased our year-to-date market share in investment sales and GSE originations by 100 basis points and 50 basis points, respectively. And faster, I think that, that segment of the market -- capital markets piece of the business will probably come back sooner than some of the -- confusion in the office leasing will take a little longer. Yeah. With respect to our capital return policy, we plan to update you on our next quarterly conference call. So we feel really confident and comfortable. Any figures with respect to cash flow from operations, discussed on today's call refer to net cash provided by operating activities, excluding loan originations and sales. So, we have sufficient capital on the balance sheet. We think, where we are now, as we're in office, it's gonna get better. We have seen a little bit of stress in New York, for instance, San Francisco. Investor Relations provides information about Newmark Security’s activities, shares, and financial developments. I will now turn the call over to Jason Harbes, VP of Investor Relations. At this time, I think we have sufficient capital on the balance sheet, draw availability, both to return capital to investors, and continue to invest in our business. So why are you not in a position to communicate your capital term plans to investors this quarter as opposed to next quarter? Alexander Goldfarb -- Sandler O'Neill -- Analyst. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. I don't expect any change. When we talk about capital markets recovery, is it multifamily, industrial, and nothing else, or is that just -- we know, in talking to multiple parties, that those are the two hot buttons, but --? Newmark offers a diverse array of integrated services and products designed to meet the full needs of both real estate investors/owners and occupiers. Colliers International Group Inc. to announce Third Quarter results on October 27, 2020 Colliers International Group Inc. announced today that results for the third quarter ended September 30th, 2020 will be issued by press release on Tuesday October 27, 2020. Okay. I'll take the multi, and Lou can comment on industrial. So on the property management side, we have had pretty significant growth so far year-to-date, as we have had a lot of clients that have -- previously, they're self-preformed that looked for this, as well as we've picked up some market share as we have continued our focus in that area. Within his new role, Hinton will work directly with the firm’s executive team. The company provides real estate strategic consulting and systems integration services to CFI's global clients including many Fortune 500 and Forbes Global 2000 companies, owner-occupiers, government agencies, healthcare and higher education clients. Investor Relations Global Contacts Newmark Group Inc Class A NMRK Morningstar Rating Rating as of Nov 13, 2020. Guys, thank you very much. Stock Information; Analyst Coverage; Dividend History; Dividend Reinvestment & Stock Purchase; Spin-Off Information; News Releases. But certainly, with the stock trading, where it is now, it is an attractive choice with respect to returning capital to investors. I think we'll also have movement in the office sector as well. And subsequent to quarter end, we repaid an additional $100 million. Is that just a function of geographic mix? ... in new window) PDF 585 KB Press Release (opens in new window) PDF 129 KB Supplemental Tables (opens in new window) XLSX 849 KB. ?But otherwise, these revenues remained stable. Box 2189. What are you seeing right now in leasing that would have maybe -- that you'd attribute that underperformance to? Globally, there's still an enormous amount of capital available to invest. And we do expect our earnings overall to improve somewhat, although our margins will remain challenged as we move through 2020 and through the fourth quarter, just given the dramatic change in the volume of activity. Sure. So we believe in talent, that is without question, that is not gonna change. Invest -- as I've said on other calls, there's $200 billion of dry powder, $300-plus billion of dry powder. Thank you. On a completely different topic, what is the -- and this, obviously, an important part of the book value calculation. But it's as much renters making that transition as it is homeowners. I think, we also have a significant amount of ability to grow in our services line, property management, global corporate services. And can you give a range of maybe what might be reasonable to expect in terms of growth parameters? But the preponderance of our portfolio actually matches very nicely with the performance of the market right now. We had a lot of cash flow improvements from really focusing on collection of receivables. We just announced -- I mean, you saw $1.5 billion sale for a portfolio of self-storage. Newmark Group, Inc. ... Jason Edward Harbes-- Vice President of Investor Relations. Year-to-date, we have gained approximately 50 basis points of market share in GSE. 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