Newmark Group, Inc. - Quarterly Financial Data Supplement - as presented on May 3, 2024
1Q24
Table of Contents
Page
Consolidated Results
Condensed Consolidated Balance Sheets
2
Condensed Consolidated Statements of Operations
3
Revenue Detail
4
GAAP and Adjusted Earnings Expense and Other Income Detail
5
Reconciliation of GAAP Income to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS
6
Historical Reconciliation of GAAP Income (Loss) to Adjusted Earnings and GAAP Fully Diluted EPS to Post-tax Adjusted EPS
7
Reconciliation of GAAP Income to Adjusted EBITDA
8
Historical Reconciliation of GAAP Income (Loss) to Adjusted EBITDA
9
Fully Diluted Weighted-Average Share Count for GAAP and Adjusted Earnings
10
Historical Equity-based Compensation and Allocations of Net Income to Limited Partnership Units and FPUs
11
Debt and Capital Markets Volumes
12
Liquidity Analysis
13
Condensed Consolidated Statements of Cash Flows
14
Analysis of Operating Cash Flow (Excluding Activity from Loan Originations and Sales) Compared with Adjusted EBITDA
15
Details of Certain Components of "Net Cash Provided By (Used In) Operating Activities"
16
Note: Certain tables throughout this document may not reconcile due to rounding. Throughout this document, certain other reclassifications may have been made to previously reported amounts to conform to the current presentation and to show results on a consistent basis across periods. Unless otherwise stated, any such changes would have had no impact on consolidated total revenues or earnings under GAAP or for Adjusted Earnings, all else being equal. Certain numbers in the tables or elsewhere throughout this document may not sum due to rounding. Rounding may have also impacted the presentation of certain year-on-year percentage changes.
US GAAP Bal Sheet PR
NEWMARK GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
March 31, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$ 140,903
$ 164,894
Restricted cash
97,806
93,812
Loans held for sale, at fair value
505,668
528,944
Receivables, net
524,413
622,508
Other current assets
108,527
95,946
Total current assets
1,377,317
1,506,104
Goodwill
774,156
776,547
Mortgage servicing rights, net
521,872
531,203
Loans, forgivable loans and other receivables from employees and partners, net
787,878
651,197
Right-of-use assets
568,118
596,362
Fixed assets, net
173,685
178,035
Other intangible assets, net
78,683
83,626
Other assets
140,213
148,501
Total assets
$ 4,421,922
$ 4,471,575
Liabilities, Redeemable Partnership Interest, and Equity:
Current Liabilities:
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises
$ 493,428
$ 498,631
Accrued compensation
316,554
400,765
Accounts payable, accrued expenses and other liabilities
550,718
583,564
Short-term debt
- 0
- 0
Repurchase agreements and securities loaned
- 0
- 0
Payables to related parties
9,571
6,644
Total current liabilities
1,370,271
1,489,604
Long-term debt
670,183
547,260
Right-of-use liabilities
568,044
598,044
Other long-term liabilities
246,795
241,741
Total liabilities
2,855,293
2,876,649
Equity:
Total equity (1)
1,566,629
1,594,926
Total liabilities, redeemable partnership interest, and equity
$ 4,421,922
$ 4,471,575
(1) Includes "redeemable partnership interests," "noncontrolling interests" and "total stockholders' equity."
US GAAP P&L PR
NEWMARK GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended March 31,
Revenues:
2024
2023
Management services, servicing fees and other
$ 256,934
$ 212,292
Leasing and other commissions
158,799
193,306
Investment sales
70,823
71,993
Commercial mortgage origination, net
59,943
43,208
Total revenues
546,499
520,799
Expenses:
Compensation and employee benefits
328,195
328,351
Equity-based compensation and allocations of net income to limited partnership units and FPUs
51,443
35,648
Total compensation and employee benefits
379,638
363,999
Operating, administrative and other
137,943
118,982
Fees to related parties
7,541
7,792
Depreciation and amortization
43,975
38,830
Total non-compensation expenses
189,459
165,604
Total operating expenses
569,097
529,603
Other income (loss), net:
Other income (loss), net
(14)
(3,010)
Total other income (loss), net
(14)
(3,010)
Loss from operations
(22,612)
(11,814)
Interest expense, net
(7,220)
(7,591)
Loss before income taxes and noncontrolling interests
(29,832)
(19,405)
Benefit for income taxes
(3,516)
(3,056)
Consolidated net loss
(26,316)
(16,349)
Less: Net loss attributable to noncontrolling interests
(10,062)
(5,999)
Net loss available to common stockholders
$ (16,254)
$ (10,350)
Per share data:
Basic earnings per share
Net loss available to common stockholders
$ (16,254)
$ (10,350)
Basic earnings per share
$ (0.09)
$ (0.06)
Basic weighted-average shares of common stock outstanding
174,774
172,561
Fully diluted earnings per share
Net loss for fully diluted shares
$ (16,254)
$ (10,350)
Fully diluted earnings per share
$ (0.09)
$ (0.06)
Fully diluted weighted-average shares of common stock outstanding
174,774
172,561
Dividends declared per share of common stock
$ 0.03
$ 0.03
Dividends paid per share of common stock
$ 0.03
$ 0.03
Revenue Detail
NEWMARK GROUP, INC.
REVENUE DETAIL
(in thousands)
(unaudited)
2024
2023
2022
2021
2020
2019
2018
Q1
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Detail of revenues as presented in the Statement of Operations: (9)
Management services fee revenues (1)
$ 119,265
$ 96,651
$ 108,695
$ 116,779
$ 121,568
$ 452,242
$ 107,268
$ 108,829
$ 100,612
$ 99,913
$ 416,621
$ 58,927
$ 83,752
$ 97,790
$ 112,931
$ 353,400
$ 59,052
$ 48,417
$ 47,345
$ 54,429
$ 209,243
$ 46,345
$ 51,683
$ 52,701
$ 65,051
$ 215,780
$ 37,493
$ 46,554
$ 50,073
$ 54,235
$ 188,355
Pass through revenues (2) (4)
74,176
63,347
67,570
73,949
76,642
281,508
77,793
72,568
63,244
62,839
276,444
87,640
95,663
100,843
96,312
380,458
66,519
56,680
60,152
74,917
258,268
51,744
65,790
51,483
61,568
230,585
59,439
60,674
51,895
54,084
226,092
Servicing fees and other revenues (5) (8)
63,493
52,295
64,395
63,021
65,965
237,127
48,059
52,288
58,523
57,550
216,420
41,183
40,094
45,836
54,743
181,856
39,575
36,512
39,331
43,207
158,625
42,953
42,783
52,210
39,701
177,647
33,879
37,681
45,529
47,441
164,530
Management services, servicing fees and other
$ 256,934
$ 212,293
$ 240,660
$ 253,749
$ 264,176
$ 970,876
$ 233,120
$ 233,685
$ 222,379
$ 220,302
$ 909,485
$ 187,750
$ 219,509
$ 244,469
$ 263,986
$ 915,714
$ 165,146
$ 141,609
$ 146,828
$ 172,553
$ 626,136
$ 141,042
$ 160,256
$ 156,394
$ 166,320
$ 624,012
$ 130,811
$ 144,909
$ 147,497
$ 155,760
$ 578,977
Leasing and other commissions
$ 158,799
$ 193,306
$ 203,611
$ 203,268
$ 239,410
$ 839,595
$ 198,952
$ 212,825
$ 219,903
$ 200,193
$ 831,874
$ 147,433
$ 184,346
$ 231,532
$ 263,631
$ 826,942
$ 140,439
$ 120,079
$ 114,947
$ 138,377
$ 513,842
$ 172,471
$ 217,381
$ 213,242
$ 251,686
$ 854,780
$ 159,371
$ 178,142
$ 203,904
$ 276,017
$ 817,434
Investment sales
$ 70,823
$ 71,993
$ 77,604
$ 94,707
$ 136,972
$ 381,276
$ 152,113
$ 209,053
$ 131,731
$ 113,518
$ 606,416
$ 101,545
$ 142,233
$ 208,786
$ 305,180
$ 757,744
$ 112,576
$ 47,163
$ 74,298
$ 169,935
$ 403,972
$ 87,018
$ 109,745
$ 120,820
$ 140,762
$ 458,345
$ 88,578
$ 86,342
$ 100,926
$ 127,922
$ 403,769
OMSR revenues (2) (3)
$ 16,144
$ 14,099
$ 23,046
$ 20,997
$ 23,940
$ 82,082
$ 29,472
$ 31,499
$ 27,386
$ 21,570
$ 109,927
$ 28,716
$ 25,815
$ 33,644
$ 48,230
$ 136,405
$ 29,347
$ 42,128
$ 60,947
$ 62,392
$ 194,814
$ 16,378
$ 24,855
$ 37,423
$ 30,592
$ 109,248
$ 21,097
$ 24,695
$ 28,685
$ 28,725
$ 103,202
Loan originations related fees and sales premiums, net
16,699
11,963
21,593
19,084
16,965
69,604
18,300
17,963
21,455
16,854
74,572
18,678
15,446
26,385
28,568
89,077
21,075
26,943
30,246
37,836
116,100
14,968
20,236
34,909
18,724
88,837
17,817
17,182
23,287
20,776
79,062
Mortgage brokerage and debt placement
27,100
17,146
19,330
24,478
65,979
126,933
46,290
50,326
41,792
34,845
173,253
19,858
42,522
43,309
74,871
180,560
15,347
5,796
8,659
20,333
50,135
15,779
19,006
23,846
24,279
82,910
12,785
15,348
14,510
22,492
65,136
Commercial mortgage origination, net
$ 59,943
$ 43,208
$ 63,969
$ 64,559
$ 106,884
$ 278,620
$ 94,062
$ 99,788
$ 90,633
$ 73,269
$ 357,752
$ 67,252
$ 83,783
$ 103,338
$ 151,669
$ 406,042
$ 65,769
$ 74,867
$ 99,852
$ 120,561
$ 361,049
$ 47,125
$ 64,097
$ 96,178
$ 73,595
$ 280,995
$ 51,699
$ 57,225
$ 66,482
$ 71,993
$ 247,400
Total revenues
$ 546,499
$ 520,800
$ 585,844
$ 616,283
$ 747,442
$ 2,470,367
$ 678,247
$ 755,351
$ 664,646
$ 607,282
$ 2,705,527
$ 503,980
$ 629,871
$ 788,125
$ 984,466
$ 2,906,442
$ 483,930
$ 383,718
$ 435,924
$ 601,426
1,904,998
$ 447,656
$ 551,478
$ 586,634
$ 632,364
$ 2,218,132
$ 430,460
$ 466,620
$ 518,809
$ 631,692
$ 2,047,580
Detail of revenues as presented in certain investor presentations:
Commission-based revenues (6)
$ 308,434
$ 327,730
$ 354,980
$ 379,741
$ 498,801
$ 1,561,252
$ 460,983
$ 534,965
$ 452,400
$ 401,688
$ 1,850,036
$ 320,212
$ 420,071
$ 551,979
$ 718,812
$ 2,011,074
$ 317,553
$ 219,915
$ 253,326
$ 400,370
$ 1,191,164
$ 306,660
$ 388,023
$ 418,477
$ 463,876
$ 1,577,036
$ 289,481
$ 313,780
$ 362,132
$ 468,928
$ 1,434,321
Management fees & other revenues (7)
147,745
115,623
140,249
141,595
148,058
545,525
110,000
116,320
121,616
121,186
469,122
67,412
88,322
101,660
121,032
378,426
70,511
64,995
61,499
63,747
260,752
72,874
72,810
79,251
76,328
301,263
60,443
67,470
76,097
79,954
283,964
Non-fee revenues (2) (4)
90,320
77,446
90,615
94,946
100,583
363,590
107,264
104,067
90,630
84,409
386,370
116,356
121,478
134,487
144,621
516,942
95,866
98,808
121,099
137,309
453,082
68,122
90,645
88,906
92,160
339,833
80,536
85,369
80,580
82,809
329,294
Total Revenues
$ 546,499
$ 520,799
$ 585,844
$ 616,283
$ 747,442
$ 2,470,367
$ 678,247
$ 755,351
$ 664,646
$ 607,283
$ 2,705,527
$ 503,980
$ 629,871
$ 788,126
$ 984,465
$ 2,906,442
$ 483,930
$ 383,718
$ 435,924
$ 601,426
$ 1,904,998
$ 447,656
$ 551,478
$ 586,634
$ 632,364
$ 2,218,132
$ 430,460
$ 466,619
$ 518,809
$ 631,691
$ 2,047,579
Fee revenues detail:
Management services, servicing fees and other - fee revenues only
$ 182,758
$ 148,946
$ 173,090
$ 179,800
$ 187,534
$ 689,369
$ 155,327
$ 161,117
$ 159,135
$ 157,463
$ 633,042
$ 100,110
$ 123,846
$ 143,626
$ 167,674
$ 535,256
$ 98,627
$ 84,929
$ 86,676
$ 97,636
$ 367,868
$ 89,298
$ 94,466
$ 104,911
$ 104,752
$ 393,427
$ 71,372
$ 84,235
$ 95,602
$ 101,676
$ 352,885
Leasing and other commissions
158,799
193,306
203,611
203,268
239,410
839,595
198,952
212,825
219,903
200,193
831,873
147,433
184,346
231,532
263,631
826,942
140,439
120,079
114,947
138,377
513,842
172,471
217,381
213,242
251,686
854,780
159,371
178,142
203,904
276,017
817,434
Investment sales
70,823
71,993
77,604
94,707
136,972
381,276
152,113
209,053
131,731
113,518
606,415
101,545
142,233
208,786
305,180
757,744
112,576
47,163
74,298
169,935
403,972
87,018
109,745
120,820
140,762
458,345
88,578
86,342
100,926
127,922
403,769
Commercial mortgage origination, net - fee revenues only
43,799
29,109
40,923
43,562
82,944
196,538
64,590
68,289
63,247
51,699
247,825
38,536
57,968
69,694
103,439
269,637
36,422
32,739
38,905
58,169
166,235
30,747
39,242
58,755
43,003
171,747
30,602
32,530
37,797
43,268
144,198
Total fee revenues
$ 456,179
$ 443,354
$ 495,228
$ 521,337
$ 646,860
$ 2,106,777
$ 570,982
$ 651,284
$ 574,016
$ 522,873
$ 2,319,155
$ 387,624
$ 508,393
$ 653,638
$ 839,924
$ 2,389,579
$ 388,064
$ 284,910
$ 314,826
$ 464,117
$ 1,451,917
$ 379,534
$ 460,834
$ 497,728
$ 540,203
$ 1,878,299
$ 349,923
$ 381,249
$ 438,229
$ 548,883
$ 1,718,285
Non-fee revenues detail: (2) (4)
OMSR revenues
$ 16,144
$ 14,099
$ 23,046
$ 20,997
$ 23,940
$ 82,082
$ 29,472
$ 31,499
$ 27,386
$ 21,570
$ 109,927
$ 28,716
$ 25,815
$ 33,644
$ 48,230
$ 136,405
$ 29,347
$ 42,128
$ 60,947
$ 62,392
$ 194,814
$ 16,378
$ 24,855
$ 37,423
$ 30,592
$ 109,248
$ 21,097
$ 24,695
$ 28,685
$ 28,725
$ 103,202
Non-fee management services revenues
74,176
63,347
67,570
73,949
76,642
281,508
77,793
72,568
63,244
62,839
276,444
87,640
95,663
100,843
96,312
380,458
66,519
56,680
60,152
74,917
258,268
51,744
65,790
51,483
61,568
230,585
59,439
60,674
51,895
54,084
226,092
Total non-fee revenues
$ 90,320
$ 77,446
$ 90,616
$ 94,946
$ 100,582
$ 363,590
$ 107,265
$ 104,067
$ 90,630
$ 84,409
$ 386,371
$ 116,356
$ 121,478
$ 134,487
$ 144,542
$ 516,863
$ 95,866
$ 98,808
$ 121,099
$ 137,309
$ 453,082
$ 68,122
$ 90,645
$ 88,906
$ 92,160
$ 339,833
$ 80,536
$ 85,369
$ 80,580
$ 82,809
$ 329,294
(1) Management services fee revenues includes Facilities Management, Property Management, Project Management, Consulting, Valuation & Advisory, and Underwriting.
(2) Pass through revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization.
(3) Non-cash gains attributable to originated mortgage servicing rights, which represent the fair value of expected net future cash flows from servicing recognized at commitment, net.
(4) Pass through revenues represent fully reimbursable compensation and non-compensation expenses recorded as part of Newmark's management services business.
(5) Servicing fees include mortgage servicing fees, escrow interest and placement fees, and ancillary fees. "Other revenues" include interest income on loans held-for-sale.
(6) Commission-based revenues include Leasing and other commissions, Investment sales, Mortgage brokerage and debt placement, Loan originations related fees and sales premiums, net, and Valuation and Advisory.
(7) Includes fees from management services, mortgage servicing, and interest income on loans held for sale.
(8)
Beginning in the first quarter of 2024, the portion of Spring11's revenues associated with its servicing and asset management portfolio are no longer reported under "Management services" but are instead recorded as part of "Servicing and other revenues" for all periods from the first quarter of 2023 onwards. This change had no impact on the overall line items "Fees from management services, servicing, and other" and "Management services, servicing fees, and other", or on the Company's consolidated results.
(9) Beginning in the first quarter of 2024, includes Newmark's servicing related to Spring11.
Beginning in the second quarter of 2024, the Company will recast its four main revenue line items (Management services, servicing fees and other, Leasing and other commissions, Investment sales, Commercial mortgage origination, net) into three line items (Management services, servicing fees and other, Leasing and other commissions, and Capital markets). Before the end of the second quarter of 2024, the Company intends to update the Revenue Detail tab of the quarterly supplemental excel tables on its website to show revenues under this new presentation for periods from 2018 through the first quarter of 2024.
Expense and Other Income Detail
NEWMARK GROUP, INC.
GAAP AND ADJUSTED EARNINGS EXPENSE AND OTHER INCOME DETAIL
(in thousands)
(unaudited)
2024
2023
2022
2021
2020
2019
2018
Q1
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
GAAP expense summary:
Compensation and employee benefits
$ 328,196
$ 328,351
$ 346,930
$ 371,250
$ 442,607
$ 1,489,138
$ 382,583
$ 426,617
$ 388,903
$ 356,680
$ 1,554,783
$ 289,074
$ 541,397
$ 444,409
$ 554,008
$ 1,828,888
$ 300,258
$ 230,518
$ 253,908
$ 362,676
$ 1,147,360
$ 263,403
$ 316,737
$ 341,036
$ 354,862
$ 1,276,038
$ 261,086
$ 266,639
$ 291,382
$ 342,875
$ 1,161,982
Equity-based compensation and allocations of net income to limited partnership units and FPUs
51,442
35,648
19,609
29,548
54,941
139,746
16,900
41,988
44,088
35,338
138,314
14,248
267,532
33,962
40,601
356,344
12,914
10,860
50,770
56,215
130,759
13,871
39,353
56,647
148,965
258,836
17,416
67,367
40,776
99,085
224,644
Total compensation and employee benefits
$ 379,638
$ 363,999
$ 366,539
$ 400,798
$ 497,548
$ 1,628,884
$ 399,483
$ 468,605
$ 432,991
$ 392,018
$ 1,693,097
$ 303,322
$ 808,929
$ 478,371
$ 594,609
$ 2,185,232
$ 313,172
$ 241,378
$ 304,678
$ 418,891
$ 1,278,119
$ 277,274
$ 356,090
$ 397,683
$ 503,827
$ 1,534,874
$ 278,502
$ 334,006
$ 332,158
$ 441,960
$ 1,386,626
Total non compensation expense
189,459
165,604
195,687
188,637
180,194
730,122
180,175
182,302
173,042
193,642
729,161
134,478
171,658
186,910
206,095
699,141
144,133
95,163
97,526
121,349
458,171
122,895
142,396
130,166
122,542
517,999
104,832
106,550
117,431
126,819
455,632
Total expenses for GAAP
$ 569,097
$ 529,603
$ 562,226
$ 589,435
$ 677,742
$ 2,359,006
$ 579,658
$ 650,907
$ 606,033
$ 585,660
$ 2,422,258
$ 437,800
$ 980,587
$ 665,281
$ 800,704
$ 2,884,373
$ 457,305
$ 336,541
$ 402,204
$ 540,240
$ 1,736,290
$ 400,169
$ 498,486
$ 527,849
$ 626,369
$ 2,052,873
$ 383,334
$ 440,556
$ 449,589
$ 568,779
$ 1,842,258
GAAP other income/(loss) and other expenses:
Other income/(loss)
$ (14)
$ (3,010)
$ 3,925
$ 3,203
$ 9,735
$ 13,853
$ (86,001)
$ (15,303)
$ (128)
$ 3,730
$ (97,701)
$ (2,210)
$ 1,086,812
$ 102,720
$ 45,173
$ 1,232,495
$ 1,438
$ (36,389)
$ 108,608
$ (58,367)
$ 15,290
$ (9,718)
$ (3,726)
$ 108,711
$ (14,313)
$ 80,954
$ 5,707
$ (365)
$ 93,717
$ 28,234
$ 127,293
Tax provision/(benefit)
$ (3,516)
$ (3,056)
$ 6,719
$ 8,356
$ 29,084
$ 41,103
$ 4,004
$ 18,426
$ 13,294
$ 6,330
$ 42,053
$ 10,579
$ 142,182
$ 53,811
$ 36,386
$ 242,958
$ 4,797
$ 88
$ 33,273
$ (1,165)
$ 36,993
$ 6,687
$ 9,121
$ 36,760
$ (132)
$ 52,436
$ 6,933
$ 10,822
$ 35,870
$ 36,862
$ 90,487
Net income (loss) attributable to noncontrolling interests
$ (10,062)
$ (5,999)
$ 4,800
$ 4,206
$ 16,793
$ 19,800
$ 352
$ 13,273
$ 9,946
$ 5,699
$ 29,270
$ 11,473
$ 145,447
$ 34,707
$ 35,779
$ 227,406
$ 6,056
$ 330
$ 24,177
$ (1,346)
$ 29,217
$ 6,502
$ 9,396
$ 33,871
$ (5,362)
$ 44,407
$ 12,490
$ 3,555
$ 47,321
$ 21,800
$ 85,166
Adjusted earnings expense summary:
Total compensation and employee benefits
$ 327,264
$ 327,492
$ 346,892
$ 368,347
$ 441,286
$ 1,484,017
$ 381,303
$ 425,872
$ 388,435
$ 357,085
$ 1,552,695
$ 288,147
$ 351,662
$ 427,909
$ 551,386
$ 1,619,104
$ 299,693
$ 228,675
$ 248,762
$355,944
$ 1,133,074
$ 263,891
$ 317,040
$ 341,656
$350,389
$ 1,272,976
$ 261,796
$ 267,151
$ 292,055
$343,770
$ 1,164,772
Total non compensation expense
152,961
134,410
161,021
147,274
151,195
593,900
149,499
148,243
135,939
140,044
573,725
116,622
138,137
158,935
169,009
582,703
115,493
68,110
71,593
81,013
336,209
99,517
113,071
97,787
90,281
400,656
85,282
89,213
94,850
101,385
370,730
Total expenses for adjusted earnings
$ 480,225
$ 461,902
$ 507,913
$ 515,621
$ 592,481
$ 2,077,917
$ 530,802
$ 574,115
$ 524,374
$ 497,129
$ 2,126,420
$ 404,769
$ 489,799
$ 586,844
$ 720,395
$ 2,201,807
$ 415,186
$ 296,785
$ 320,355
$ 436,957
$ 1,469,283
$ 363,408
$ 430,111
$ 439,443
$ 440,670
$ 1,673,632
$ 347,078
$ 356,364
$ 386,905
$ 445,155
$ 1,535,502
Detail of expenses as presented in certain investor presentations:
Commission-based compensation
$ 150,160
$ 166,921
$ 175,164
$ 188,655
$ 252,029
$ 782,769
$ 234,521
$ 275,739
$ 234,025
$ 208,263
$ 952,548
$ 162,376
$ 217,225
$ 282,966
$ 370,342
$ 1,032,909
$ 157,166
$ 110,993
$ 126,240
$ 204,231
$ 598,630
$ 148,930
$ 194,470
$ 210,804
$ 236,138
$ 790,342
$ 146,844
$ 159,248
$ 181,938
$ 235,305
$ 723,335
Support and operational expenses - comp
136,141
122,472
136,158
141,787
145,266
545,683
109,013
114,319
117,089
108,335
448,756
93,012
101,050
112,502
142,258
448,822
96,687
77,898
77,948
97,997
350,530
83,326
88,242
94,354
74,468
340,390
76,080
72,738
79,533
77,226
305,577
Pass-through fees related to management services revenues - comp
40,963
38,099
35,570
37,905
43,990
155,564
37,769
35,814
37,321
40,487
151,391
32,759
33,387
32,441
38,786
137,373
45,840
39,784
44,574
53,716
183,914
31,635
34,328
36,498
39,783
142,244
38,872
35,165
30,584
31,239
135,860
Total compensation and employee benefits
$ 327,264
$ 327,492
$ 346,892
$ 368,347
$ 441,286
$ 1,484,017
$ 381,303
$ 425,872
$ 388,435
$ 357,085
$ 1,552,695
$ 288,147
$ 351,662
$ 427,909
$ 551,386
$ 1,619,104
$ 299,693
$ 228,675
$ 248,762
$ 355,944
$ 1,133,074
$ 263,891
$ 317,040
$ 341,656
$ 350,389
$ 1,272,976
$ 261,796
$ 267,151
$ 292,055
$ 343,770
$ 1,164,772
Support and operational expenses - non-comp (1)
119,747
109,162
129,022
111,230
118,544
467,958
109,475
111,982
110,017
117,692
449,166
61,741
75,862
90,533
111,483
339,619
94,814
51,210
56,014
59,817
261,855
79,409
81,609
82,802
68,495
312,315
64,715
63,704
73,539
78,545
280,503
Pass-through fees related to management services revenues - non-comp
33,214
25,248
31,999
36,044
32,651
125,942
40,024
36,261
25,922
22,352
124,559
54,881
62,275
68,402
57,526
243,084
20,679
16,900
15,579
21,196
74,354
20,108
31,462
14,985
21,786
88,341
20,567
25,509
21,311
22,840
90,227
Total non compensation expense (1)
152,961
134,410
161,021
147,274
151,195
593,900
149,499
148,243
135,939
140,044
573,725
116,622
138,137
158,935
169,009
582,703
115,493
68,110
71,593
81,013
336,209
99,517
113,071
97,787
90,281
400,656
85,282
89,213
94,850
101,385
370,730
Total expenses for adjusted earnings (1)
$ 480,225
$ 461,902
$ 507,913
$ 515,621
$ 592,481
$ 2,077,917
$ 530,802
$ 574,115
$ 524,374
$ 497,129
$ 2,126,420
$ 404,769
$ 489,799
$ 586,844
$ 720,395
$ 2,201,807
$ 415,186
$ 296,785
$ 320,355
$ 436,957
$ 1,469,283
$ 363,408
$ 430,111
$ 439,443
$ 440,670
$ 1,673,632
$ 347,078
$ 356,364
$ 386,905
$ 445,155
$ 1,535,502
Adjusted earnings other income/(loss) and other expenses:
Other income (loss)
$ (1)
$ 3,628
$ 5,005
$ 5,664
$ (85)
$ 14,212
$ 22
$ 170
$ 156
$ 2,886
$ 3,234
$ 3,392
$ (3,406)
$ 1,475
$ 1,382
$ 2,843
$ 15
$ (3,878)
$ (7,527)
$ (9)
$ (11,399)
$ 13
$ 4,742
$ 1,257
$ 1,249
$ 7,260
$ 3,175
$ 1,845
$ 17
$ (2,276)
$ 2,761
Tax provision (benefit)
$ (6,436)
$ (6,170)
$ 7,595
$ 12,186
$ 19,848
$ 45,799
$ 20,264
$ 27,448
$ 20,108
$ 7,843
$ 75,663
$ 11,249
$ 17,291
$ 30,481
$ 42,721
$ 101,746
$ 5,839
$ 4,571
$ 5,634
$ 16,797
$ 32,840
$ 8,671
$ 15,093
$ 15,427
$ 21,419
$ 60,610
$ 6,930
$ 10,156
$ 12,159
$ 25,406
$ 54,652
Net income (loss) attributable to noncontrolling interests
$ (949)
$ (689)
$ (439)
$ (292)
$ (327)
$ (1,747)
$ 34
$ (111)
$ 638
$ 237
$ 798
$ 659
$ 746
$ 959
$ 1,114
$ 3,478
$ 455
$ 213
$ (9)
$ 544
$ 1,203
$ (137)
$ 342
$ 584
$ 378
$ 1,167
$ 803
$ 245
$ 415
$ 259
$ 1,722
(1) Pass through management services revenues have no impact on the Company's GAAP or non-GAAP earnings measures, while non-cash OMSR revenues and non-cash MSR amortization are excluded from the calculations of Adjusted EBITDA and Adjusted Earnings. See the tabs with reconciliations of GAAP net income to Adjusted Earnings and to Adjusted EBITDA for historical non-cash OMSR revenues and non-cash MSR amortization.
Recon of GAAP to AE PR
NEWMARK GROUP, INC.
RECONCILIATION OF GAAP NET INCOME TO COMMON STOCKHOLDERS TO ADJUSTED EARNINGS BEFORE NONCONTROLLING INTERESTS AND TAXES AND
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
2024
2023
GAAP net loss available to common stockholders
$ (16,254)
$ (10,350)
Benefit for income taxes (1)
(3,516)
(3,056)
Net income attributable to noncontrolling interests (2)
(10,062)
(5,999)
GAAP loss before income taxes and noncontrolling interests
$ (29,832)
$ (19,405)
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation and allocations of net income to limited partnership units and FPU's (3)
51,443
35,648
Other compensation adjustments (4)
930
872
Total Compensation adjustments
52,373
36,520
Non-Compensation expense adjustments:
Amortization of intangibles (5)
4,439
3,448
MSR amortization(6)
28,147
26,204
Other non-compensation adjustments (7)
3,911
1,525
Total Non-Compensation expense adjustments
36,497
31,177
Non-cash adjustment for OMSR revenues (8)
(16,144)
(14,099)
Other (income) loss, net:
Other non-cash, non-dilutive, and /or non-economic items and Nasdaq (9)
13
6,638
Total Other (income) loss, net
13
6,638
Total pre-tax adjustments
72,739
60,236
Adjusted Earnings before noncontrolling interests and taxes ("Pre-tax Adjusted Earnings")
$ 42,907
$ 40,831
GAAP Net loss available to common stockholders:
$ (16,254)
$ (10,350)
Allocation of net loss to noncontrolling interests (10)
(9,113)
(5,310)
Total pre-tax adjustments (from above)
72,739
60,236
Income tax adjustment to reflect adjusted earnings taxes (1)
(9,953)
(9,223)
Post-tax Adjusted Earnings to fully diluted shareholders ("Post-tax Adjusted Earnings")
$ 37,420
$ 35,353
Per Share Data:
GAAP fully diluted earnings per share
$ (0.09)
$ (0.06)
Allocation of net income to noncontrolling interests
0.00
0.00
Total pre-tax adjustments (from above)
0.28
0.25
Income tax adjustment to reflect adjusted earnings taxes
(0.04)
(0.04)
Other
(0.00)
(0.00)
Post-tax Adjusted Earnings per share ("Adjusted Earnings EPS")
$ 0.15
$ 0.15
Pre-tax adjusted earnings per share
$ 0.17
$ 0.17
Fully diluted weighted-average shares of common stock outstanding
255,424
239,886
(1)
Newmark's GAAP provision (benefit) for income taxes is calculated based on an annualized methodology. Newmark includes additional tax-deductible items when calculating the provision (benefit) for taxes with respect to Adjusted Earnings using an annualized methodology. These include tax-deductions related to equity-based compensation, and certain net-operating loss carryforwards. The adjustment in the tax provision to reflect Adjusted Earnings is shown below (in millions):
Three Months Ended March 31,
2024
2023
GAAP provision (benefit) for income taxes
$ (3.5)
$ (3.1)
Income tax adjustment to reflect Adjusted Earnings
10.0
9.2
Provision for income taxes for Adjusted Earnings
$ 6.5
$ 6.1
(2)
Primarily represents portion of Newmark's net income pro-rated for Cantor and BGC's employees ownership percentage and the noncontrolling portion of Newmark's net income in subsidiaries.
(3)
The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in millions):
Three Months Ended March 31,
2024
2023
Issuance of common stock and exchangeability expenses
$ 40.2
$ 24.6
Limited partnership units amortization
3.3
4.9
RSU amortization Expense
7.7
6.0
Total equity-based compensation
$ 51.2
$ 35.5
Allocations of net income
0.2
0.2
Equity-based compensation and allocations of net income to limited partnership units and FPUs
$ 51.4
$ 35.7
(4)
Includes compensation expenses related to severance charges as a result of the cost savings initiatives of $1.4 million and $1.1 million for the three months ended March 31, 2024 and 2023, respectively. Also includes commission charges related to non-cash GAAP gains attributable to OMSR revenues of $(0.4) million and $(0.3) million for the three months ended March 31, 2024 and 2023, respectively.
(5)
Includes Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions.
(6)
Adjusted Earnings calculations exclude non-cash GAAP amortization of mortgage servicing rights (which Newmark refers to as "MSRs"). Subsequent to the initial recognition at fair value, MSRs are carried at the lower of amortized cost or fair value and amortized in proportion to the net servicing revenues expected to be earned. However, it is expected that any cash received with respect to these servicing rights, net of associated expenses, will increase Adjusted Earnings in future periods.
(7)
The components of other non-compensation adjustments are as follows (in millions):
Three Months Ended March 31,
2024
2023
Lease expense (credits) related to liquidating entities
$ (3.5)
$ 2.9
Asset impairments
3.3
0.9
Unaffiliated third party professional fees and expenses related to legal matters
1.3
-
Proceeds from legal settlements
(0.1)
(4.5)
Acceleration of debt issuance costs
2.6
-
Acquisition costs
-
1.8
Fair value adjustments related to acquisition earnouts
0.3
0.4
$ 3.9
$ 1.5
(8)
Adjusted Earnings calculations exclude non-cash GAAP gains attributable to originated mortgage servicing rights (which Newmark refers to as "OMSRs"). Under GAAP, Newmark recognizes OMSRs equal to the fair value of servicing rights retained on mortgage loans originated and sold.
(9)
The components of non-cash, non-dilutive, non-economic items are as follows (in millions):
Three Months Ended March 31,
2024
2023
Loss from the disposition of assets
-
6.4
Unrealized (gain)/loss on marketable securities (i)
-
-
(Gains)/losses on non-marketable securities
-
0.3
$ - 0
$ 6.7
(i) Includes $13 thousand of unrealized loss on marketable securities for the three months ended March 31, 2024.
(10)
Excludes the noncontrolling portion of Newmark's net income in subsidiaries which are not wholly owned.
Hist. Recon GAAP to AE Detail
NEWMARK GROUP, INC.
RECONCILIATION OF GAAP INCOME (LOSS) TO ADJUSTED EARNINGS AND
GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS
(in thousands, except per share data)
(unaudited)
2024
2023
2022
2021
2020
2019
2018
Q1
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Net income (loss) available to common stockholders
$ (16,254)
$ (10,350)
$ 6,429
$ 9,947
$ 36,548
$ 42,574
$ 362
$ 48,519
$ 27,964
$ 6,427
$ 83,276
$ 33,105
$ 439,744
$ 128,549
$ 149,331
$ 750,728
$ 8,179
$ 314
$ 75,348
$ (3,781)
$ 80,060
$ 16,904
$ 22,668
$ 88,698
$ (10,965)
$ 117,305
$ 19,997
$ 739
$ 68,237
$ 17,759
$ 106,732
Provision (benefit) for income taxes
(3,516)
(3,056)
6,719
8,356
29,084
41,103
4,004
18,426
13,294
6,330
42,053
10,579
142,182
53,811
36,386
242,958
4,797
88
33,273
(1,165)
36,993
6,687
9,121
36,760
(132)
52,436
6,933
10,822
35,870
36,862
90,487
Net income (loss) attributable to noncontrolling interest in subsidiaries
(10,062)
(5,999)
4,800
4,206
16,793
19,800
352
13,273
9,946
5,699
29,270
11,473
145,447
34,707
35,779
227,406
6,056
330
24,177
(1,346)
29,217
6,502
9,396
33,871
(5,362)
44,407
12,490
3,555
47,321
21,800
85,166
GAAP income (loss) before income taxes and noncontrolling interests
$ (29,832)
$ (19,405)
$ 17,948
$ 22,509
$ 82,425
$ 103,477
$ 4,718
$ 80,218
$ 51,204
$ 18,456
$ 154,599
$ 55,157
$ 727,373
$ 217,067
$ 221,496
$ 1,221,092
$ 19,032
$ 732
$ 132,798
$ (6,292)
$ 146,270
$ 30,093
$ 41,185
$ 159,329
$ (16,459)
$ 214,148
$ 39,420
$ 15,116
$ 151,428
$ 76,421
$ 282,385
Pre-tax adjustments:
Compensation adjustments:
Equity-based compensation
$ 51,211
$ 35,407
$ 19,487
$ 26,472
$ 43,384
$ 124,750
$ 16,751
$ 34,201
$ 39,213
$ 32,271
$ 122,436
$ 3,615
$ 253,239
$ 20,797
$ 23,511
$ 301,162
$ 12,365
$ 9,877
$ 21,549
$ 56,507
$ 100,298
$ 7,558
$ 27,752
$ 24,151
$ 148,965
$ 208,426
$ 13,356
$ 62,675
$ 11,952
$ 85,199
$ 173,182
Allocations of net income to limited partnership units and FPUs
231
241
122
3,076
11,503
14,942
147
7,787
4,875
3,067
15,876
10,633
14,293
13,166
17,090
55,182
549
983
29,221
(292)
30,461
6,313
11,601
32,496
-
50,410
4,060
4,692
28,824
13,886
51,462
Reserves on employee loans
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other compensation adjustments
930
872
39
2,953
1,321
5,185
1,279
744
469
(406)
2,086
917
189,734
16,491
2,618
209,760
564
1,843
5,147
6,727
14,281
(537)
(303)
(621)
4,471
3,010
(709)
(512)
(673)
(893)
(2,787)
Total Compensation adjustments
$ 52,372
$ 36,520
$ 19,648
$ 32,501
$ 56,208
$ 144,877
$ 18,178
$ 42,732
$ 44,557
$ 34,932
$ 140,399
$ 15,165
$ 457,266
$ 50,454
$ 43,219
$ 566,104
$ 13,478
$ 12,703
$ 55,917
$ 62,942
$ 145,040
$ 13,334
$ 39,050
$ 56,026
$ 153,436
$ 261,846
$ 16,707
$ 66,855
$ 40,104
$ 98,190
$ 221,856
Non-Compensation expense adjustments:
Amortization of intangibles
$ 4,439
$ 3,448
$ 4,589
$ 4,590
$ 4,472
$ 17,099
$ 2,594
$ 4,846
$ 3,471
$ 3,402
$ 14,313
$ 1,666
$ 2,420
$ 2,416
$ 2,361
$ 8,863
$ 1,643
$ 1,667
$ 1,744
$ 1,958
$ 7,012
$ 1,276
$ 1,299
$ 2,819
$ 1,526
$ 6,920
$ 1,513
$ 1,257
$ 1,238
$ 1,621
$ 5,629
MSR amortization
28,147
26,204
27,885
26,706
29,082
109,877
26,216
25,580
28,703
28,577
109,076
15,067
22,684
20,103
31,937
89,791
39,471
23,864
22,602
25,315
111,252
22,126
27,730
29,546
22,128
101,530
17,824
15,726
21,011
23,862
78,423
Other non-compensation adjustments
3,911
1,525
2,192
10,016
(4,555)
9,178
1,865
3,631
4,929
21,621
32,046
1,132
8,420
5,461
2,793
17,806
(12,480)
1,536
1,585
13,060
3,701
- 0
- 0
- 0
8,601
8,601
- 0
- 0
- 0
- 0
- 0
Total Non-Compensation expense adjustments
$ 36,497
$ 31,177
$ 34,666
$ 41,312
$ 28,999
$ 136,154
$ 30,675
$ 34,057
$ 37,103
$ 53,600
$ 155,435
$ 17,865
$ 33,524
$ 27,980
$ 37,091
$ 116,460
$ 28,634
$ 27,067
$ 25,931
$ 40,333
$ 121,965
$ 23,402
$ 29,029
$ 32,365
$ 32,255
$ 117,051
$ 19,337
$ 16,983
$ 22,249
$ 25,483
$ 84,052
Non-cash adjustment for OMSR Revenue
(16,144)
(14,099)
(23,046)
(20,997)
(23,940)
(82,082)
(29,472)
(31,499)
(27,386)
(21,570)
(109,927)
(28,716)
(25,815)
(33,644)
(48,230)
(136,405)
(29,347)
(42,128)
(60,947)
(62,392)
(194,814)
(16,378)
(24,855)
(37,423)
(30,592)
(109,248)
(21,097)
(24,695)
(28,685)
(28,725)
(103,202)
Other (income) losses
Other non-cash, non-dilutive, and /or non-economic items and Nasdaq (1)
13
6,638
1,076
2,460
(9,820)
354
86,023
15,473
284
(845)
100,935
5,602
(1,090,192)
(101,245)
(43,791)
(1,229,626)
(1,310)
32,511
(116,135)
58,482
(26,452)
9,952
8,928
(107,337)
15,727
(72,730)
(2,265)
2,580
(93,340)
(23,290)
(116,315)
Total Other (income) losses
13
6,638
1,076
2,460
(9,820)
354
86,023
15,473
284
(845)
100,935
5,602
(1,090,192)
(101,245)
(43,791)
(1,229,626)
(1,310)
32,511
(116,135)
58,482
(26,452)
9,952
8,928
(107,337)
15,727
(72,730)
(2,265)
2,580
(93,340)
(23,290)
(116,315)
Total pre-tax adjustments
72,738
60,236
32,344
55,276
51,447
199,303
105,404
60,763
54,558
66,117
286,842
9,916
(625,217)
(56,455)
(11,711)
(683,467)
11,455
30,153
(95,234)
99,365
45,739
30,310
52,152
(56,369)
170,826
196,919
12,682
61,723
(59,672)
71,658
86,391
Adjusted Earnings before noncontrolling interests and taxes
$ 42,906
$ 40,831
$ 50,292
$ 77,785
$ 133,872
$ 302,780
$ 110,122
$ 140,981
$ 105,762
$ 84,573
$ 441,441
$ 65,073
$ 102,156
$ 160,612
$ 209,785
$ 537,625
$ 30,487
$ 30,885
$ 37,564
$ 93,073
$ 192,009
$ 60,403
$ 93,337
$ 102,961
$ 154,367
$ 411,067
$ 52,102
$ 76,839
$ 91,756
$ 148,079
$ 368,776
GAAP net income (loss) available to common stockholders
$ (16,254)
$ (10,350)
$ 6,429
$ 9,947
$ 36,548
$ 42,574
$ 362
$ 48,519
$ 27,964
$ 6,427
$ 83,276
$ 33,105
$ 439,744
$ 128,549
$ 149,331
$ 750,728
$ 8,179
$ 314
$ 75,348
$ (3,781)
$ 80,060
$ 16,904
$ 22,668
$ 88,698
$ (10,965)
$ 117,305
$ 19,997
$ 739
$ 68,237
$ 17,759
$ 106,732
Allocation of net income (loss) to noncontrolling interest in subsidiaries
(9,113)
(5,310)
5,239
4,498
17,120
21,546
318
13,384
9,308
5,462
28,472
10,814
144,703
33,748
34,665
223,929
5,601
118
24,185
(1,890)
28,014
6,639
9,054
33,287
(5,740)
43,240
11,687
3,311
46,906
21,542
83,446
Total pre-tax adjustments (from above)
72,738
60,236
32,344
55,276
51,447
199,303
105,404
60,763
54,558
66,117
286,842
9,916
(625,217)
(56,455)
(11,711)
(683,467)
11,455
30,153
(95,234)
99,365
45,739
30,310
52,152
(56,369)
170,826
196,919
12,682
61,723
(59,672)
71,658
86,391
Income tax adjustment to reflect adjusted earnings taxes
(9,953)
(9,223)
(875)
(3,830)
9,236
(4,691)
(16,259)
(9,023)
(6,815)
(1,513)
(33,610)
(673)
124,891
23,330
(6,333)
141,215
(1,759)
(4,478)
27,639
(17,961)
5,497
(1,983)
(5,971)
21,333
(21,551)
(8,172)
3
666
23,711
11,463
35,842
Post-tax Adjusted Earnings to fully diluted shareholders
$ 37,419
$ 35,353
$ 43,137
$ 65,891
$ 114,351
$ 258,733
$ 89,825
$ 113,643
$ 85,015
$ 76,493
$ 364,981
$ 53,162
$ 84,121
$ 129,172
$ 165,952
$ 432,405
$ 23,477
$ 26,107
$ 31,939
$ 75,733
$ 159,310
$ 51,870
$ 77,902
$ 86,950
$ 132,571
$ 349,292
$ 44,369
$ 66,439
$ 79,182
$ 122,422
$ 312,411
Per Share Data:
GAAP fully diluted earnings per share
$ (0.09)
$ (0.06)
$ 0.04
$ 0.06
$ 0.21
$ 0.25
$ - 0
$ 0.26
$ 0.15
$ 0.04
$ 0.46
$ 0.16
$ 2.13
$ 0.63
$ 0.74
$ 3.80
$ 0.03
$ (0.01)
$ 0.39
$ (0.03)
$ 0.39
$ 0.08
$ 0.11
$ 0.48
$ (0.08)
$ 0.58
$ 0.12
$ - 0
$ 0.43
$ 0.09
$ 0.65
Less: Allocations of net income to limited partnership units and FPUs, net of tax
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(0.01)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
(0.01)
0.00
0.01
0.01
Exchangeable preferred limited partnership units non-cash preferred dividends
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.02
0.01
0.01
0.00
0.01
0.02
0.01
0.01
0.01
0.01
0.05
0.00
0.00
0.01
0.01
0.02
Total pre-tax adjustments (from above)
0.28
0.25
0.13
0.22
0.21
0.81
0.42
0.25
0.22
0.28
1.17
0.04
(2.29)
(0.22)
(0.05)
(2.59)
0.04
0.11
(0.36)
0.38
0.17
0.11
0.19
(0.21)
0.65
0.73
0.05
0.24
(0.23)
0.27
0.33
Income tax adjustment to reflect adjusted earnings taxes
(0.04)
(0.04)
(0.00)
(0.02)
0.04
(0.02)
(0.06)
(0.04)
(0.03)
(0.01)
(0.14)
(0.00)
0.46
0.09
(0.02)
0.53
(0.01)
(0.02)
0.10
(0.07)
0.02
(0.01)
(0.02)
0.08
(0.08)
(0.03)
0.00
0.00
0.09
0.04
0.14
Other
(0.01)
(0.01)
0.01
(0.00)
0.00
0.01
0.00
(0.01)
0.00
0.01
0.00
(0.01)
0.01
(0.00)
(0.02)
(0.12)
0.01
0.00
(0.02)
0.00
(0.00)
0.00
0.00
(0.04)
0.00
(0.04)
0.00
0.03
(0.00)
0.04
0.07
Post-tax Adjusted Earnings per share
$ 0.15
$ 0.15
$ 0.18
$ 0.27
$ 0.46
$ 1.05
$ 0.36
$ 0.46
$ 0.35
$ 0.32
$ 1.49
$ 0.20
$ 0.31
$ 0.50
$ 0.65
$ 1.64
$ 0.09
$ 0.10
$ 0.12
$ 0.29
$ 0.60
$ 0.20
$ 0.29
$ 0.32
$ 0.50
$ 1.30
$ 0.18
$ 0.26
$ 0.30
$ 0.46
$ 1.22
Pre-tax adjusted earnings per share
$ 0.17
$ 0.17
$ 0.21
$ 0.31
$ 0.54
$ 1.23
$ 0.44
$ 0.57
$ 0.43
$ 0.36
$ 1.80
$ 0.24
$ 0.37
$ 0.62
$ 0.82
$ 2.04
$ 0.12
$ 0.12
$ 0.14
$ 0.35
$ 0.72
$ 0.22
$ 0.34
$ 0.38
$ 0.58
$ 1.53
$ 0.21
$ 0.30
$ 0.35
$ 0.55
$ 1.42
Fully diluted weighted-average shares of common stock outstanding
255,424
239,886
244,954
247,240
249,795
246,343
252,815
247,985
243,469
236,304
245,177
271,194
273,555
257,791
254,318
263,954
263,646
265,640
266,793
264,868
264,851
269,057
270,966
268,350
264,548
268,860
246,834
258,703
262,532
267,626
258,997
Dividends declared per share of common stock
$ 0.03
$ 0.03
$ 0.03
$ 0.03
$ 0.03
$ 0.12
$ 0.03
$ 0.03
$ 0.03
$ 0.03
$ 0.12
$ 0.01
$ 0.01
$ 0.01
$ 0.01
$ 0.04
$ 0.10
$ 0.01
$ 0.01
$ 0.01
$ 0.13
$ 0.10
$ 0.10
$ 0.10
$ 0.10
$ 0.40
$ 0.09
$ 0.09
$ 0.09
$ 0.09
$ 0.36
Dividends paid per share of common stock
$ 0.03
$ 0.03
$ 0.03
$ 0.03
$ 0.03
$ 0.12
$ 0.01
$ 0.03
$ 0.03
$ 0.03
$ 0.10
$ 0.01
$ 0.01
$ 0.01
$ 0.01
$ 0.04
$ 0.10
$ 0.01
$ 0.01
$ 0.01
$ 0.13
$ 0.09
$ 0.10
$ 0.10
$ 0.10
$ 0.39
$ 0.00
$ 0.09
$ 0.09
$ 0.09
$ 0.27
EBITDA-PR
NEWMARK GROUP, INC.
Reconciliation of GAAP Income to Adjusted EBITDA
(in thousands)
(unaudited)
Three Months Ended March 31,
2024
2023
GAAP net loss available to common stockholders
$ (16,254)
$ (10,350)
Adjustments:
Net loss attributable to noncontrolling interests(1)
(10,062)
(5,999)
Benefit for income taxes
(3,516)
(3,056)
OMSR revenue(2)
(16,144)
(14,099)
MSR amortization(3)
28,147
26,204
Other depreciation and amortization(4)
15,819
12,626
Equity-based compensation and allocations of net income to limited partnership units and FPUs (5)
51,443
35,648
Other adjustments (6)
1,799
4,186
Other non-cash, non-dilutive, non-economic items and Nasdaq for Adjusted EBITDA (7)
13
6,638
Interest expense
12,238
11,124
Adjusted EBITDA ("AEBITDA")
$ 63,483
$ 62,922
(1)
Primarily represents portion of Newmark's net income (loss) pro-rated for Cantor and BGC employees ownership percentage and the noncontrolling portion of Newmark's net income in subsidiaries.
(2)
Non-cash gains attributable to originated mortgage servicing rights.
(3)
Non-cash amortization of mortgage servicing rights in proportion to the net servicing revenues expected to be earned.
(4)
Includes fixed asset depreciation and impairment of $11.4 million and $9.2 million for the three months ended March 31, 2024 and 2023, respectively. Also, includes intangible asset amortization related to acquisitions of $4.4 million and $3.4 million for the three months ended March 31, 2024 and 2023, respectively.
(5)
Please refer to Footnote 3 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of "Equity-based compensation and allocations of net income to limited partnership units and FPUs".
(6)
The components of other adjustments are as follows (in millions):
Three Months Ended March 31,
2024
2023
Severance charges
$ 1.4
$ 1.1
Assets impairment not considered a part of ongoing operations
1.5
-0
Commission charges related to non-GAAP gains attributable to OMSR revenues and others
(0.4)
(0.3)
Fair value adjustments related to acquisition earnouts
0.3
0.4
Lease expense (credits) related to liquidating entries
(3.5)
2.9
Acceleration of debt issuance costs
2.6
-0
$ 1.8
$ 4.2
(7)
Please refer to Footnote 9 under Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted Earnings Before Noncontrolling Interests and Taxes and GAAP Fully Diluted EPS to Post-tax Adjusted EPS for additional information about the components of Other non-cash, non-dilutive, non-economic items.
Historical EBITDA Trend Detail
NEWMARK GROUP, INC.
Reconciliation of GAAP Income (Loss) to Adjusted EBITDA
(in thousands)
(unaudited)
2024
2023
2022
2021
2020
2019
2018
Q1
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
FY
GAAP net income (loss) available to common stockholders
$ (16,254)
$ (10,350)
$ 6,429
$ 9,947
$ 36,548
$ 42,574
$ 362
$ 48,519
$ 27,964
$ 6,427
$ 83,276
$ 33,105
$ 439,744
$ 128,549
$ 149,331
$ 750,728
$ 8,182
$ 310
$ 75,349
$ (3,781)
$ 80,060
$ 16,904
$ 22,668
$ 88,698
$ (10,965)
$ 117,305
$ 19,997
$ 739
$ 68,237
$ 17,759
$ 106,732
Adjustments:
Net income (loss) attributable to noncontrolling interest in subsidiaries
(10,062)
(5,999)
4,800
4,206
16,793
19,800
352
13,273
9,946
5,699
29,270
11,473
145,447
34,707
35,779
227,406
6,056
331
24,176
(1,346)
29,217
6,502
9,396
33,871
(5,362)
44,407
12,490
3,555
47,321
21,800
85,166
Provision (benefit) for income taxes
(3,516)
(3,056)
6,719
8,356
29,084
41,103
4,004
18,426
13,294
6,330
42,054
10,579
142,182
53,811
36,386
242,958
4,797
89
33,272
(1,165)
36,993
6,687
9,121
36,760
(132)
52,436
6,933
10,822
35,870
36,862
90,487
OMSR Revenue
(16,144)
(14,099)
(23,046)
(20,997)
(23,940)
(82,082)
(29,472)
(31,499)
(27,386)
(21,570)
(109,927)
(28,716)
(25,815)
(33,644)
(48,230)
(136,405)
(29,347)
(42,129)
(60,947)
(62,392)
(194,815)
(16,378)
(24,855)
(37,423)
(30,592)
(109,248)
(21,097)
(24,695)
(28,685)
(28,725)
(103,202)
MSR Amortization
28,147
26,204
27,885
26,706
29,082
109,877
26,216
25,580
28,703
28,577
109,076
15,067
22,684
20,103
31,937
89,791
39,471
23,865
22,601
25,315
111,252
22,126
27,730
29,546
22,128
101,530
17,824
15,726
21,011
23,862
78,423
Other Depreciation and Amortization
15,819
12,626
14,149
14,757
14,812
56,344
9,259
13,345
15,655
18,480
56,739
5,986
8,184
8,780
8,987
31,937
6,568
5,082
7,026
11,265
29,941
6,178
5,695
7,235
10,507
29,615
4,688
4,475
4,862
5,286
19,311
Equity-based compensation
51,212
35,407
19,487
26,472
43,383
124,749
16,752
34,201
39,213
32,271
122,437
3,615
253,239
20,797
23,511
301,162
12,365
9,877
21,549
56,507
100,298
7,557
27,752
24,150
148,965
208,424
13,356
62,675
11,953
85,199
173,183
Allocations of net income to limited partnership units
231
241
122
3,076
11,503
14,942
147
7,787
4,875
3,067
15,876
10,633
14,293
13,166
17,090
55,182
549
983
29,221
(292)
30,461
6,314
11,602
32,497
- 0
50,413
4,060
4,692
28,824
13,884
51,460
Other adjustments
1,799
4,186
1,528
9,150
(5,385)
9,479
3,363
4,048
81
13,642
21,134
1,582
10,420
3,262
5,380
20,645
(12,229)
3,394
5,642
14,209
11,016
(537)
(303)
(621)
4,471
3,010
(709)
(512)
(673)
(893)
(2,787)
Other non-cash, non-dilutive, non-economic items and Nasdaq (1)
13
6,638
1,076
2,460
2,930
13,105
86,023
15,161
284
(845)
100,623
3,252
(900,030)
(85,271)
(43,791)
(1,025,840)
(1,310)
32,512
(116,135)
58,851
(26,082)
9,952
8,928
(107,337)
15,727
(72,730)
(2,434)
2,578
(93,340)
(30,244)
(123,440)
Interest expense
12,238
11,124
13,749
12,156
11,389
48,418
9,491
10,626
9,877
10,126
40,120
10,344
10,271
10,276
9,007
39,898
10,904
11,756
11,244
10,696
44,600
9,567
10,088
10,177
10,070
39,902
14,820
12,915
14,264
16,808
58,807
Adjusted EBITDA ("AEBITDA")
$ 63,483
$ 62,922
$ 72,898
$ 96,289
$ 166,199
$ 398,309
$ 126,497
$ 159,467
$ 122,506
$ 102,204
$ 510,678
$ 76,920
$ 120,619
$ 174,536
$ 225,387
$ 597,462
$ 46,006
$ 46,070
$ 52,998
$ 107,867
$ 252,941
$ 74,872
$ 107,822
$ 117,554
$ 164,817
$ 465,064
$ 69,928
$ 92,970
$ 109,644
$ 161,598
$ 434,140
(1)
In the detailed reconciliation tables contained within this document and in the Company's most recent financial results press release, the "Impact of Nasdaq" is included as part of the line item "Other non-cash, non-dilutive, non-economic items and Nasdaq for Adjusted EBITDA."
FD WACSO GAAP & AE PR
NEWMARK GROUP, INC.
FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT
FOR GAAP AND ADJUSTED EARNINGS
(in thousands)
(unaudited)
Three Months Ended March 31,
2024
2023
Common stock outstanding
174,774
172,561
Limited partnership units
48,143
- 0
Cantor units
24,868
- 0
Founding partner units
3,018
- 0
RSUs
4,127
- 0
Newmark exchange shares
494
- 0
Fully diluted weighted-average share count for GAAP
255,424
172,561
Adjusted Earnings Adjustments:
Common stock outstanding
- 0
- 0
Limited partnership units
- 0
37,054
Cantor units
- 0
24,608
Founding partner units
- 0
3,488
RSUs
- 0
1,757
Newmark exchange shares
- 0
418
Fully diluted weighted-average share count for Adjusted Earnings
255,424
239,886
Historical Equity-based Comp
NEWMARK GROUP, INC.
Equity-based compensation and allocations of net income to limited partnership units and FPUs
(in thousands)
(unaudited)
2024
2023
2022
2021
2020
2019
2018
Q1
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
Q4
YTD
Issuance of common stock and exchangeability expenses
$ 40,171
$ 24,583
$ 9,897
$ 19,121
$ 32,317
$ 85,918
$ 8,983
$ 26,875
$ 33,330
$ 23,120
$ 92,308
$ 1,218
$ 282,569
$ 14,414
$ 14,517
$ 312,718
$ 8,119
$ 306
$ 13,243
$ 47,373
$ 69,041
$ 661
$ 21,511
$ 17,499
$ 142,043
$ 181,714
$ 21,749
$ 60,334
$ 12,238
$ 85,012
$ 179,333
Limited partnership units amortization
3,282
4,861
3,369
1,532
4,505
14,267
3,274
1,760
181
3,108
8,323
(600)
(33,779)
2,323
3,705
(28,351)
1,895
6,011
4,902
5,885
18,693
6,335
5,044
5,239
4,891
21,509
(8,727)
1,805
(800)
(217)
(7,939)
RSU amortization
7,758
5,963
6,221
5,819
6,616
24,619
4,496
5,566
5,702
6,043
21,807
2,997
4,449
4,059
5,289
16,794
2,351
3,560
3,404
3,250
12,565
562
1,197
1,413
2,031
5,203
334
536
514
404
1,788
Total equity-based compensation
51,211
35,407
19,487
26,472
43,438
124,804
16,753
34,201
39,213
32,271
122,438
3,615
253,239
20,796
23,511
301,161
12,365
9,877
21,549
56,508
100,299
7,558
27,752
24,151
148,965
208,426
13,356
62,675
11,952
85,199
173,182
Allocation of net income to limited partnership units and FPUs
231
241
122
3,076
11,503
14,942
147
7,787
4,875
3,067
15,876
10,633
14,293
13,166
17,090
55,183
549
983
29,221
(293)
30,460
6,313
11,601
32,496
- 0
50,410
4,060
4,692
28,824
13,886
51,462
Equity-based compensation and allocations of net income to limited partnership units and FPUs
$ 51,442
$ 35,648
$ 19,609
$ 29,548
$ 54,941
$ 139,746
$ 16,900
$ 41,988
$ 44,088
$ 35,338
$ 138,314
$ 14,248
$ 267,532
$ 33,962
$ 40,601
$ 356,344
$ 12,914
$ 10,860
$ 50,770
$ 56,215
$ 130,759
$ 13,871
$ 39,353
$ 56,647
$ 148,965
$ 258,836
$ 17,416
$ 67,367
$ 40,776
$ 99,085
$ 224,644
Volumes
Newmark Group, Inc. Quarterly and TTM Volumes
(in $ millions)
2018
2019
2020
Q1 21
Q2 21
Q3 21
Q4 21
2021
Q1 22
Q2 22
Q3 22
Q4 22
2022
Q1 23
Q2 23
Q3 23
Q4 23
2023
Q1 24
Q1 24 vs Q1 23
Change %
Investment Sales (1)
$ 42,269
$ 50,675
$ 48,157
$ 11,678
$ 16,434
$ 22,949
$ 36,949
$ 88,010
$ 18,958
$ 26,066
$ 14,745
$ 11,815
$ 71,584
$ 7,396
$ 7,217
$ 11,431
$ 31,642
$ 57,686
$ 6,668
$ (728)
-9.8%
Mortgage Brokerage (2)
14,025
20,699
12,296
4,376
9,589
9,391
17,968
41,323
10,194
11,559
9,614
6,648
38,015
2,889
5,152
4,998
22,640
35,679
6,050
3,161
109.4%
Total Capital Markets
$ 56,294
$ 71,374
$ 60,453
$ 16,054
$ 26,023
$ 32,340
$ 54,917
$ 129,062
$ 29,152
$ 37,625
$ 24,359
$ 18,463
$ 109,599
$ 10,285
$ 12,369
$ 16,429
$ 54,282
$ 93,365
$ 12,718
$ 2,433
23.7%
Fannie Mae
$ 4,567
$ 3,202
$ 5,421
$ 711
$ 854
$ 1,034
$ 1,569
$ 4,168
$ 1,028
$ 1,358
$ 1,261
429
$ 4,076
$ 616
$ 661
$ 714
$ 1,054
$ 3,045
$ 835
$ 219
35.6%
Freddie Mac
3,982
6,723
5,692
1,388
622
1,386
1,335
4,731
767
575
808
1,440
3,590
377
2,063
931
633
4,004
556
179
47.5%
FHA
165
14
191
14
27
68
17
126
48
- 0
52
23
123
- 0
16
- 0
- 0
16
- 0
- 0
0.0%
Total Origination Volume
$ 8,715
$ 9,939
$ 11,304
$ 2,113
$ 1,502
$ 2,488
$ 2,921
$ 9,024
$ 1,843
$ 1,933
$ 2,121
$ 1,892
$ 7,789
$ 993
$ 2,740
$ 1,645
$ 1,687
$ 7,065
$ 1,391
$ (205)
-10.8%
Multifamily Debt (3)
$ 11,898
$ 16,139
$ 15,643
$ 3,616
$ 6,430
$ 7,211
$ 12,877
$ 30,133
$ 7,444
$ 8,138
$ 6,688
$ 3,378
$ 25,649
$ 1,842
$ 5,257
$ 3,925
$ 3,772
$ 14,796
$ 3,445
$ 1,603
87.0%
Other Debt
10,842
14,500
7,957
2,873
4,661
4,668
8,012
20,214
4,592
5,353
5,046
5,162
20,154
2,040
2,635
2,718
20,555
27,948
3,996
1,956
95.9%
Total Debt (4)
$ 22,740
$ 30,638
$ 23,600
$ 6,489
$ 11,091
$ 11,879
$ 20,889
$ 50,347
$ 12,037
$ 13,492
$ 11,735
$ 8,540
$ 45,804
$ 3,882
$ 7,892
$ 6,643
$ 24,327
$ 42,744
$ 7,441
$ 3,559
91.7%
(1) Includes all equity advisory transactions. Also, includes $21.7 billion for the three months and year ended December 31, 2023 of FDIC related volume.
(2) Includes all non-originated debt placement transactions. Also, includes $17.8 billion for the three months and year ended December 31, 2023 of FDIC related volume.
(3) Includes multi-family related Mortgage Brokerage, Fannie Mae, Freddie Mac, and FHA volumes
(4) Includes all Mortgage Brokerage, Fannie Mae, Freddie Mac, and FHA volumes
Note: Unless otherwise stated, the above Q4 2023 and YTD 2023 volumes in the table include FDIC-related volume.
Liquidity Analysis
NEWMARK GROUP, INC.
LIQUIDITY ANALYSIS
(in thousands)
(unaudited)
March 31, 2024
December 31, 2023
Cash and cash equivalents
$ 140,903
$ 164,894
Marketable securities
86
99
Repurchase agreements and securities loaned
-
-
Total (2)
$ 140,989
$ 164,993
(1) Newmark's undrawn amount on the Credit Facility was $525 million and $600 million as of March 31, 2024 and December 31, 2023, respectively.
&A &Z&F
Summary Cash Flow
NEWMARK GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended March 31,
2024
2023
Net cash (used in) operating activities
$ (68,783)
$ (398,840)
Net cash (used in) investing activities
(7,354)
(118,059)
Net cash provided by financing activities
56,140
498,651
Net (decrease) in cash and cash equivalents and restricted cash
(19,997)
(18,248)
Cash and cash equivalents and restricted cash at beginning of period
258,706
312,952
Cash and cash equivalents and restricted cash at end of period
$ 238,709
$ 294,704
Net cash (used in) operating activity excluding loan originations and sales (1)
$ (101,263)
$ (108,521)
(1) Includes loans, forgivable loans and other receivables from employees and partners in the amount of $161.1 million and $130.5 million for the three months ended March 31, 2024 and 2024, respectively. Excluding these loans, net cash provided by operating activities excluding loan originations and sales would be $59.8 million and $21.9 million for the three months ended March 31, 2024 and 2023, respectively.
The Condensed Consolidated Statements of Cash Flows are presented in summarized form. For complete Condensed Consolidated Statements of Cash Flows, please refer to Newmark's Quarterly Report on Form 10-Q for the three months ended March 31, 2024, to be filed with the Securities and Exchange Commission in the near future.
EBITDA to OCF
NEWMARK GROUP, INC.
Analysis of Operating Cash Flow (Excluding Activity from Loan Originations and Sales) Compared with Adjusted EBITDA
(in millions)
(unaudited)
For the Three Months Ended March 31,
For the Year Ended December 31,
2024
2023
2023
2022
2021
2020
2019
2018
Adjusted EBITDA
$ 63.5
$ 62.9
$ 398.3
$ 511
$ 597.5
$ 252.9
$ 465.1
$ 434.1
Cash paid for interest
(2.8)
(0.7)
(45.4)
(38)
(36.3)
(39.9)
(33.9)
(59.0)
Loans, forgivable loans and other receivables from employees and partners (1)
(161.1)
(130.5)
(243.3)
(132)
(78.5)
(127.9)
(161.9)
(109.6)
Other, working capital
4.4
(31.4)
47.0
19.8
38.1
89.0
37.0
30.5
Corporate Tax payments
(5.3)
(8.8)
(58.6)
(99.6)
(99.4)
(80.3)
(95.1)
-0
Net cash provided by (used in) operations excluding activities from loan originations and sales (2)
$ (101.3)
$ (108.5)
$ 98.0
$ 261.5
$ 421.4
$ 93.8
$ 211.2
$ 296.0
(1) Primarily includes employee loans and advances for new hires, therefore amounts may differ from "Loans, forgivable loans and other receivables from employees and partners" in the consolidated statements of cash flows.
(2) Includes loans, forgivable loans and other receivables from employees and partners in the amount of $161.1 million and $130.5 million for the three months ended March 31, 2024 and 2024, respectively. Excluding these loans, net cash provided by (used in) operating activities excluding loan originations and sales would be $59.8 million and $21.9 million for the three months ended March 31, 2024 and 2023, respectively.
Details of CFFO
NEWMARK GROUP, INC.
DETAILS OF CERTAIN COMPONENTS OF "NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES"
(in millions)
(unaudited)
For the Three Months Ended March 31,
For the Year Ended December 31,
2024
2023
2023
2022
2021
2020
2019
2018
Cash generated by the business
59.8
21.9
341.2
393.1
499.9
221.7
373.1
405.6
Cash used with respect to the 2021 Equity Event
- 0
- 0
- 0
- 0
(484.4)
- 0
- 0
- 0
Loans, forgivable loans and other receivables from employees and partners
(161.1)
(130.5)
(243.3)
(131.6)
(78.5)
(127.9)
(161.9)
(109.6)
Net cash provided by (used in) operating activities excluding activity from loan originations and sales
(101.3)
(108.5)
98.0
261.5
(63.0)
93.8
211.2
296.0
Less:
Loan originations - loans held for sale
1,567.0
802.2
6,913.1
7,823.2
9,142.1
12,374.2
8,783.2
8,612.7
Loan sales - loan held for sale
(1,599.5)
(511.9)
(6,549.1)
(8,758.0)
(9,177.7)
(11,527.0)
(9,564.0)
(8,002.9)
Unrealized gains on loans held for sale (1)
- 0
- 0
- 0
- 0
21.3
24.3
5.2
18.3
Net activity from loan originations and sales
(32.5)
290.3
363.9
(934.8)
(14.3)
871.5
(775.6)
628.1
Net cash provided by (used in) operating activities
(68.8)
(398.8)
(266.0)
1,196.3
(48.7)
(777.7)
986.8
(332.2)
(1) Starting with the 3rd quarter of 2022, we no longer included "Unrealized gains on loans held for sale" as part of the "Net activity from loan originations and sales" addback as this item had a relatively immaterial impact on the cash flow figures reflected above.
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Newmark Group Inc. published this content on
03 May 2024 and is solely responsible for the information contained therein. Distributed by
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Newmark Group, Inc. is a commercial real estate advisor and service provider to institutional investors, global corporations and other owners and occupiers. The Company offers a diverse array of integrated services and products designed to meet the full needs of its clients. Its investor/owner services and products include capital markets, which consists of investment sales and commercial mortgage brokerage, including the placement of debt, equity raising, structured finance and loan sales on behalf of third parties; landlord (agency) leasing; valuation and advisory; property management; its commercial real estate technology platform and capabilities; business rates for United Kingdom property owners; due diligence, consulting and other advisory services; government-sponsored enterprises (GSE) and the Federal Housing Administration (FHA), lending, including multifamily lending and loan servicing; limited loan servicing and asset management, and flexible workspace solutions for owners.