So we're sufficiently diverse and very focused on getting people who are talented in the business, so that will increase -- we'll continue to increase our market share, which is really important. The results provided on today's call compare only the third quarter of 2020 with the year earlier period. I'm trying to think about the business going forward. Thanks, Lou. 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. What are your thoughts about buying back stock? NASDAQ commoditization is always an option. Question is, do you expect capital markets growth to turn positive in 2021? We kinda consider ourselves more in the Navy Seal category. And secondly, over what time period do you think a recovery in volumes might take place, getting back to the average north of $500 billion that we've seen over the past five years? What is your estimate of the current sort of additional gain that you could realize on your NASDAQ share that's not captured in book value right now? Newmark Group, Inc. provides commercial real estate services in the United States and internationally. Look, we have a good runway. Richmond, VA 23218. Sure. There are certain aspects of the office workers that have to be in the office, and some more perfunctory contract workers that will work more remotely. P.O. Harnessing the power of data, technology, and industry expertise, we bring 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. 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. Due to strong GSE originations, gains from mortgage banking increased 26.1%. 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. Well, depending on the particular area, food group, I think low interest rates generally, historically have been an important aspect of activity. Thank you. To receive notifications via email, enter your email address and select at least one subscription below. And I've actually -- we've -- this is -- for the rest -- for the whole country, this has not been particularly fun. So there is a significant amount of low interest rates. 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. Sure. How does that factor into the equation? 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. While we are not providing specific revenue or earnings guidance for 2020 due to continuing market uncertainty, we expect U.S. capital markets volumes to continue their sequential improvement, led by strength in multifamily and GSE originations. Please go ahead.? We don't -- we're not as pessimistic as some of our peers. Our integrated platform seamlessly powers every phase of owning or occupying a property. So, we have sufficient capital on the balance sheet. 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. The comment was around the full year 2020, Jade. And it sounds like things are, as you said, getting better as far as certainly, capital markets, everyone loves industrial and multifamily. On the office -- or not the office, on the leasing side, on the brokerage side, leasing side of the business, often, we speak to brokers, we'll hear about commission sharing where you get a big tenant who does a big deal, and then they say, "Hey, I want x percent of the leasing commission." And then, is this something that would be more on a recurring basis, meaning it would be sustainable quarter after quarter, or are these some one-time measures that you're compensated? While we've done a good job, and we have a variable expense structure, and we've done a good job on fixed expenses, we do see some decline in margin for the full year. Capital markets revenues, including gains from mortgage banking, were down 19.8%. View the latest Newmark Group Inc. (NMRK) stock price, news, historical charts, analyst ratings and financial information from WSJ. First, thank you for the improved disclosure with the owners and the breakout, so that is -- that's helpful for a go-forward. Newmark Security plc currently has 468,732,316 ordinary shares of 1 pence in issue. 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. Please go ahead. And then, as you just mentioned, the two-year post-spin restriction on repurchases does expire at the end of this month. And because we retain the upside, the earn-out will generate $28 million of additional liquidity based on NASDAQ's September 30 closing price. In 2019, Newmark generated revenues in excess of $2.2 billion. We've also -- in the last quarter, we've hired 30 industrial brokers. You can sign up for additional subscriptions at any time. 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? And can you give a range of maybe what might be reasonable to expect in terms of growth parameters? Multifamily, life sciences, and industrial should outperform the property types in the fourth quarter and into 2021. So it's not -- we're not -- it's not too distant before we see 40% to 50%. We are focused on growth in businesses with solid margins and recurring revenue, such as global corporate services, property management, and valuation advisory. So I think that was probably hurt a little bit more. But still, at the end of the day, this is -- we're in the middle of the pandemic. We increased our year-to-date market share in investment sales and GSE originations by 100 basis points and 50 basis points, respectively. But we believe that ultimately, the business is moving toward a densification that overshot the mark. Thank you, Jason. We will look for fill-ins and where opportunities for accretive acquisitions will occur. These include statements about the effects of the COVID-19 pandemic on the company's business results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risks, but the actual impact may differ perhaps materially from what is currently expected. We have built a company that has remained strongly profitable during the quarter. 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. 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. Patrick O'Shaughnessy -- Raymond James -- Analyst. And without a culture, you don't really have a business. But we believe that CEOs are going to want to bring their office workers back to the office, better monitoring and more productivity. Returns as of 12/24/2020. We have seen a little bit of stress in New York, for instance, San Francisco. In addition to that, we'll get the NASDAQ shares, which, at September 30, are worth an additional $28 million. I would now like to turn the conference over to Mr. Jason Harbes, Head of Investor Relations. Bill McCarthy Vice President Investor Relations 3460 Preston Ridge Road, Suite 600 Alpharetta, GA 30005 Investors@neenah.com Box 2189. Jade, the last thing I would point out there is that, because of the strength of our balance sheet, we do have the ability both to return capital to shareholders and invest in the business over the near term. We've kind of viewed ourselves in many respects, all assets that we've acquired, 50 companies, smaller companies. We've done a really good job around our working capital management. Do you have any thoughts around larger scale M&A or merger of equal type transactions? Market data powered by FactSet and Web Financial Group. And we will adjust to whatever confidence. In the third quarter, our revenues were down 25.7% due to the impact of the pandemic on industry volumes. Can you provide some color on your non-transactional revenue during the quarter? Hey, good morning. ... in new window) PDF 585 KB Press Release (opens in new window) PDF 129 KB Supplemental Tables (opens in new window) XLSX 849 KB. Do you think those create value? (804)788-5555. e-mail: Investor Relations. Investor Relations provides information about Newmark Security’s activities, shares, and financial developments. No, I think we can continue to generate cash flows from the business. And what would you expect for 2021? So I think it's OK. 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. Description. Our expectation is that the lower interest rate environment, significant capital available for real estate, improving real estate credit markets and the narrowing bid-ask gap between buyers and sellers in many parts of the market should drive capital markets activity going forward. So how are you guys thinking about the impact of urban flights and the resulting boom in single-family housing on your multifamily business? Total cash and cash equivalents were $273 million. Sure. So it's hard to -- this is a very fluid situation, but I think we'll be moving in the direction of getting back to the volumes that we were at. Newmark Group’s Class A common stock trades on the NASDAQ Global Select Market under the ticker symbol “NMRK”. Other income for adjusted earnings was $94.5 million and reflects the annual NASDAQ earn-out. For starters, we made a conscious effort to be a leader in the alternatives. NEW YORK – Newmark Group Co. has appointed Jimmy Hinton to the newly-created position of head of investor strategies. Good morning. Knight Frank is a service mark of Knight Frank (Nominees) Limited. independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a And subsequent to quarter end, we repaid an additional $100 million. But certainly, with the stock trading, where it is now, it is an attractive choice with respect to returning capital to investors. We see a lot of velocity from lenders that have portfolios that need to be revalued. CBRE is also the largest commercial property developer in the United States, and has nearly $114.5B of Assets Under Management within our Global Investors business. Thank you, and good morning. We have sufficient ability to borrow under the revolver if we need to, another $225 million from where we currently stand. Thank you for the question. So it remains to be a pretty substantial off-balance sheet asset for us. I think you'll see it in our deck. Well, clearly, we're seeing -- I wouldn't call it urban flight, but we are seeing some migration from urban areas to suburban areas. I would now like to turn the call back to Barry.? Newmark Group (NMRK) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.43 per share. We maintained strong liquidity and credit metrics. And let me add my congratulations. We think, where we are now, as we're in office, it's gonna get better. There is -- we're already seeing an enormous amount of activity on the multi-space, the industrial, the data centers, life science, etc., so some of that is coming back. We have captured market share in a number of business lines during a period of extraordinary difficulty. 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. 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? 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 … Yes, Patrick, that's a great question. We had a lot of cash flow improvements from really focusing on collection of receivables. And then we'll let you know where we're at on the next call. He will coordinate the development of strategies to drive value for clients, shareholders and professionals. ET, Good morning, and welcome to the Newmark Group, Inc. Reports Third Quarter 2020 Financial Results Conference Call. And so we're encouraged by that. Valuation and advisory has continued to perform quite well. Can you comment on M&A in the space? But as soon as that discovery per se is there. 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. So areas like valuation advisory and the management services fee revenue. Good morning, and thank you for joining us for Newmark's Third Quarter 2020 Conference Call. I think, we also have a significant amount of ability to grow in our services line, property management, global corporate services. I don't expect any change. We expect our support and operational expenses to increase sequentially, consistent with an overall increase in activity. The second question is, Mike, appreciate the comments on the $62 million of cash flow in the quarter. And it's a critical piece of getting people back to the offices and back to what we were before. And all those, there is no definitive answer on that. At the end of the quarter, even with the debt paydown in the fourth quarter, that's the $173 million. But we've done fairly well by doing acquisitions of the right people that fill the right space in our company. Operator, we would now like to open the call for questions.? Sure. I would like to turn the conference back over to Mr. Barry Gosin for any closing remarks. 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. The two-year window for the spin-off ends on November 30. Michael Rispoli -- Chief Financial Officer. So we feel really confident and comfortable. But surprisingly, the pricing on multi has been good and consistently looks good, and I'm encouraged into '21. As far as office goes, there's been a lot of talk, a lot of discussion about office as to what is -- what's the meaning of office? Turning to our earnings. Companies with e-commerce are growing, and they're looking for distribution centers and so forth. 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. Newmark Group, Inc. (NASDAQ:NMRK)Q3 2020 Earnings CallNov 5, 2020, 10:00 a.m. I'll take the multi, and Lou can comment on industrial. So right now, we don't view that as a headwind or a structural challenge for the multifamily business. Our strength in multifamily and industrial will drive the ongoing recovery in capital markets as investors increasingly allocate capital to these property types. The question of whether people have their own desk, their own bench, is still open. Go ahead, Lou. Joining me virtually on the call today are Newmark's Chief Financial Officer, Mike Rispoli; our Chief Strategy Officer, Jeff Day; and our Chief Revenue Officer, Lou Alvarado. Together with London-based partner Knight Frank and But the preponderance of our portfolio actually matches very nicely with the performance of the market right now. There are continued restrictions around the two-year window. 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. 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. We'll likely see suburban office come back quicker. 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. Moving on to the balance sheet. Investors. Michael Funk -- Bank of America -- Analyst. Newmark Group, Inc. ... Jason Edward Harbes-- Vice President of Investor Relations. [Operator Instructions] Your first question comes from Alexander Goldfarb with Sandler O'Neill. Any outlook discussed on today's call assumes no material acquisitions, share repurchases, or meaningful changes in the company's stock price. And that's that -- and we have a pretty good industrial team that we inherited going as far back as [Indecipherable], which had a big industrial base, certainly on the West Coast. ?This brings us back to our pre-pandemic debt level. Yeah, on the industrial side, I would say it's pretty consistent across the country. This concludes our question-and-answer session. Life sciences had a tremendous uptick, particularly, as you know, what's happened with the pandemic. 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. Okay, and then Barry, just one final question. % quarter-over-quarter ; Dividend Reinvestment & stock Purchase ; Spin-Off Information ; Releases. Come back quicker at home improvement in our services are tailored to every type of client, from to... A structural challenge for the Spin-Off ends on November 30 may begin when take! As much renters making that transition as it is homeowners you saw $ billion... Leasing revenues were down 25.7 % due to the newly-created position of head of multifamily capital markets receive email! The other income for adjusted earnings was $ 94.5 million and reflects the annual NASDAQ earn-out GAAP equity-based compensation allocations! Assumes no material acquisitions, share repurchases, or meaningful changes in the to. Item year-over-year in the office is going to be a part of the as. And Newmark Group Inc Class a common stock trades on the bandwagon another $ 225 million where. 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