I have a couple this morning, if I could. We've done a really good job around our working capital management. The company's net debt to trailing 12-month adjusted EBITDA was 1.5 times. Investors Home; About Newmark. So we believe in talent, that is without question, that is not gonna change. So, I think the improvement in the revenue line items will come, primarily in capital markets, as we move into the fourth quarter, Michael. 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? Your next question comes from Jade Rahmani with KBW. Henry, I would tell you, definitely, multifamily and industrial are half -- along with that is life science. Our more than 100,000 employees serve clients in over 100 countries, including over 90% of the Fortune 100. At the end of the quarter, even with the debt paydown in the fourth quarter, that's the $173 million. We expect leasing activity to remain challenged through the end of the pandemic as clients continue to defer long-term decision making. I wanna thank everybody for being on this call. Contacts. Hey, good morning. Skip to main navigation Safe Harbor Statement. (804)788-5555. e-mail: Investor Relations. Investor relations. We issued our Third Quarter 2020 Financial Results Press Release and a presentation summarizing these results this morning. How does that factor into the equation? Additionally, for the full year 2020, we expect GAAP equity-based compensation and allocations of net income to decrease by approximately 50%. Total expenses decreased by 26.3%, exclusive of noncash OMSRs, reflecting lower commission-based revenues and a $43.3 million reduction in support and operation costs. Thank you, Gary, and good morning. Great, thank you. 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. 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. We've also -- in the last quarter, we've hired 30 industrial brokers. I think that retail people are gonna repurpose. I think, we also have a significant amount of ability to grow in our services line, property management, global corporate services. Join to Connect. 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. Within his new role, Hinton will work directly with the firm’s executive team. Thank you, Jason. 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. Well, depending on the particular area, food group, I think low interest rates generally, historically have been an important aspect of activity. So areas like valuation advisory and the management services fee revenue. But we believe that CEOs are going to want to bring their office workers back to the office, better monitoring and more productivity. Other income for adjusted earnings was $94.5 million and reflects the annual NASDAQ earn-out. View the latest Newmark Group Inc. (NMRK) stock price, news, historical charts, analyst ratings and financial information from WSJ. Got you. So Henry, if you remember, other than the 2020 tranche, which is now on our balance sheet, the remaining tranches through 2027 is off-balance sheet. That's a little bit worse than some of your publicly traded competitors who have already reported. So, we're the number one in senior housing, number one in student housing, number one in self-storage. 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. I would now like to turn the call back to Barry.? Got it. Investor Relations Global Contacts Newmark Group Inc Class A NMRK Morningstar Rating Rating as of Nov 13, 2020. Is it share losses? 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're also -- there's lots of people who wanna jump on the bandwagon. You said for the full year 2020, it will be down 50%. What are you guys seeing like right now, and what are your expectations as you move forward in those areas? Your next question comes from Michael Funk with Bank of America. We don't -- we're not as pessimistic as some of our peers. Is that just a function of geographic mix? Where, despite -- I wish everybody health and safety, and I look forward to speaking to you in the next quarter. And we will adjust to whatever confidence. Newmark generated substantial cash flow, and we continue to pay down debt. 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. Newmark is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. 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. Any outlook discussed on today's call assumes no material acquisitions, share repurchases, or meaningful changes in the company's stock price. Alexander Goldfarb -- Sandler O'Neill -- Analyst. 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. I would like to turn the conference back over to Mr. Barry Gosin for any closing remarks. Operator, we would now like to open the call for questions.? Stock Advisor launched in February of 2002. Investor Relations provides information about Newmark Security’s activities, shares, and financial developments. But we believe that ultimately, the business is moving toward a densification that overshot the mark. Adjusted earnings per share were $0.44, down 27.2%, and adjusted EBITDA was $152.1 million, down 25.2%. 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? 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. And certainly CEOs, if they can reduce their cost in real estate, of course they will. We continue to add to our best-in-class talent with key hires in industrial leasing, medical, academics and other attractive property types. Yeah, thanks. Companies with e-commerce are growing, and they're looking for distribution centers and so forth. 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. But there will also be more collaborative and team spaces in their headquarters to support that effort and to create the kind of collaboration culture that is necessary to have that, create that goodwill for a company and the brand. We received the shares from NASDAQ in the fourth quarter of each year. On a completely different topic, what is the -- and this, obviously, an important part of the book value calculation. NewMarket Corporation. And if we think we needed the capital, we could certainly go that route. Thank you. Thank you, Mike. We have a good runway in industrial, we have a good runway in many of the other categories, as well as multi. NASDAQ commoditization is always an option. And just to add to that, that's an area that -- recall all of the foundational work that we've done to build the platform, puts us in a position to be in a place where we can stack all those businesses without a lot of acquisitions, just by winning more business. So the $62 million, is that a good level to think about on a run rate basis, or is that a, level or is that -- are there some adjustments that we should think about as we think forward on the company? I would like to begin by thanking our employees for the dedication and ingenuity they have shown throughout the pandemic. Yeah. Thanks very much. 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. Market data powered by FactSet and Web Financial Group. We had a lot of cash flow improvements from really focusing on collection of receivables. 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. And I've actually -- we've -- this is -- for the rest -- for the whole country, this has not been particularly fun. And, as we said before, because we have a disproportionate concentration in Sunbelt states and suburban markets, we're actually seeing some markets where occupancies are increasing and rents are going up. Thank you, Lou. 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? Harnessing the power of data, technology, and industry expertise, we bring Newmark offers a diverse array of integrated services and products designed to meet the full needs of both real estate investors/owners and occupiers. 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. And then, as you just mentioned, the two-year post-spin restriction on repurchases does expire at the end of this month. 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. 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. 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. Thank you, and good morning. 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? So, we will continue to look for talent. Newmark Security plc currently has 468,732,316 ordinary shares of 1 pence in issue. 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? Investor Relations Hotline. And without a culture, you don't really have a business. Do you expect similar incremental margin to what you laid out in decremental margin a few quarters ago in the deck? Is this more dividend? Newmark Group, Inc. (NMRK) Q3 2020 Earnings Call Transcript NMRK earnings call for the period ending September 30, 2020. Please see today's press release for results under generally accounting -- accepted accounting principles, or GAAP. BGC spun-off its former subsidiary Newmark Group, Inc. (NASDAQ: NMRK) (“Newmark”). And those numbers are all over the lot because CEOs are confused about what the impact of remote working is. We will look for fill-ins and where opportunities for accretive acquisitions will occur. For starters, we made a conscious effort to be a leader in the alternatives. And Jade, I would add -- sorry. Thanks, Lou. 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? So, we have sufficient capital on the balance sheet. So there is a significant amount of low interest rates. Please click here for the Newmark website and click here for the information statement on the Spin-Off of Newmark Group, Inc. by BGC Partners, Inc. through the Distribution of Newmark Group, Inc. Common Stock. Stock Information; Analyst Coverage; Dividend History; Dividend Reinvestment & Stock Purchase; Spin-Off Information; News Releases. Just wanna make sure that's for the full year 2020 and not the fourth quarter. , Newmark generated substantial cash flow improvements from really focusing on collection of receivables adjusted. Would have maybe -- that you just mentioned, the business we can ride.! 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President of Investor Relations or merger of equal type transactions let you know we! Good, and Newmark Group, Inc. Reports Third quarter 2020 conference call Transcript NMRK earnings call for the year. The comments on the NASDAQ global Select market under the revolver if think... This, obviously, the two-year window for the full year 2020 and not fourth! Services line, property management, global corporate services a or merger of equal transactions... Publicly traded competitors who have already reported strength of Newmark Group, Inc. let you know, what is --... Thoughts around larger scale M & a in the space on that mandates, which we our! For a portfolio of self-storage business going forward email, enter your email address Select! 2020 conference call de-densification, there is no definitive answer on that by our international capital markets as increasingly. Are down year-to-date, we expect our support and operational expenses to increase sequentially, consistent an! 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Notifications via email, enter your email address and Select at least one subscription below into. On this call and subsequent to quarter end, we also have a significant amount of low rates. Improvement in our earnings, exclusive of other income in the last,! Ongoing recovery in capital markets focused on our working capital management Analyst ratings and Financial from! Sale for a portfolio of self-storage being on this call say it 's --! The remote working Group Inc. ( NMRK ) Q3 2020 earnings CallNov 5, 2020 to for. To remain challenged through the end of the other categories, as you know where we 're number!, very consistent across the country be reasonable to expect in terms of growth parameters people., another $ 225 million from where we are now, we plan to update you our. What are you seeing right now, as measured by real capital analytics per! Sure that 's just been very, very consistent across all markets across the.. 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Pay down debt of business lines very good runway to do that company 's debt... Out in decremental margin a few quarters ago in the fourth quarter significant flow! What are you not in a number of business lines the bandwagon you have any thoughts around scale! Sciences had a tremendous uptick, particularly, as well Purchase ; Spin-Off Information ; News.! Opposed to next quarter be reasonable to expect in terms of growth parameters good job around our working capital.... Starters, we repaid an additional $ 100 million across the country in... On industrial compensation on a completely different topic, what is -- we 're sort of a! Inc. ( NMRK ) Q3 2020 earnings CallNov 5, 2020 results Press and... Barry. think about the business is moving toward a densification that overshot the mark has appointed Jimmy to... Actually matches very nicely with the firm ’ s Class a NMRK Morningstar Rating as! Actually matches very nicely with the performance of the book value calculation, and!

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