Newmark Group, Inc.

Good morning and welcome to the Newmark Group, Inc. Report Third Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. I would now like to turn the conference over to Mr. Jason Harb, Head of Investor Relations. Please go ahead.

Thank you and good morning. We issued our third quarter 2020 financial results press release and a presentation summarizing these results this morning. The results provided on today's call compare only the third quarter of 2020 with the year earlier period. 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. We will be referring to our results on this call only on an adjusted earnings basis unless otherwise stated. We may also refer to adjusted EBITDA. Please see today's press release for results on a generally accepted accounting principles or GAP. 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. Additional information with respect to our GAAP and non-GAAP results mentioned on today's call is available on our website and in our investment presentation. Any outlook discussed on today's call assumes no material acquisitions, share or purchases, or meaningful changes in the company's stock price. 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. 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. Except as required by law, NUMARC undertakes no obligation to update any forward-looking statements. For discussion of additional risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see NUMARC 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. I'm now happy to turn the call over to our host, Barry Gosin, CEO of Newmark Group, Inc.

Thank you, Jason. Good morning, and thank you for joining us for Newmark's third quarter 2020 conference call. 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. I would like to begin by thanking our employees for the dedication and ingenuity they have shown throughout the pandemic. 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. Despite the challenges facing commercial real estate, we saw sequential improvement and market share gains in several key business lines. Our capital markets and debt volumes rebounded by 50% quarter over quarter. We increased our year-to-date market share in investment sales and GSE originations by 100 basis points and 50 basis points respectively. Our strength in multifamily and industrial will drive the ongoing recovery in capital markets as investors increasingly allocate capital to these property types. We are focused on growth in businesses with solid margins and recurring revenue, such as global corporate services, property management, and valuation advisory. These businesses comprise 25% of our revenues in the third quarter, and our near-term objective is to grow these businesses to 33% of our overall revenues. Our expectation is that the low 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. Multifamily, life sciences and industrial should outperform the property types in the fourth quarter and into 2021. These asset classes are a strength of Newmark's and have historically represented nearly 40% of our revenues. On October 19th, we unveiled our new brand, Newmark. which reflects the organization that we've become, a world leader in commercial real estate services on the forefront of industry trends. We maintain our global reach through our partnership with Knight Frank augmented by our international capital markets and global fundraising capabilities. We continue to add to our best in class talent with key hires in industrial leasing, medical, academics, and other attractive property types. The platform we have built positions us to outperform as the markets recover. With that, I'm happy to turn the call over to Mike.