Newmark Group, Inc.

Ladies and gentlemen, good day and welcome to the Newmark Group 3Q 2024 Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Jason McGruder, Head of Investor Relations. Please go ahead, sir.

Thank you, Operator. Good morning. Newmark issued its third quarter 2024 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the three months ending September 30th, 2024 with the year earlier period. Except as otherwise stated, we will be referring to results only in a non-GAAP basis, including the terms adjusted earnings and adjusted EBITDA. Unless otherwise stated, any figures today with respect to cash flow from operations refer to net cash provided by operating activities, excluding GSE FHA loan origination and sales. We may also use the term cash generated by the business, which is the same operating cash flow metric before the impact of cash used for employee loans. Please refer to today's press release, supplemental tables, and the quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliation of these items to the corresponding GAAP results, and how, when, and why management uses them. For additional information on our cash flow measures, as well as relevant industry and economic statistics. The outlook discussed today assumes no material acquisitions or meaningful changes in our stock price. Our expectations are subject to change based on various macroeconomic, social, political, and other factors. None of our targets or goals beyond 2024 should be considered formal guidance. I also remind you that information on this call contains forward-looking statements, including, without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and certainties which could cause actual results to differ from expectations. Except as required by law, we undertake no obligation to update any forward-looking statements. For complete discussion of risks and other factors that may impact these forward-looking statements, see our SEC filings, including but not limited to the risk factors and disclosures regarding forward-looking information in our most recent S&C filing, which are incorporated by reference. I'm now happy to turn the call over to our host, CEO, Barry Gustin.

Good morning, and thank you for joining us. Newmark's growth accelerated as every major business line improved during the quarter. We increased capital markets revenues by over 18%, the fourth consecutive quarter of double-digit improvement. performance was fueled by a 77% increase in our mortgage brokerage volumes. With approximately $2 trillion of U.S. commercial and multifamily mortgages maturing in the near term, our professionals are incredibly active finding new sources of debt and equity capital for our clients, including private credit, CMBS, and insurance companies, while still matching borrowers with the GSEs and banks. Newmark's pipeline of capital market transactions across debt, equity placement, and investment sales is incredibly robust, and we expect this to continue through 2025. In addition, we increased our Fannie Mae origination volumes by 58% over the trailing 12 months compared with a year earlier, which will fuel the future growth of our high margin primary servicing business. We generated an 11% revenue increase in management services and servicing. The broad-based organic growth marked the fifth consecutive quarter, a strong improvement for these businesses. We expect continued growth of these service lines and target doubling them to over $2 billion within five years. We increased leasing fees by 6%, led by growth across retail and industrial, which are businesses we have strategically grown over the past several years. We remain bullish on the fundamentals of retail leasing, where availability in the U.S. remains at historic lows and asking rents continue to climb. We also expect industrial leasing to continue benefiting from the tailwinds provided by growing demand for data centers, as well as reshoring and nearshoring of North American manufacturing. Office leasing activity continues to increase as more companies commit to space and mandate returning to the workplace. We anticipate the recapitalization of properties at lower values to further drive leasing activity. Newmark continues to be the platform of choice for the industry's most talented professionals, as we continue to attract industry leaders across service lines and geographies. Following our recent expansions in France and the UK, we are now building Newmark in Germany. With improved macroeconomic and monetary environment, sustained growth in demand for our services, and our continued market share gains, we are more excited than ever about Newmark's future. With that, I'm happy to turn the call over to Mike Rispoli.