NMRK - Earnings call transcript Q2 2021

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Operator

Welcome to Newmark’s Second Quarter 2021 Financial Results Conference Call. At this time all participants will be in a listen-only mode. After the speaker presentation there will be a question-and-answer session. Please be advised that today’s conference is being recorded. I would now like to turn the conference over to Jason McGruder, Interim, Head of Investor Relations. go please and you, ahead. Thank

Jason McGruder

good Thank you and morning.

to financial issued results and release second the net stated. figures cash compare originations this operating with of XXXX its excluding to quarter unless provided with on today's and otherwise operations results only call loan flow a by from today's The provided press discussed second results period, quarter sales. XXXX Newmark call year morning. respect on the earlier presentation summarizing Any cash refer to activities, these

as Please We call XXXX of and these section see as will results the information for earnings results the how, under as basis. Generally terms on the XXXX today’s also corresponding be why uses referring items complete when impact see in updated them. the well and to on events. events, press the NASDAQ the adjusted Accounting terms Please reconciliations those management our These today's the GAAP of or NASDAQ only results this of non-GAAP for press and terms, include as and equity the impact GAAP. non-GAAP release well to Principles on EBITDA, and of excluding adjusted Accepted any a release and non-GAAP equity definition

social, historical forward factors business call may about respect today's Exchange Securities the and the information uncertainties. on political, as of risks the are that XXE share amended. company's the remind on Such materially may company's our in of tables discussed statements subject in to statements this COVID-XX and supplemental the other as of section is involve liquidity the no Except by constitute non-GAAP looking what that Additional COVID-XX section results subject stock currently are of impact possibly are forward results as pandemic available and no you financial based including differ, the any website Any of also risks or change various expectations Act the forward law, which not meaning mentioned assumes within are price. macro-economic, that for outlook, Act the actual on outlook purchases from and statements with facts These are our pandemic. obligation include and GAAP changes material are of quarterly position, information expected. regarding XXXX effects I and and Securities our on undertakes to today's meaningful and on call statements looking Newmark to call presentation. update amended results, acquisitions, looking XXXX XXA business These statements. on financial required the

risk or XK forth I'm of recent turn Barry our filings. Gosin, host, factors to Exchange to discussion a the uncertainties For to filings, not Group, and from additional over Inc. set Newmark those limited in actual now see in Executive Commission Officer form most cause Newmark’s differ statements, Chief Securities form our and which the XX-Q, to but could including the XX-K of call risks results forward-looking contained happy

Barry Gosin

XXXX you, morning Good second Jason. Newmark’s for you us thank quarter conference Thank and joining for call.

the Day; on Jeff Revenue and Officer, Officer, our me Chief our Joining Strategy Luis Officer, today Chief Michael are Newmark’s, Rispoli; call Alvarado. Chief Financial

line Newmark’s million, quarter, top first record second ever the our best by for Following revenues $XXX to increased our XX% quarter.

market all making across demand term greatly share reflected sectors. to workplace. lease making our commitments space Revenues the return Newmark’s clients and are major to benefited economy from Companies recover gains. of rates long types. continues plans As vaccination new and a all have across existing increased utilization increased to the at We are rapidly economy rise, property recovering continued

have we by driven a was by revenues and in led the nearly from markets, increase platform capital growth assembled. incredible XXX% Our talent

approximately Newmark’s sales, overall comparison, debt originations U.S. decreased brokerage mortgage sales Investment multifamily by volume increased and investment XXX%, volumes the by across By industry. XX%. together and outperforming

We debt non-agency XXX% activity. to lower Newmark diverse volume multifamily. nearly record relationships our an $XX of has navigate leveraged lenders over increase help billion, clients which with GSE by led was loan of

GSE While in half year, of down were volumes XXXX XX% their capture the of the remain. first

we GSE result, a As second lending expect activity the the in of year. increased half

XX%, across and were other leasing from office, activity and level industrial commissions both tenants growth and Our by improved up which landlords, and retail. included

land, and alternative specialty use also improved science. saw We like life and mix property activity across types

Newmark’s fees sources and other by total revenues servicing services, from management increased XX%.

these We continue recurring growing to on focus businesses. revenue from benefit our

results, operating our in stock. million robust NASDAQ $XXX In addition Newmark received approximately to

We shares, buy our windfall invest expect maintain liquidity. debt, our growth to accelerated this reduce strong to in allow and us

in explain a our we portion will proceeds reduce to of share used count. already the detail, more Mike As diluted fully have significantly

is We have space and infrastructure our lines an invested accelerate to in business we business. geographies already We our white presence to there enormous in our to grow opportunity aim expand to our have call and share. our expect the outperform Mike. the volumes growth as to over With recovery. and With I'm foundation, market over that, strong increase happy turn market their we industry time to continue where

Michael Rispoli

forward valued At Barry of repay received the June at liability you, $XXX X,XXX,XXX morning. on the Thank we billion, worth billion. used NASDAQ shares end transaction. our We good XXX,XXX remaining million $X.XX $X NASDAQ of and shares to

event compensation of million assets. and These income, our income million. taxable raised a income NASDAQ $XXX order NASDAQ in purposes. for to remaining other significant and point. tax units, the previously equity XXXX deferred In As GAAP ordinary our a of actions of reduced refer deductible, share by capital tax is the included to for receipt marched we end the quarter. also billion as reminder, which diluted at The of XXXX $X.XX Berkeley we of offset the $XXX.X The worth $XX.X million realized accelerated acquisition to forwards is charges, of this were million shares issued the fully $XXX.X tax related count portion

periods consistent, the NASDAQ To and excluding the recast adjusted EBITDA event earnings equity with of the in release Beginning we will quarter adjusted related XXXX, the our Relations non-GAAP of earnings earnings them. press be report and which including measures to million items. earnings shows compensation excluding third Our XXXX supplement, is EBITDA, available only was per charges our both and Adjusted share was Investor website. all $X.XX. $XXX.X historical the these section and on of is included the

Now, I'll earnings the if of did receipt present occur. our quarterly as not NASDAQ

includes resulting operational accelerated acquisition Newmark from and The and to Knotel. relates XX.X% through million, revenues remaining related based second generated increased expenses. $XX.X XX.X%. higher of up to $XXX.X activity quarter This record growth pass compensation our in million. $XXX business increase revenues commission Expenses of variable million expenses, support and of

Our to adjusted $XX.X million, up EBITDA $XXX.X was XXX.X% compared million.

quarter second even was without to EPS up $X.XX. NASDAQ. XXX% Our as These were compared to $X.XX earnings record

balance had to billion as of liquidity $X.XX our sheet; Turning of $X.XXX NASDAQ. which of June Newmark XX, billion included

$XXX July we approximately approximately our RBC forward and NASDAQ related by we $XX.X through We share for million. on X the million described, the $XXX in $XXX to to million reduce primarily used event. million with equity taxes settled previously As used fully diluted count XXXX NASDAQ

during half quarter. available by revolver. respect million growing repay credit approximately flows expect and using invest share to the This addition business our As count, full July count NASDAQ second debt. and Newmark retain outstanding shares repurchased price, diluted equity shares the units our benefit from $XXX lowered operations count to million. million in facility XXXX. share With fully million $XX.X million revolving at soft additional weighted count will currently In in $XXX our returns, and from in the we attractive share repaid We $XXX diluted closing the average the our share X.X In diluted cash XXXX strong a in anticipate reduction we our repurchase of on based have $XX.X to yesterday’s we also result, balance million. our on total, on event, we to fully sheet

the Moving are increasing to we remainder to XXXX our the and of for continued business gains. share our outlook reflect guidance improving market conditions for year,

our and of XX% third revenues event. guidance EBITDA XXX% and XX% the million and We million, $XXX to up to excludes equity XXXX million, NASDAQ $XXX up All $XXX million adjusted $XXX XXX%. related anticipate to quarter between of

XX%. $X.X $XXX $X.X of XX% to million, We XX% up billion expect XX%. EBITDA to adjusted anticipated $XXX revenues between to annual and The million up billion,

we to be rate XX%. tax our forward, approximately expect Going

include turn the Our I'll the With will which Barry. call to Knotel acquisition, $X.XX guidance continues in back that, XXXX. be to to diluted $X.XX

Barry Gosin

Thanks driven XX Mike. has nearly intermediaries growth Steady consolidation among real for commercial years. estate

investments Newmark is in result assembled a we a the and unique brand made, captured. have we than the market rate have our position we as talent grow at we share built, peers the have of have the to a faster

debt we expect we origination, to billion investment to our onto balance injection banking white and have created, services property brokerage space corporate all the management industry. $X areas real the have and the enormous Global are outperform we estate With of mortgage momentum grow. sheet

position open we’d and Operator, We like are excited prospects. by our to for questions. unique

Operator

our Instructions] question [Operator O'Neill. Goldfarb ahead. from And will Alexander of come go Sandler Please first

Alexander Goldfarb

good I’d a but markets and such Hey quarter something say to capital strong It’s leasing, morning. great and generally, say, guys, great out etc. the And have earnings. not job I on you rebound see to it's blow of

lines, grew line sort like I on the the impact by How present numbers were does first Newmark? going So that growth that to with your on a at growing about that was Mike, advance those you it's mid-single bottom basis. revenue, know top trying rate double-digit, your and earnings sort issuance, way guys the like-for-like go getting of accounting, better stock think forward of on to are think we etc. So digits forward, going line you along its much guys that historically your you the

that mean the growth this the we new earnings what changes on should this does that know does effect the bottom than about formatted net basis? think you line doing, of So other mean for you're

Barry Gosin

see with rates. without Sure, historical can that's do supplement you the in see growth earnings all those the we both so that and NASDAQ, show you'll website, on the and

taken know company focus You becoming know out expect than the and $XX you costs the the to bottom take continue if the grow faster million we million year. expect out line of (a) better top line, the $XX we the to as we’d business end to plus that taking operationally we fast of of on already before the the additional the as out not

and bottom rates our we growth continue going both better line. to top its take are line to industry than the and be think we So

Alexander Goldfarb

the with there? just that you be commensurate expect even perhaps Okay, the to bottom now or line top will line clear, better grow

Barry Gosin

That's correct.

Alexander Goldfarb

Okay, second question.

that you recurring. you to million you so It a you to number it correctly. it like sounds sure think closer X just Is that the did, sounds know buyback or Is the quarter. million treatment, want XX. number $XX that this that's not something of the understood year-to-date, we that million make should expect way of or that with handled be that the a the may ongoing be because sort did that to – XX% the about I buyback, I like On not X etc. NASDAQ one-time correct tax the shares, I in

Barry Gosin

know buybacks. NASDAQ opportunity You an to the I gave transaction us really accelerate the think

a the second as but attach it to think continue You buy fair our and million back was count can certainly wouldn't look quarter. as a result We’ll $XX.X see reduced rate be higher of that's in lowering at stock, to share I we by the so set assessment. it a rate our

Alexander Goldfarb

Okay, appreciate question, time. and final then a your just I

changes just guys rate, if you're you of you. either my XX% I’m maybe tax talking or go the a and originally have over cashback XX%, you were thought result tax you now But serves, a mistaken. rate what as then any the tax rate could know I On to like memory

Barry Gosin

year In tax were Sure. the rate. we a year XX% last this part in even and around first to of XX.X% on the

accelerating to to lot point go now So as we X of of around our point deductions, about future we've lot a expect a do up unit that XX%. a used tax result redemptions of so the to X.X

Alexander Goldfarb

this again to XX% next up the year go is going Is new level? or

Barry Gosin

XX% We new the level. think is

Alexander Goldfarb

thank Okay, you.

Barry Gosin

Great, thanks Alex.

Operator

Jade from comes ahead. of KBW. question next Rahmani The Please go

Jade Rahmani

by are much transactions the Newmark could capital know market qualify league side, any gain was alternative could sectors? Thank comment alternatives, in tables. multi-family, type. office, coming coming if there leasing but mix you share in continuing how to market the numbers I much. perhaps wondering from those the on you how other how see that Great much much the property is on very strong is I and from from mentioned being to of you is coming

Barry Gosin

tell we bit. foreseeable don't that continue as you data, vision We the starts significant know be we've those in we capital office have side, the from a strong, here can the both significantly general the invested better pandemic. in now dividends can will were both office publish preparing to obviously to as as seen, for for which and that growth I capital people future paid markets. to as I continue you the of what least to you the of our expect anticipate industrial but return us market at The those take uptick lagged to well through this amount activity in is science later that side, a is significant the to come half the office, market we seen tell we people Those in markets has life areas recover. you've year, drive a which of little to to access prior great as

Jade Rahmani

as funds some on as side, you know anticipate in REITs, any correspond I'm starting And space. in you multi-family diminishing I'm for multi-family just in valuations Do that mortgage investors the seem the cases multi-family select space the debt Okay, know first hear to or well with thank the volumes is you that time that that stretched you. hearing?

Barry Gosin

expect end multi-family allocated value with activity and your dry continue business strong of and believe good we with there available the multi-family, and and year. estate tailwinds to to they be business relative through the and a rates way that the the interest the to are Well, certainly are is business very powder real there

Jade Rahmani

and their view of the in the And confidence could on in half? characterize side, lending resulted GSE second year the half what activities and you your your level in the first lagging growth

Barry Gosin

really the lender the lack ability and the evictions lack of multi-family back the on in of of uncertainty economy other the – the were year and impact dominant manage what most COVID the pulled GSEs Last lenders around Sure. of would face the understanding and be. about to

in about the is FHFA lot cap have of GSEs into and of that to So needed powder so the of of a had the knowledgeable We acting of GSEs caps was appropriately, end the non-GSE is that would beginning who left given they dry managed the GSE reduction and to make and year. lenders the normalize there and Also a the the that they expect remaining XX% coming a business director through we space the very of year. new supportive GSE’s. is sure

Jade Rahmani

short a you do next year terms long overall you of believe and it's in term will of And more in phenomenon markets, deference you we term it's growth seeing that were moderate a trend. do believe capital or

Michael Rispoli

understand don’t Jade. the I question

Jade Rahmani

we’re Well, sorry, seeing rates growth patterns – in go ahead.

Michael Rispoli

about Just in multi generally? or are you talking

Jade Rahmani

and sustainable? of weigh a the surged year brokers amount it's real-estate in series all XX% the go have revenue Do Generally, by markets going volumes we you the estimates to that XXX% next trend projections. on of growth or capital beat think is to of into and have as north that's

Barry Gosin

remain We've long so period will of was come likely low. was out pandemic, time. rates in for uncertain low time. the of There just market. had set relative an We an amount a of liquidity the enormous Interest bar a

good metrics many investment and like that I going there's lots the room still in period continuous look for of categories a forward. think

Jade Rahmani

taking Thanks questions. the for

Operator

go from James. [Operator come question next Instructions]. And from our O'Shaughnessy ahead. will Raymond Patrick Please

Patrick O'Shaughnessy

good give and Like Hey, like? at are Curious valuations if update deal morning. what an your sort of what you you now, look on pipeline. looking right can about things

Barry Gosin

anything… about talking you’re as far markets, or capital lease As

Patrick O'Shaughnessy

apologize. So potential Newmark, for I acquisition

Barry Gosin

good pretty still is the to I and fragmented. that with of out Yeah. market companies candidates mean There's and there buy. are lots consolidate

and a for going of robust have forward. pipeline we So, pretty acquisitions hires

Patrick O'Shaughnessy

an as of And some a the activity? of that see that of NASDAQ for would receipt shares you acceleration these catalyst

Barry Gosin

position, dry good to we powder good have and prior NASDAQ we we acquire not Well, and post to go are did cash really and we have of look, in have, we lots a out liquidity NASDAQ. flow, only not only

will I much and equity pretty prior but does a better grow to So, continue I market the fill mean that. and us we we'll way event. continue give do in have does, did plan of mean certainly growth that the the to to the we space company to a white we it, more more us and liquidity make it same are NASDAQ viewing

Patrick O'Shaughnessy

it it, sense. makes Got

think portfolio? quarter-over-quarter. account That's portfolio, it's speak servicing $XX of you dynamics Can on Your I in to billion the June. slightly that down at end going at

Michael Rispoli

Sure. so having GSE of the is in servicing going we the book, the business, down production Obviously, have forward. preponderance roll-off see of GSE book and expect the than being going to kind and with different you're see growth rate a to we

had this of the but consistent life-company this expect we to and in decent CMBS in a the positive and have the we CMBS the and temporary past. growth we is go is a rate quarter first fairly run-off We through back and numbers, reflected year, servicing, COVID also amount the June period which with some think the into of to

Patrick O'Shaughnessy

up the remains you. sheet? thank versus How it, have shares you on NASDAQ to guys balance point much much of Got this liquidated how the

Barry Gosin

Sure.

are the now, way is, then for funded. remaining with to And need think think decide want we the XXXX I we'll forward so that fully to we liquidating what look about that's so has and to Its the it'll what event $XX-plus pay NASDAQ equity rush do we the been of quarter, and shares. off company. for up we a that's think at currently the not asset stand. to a think be off continue a great since in asset the remaining We're great up where to shares. end I the for we sell us, going

Patrick O'Shaughnessy

for would total that a result it. not amount occurred”. XXXX language of equity in to me Okay, a press paid paid withholding of will question less and both such taxes respect with Michael, read XXXX amount to And the even cash that let taxes had just than There's event be been total equity today, taxes. taxes corporate you the believes it the in got the then release about “Newmark

reading like just it seems avoid taxes arbitrage curious, long McGruder paying rate corporate there's at taxes negative something where XX% at approximating like here. script mid-XXs. maybe a feel I kind to But you're tax or Sorry of withholding XX%

So the actually cash for how under does net arrangement? lower outflow that Newmark

Michael Rispoli

Sure.

would structure. we accelerate paid, corporate income. is redemptions, the billion think can able generate didn't paid we which when payroll of taxes is are to otherwise of of have over corporate really related If you it on taxes we $X.X that million I been do our time. unit have see this $XXX call and the that benefit What have structure, compensation would

basically accelerated the withholding or it have is, taxes think corporate won't payroll of and the and that we the about tax. pay to we amount payment to So paid of way now we significant

So have most would just are and we period. them of taxes taxes in that the are Net-net, to time. of paid paid otherwise, because pulled line as over payroll that really count the share current – amount been significantly and allowed taxes item, it's just of number the than they paid a we into over and now It payroll years, corporate have discussed. the a we would reduce significantly to us the taxes also less taxes related otherwise

only about the think small tax we the point X handled rate said you to going way up this point forward the about goes XX%. negative I is like to to X.X

Patrick O'Shaughnessy

much. Okay, very got you Thank it.

Operator

The Henry of question ahead. Please next go Coffey Wedbush. comes from

Henry Coffey

question. and for Yes. Good taking morning thanks my

question. more of First, a technical

walk and you bought the open transaction through you with bought accelerated that – With Was shares your kind series on that of marketplace. the the “reduced proceeds, that back – that shares, can then you or that? you Can of shares.” Was you NASDAQ in through us? transactions talk realizations diluted stock

Michael Rispoli

Mike. Sure. it’s Hi Henry,

about there's million open did X.X buy the shares to in specific NASDAQ… quarter. So, back on then two the and market, really We the things

Henry Coffey

shares? of million $X.X

Michael Rispoli

million open X.X on the shares market.

Henry Coffey

Right, thought. right what I that’s

Michael Rispoli

both What count. redeeming shares that million we as cash XX.X to the for reduce and another entailed were that, a and doing or related then units shares event. significantly units to share of really result was able And equity the

Henry Coffey

Gap] or so. [Audio $XX million

and that August specific outstanding third then what whatever count the units for want What the amount XXth the You of quarter for rest shares is as say rest to we of date and stock say is of using redeemed and of diluted the cash, should you choose. the share be year? or

Michael Rispoli

Sure.

that buyback, press the XXX.X quarter If you That that count share the whatever shares. release, the look million give buyback sorry, we get into plus the of that's about normally you shares the be the QX compensation. whatever spot number into diluted share more end wherever half at – plus count number less But and buyback. you of come QX that we is and we will the fully number and in for we goes

half QX things So count diluted in minus we that impact but bought the quarter share the and I million QX, or $XX.X the for will it year, fully XXX.X weighted be the other of will discussed. in average back the those plus

Henry Coffey

come reduction out? that doesn’t Why

Michael Rispoli

out Well it’s came It on comes average. – just XX. weighted June

you and the rest benefit the about XX benefit XXXX. So get will XXXX, year million to full in

Henry Coffey

we basically So could and million. $XX the by in XXX it take reduce XXXX

Michael Rispoli

is Well, spot. the XXX the current

Henry Coffey

shares That’s or outstanding Okay. today. fully today shares diluted

Michael Rispoli

shares diluted today. outstanding Fully

Henry Coffey

then, we’re August Okay. don't should that diluted stock, year, reduce the any more we And Correct? you that back for or by – the of is rest anything shares forward. at buyback if XXX.X

Michael Rispoli

normal for Plus, Correct. whatever compensation. activity

Henry Coffey

thank On the or taxes remaining exactly! Good, relevant as is shares, you. has Paid have paid probably not accrued? as accrued. all been Right, NASDAQ

Michael Rispoli

of Yes, June. end accrued at everything's the

happen year. probably towards whatever of and taxes of the taxes, be So, would end the the July payments small corporate most the for early amount in part corporate

Henry Coffey

So, choose to post cash convert $XXX you have to you million so of securities this if cash? essentially

Michael Rispoli

Yes.

and a the $XXX through to buybacks, table for there's press of the about million. release we kind all the which in the $XXX we've think related Henry and million taxes we million capital $XXX I and after net used the the walks what received share

Henry Coffey

secured paying I buying Okay. so down at million indicated cash to how terms mentioned give work? sort and we're us And senior of of to put remaining in you going that really stock, that's had new down investing term $XXX go mean debt, that, paying be down you Can now debt, of sense where of notes, you in some teams. back haven’t I know would paying sort

Michael Rispoli

Remember.

we received had down balance still from $XXX net down pay the of money, used We that million the July. to take cash a you paid $XXX NASDAQ. the the that on $XXX so sheet. in some revolver, remainder million on we We So, million

with So back of is $X.X flow year. half the cash are million significant amount a so. what left We $XXX or through about the generated you billion, of

said could that much I will see use the EBITDA to And how for we and we think we're to in how of specifically acquisitions how for guidance. haven't for going and our you that above. are we debt, capital use much buybacks all for going much use but

Henry Coffey

current of left What your it, how is is the status buyback authorization? How big much go? is to

Michael Rispoli

authorized Sure what's left so on that's million, our program. share the Board $XXX buyback

Henry Coffey

a big Alright! as quarter area, mainly placements both? debt sales property is the that in Obviously, well, revenue or capital markets or more

Barry Gosin

compared debt I significantly. uses, quarter were up are think thing, to have as science property and lot the life buildings were Certainly the to year conversions and alternative opportunities up they same industrial office, of as of volumes a both. or like drive the properties then in site that last sales that for well

Henry Coffey

if continuation say of was about to I is was really go on can like That’s trend. industrial, industrial I what someone multifamily multifamily asked a they'll I the going multifamily going and industrial, they so It that it and and what else next. any ask seems market, estate real

Barry Gosin

as food that I true, seen we've other well. in think think I that's groups resurgence but the the

seniors said, level of the diminishment a and retail of healthcare, no in industrial, in multifamily etc. and office, lot sciences but interest we seen activity we've So life in

Michael Rispoli

us you've of billion. for had of - volume the quarter was, any saw I on debt terms in what record a the for we what at you history Henry quarter company seen the $XX placement think in

the on debt both for really So to as side us. are capital capital rapidly markets sales the and it's placement business they and we continue our the grow growing investment both business,

Henry Coffey

Thank Great! you.

Operator

next go comes Please question of Bank America. The Michael of Funk from ahead.

Michael Funk

Yes, if thank a this could. the few you I questions for morning, is

think you repurchases. just I return of least quarter the at million in So in said $XXX last capital, share

understand separate I You event equity from is that. know

would the So to XXXX? the tie share about I is well for which with in quarter, someone $X seem in that relatively still think that. million target asked earlier

$XXX So that you? still plus, is million that for the is target

Barry Gosin

we I have don't that Michael. know target a

when May. second we certainly The million when see we to million, in that equity amount the was gave of and in through do us We've really balance quarter. that minimum think was opportunity repurchasing that close $XXX said including the the for back event year I by $XXX said rapidly, and the that to the exceeded NASDAQ we at have and but continue company really it shareholders. certainly target to the We the these buy shares is we’ll we for that back. the some takes good continue that half everybody a to prices back of out undervalued an which don't stock believe year, pretty the at

Michael Funk

your or Understood! as back allocation best then cash there quarter? of to What thought should use events will we anticipate this future similar be seen is the equity And there? Is that the more towards buying common stock?

Barry Gosin

that quarter could buybacks $X was on But tuck-in receipt typical me, shares. excuse the the the in specific It's generate another billion of sort open hope specific – in to transaction We it just share future? happen we Could market. than Well, the that, other to opportunity. did the that would we of the again be some event equity be great. one NASDAQ the certainly a would in

Michael Funk

And I leasing your funnel? seeing Understood! you strong at that of to a it’s is own your the well peers think Are leasing looking least one going months. very trend similar XX last commented the with relative and funnel

Michael Rispoli

return, are the markets, companies making the their decisions I to look all getting Yes. mean, on they across as are making plans. closer up weight activities our

are rates, activities XXX% down this back in particularly were stronger there was to to which and the and commitments not we being we in further so longer And continue the are term certainly what down most. office, but made that to activity I decisions being is mean, across get made, in just anticipate go general the as year. we're pre-pandemic

Michael Funk

that comment Understood! correct? implies seeing we've guess are more Is that shorter of term some the And contemplated would renewals a being recently. be that to been leases I back the that term versus normal

Barry Gosin

you that companies be, of understanding some seeing have Yes. to as are I uncomfortable what space – commitments. have are future who already what market combination mean, those commitment, term office still also you're needs to long short net be term a where to look, have is they They because of both, plans. term that good determined back. of making a now plan have they're And some right? You don't they so right are advantage their making they can taking others make then the and longer

Michael Funk

I I it’s the one And I it, want question, but think last Understood! understand one, to accounting sure. an make

we in as partnership should the you through something as partnership future is period that working about So, reduction quarter, in the reduction how distribution, with proportionate do the I there. math model in think it or think that? the How unit else it's is

Barry Gosin

I that's fair. think

the the look the XX%, XX% you ownership time. If it partnership, for to XX% about therefore down over from allocation or go partnership to the So went at would down

Michael Funk

Understood.

very you I Okay, it. thank appreciate guys much,

Barry Gosin

you. Thank

Operator

As like no closing conference questions, Gosin to would to there remarks. turn any back our for are I concludes question-and-answer Mr. session. more this the over

Barry Gosin

all call, speaking forward next the look quarter. I you and to in in Thank this joining everybody for

Operator

disconnect. you for and The attending presentation you conference is now today's concluded. Thank may now

Newmark (NMRK) 6 Aug 212021 Q2 Earnings call transcript