Commercial real estate advisor Newmark has seen gains across every line of its business over the third quarter of this year.
Over the three months to the finish of September, it has generated revenue of $863.5m (£658.4m), up 25.9% on the prior year, taking Newmark’s year-to-date revenue to $2.29bn, which is 22.6% ahead of that of revenue recorded at the same point last year.
All of its major business lines, namely management services, servicing fees and other, have seen double-digit revenue growth, leading to the company’s best-ever quarter for these recurring businesses. Most notably, the capital markets arm has experienced an increase in revenue of 59.7%, outpacing the industest for the eighth quarter in a row.
Barry Gosin, chief executive at Newmark: “We continue to invest in growing our recurring revenue businesses and expanding our global footprint.”
Newmark has most recently expanded its property and facilities management businesses into India and the Asia-Pacific region. In addition, earlier this month, the company has absorbed RealFoundations, which offers management consulting and managed services for institutional real estate clients across the US, Europe, and the Asia-Pacific region.
Adjusted earnings after tax to fully diluted shareholders have climbed 27.6% on the prior year’s third quarter to $105.9m, taking a nine-month total to $237.9m, up 36.2% year-on-year.
GAAP earnings per share for the quarter have more than doubled to $0.25 from $0.1, while year-to-date they have more than tripled to $0.32 from $0.09. Adjusted EPS for the quarter were 27% higher than for the same period last year at $0.42, with the nine-month comparison improving by 36.2% to $0.94.
Gosin declared: “As macroeconomic conditions continue to be favourable for commercial real estate, we remain excited about the earnings potential of our platform while we focus on investing in future growth.
“Given our strong results and robust pipeline, we are again raising our full year outview. We remain confident that we can achieve our tarreceives of expanding our full year adjusted EBITDA margin by 100 basis points in both 2025 and 2026.”
Looking ahead, Newmark predicts its revenue to hit up to $3.33bn, up from the previously expected £3.25bn. If achieved, this would represent a double-digit growth on the $2.74bn reported last year.
For the earnings per share, Newmark has increased expectations to between $1.53 and $1.63 from the previously tarreceiveed $1.47 – $1.57. For 2024, the company reported adjusted earnings per share of $1.23.
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