Newmark posts revenue and earning declines
Newmark has recorded declines in its Q3 revenue and earnings, but underlined expectations that both will return to double-digit growth in the next quarter.
The US-based adviser, which owns Gerald Eve, BH2 and Harper Dennis Hobbs in the UK, posted a 7.3% year-on-year decline in total revenue to $616.3m (£509m) for the third quarter.
Revenue from investment sales was down by 28.1% to $94.7m during the quarter. Adjusted EBITDA fell by 21.4% to $96.3m.
Newmark has recorded declines in its Q3 revenue and earnings, but underlined expectations that both will return to double-digit growth in the next quarter.
The US-based adviser, which owns Gerald Eve, BH2 and Harper Dennis Hobbs in the UK, posted a 7.3% year-on-year decline in total revenue to $616.3m (£509m) for the third quarter.
Revenue from investment sales was down by 28.1% to $94.7m during the quarter. Adjusted EBITDA fell by 21.4% to $96.3m.
However, fees from management services grew by 13%, with the agent’s acquisition of Gerald Eve cited as a key driver behind the uptick.
Newmark added that it expects to generate more than $325m in incremental revenue as a result of its acquisition of Gerald Eve, as well as recent hires.
Leasing revenue declined by 7.6% during the quarter. Newmark said the decrease nonetheless outpaced mid-teen declines in industry-wide leasing activity.
Despite the declines, chief executive Barry Gosin said Newmark’s model had ”proven to be resilient and successful across the cycles”. He expects the business will generate double-digit growth in revenue and earnings in Q4. Full-year adjusted EBITDA is expected to be between $375m and $400m.
“Newmark’s strategy of attracting, retaining, and empowering the industry’s best talent resulted in significant market share gains in leasing and capital markets during the quarter,” said Gosin.
He added: “We significantly outperformed our full service peers in the record market of 2021, and also expect to outperform our peers in the challenging 2023 market… Our strong incremental margins will drive significant revenue and earnings outperformance when industry capital markets volumes recover.”
The news comes after rival Cushman & Wakefield fell into the red, driven by declines in its capital markets, valuation and leasing businesses.
At CBRE, third-quarter revenue stayed relatively static, as the drop in capital markets activity continued to impact its income.
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