Newmark Group Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alexander Goldfarb - Piper Sandler & Co. - Analyst : Happy Friday. So 2 questions here. First, just on the G&A front, two-part question to this. How much of the earnings outlook, I guess, benefits from Howard not being in G&A anymore? And then second, with regards to the settlement, is there any material change in your D&O premiums? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 3:00PM, NMRK.OQ - Q4 2024 Newmark Group Inc Earnings Call

Question: Alexander Goldfarb - Piper Sandler & Co. - Analyst : Okay. Second question. Barry, you've talked -- spoken a lot and it was in your release about data centers and the growth that you guys are seeing in your platform. Just curious, as you look at data centers, it's a hot topic. There's the challenge of utility hookups, the time to bring these things online. I don't know how close or how far away they need to be from sort of their ultimate end user. But maybe you could just provide some perspective of the hype versus the challenges versus what's reasonable that we'll see.

Question: Alexander Goldfarb - Piper Sandler & Co. - Analyst : Okay. So it sounds like for you, the hype is real. Like it's a lot of this stuff that we read about will come to fruition versus it's, I don't want to say a bubble, but like right now there's a moment of euphoria, but in a few years, it will peter out?

Question: Patrick O'Shaughnessy . - Raymond James & Associates, Inc - Analyst : So only $2 million of forgivable loan spend in the fourth quarter. Why was it so low in the period? And then what are your expectations for 2025?

Question: Patrick O'Shaughnessy . - Raymond James & Associates, Inc - Analyst : Got it, thank you. To what extent does leadership turnover at the FHFA and potential changes to Fannie and Freddie's ownership structure impact your outlook for multifamily activity?

Question: Patrick O'Shaughnessy . - Raymond James & Associates, Inc - Analyst : Got it, thank you. And then last for me. Any views or any detail on how Howard Lutnick will divest his ownership?

Question: Julien Blouin - Goldman Sachs Group, Inc. - Analyst : Congratulations on an outstanding quarter. I guess, can you help us understand how capital markets activity is trending year-to-date? And ultimately, sort of what sort of outlook is being baked into guidance? Or how are you thinking about 2025 after what was a really strong end to the year in '24?

Question: Julien Blouin - Goldman Sachs Group, Inc. - Analyst : Okay, great. And I guess, specifically, maybe touching on industrial, we've heard from some of your peers around fears that trade policy uncertainty could lead to buyers and occupiers maybe pausing activity. I guess, do you have any sort of view on that? Are you seeing any signs of that yet? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 14, 2025 / 3:00PM, NMRK.OQ - Q4 2024 Newmark Group Inc Earnings Call

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc. - Analyst : In terms of the pipeline of debt deals from banks, last year, clearly, you won the Signature deal, a record transaction. Do you anticipate any large loan portfolio sales from the banks? Can you talk to that trend, if it's a trend you see increasing broadly in the market?

Question: Jade Rahmani - Keefe, Bruyette, & Woods, Inc. - Analyst : Thank you, and then in terms of your 2025 outlook, just wondering, I think you talked to double-digit growth in capital markets over the next 2 years. But could you perhaps tease out what your assumptions are for both capital markets and leasing in 2025? It would just be helpful to hear about what you're thinking.

Question: Alexander Goldfarb - Piper Sandler & Co. - Analyst : Barry, you guys have had some good luck and success with your overseas expansion. Often, US firms go overseas and the profit margins suffer. So just sort of curious how you guys are looking overseas on a profit comparability versus the US, and if there have been any adjustments that you needed to make to ensure that you can drive the same sort of bottom line returns that you expect out of your U.S. platform.