Financial Data and Key Metrics Changes - Total revenues increased by 20% to $759.1 million compared to $633.4 million in the previous year [10] - Adjusted EPS rose by 41% to $0.31 from $0.22 [13] - Adjusted EBITDA was $114 million, up 32.1% from $86.3 million, with an adjusted EBITDA margin improvement of 139 basis points to 15% [13] - Adjusted free cash flow for the twelve months ended June 2025 was $228 million, a 121.4% improvement year over year [15] Business Line Data and Key Metrics Changes - Management services, servicing, and other revenues increased by 13.6%, driven by approximately 30% growth in valuation and advisory business [10] - Leasing revenues grew by 13.8%, led by double-digit growth in retail volumes and improving office activity in key markets [10] - Capital markets revenues surged by 37.9%, reflecting a 135% increase in total debt volumes [11] - Investment sales volumes increased by 26%, outperforming the industry average of approximately 11% [12] Market Data and Key Metrics Changes - Newmark was ranked as the number one office broker in the U.S. for the first half of 2025 [8] - The company improved to number three among global sales brokers across all property types based on preliminary figures [8] - The company gained market share in capital markets and expanded its international platform, particularly in Europe and Asia [9][23] Company Strategy and Development Direction - The company is focused on expanding its occupier solutions and leasing footprint globally, providing comprehensive real estate solutions in nearly 100 countries [6] - Newmark is pivoting towards growth capital and M&A opportunities in the second half of the year, particularly in management services [25][66] - The company emphasizes organic growth and is building a diversified integrated platform to serve corporate clients [27][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the capital markets activity, indicating a strong pipeline and potential for continued growth [21][54] - The company raised its full-year outlook for 2025, expecting total revenues between $3.05 billion and $3.25 billion, and adjusted EPS between $1.47 and $1.57 [16] - Management noted that New York City remains resilient despite potential political uncertainties, emphasizing the city's unique talent pool [58] Other Important Information - The company introduced a new reporting metric, adjusted free cash flow, to provide better insight into cash generation [14] - Total expenses for adjusted earnings increased by 18.4%, reflecting growth initiatives and higher pass-through costs [12] Q&A Session Summary Question: How has the opportunity in Germany been transpiring? - Management indicated that they launched operations in Germany about a year ago and signed 70 brokers, with a strong interest in their model [19][20] Question: Is capital markets activity sustainable? - Management believes they have a diversified mix of services and a significant runway for growth in Europe and Asia [21][23] Question: What are the expectations for adjusted free cash flow in 2025? - Management indicated a conversion ratio of about 65% to 85% depending on investments in the business [62] Question: What are the criteria for M&A? - The company focuses on bolt-on acquisitions that align with their platform and enhance recurring revenue opportunities [66]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $0.70 per diluted share, a significant improvement from a net loss of $0.83 per diluted share in Q1 2024 [4] - Interest income increased by $23.6 million to $22 million in Q1 2025, compared to a net loss of $1.6 million in Q1 2024, driven by higher rates [5] - Earnings available for distribution rose to $0.41 per diluted common share in Q1 2025 from negative $0.46 per diluted share in the same period of 2024 [5] - Cash available for distribution was $0.45 per diluted common share in Q1 2025, down from $0.60 per diluted common share in Q1 2024 [5] - Book value per share increased by 1.47% from Q4 2024 to $17.22 per diluted common share, primarily due to unrealized gains on preferred stock investments [6] Business Line Data and Key Metrics Changes - The portfolio consists of 85 investments with a total outstanding balance of $1.2 billion, allocated as follows: 49.4% multifamily, 31.9% life sciences, 15.6% single-family rental, 1.6% storage, 0.9% specialty manufacturing, and 0.6% marina [8] - The assets collateralizing investments are 75.2% stabilized with a loan-to-value ratio of 58.7% and a weighted average debt service coverage ratio (DSCR) of 1.46 times [8] Market Data and Key Metrics Changes - In the life sciences sector, lab leasing remains challenging due to tariff and NIH funding uncertainties, but there are signs of recovery with positive leasing momentum in specific projects [11][12] - The residential sector saw strong demand with over 138,000 units absorbed in Q1 2025, indicating a robust rental market [13] - The company has observed positive new lease growth across 40% of its rental portfolio, up from just 5% in Q4 2024 [14] Company Strategy and Development Direction - The company aims to focus on the residential sector and is actively pursuing opportunities in self-storage development, with expected yields between 8.1% to 8.5% [14][15] - The strategy includes underwriting shorter-term senior loans to stabilize assets and facilitate lease-up in the residential front [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the residential sector over the next two to three years, despite temporary challenges in the life sciences sector [21] - The company remains active in the market and anticipates continued growth in key verticals [16] Other Important Information - The company paid a regular dividend of $0.50 per share in Q1 2025 and has declared the same for Q2 2025, with a coverage ratio of 0.9 times based on cash available for distribution [6] Q&A Session Summary Question: Can you comment on the credit side and notable credit loss provision? - Management indicated that a weighted average base case and downside scenario for CECL reserve was implemented, contributing to the uptick in credit loss provision [18] Question: What is the leasing momentum for the life science project? - The project is expected to be two-thirds leased, resulting in a debt yield of nearly 11% across two tenants [23] Question: What are the future investment plans? - The company plans to focus on residential space, participating in K deals with Freddie, and underwriting opportunities in the multifamily sector [30]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of $10.6 million or $0.15 per share, with a book value of $14.44 per share as of March 31 [4][12] - Distributable earnings for the quarter were $17 million or $0.25 per share, aligning with the dividend payout [5] Business Line Data and Key Metrics Changes - The company closed four loans totaling $376 million, primarily secured by Class A multifamily properties, with a weighted average loan-to-value (LTV) of 69% and a coupon of SOFR plus 277 basis points [10] - Repayments in the quarter amounted to $184 million, leading to net fundings of $222 million [10][18] Market Data and Key Metrics Changes - The real estate credit market remains active, with warehouse financing and senior loan spreads widening by approximately 10 to 15 basis points, while transitional loan sector spreads widened by 15 to 20 basis points [8] - The company's pipeline reached a record $30 billion, indicating strong market opportunities [9] Company Strategy and Development Direction - The company is focused on maintaining a defensive posture while also seeking new investment opportunities, particularly in the European lending market [7][10] - The strategy includes diversifying the portfolio and adding duration, with a strong emphasis on high-quality assets [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about increased market volatility and recession expectations but believes real estate is better positioned compared to past cycles [6][29] - The company anticipates that repayments will exceed $1 billion this year, tracking well above previous expectations [9] Other Important Information - The company downgraded two loans this quarter, impacting the CECL provisions and book value per share [11][12] - The company has no corporate maturities until February 2030 and maintains ample liquidity of over $700 million [7][17] Q&A Session Summary Question: Concerns about macro issues and dividend policy - Management is monitoring both macroeconomic conditions and specific properties for risk, noting that while there is heightened awareness, no specific asset is of particular concern [24][30] - Regarding the dividend policy, management feels comfortable with the current level and will evaluate it quarterly, considering the potential for future earnings growth from REO assets [32][33] Question: Originating in Europe and repayment expectations - The company has been actively originating in Europe and expects to close deals soon, focusing on Western Europe and the UK [39][40] - Management indicated that repayments are tracking ahead of expectations, with a focus on maintaining leverage targets [41][42] Question: Downgrade of Raleigh multifamily loan - The downgrade was due to the inability to drive rents in that submarket, with management considering various options for the loan's future [49][51] Question: Life Science sector outlook - Management believes that the life science sector has long-term positive fundamentals but faces cyclical headwinds, with expectations for a recovery dependent on broader economic conditions [53][54] Question: New lending opportunities and market conditions - The company is seeing opportunities to lend at lower valuations and is shifting from transitional to more stabilized lending [61][63] - The current pipeline is heavily weighted towards refinancing, with a noted increase in institutional interest in projects [68][69]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $0.43 per diluted share, down from $0.73 per diluted share in Q4 2023, primarily due to unrealized losses on common stock investments and changes in net assets on CMBS VIEs [10] - Interest income decreased by $15.4 million to $32.3 million in Q4 2024 from $47.7 million in Q4 2023 [10] - Earnings available for distribution were $0.83 per diluted common share in Q4, compared to $0.44 per diluted common share in the same period of 2023 [11] - Cash available for distribution was $0.47 per diluted common share in Q4, down from $0.51 per diluted common share in Q4 2023 [12] - For the full year 2024, net income was $1.02 per diluted share, up from $0.60 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - The portfolio consists of 83 investments with an outstanding balance of $1.1 billion, allocated across various sectors including 15.5% single-family rental, 49.7% multifamily, and 31% life sciences [16] - The collateral on the portfolio is 76.5% stabilized with a loan-to-value ratio of 59.2% and a weighted average debt service coverage ratio of 1.32 times [18] Market Data and Key Metrics Changes - Multifamily fundamentals are improving, with Q4 starts at 37,000 units, the lowest since Q4 2011, indicating a potential inflection point as supply wanes [21] - The company is actively underwriting $300 million of opportunities in life sciences, particularly in infrastructure and pharmaceutical manufacturing [24] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities in multifamily and life sciences sectors, with expectations for new lease growth to turn positive in the second half of the year [22][23] - The company is exploring multiple avenues for funding growth, including A-note warehouses and bond-rated deals [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing a strong credit profile and growth potential in the multifamily and life sciences sectors [20] - The company is confident in its ability to navigate challenges in the commercial real estate sector and is prepared to take advantage of favorable market conditions [25] Other Important Information - The company paid a regular dividend of $0.50 per share in Q4 and has declared a dividend of $0.50 per share for Q1 2025 [12] - The weighted average cost of debt is 6% with a weighted average maturity of 1.4 years [18] Q&A Session Summary Question: Can you talk about the returns on new investments and how they compare to other opportunities? - Management indicated that Freddie K deals are expected to yield 8% to 9%, with potential returns in the low to mid-teens when leveraging [32] Question: Can you provide an update on life science investments and key metrics? - Management highlighted a $220 million commitment in Massachusetts, with a loan-to-cost attachment point of approximately 25% and a stabilized debt yield of over 30% [35] Question: What is the status of loan performance and any delinquent loans? - Management noted a few watch list loans but emphasized overall strong portfolio performance with minimal delinquency [40][60]