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Newmark net income jumps 468% in Q4
Loan maturities are “an enormous opportunity,” CEO Gosin says
Newmark is riding high after a big fourth quarter, after handling Signature Bank’s loan sale.
Barry Gosin’s commercial brokerage reported a net income jump of 468 percent year-over-year in the fourth quarter, according to Bisnow. Its net income for the last quarter of 2023 was $36.5 million.
Net income wasn’t the only positive metric in Newmark’s earnings. The firm also reported that revenue hit $747 million — up from $607 million a year earlier — a 168 percent rise in investment sales and a 185 percent jump in debt brokerage volumes.
Much of Newmark’s financial success in the fourth quarter can be tied to its handling of more than $50 billion in loans owned by the failed regional bank, which the firm handled on behalf of the Federal Deposit Insurance Corp. The debt sale was the largest in the nation’s history, according to Newmark chief executive officer Barry Gosin.
Chief financial officer Michael Rispoli said Newmark expects to grow revenue between 3 and 7 percent this year. Total revenue fell below $2.5 billion in 2023, an 8.7 percent annual dip as investment sales declined.
Newmark is also preparing to take advantage of the maturing loans and mounting distress across the country. Revenue growth jumped nearly 20 percent annually in the fourth quarter for its managing and servicing business.
“As a service provider that does not own real estate, these maturities represent an enormous opportunity for us,” Gosin said.
Last month, Newmark refinanced its own long-term debt, issuing $600 million of senior notes at a 7.5 percent interest rate. The proceeds will help repay $420 million in outstanding debt and pay down a revolving credit from Cantor Fitzgerald. The firm is also moving along with its $75 million cost-cutting program.
As Cushman & Wakefield struggles to chart its future, Newmark continues to make big moves. From Cushman alone, Newmark has poached Doug Harmon, Adam Spies and Dan O’Brien. This month, the company picked off Jonathan Firestone from Eastdil Secured.
— Holden Walter-Warner