The lead underwriters on the deal were Goldman Sachs, BofA Merrill Lynch, Citigroup, Capital One, Canto Fitzgerald, Keefe Bruyette & Woods, and Mizuho Securities. Shares are slated to open for trading later this morning on the Nasdaq.
Newmark Group is a commercial real estate services company that provides services and products for owners and occupiers across the commercial real estate industry.
The company, which was founded in 1929, was acquired by BGC Partners in 2011. Since then, it has outperformed all other commercial real estate services firms, having grown its revenue at a compound annual growth rate of 39%. This translates to total revenue growth of 560% since 2011. The company is an affiliate of Cantor Fitzgerald, who is the largest controlling shareholder of BGC Partners.
The company’s capital markets unit offers investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory services, diligence, underwriting, and GSE lending and loan servicing.
The company’s occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration, and facilities management.
Newmark has focused on growing its North America operation, boasting more than 4,600 employees, which includes roughly 1,530 revenue-generating producers in over 120 offices across 90 cities. The company has an additional 30 licensee locations in the United States. The company completed 35 accretive acquisitions since 2011. The company intends to continue pursuing acquisition opportunities. The company’s most recent acquisition took place in the third quarter of 2017 when the company acquired Berkeley Point Financial.
For the nine months ended September 30, 2017, the company generated revenue of $1.14 billion, which translated to year-over-year growth of 18.0%. Net income for the same period increased 66.0% year-over-year to $190.63 million.
For the full year ended December 31, 2016, the company’s revenue totaled $1.35 billion, up 12.5% year-over-year. Net income totaled $167.21 million in 2016, representing an improvement from a net loss of $2.73 million in 2015.
The company expects to pay a quarterly dividend that will be equal to or less than 25.0% of post-tax adjusted earnings per fully diluted share. The declaration, payment, timing, and amount of future dividend payments will be determined by the company’s Board of Directors.