Investments

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

Newmark has a 27% ownership in Real Estate LP, a joint venture with Cantor in which Newmark has the ability to exert significant influence over the operating and financial policies. Accordingly, Newmark accounts for this investment under the equity method of accounting. Newmark recognized equity income of $7.3 million, $2.7 million and $1.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. These amounts were included in “Other income, net” on the consolidated statements of operations. Newmark received distributions of $8.6 million and $3.0 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, Newmark had $100.0 million and $101.3 million, respectively, included on the “Other assets” on the accompanying consolidated balance sheets.

Investments Carried Under Measurements Alternatives

Newmark had previously acquired investments in entities for which it does not have the ability to exert significant influence over operating and financial policies. Prior to January 1, 2018, the investments were generally accounted for using the cost method of accounting in accordance with U.S. GAAP guidance, Investments-Other. Effective January 1, 2018, these investments are accounted for using the measurement alternative in accordance with the new guidance on recognition and measurement. The carrying value of these investments was $94.1 million and $53.5 million and is included in “Other assets” on the accompanying consolidated balance sheets as of December 31, 2019 and 2018, respectively.

Newmark recognized net realized and unrealized gains of $12.6 million and $17.9 million for the years ended December 31, 2019 and 2018, respectively, to reflect observable transactions for these shares. The realized and unrealized gains, net are included in “Other income, net” on the accompanying consolidated statements of operations.