Investments

6 Months Ended

Jun. 30, 2020

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 (loss) income of $(4.1) million and $4.8 million for the three and six months ended June 30, 2020 and 2019, respectively. Newmark did not receive any distributions for the three and six months ended June 30, 2020 and 2019, respectively. Newmark received distributions of $8.6 million for the year ended December 31, 2019. The carrying value of these investments was $95.9 million and $100.0 million as of June 30, 2020 and December 31, 2019, respectively, and is included in “Other assets” on the accompanying unaudited condensed consolidated balance sheets.

Investments Carried Under Measurement Alternatives

Newmark has acquired investments in entities for which it does not have the ability to exert significant influence over operating and financial policies.

For the three and six months ended June 30, 2020, Newmark recorded an unrealized loss of $10.0 million and $26.8 million related to these investments, respectively. Newmark recognized an unrealized gain of $3.9 million for the three and six months ended June 30, 2019 as a result of changes in the fair value of its instruments. Newmark did not record realized gains or losses for the three and six months ended June 30, 2020 and 2019, respectively. The unrealized loss is included as a part of “Other income (loss), net” on the accompanying unaudited condensed consolidated statements of operations. The carrying value of these investments was $67.3 million and $94.1 million and is included in “Other assets” on the accompanying unaudited condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019, respectively.