Investments

9 Months Ended

Sep. 30, 2022

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 $0.1 million for the three and nine months ended September 30, 2022 and 2021. Equity (loss) income is included in "Other income, net" on the accompanying unaudited condensed consolidated statements of operations. Newmark did not receive any distributions for the three and nine months ended September 30, 2022 and 2021, respectively. The carrying value of this investments was $88.4 million and $88.3 million as of September 30, 2022 and December 31, 2021, respectively. On July 20, 2022, Newmark exercised its redemption option and expects to receive approximately $88.4 million from Cantor on or prior to July 20, 2023.

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 (see Note 4 — “Acquisitions”).

For the three and nine months ended September 30, 2022, Newmark recorded unrealized losses related to these investments of $1.3 million and $15.2 million, respectively. Newmark recorded gains of $2.5 million relating to these investments for the nine months ended September 30, 2021. Newmark did not record realized gains or losses related to these investments for the three months ended September 30, 2021. The changes in value are included as a part of “Other income (loss), net” on the accompanying unaudited condensed consolidated statements of operations. The carrying value of these investments were $7.5 million and $20.0 million as of September 30, 2022 and December 31, 2021, respectively, and are included in “Other assets” on the accompanying unaudited condensed consolidated balance sheets.