Investments

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

Newmark had a 27% ownership in Real Estate LP, a joint venture with Cantor in which Newmark had the ability to exert significant influence over the operating and financial policies. Accordingly, Newmark accounted for this investment under the equity method of accounting. Newmark recognized equity income (loss) of $14.2 million, $2.8 million and $0.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Equity income (loss) is included in “Other income, net” on the accompanying consolidated statements of operations. On July 20, 2022, Newmark exercised its redemption option. In December 2022, the Audit Committee authorized a subsidiary of Newmark to rescind its July 20, 2022 written notice exercising the optional redemption of its 27% ownership interest in Real Estate LP and amended the joint venture agreement between Newmark and Real Estate LP to provide for a redemption option for this investment after July 1, 2023, with proceeds to be received within 20 days of the redemption notice. A payment of a $44.0 thousand administrative fee was made to Newmark in connection with such amendment. Newmark exercised its redemption option and received payment of $105.5 million from Cantor during the year ended December 31, 2023, terminating Newmark’s interest in Real Estate LP. There was no additional gain recognized on the exercise and receipt of payment. The carrying value of this investment was $91.3 million as of December 31, 2022, included in “Other assets” on the accompanying 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 year ended December 31, 2023, Newmark recorded unrealized gains (losses) related to these investments of $(3.8) million. Newmark did not recognize any realized gains (losses) related to these investments for the year ended December 31, 2023. For the years ended December 31, 2022 and 2021, Newmark recorded realized gains (losses) related to these investments of $(14.1) million and $1.6 million. The changes in value are included as a part of “Other income (loss), net” on the accompanying consolidated statements of operations. Additionally, the Company did not make any new investments during the year ended December 31, 2023. For the years ended December 31, 2022 and 2021, the Company invested $2.7 million and $8.5 million, respectively. The carrying values of these investments were $4.9 million and $8.7 million as of December 31, 2023 and 2022, respectively, and are included in “Other assets” on the accompanying consolidated balance sheets.