NEW YORK, June 23, 2020 /PRNewswire/ -- Newmark Group, Inc.
(NASDAQ: NMRK) ("Newmark" or "the Company") established a
$125 million sublimit line of
credit1 to fund potential principal and interest
servicing advances on its Fannie Mae portfolio during the
forbearance period related to the CARES Act. The advance line will
provide 100% of the principal and interest advance payment at a
rate of 1-month LIBOR plus 2.00% and will be collateralized by
Fannie Mae's commitment to repay advances. Newmark currently has
four Fannie Mae loans in forbearance, with $0.3 million of advances outstanding as of
May 31, 2020.
Newmark Chief Financial Officer Mike
Rispoli commented: "This line of credit enhances the
Company's strong financial position. Rent collections have been
resilient across the industry thus far in the second quarter, and
we continue to expect the forbearance rate for Newmark to be below
industry projections based on the credit quality of our
portfolio."2
About Newmark Group, Inc.
Newmark Group, Inc.
("Newmark Group") is a publicly traded company that, through
subsidiaries, operates as a full-service commercial real estate
services business with a complete suite of services and products
for both owners and occupiers across the entire commercial real
estate industry. Under the Newmark Knight Frank name, the
investor/owner services and products of Newmark Group's
subsidiaries include capital markets (comprised of investment sales
and mortgage brokerage), agency leasing, property management,
valuation and advisory, diligence and underwriting. Newmark Group's
subsidiaries also offer government sponsored enterprise lending,
loan servicing, debt and structured finance, and loan sales.
Newmark Group's occupier services and products include tenant
representation, global corporate services, real estate management
technology systems, workplace and occupancy strategy, consulting,
project management, lease administration and facilities management.
Newmark Group enhances these services and products through
innovative real estate technology solutions and data analytics
designed to enable its clients to increase their efficiency and
profits by optimizing their real estate portfolio.
Newmark Group has relationships with many of the world's largest
commercial property owners, real estate developers and investors,
as well as Fortune 500 and Forbes Global 2000 companies. Newmark
Group's Class A common stock trades on the NASDAQ Global Select
Market under the ticker symbol "NMRK". Newmark is a
trademark/service mark and/or registered trademark/service mark of
Newmark Group and/or its affiliates. Knight Frank is a service mark
of Knight Frank (Nominees) Limited. Find out more about Newmark at,
https://twitter.com/newmarkkf,
https://www.linkedin.com/company/newmark-knight-frank/, and/or
http://ir.ngkf.com/investors/investors-home/default.aspx.
Discussion of Forward-Looking Statements about
Newmark
Statements in this document regarding Newmark that
are not historical facts are "forward-looking statements" that
involve risks and uncertainties, which could cause actual results
to differ from those contained in the forward-looking statements.
These include statements about the effects of the COVID-19 pandemic
on the Company's business, results, financial position, liquidity
and outlook, which may constitute forward-looking statements and
are subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, Newmark undertakes no obligation to update any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see Newmark's Securities and
Exchange Commission filings, including, but not limited to, the
risk factors and Special Note on Forward-Looking Information set
forth in these filings and any updates to such risk factors and
Special Note on Forward-Looking Information contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K.
1 The sublimit is now included within its
existing $450 million warehouse facility due June 16, 2021 with Bank of America, N.A. See
footnote 21, "Warehouse Facilities Collateralized by U.S.
Government Sponsored Enterprises", in the Company's most recent
Form 10-Q for additional details.
2 The weighted average original loan-to-value ratio
of Newmark's Fannie Mae servicing portfolio was 64%, and the debt
service coverage ratio was 2.05x as of March
31, 2020. These metrics compare to 66% and 1.9x for Fannie
Mae's multifamily guaranty book of business, respectively, as of
March 31, 2020. At the onset of the
Great Recession, the respective corresponding ratios for Newmark
were 68% and 1.57x as of December 31,
2007.
Media Contact:
Karen
Laureano-Rikardsen
+1 212-829-4975
Investor Contact:
Jason
Harbes, CFA or Jason
McGruder
+1 212-829-7124
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