Investments

12 Months Ended

Dec. 31, 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 income (loss) of $2.8 million, $0.0 million and $(11.6) million for the years ended December 31, 2022, 2021 and 2020, respectively. Equity (loss) income is included in "Other income, net" on the accompanying consolidated statements of operations. Newmark received distributions of $0.0 million, $0.0 million and $0.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The carrying value of this investments was $91.3 million and $88.3 million as of December 31, 2022 and 2021, respectively, included in “Other assets” on the accompanying consolidated balance sheets. On July 20, 2022, Newmark exercised its redemption option and expected to receive approximately $88.4 million from Cantor. 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 27.2% ownership interest in Real Estate LP and amend 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 $44.0 thousand administrative fee was made to Newmark in connection with such amendment.

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 years ended December 31, 2022, 2021 and 2020, Newmark recorded realized gains (losses) related to these investments of $(14.1) million, $1.6 million and $(84.2) million, respectively. The changes in value are included as a part of “Other income (loss), net” on the accompanying consolidated statements of operations. Additionally, the Company invested $2.8 million and $8.5 million for the years ended December 31, 2022 and 2021, respectively. The carrying value of these investments were $8.7 million and $20.0 million as of December 31, 2022 and 2021, respectively, and are included in “Other assets” on the accompanying consolidated balance sheets.