Commercial real estate services provider Newmark Group, Inc. (NMRK) has acquired Boston-based tenant representation and real estate advisory McCall & Almy, which has expertise in multi-market corporate and occupier advisory as well as consulting, lease administration, and project management.
Notably, the move is a part of Newmark’s expansion in major markets and expands its tenant representation and consulting in the Boston area. McCall & Almy has completed more than 5,000 transactions valued at over $50 billion in the past 32 years.
Management Weighs In
The CEO of Newmark, Barry Gosin, commented, “As Newmark continues its growth course, bolstering services in key U.S. gateway cities is paramount. Acquiring firms with best-in-class talent and unparalleled expertise strengthens our client offerings in these markets. The professionals at McCall & Almy encapsulate these values, with incredible stature and an impeccable corporate client-service reputation in the Boston commercial real estate market.”
Bill McCall, the President and Founder of McCall & Almy, stated, “After decades as an independent firm, joining the Newmark platform provides us with the ability to continue to provide best-in-class service while having access to top-tier, far-reaching resources on behalf of our clients, in Boston and beyond.”
Newmark has recently announced acquisitions, hires, and agreements in major geographies including France, Germany, Poland, Hungary, Hong Kong, Dubai, and London.
Hedge Fund Activity
TipRanks data points that Wall Street’s top hedge funds have increased holdings in Newmark by 464,300 shares in the last quarter, indicating a positive hedge fund confidence signal in the stock based on activities of five hedge funds.
Valuation Speaks
Let us consider some key metrics for Newmark and how it fares against the broader industry. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin at 6% substantially lags the industry median of 56.2%. This implies that while the company has been focusing on expanding its presence, it also has scope to streamline its costs.
On the other hand, with a return on common equity of 77%, Newmark is far ahead of its peers, where the industry median figure is 5.3%.
Finally, with a forward non-GAAP P/E ratio of 7.6, Newmark shares are currently underpriced against the broader industry, where the median figure is 42.4.
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