Latest news with #MarcusMillichap
Globe and Mail
12 hours ago
- Business
- Globe and Mail
Marcus & Millichap Capital Corporation Secures $91M in Construction Financing for Two Multifamily Projects in Southwest Florida
Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, has arranged $91.4 million in financing for the construction of two multifamily assets in Naples, Florida: Vintana at Vanderbilt, a 150-unit apartment property, and The Karlyn, a 159-unit, active adult community for residents aged 55 and older. Gary Sefcik, based in MMCC's Manhattan office, secured the financing. The capital stack includes $78.9 million in senior debt provided by Kayne Anderson and $12.5 million in mezzanine financing from SteepRock Capital on behalf of the sponsor, Roers Companies. Vintana at Vanderbilt, located at 3375 Vanderbilt Beach Road, is adjacent to the Ritz-Carlton golf course and within a short drive of renowned Naples beaches. The Karlyn, at 7576 Immokalee Road, is also near the Gulf Coast shoreline. Both projects are slated for completion in 2027 and will feature high-end finishes and resort-style amenities. 'The financing package demonstrates that lenders remain eager to aggressively pursue Florida multifamily projects when strong sponsorship is combined with a compelling submarket story,' said Sefcik. 'Ranked as the No. 1 place to live in the United States, Naples has high barriers to entry, stringent zoning regulations and limited availability of multifamily-zoned sites.' About Marcus & Millichap Capital Corporation Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE:MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2024, MMCC closed 1,249 transactions totaling $9.1 billion. To learn more, please visit: About Marcus & Millichap, Inc. (NYSE:MMI) Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. Marcus & Millichap closed 7,836 transactions with a sales volume of approximately $49.6 billion in 2024. The company had 1,712 investment sales and financing professionals in more than 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate at year end. For additional information, please visit
Yahoo
4 days ago
- Business
- Yahoo
Marcus & Millichap Inc (MMI) Q2 2025 Earnings Call Highlights: Revenue Growth Amidst Challenges
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Total revenue for the second quarter was $172 million, representing approximately 9% growth year over year. Brokerage revenue grew 4%, while financing revenue posted an impressive 44% gain over the second quarter of 2024. The company's private client brokerage business reflected revenue and transaction growth of 10.3% and 12% respectively. Marcus & Millichap's auction division sold 273 transactions over the past 12 months, accounting for 27% of all commercially auctioned assets in the US. The company is well-capitalized with no debt and $333 million in cash equivalents and marketable securities. Negative Points Revenue from larger transactions valued at $20 million and above declined by nearly 12% for the quarter. The company reported a net loss of $11 million for the quarter, or $0.28 per share, compared to a net loss of $5.5 million or $0.14 per share for the prior year. The average commission rate decreased due to an increase in larger, more complex deals closed in the quarter. SG&A expenses for the quarter were flat sequentially with Q1 at $72 million, reflecting one-time expenses related to reorganization and contingent consideration. The company experienced a 7% reduction in the average commission rate despite a 12% growth in transaction volume. Q & A Highlights Warning! GuruFocus has detected 1 Warning Sign with MMI. Q: Can you discuss the shifting trends in transaction volume across different size segments, particularly in the private market segment, and whether you expect these trends to continue? Also, how much of the uplift is due to improved client outreach versus price discovery and better financing availability? A: CEO Hassam Naji explained that the market is finding more alignment on adjusted pricing and improved financing options, which, combined with persistent client outreach, has led to a higher conversion rate of client dialogues into transactions. The private client business showed significant improvement in Q2, and the strategy remains focused on expanding both private client and larger institutional segments. The recent market volatility was temporary, and the pipeline is moving forward. Q: Despite a 12% increase in sales volume year over year, commission rates decreased. Can you explain the dynamics behind this decline? A: CEO Hassam Naji attributed the decline in commission rates to a shift in transaction mix, with a notable increase in $100 million-plus transactions, which typically have lower average fees. This shift in transaction size mix was the primary factor affecting the average commission rate. Q: Regarding the tax accounting change, is this a one-time hit, or will it continue to impact results? A: CFO Steve De Janeiro clarified that the change to the year-to-date tax methodology was necessary due to the volatility in tax rates when operating near the break-even point. This change is more appropriate for the current circumstances and will normalize by Q4. The year-to-date tax rate is now more stable compared to previous fluctuations. Q: Can you provide commentary on external growth opportunities and how you feel about pricing for these opportunities? A: CEO Hassam Naji mentioned active discussions with potential acquisitions in the core business and new opportunities in advisory and appraisal evaluation. The market's attitude toward valuations has improved, with more confidence in a return to a normal operating environment. This has eased some of the previous challenges in negotiations. Q: How do you prioritize capital deployment options, including share repurchases, given the external growth opportunities and recent stock performance? A: CFO Steve De Janeiro stated that the company remains active in share repurchases while balancing other opportunities. The dividend policy continues, and M&A opportunities are still on the table. CEO Hassam Naji added that the strong balance sheet allows for a diverse capital deployment strategy, ensuring that strategic growth opportunities are not compromised. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
3 Reasons MMI is Risky and 1 Stock to Buy Instead
Over the past six months, Marcus & Millichap's stock price fell to $30.90. Shareholders have lost 18.2% of their capital, which is disappointing considering the S&P 500 has climbed by 4.1%. This may have investors wondering how to approach the situation. Is now the time to buy Marcus & Millichap, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it's free. Why Do We Think Marcus & Millichap Will Underperform? Even though the stock has become cheaper, we're cautious about Marcus & Millichap. Here are three reasons why you should be careful with MMI and a stock we'd rather own. 1. Revenue Spiraling Downwards A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Marcus & Millichap struggled to consistently generate demand over the last five years as its sales dropped at a 3.2% annual rate. This wasn't a great result and is a sign of poor business quality. 2. Cash Burn Ignites Concerns Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Over the last two years, Marcus & Millichap's demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 1.4%, meaning it lit $1.37 of cash on fire for every $100 in revenue. 3. New Investments Fail to Bear Fruit as ROIC Declines ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Unfortunately, Marcus & Millichap's ROIC has decreased significantly over the last few years. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. Final Judgment Marcus & Millichap doesn't pass our quality test. Following the recent decline, the stock trades at 308.9× forward P/E (or $30.90 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. We'd suggest looking at the Amazon and PayPal of Latin America. Stocks We Like More Than Marcus & Millichap Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
17-07-2025
- Business
- Globe and Mail
Marcus & Millichap, Inc. to Report Second Quarter 2025 Financial Results on Thursday, August 7, 2025
Marcus & Millichap, Inc. (NYSE: MMI), a leading national brokerage firm specializing in commercial real estate investment sales, financing and research and advisory services, announced today it will report its financial results for the second quarter ended June 30, 2025 on Thursday, August 7, 2025, before the market open. The Company will host a webcast and a conference call the same day to discuss the results at 10:30 a.m. Eastern Time. The call will be hosted by Hessam Nadji, President and Chief Executive Officer and Steve DeGennaro, Chief Financial Officer. WEBCAST INFORMATION A live webcast of the call will be accessible through the Investor Relations section of Marcus & Millichap's website at and will be archived upon completion of the call. The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. For those unable to access the webcast, callers from the United States and Canada should dial 1-877-407-9208 ten minutes prior to the scheduled call time. International callers should dial 1-201-493-6784. REPLAY INFORMATION For those unable to participate during the live broadcast, a telephonic replay of the call will also be available from 2:30 p.m. Eastern Time on Thursday, August 7, 2025 through 11:59 p.m. Eastern Time on Thursday, August 21, 2025 by dialing 1-844-512-2921 in the United States and Canada or 1-412-317-6671 internationally and entering passcode 13754073. About Marcus & Millichap, Inc. Marcus & Millichap, Inc. is a leading national real estate services firm specializing in commercial real estate investment sales, financing services, research and advisory services. As of March 31, 2025, the Company had 1,668 investment sales and financing professionals in more than 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to its clients. Marcus & Millichap, Inc. closed 1,706 transactions during the three months ended March 31, 2025, with a sales volume of $9.4 billion. For additional information, please visit
Yahoo
23-06-2025
- Business
- Yahoo
1 Cash-Heavy Stock for Long-Term Investors and 2 to Question
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. That said, here is one company with a net cash position that balances growth with stability and two with hidden risks. Net Cash Position: $180.9 million (15.1% of Market Cap) Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services. Why Do We Think MMI Will Underperform? Products and services have few die-hard fans as sales have declined by 3.2% annually over the last five years Cash-burning history makes us doubt the long-term viability of its business model Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Marcus & Millichap is trading at $30.71 per share, or 307.1x forward P/E. Read our free research report to see why you should think twice about including MMI in your portfolio, it's free. Net Cash Position: $242.4 million (3.6% of Market Cap) Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE:SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states. Why Does SNV Fall Short? Muted 4.2% annual net interest income growth over the last four years shows its demand lagged behind its bank peers Net interest margin of 3.2% reflects its high servicing and capital costs Muted 2.9% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its bank peers At $48.76 per share, Synovus Financial trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why SNV doesn't pass our bar. Net Cash Position: $1.10 billion (16.4% of Market Cap) Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform. Why Should You Buy GTLB? ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Superior software functionality and low servicing costs result in a best-in-class gross margin of 88.6% Operating margin improvement of 14.5 percentage points over the last year demonstrates its ability to scale efficiently GitLab's stock price of $40.86 implies a valuation ratio of 6.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
