Marcus & Millichap, Inc. · NYSE:MMI
Marcus & Millichap — Investor Presentation (April 2024)
21 slides from Marcus & Millichap's investor presentation, April 2024
Slide 1: Investor Presentation April 2024
Investor Presentation 2024 April 2024 1
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation includes forward-looking statements, including the Company’s business outlook for 2024, market consensus on interest rate decreases in 2024 and for the 2024 economic forecast, our expectations of 2024 commercial real estate sales activity in the wake of an
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Premier Leading National CRE Sales and Financing Brokerage #1 in the Private Client Market; Growing Presence in Middle and Larger Market Segments Demonstrated Long-Term Record of Growth and Profitability Proven Ability to Grow Internally and Externally Through All Economic Cycl
Slide 4: Industry Leader for More Than 50 Years
INDUSTRY LEADER FOR MORE THAN 50 YEARS Founded on Specialization - A Culture of Client Results Powered by Technology & Research Dedicated to real estate investment brokerage and financing since 1971, NYSE listed in 2013 (NYSE: MMI) Industry leader in U.S. real estate investment transactions with
Slide 5: Largest Real Estate Investment Sales Brokerage in the U.S.
LARGEST REAL ESTATE INVESTMENT SALES BROKERAGE IN THE U.S. Market leadership in guiding client capital $11.4B across geography and property types Cross Border Capital Migration $1.2B Cross Product Capital Migration 1,198 1031 Exchanges 44% Buyers from Out of State Reflects Capital Rotation, Liquidit
Slide 6: Top Investment Brokerage Firm
Real Estate Alert (REA) published their 2023 ranking for sales of $5-$25M and Marcus & Millichap was the #1 Transaction Market Leader. Top Investment Brokerage Firm : 1 30 MMI Brokerage Transactions Closed OVERALL Every Business Day MULTIFAMILY 5K+ MULTIFAMILY RETAIL Total MMI SELF-STORAGE B
Slide 7: Most Compelling CRE Brokerage Segment
MOST COMPELLING CRE BROKERAGE SEGMENT Largest Transaction and Commission Pool Opportunity U.S. Private Client Market segment Market segment consists of transaction values between $1 million and <$10 million Largest and most active market segment, accounting for 80%+ of transactions Primarily d
Slide 8: Providing Specialized Coverage Across All Property Types and Major Markets
PROVIDING SPECIALIZED COVERAGE ACROSS ALL PROPERTY TYPES AND MAJOR MARKETS Revenue by Service Type ($B) Unique platform of unmatched scale serving a Brokerage Financing Other highly fragmented Private Client Market segment 1,500 $1.3 $1.3 Expanded IPA division connects Private Client 8% 9% capit
Slide 9: Long-Term Growth Strategy
LONG-TERM GROWTH STRATEGY INVESTING FOR LONG-TERM, SUSTAINABLE GROWTH People: Recruitment and retention of experienced professionals, teams, and boutique firms Technology: Proprietary and integrated third-party market-leading tools and data platform for clients and salesforce Acquisitions: Add
Slide 10: Balance Sheet & Financial Strength
BALANCE SHEET & FINANCIAL MMI Financial StrengthSTRENGTH $407M ($20M) $150M Cash, cash equivalents & 2023 Adjusted EBITDA1 Return of Capital to marketable securities Shareholders since program inception 12/31/23 Balance Financial Strength: Ample liquidity to support growth initiatives and return of
Slide 11: 2023 Business Review
2023 BUSINESS REVIEW Revenue $43.6B 7,546 1,783 Total Volume Transactions Professionals $646M The U.S. commercial real estate market in 2023 experienced significant transaction volume declines of over 50% hampered by interest rate Net Income volatility, higher borrowing costs and a constrained len
Slide 12: 2023 Brokerage Business Highlights
2023 BROKERAGE BUSINESS HIGHLIGHTS Financing: $560M $30.8B 5,475 1,684 Brokerage Revenue Total Sales Volume Sales Transactions Investment Sales Closed Professionals The only national brokerage firm predominantly focused on the Private Client Market segment which consistently accounts for ~80% of U.S
Slide 13: 2023 Financing Business Highlights
2023 FINANCING BUSINESS HIGHLIGHTS Financing: $6.7B 1,076 352 Total Loan Origination Financing Transactions Lender Relationships Volume Closed $67M Financing Fee Revenue Capital markets expertise and growing lender network provide tailored financing solutions for clients as intermediary 99 Transacti
Slide 14: Platform Highlights
Platform Highlights 14
Slide 15: An Integrated Platform
AN MMIINTEGRATED PLATFORM Financial POWERED BY PEOPLE, TECHNOLOGY & RESEARCH Strength Bringing together access to exclusive listings and the industry’s leading platform LARGEST U.S. CRE INVESTMENT IN-HOUSE DEDICATED RESEARCH & SALES & FINANCING BROKERAGE ADVISORY SERVICES Over 1,750 professionals
Slide 16: Unwavering Commitment to a Technology-Enabled Platform
UNWAVERING COMMITMENT TO A TECHNOLOGY-ENABLED PLATFORM Driving Productivity and Increasing Online Client Engagement Engaging CRE investors: MyMMI Technology-based: Productivity & Collaboration New salesforce dashboard brings innovative efficiency, >100K 288K+ unparalleled access and thoughtful integ
Slide 17: Leveraging In-House Dedicated Research
LEVERAGING IN-HOUSE DEDICATED RESEARCH A Trusted Market Voice Providing Thought Leadership With research reports and video content covering over a dozen property types across the United States and Canada, Marcus & Millichap’s real-time reports help our clients make better, more informed decisions Ca
Slide 18: Appendix
Appendix 18
Slide 19: MMI Earnings Model
MMI EARNINGS MODEL Investment Transaction Commission Brokers Productivity Sales Value Rate Revenue Investment Financing & Cost of Sales Other SG&A(1) EBITDA(2) Services Revenue Revenue 1. Includes stock-based compensation 2. EBITDA is not a measurement of our financial performance under U.S. GAAP an
Slide 20: Adjusted EBITDA Reconciliation
Three Months Ended Twelve Months Ended ADJUSTED EBITDA RECONCILIATION December 31, December 31, 2023 2022 2023 2022 Adjusted EBITDA, which the Company defines as net income before (i) interest income and other, including net realized gains (losses) on Net income ($10,233) $7,911 ($34,035) $104,225 m
Slide 21: Thank you
Thank you 21
Marcus & Millichap — Investor Presentation (April 2024) on 6ix