Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Merger or Acquisition (August 2021)
15 slides from Walker & Dunlop's merger presentation, Aug 30, 2021
Slide 1: Walker & Dunlop to Acquire Alliant Capital and Affiliates
August 31, 2021 WALKER & DUNLOP TO ACQUIRE ALLIANT CAPITAL AND AFFILIATES 1
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in this presentation may constitute forward - looking statements within the meaning of the federa l securities laws, including statements relating to: (1) the expected strategic benefits of the acquisition of Alliant, (2) the expected accre
Slide 3: Alliant is an alternative investment manager focused on multifamily affordable housing
Alliant is an alternative investment manager focused on multifamily affordable housing sector through low - income housing tax credit syndication, joint venture development of affordable properties, and community preservation fund management The combination of W&D and Alliant’s people, assets, and c
Slide 4: W&D Has a Successful Track Record of Strategic Acquisitions
$0 $20 $40 $60 $80 $100 $120 Zelman TapCap W&D HAS A SUCCESSFUL TRACK RECORD OF STRATEGIC ACQUISITIONS Johnson Capital Engler Financial George Elkins Mortgage Banking Deerwood Capital JCR Capital Enodo AKS Capital FourPoint Share Price iCap MSF Capital Alliant 4
Slide 5: Where We Are Going
WHERE WE ARE GOING GROW DEBT FINANCING VOLUME GROW PROPERTY SALES VOLUME ESTABLISH INVESTMENT BANKING CAPABILITIES ENVIRONMENTAL, SOCIAL AND GOVERNANCE $60B+ Origination Volume / $5B+ Small Balance Loans / $160B Servicing Portfolio $25B+ Sales Volume $10B+ Assets Under Management Increase Diverse Le
Slide 6: Transaction Benefits and Opportunities
TRANSACTION BENEFITS AND OPPORTUNITIES Cultural Alignment Aligned on long - term growth strategy and direction of combined platform Affordable Housing Creation of affordable housing powerhouse to progress towards 2025 affordable lending target Financing and Sales Opportunities Significant debt finan
Slide 7: Alliant: Creating Exceptional Impact in Affordable Housing
ALLIANT: CREATING EXCEPTIONAL IMPACT IN AFFORDABLE HOUSING Alliant Capital, Ltd. Low Income Housing Tax Credit (LIHTC) syndication – capital raising, investment identification, underwriting, closing, asset management, disposition, and investor relations Alliant Strategic Investments Community preser
Slide 8: Alliant Business Highlights
KEY PORTFOLIO STATISTICS OPERATIONAL METRICS INDUSTRY RECOGNITION 400,000 + Families Served 1,000 + Tax Credit Properties $8.4 Billion Equity Raised 100,000 + Units in Portfolio 78% Repeat Key Relationships $14 Billion Assets Under Management #6 Top Syndicator in 2021* A2 Rated Debt by Moody’s * NMH
Slide 9: Sizeable LIHTC Syndication Market Presents Opportunity for Market Share Growth
SIZEABLE LIHTC SYNDICATION MARKET PRESENTS OPPORTUNITY FOR MARKET SHARE GROWTH Low Income Housing Tax Credit Volume in billions $17 $16 $17 $18 $18 3.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2016 2017 2018 2019 2020 Alliant Market Share 1) Cal
Slide 10: Goal to Advance in Syndicator Rankings Through Continued Growth
GOAL TO ADVANCE IN SYNDICATOR RANKINGS THROUGH CONTINUED GROWTH 2021 TOP APARTMENT SYNDICATORS BY UNITS Source: National Multifamily Housing Council Rank Company Units Syndicated 1 Boston Financial 186,785 2 Raymond James 132,268 3 PNC Real Estate 125,287 4 National Equity Fund, Inc. 115,667 5 Enter
Slide 11: Purchase Price and Funding Details
PURCHASE PRICE AND FUNDING DETAILS Estimated closing in Q4 2021 subject to certain regulatory approvals and consents of Alliant’s investor and lender partners Under the terms of the purchase agreement, Walker & Dunlop will acquire Alliant Capital and its affiliates at total enterprise value of $696
Slide 12: Expected Financial Synergies
EXPECTED FINANCIAL SYNERGIES Estimated 2022 Alliant Impact 1 Total Revenues $90 to $100 million Adjusted EBITDA 2 approximately $60 million Diluted Earnings Per Share $0.45 to $0.60 per share 1) Assumes Q4 2021 closing date 2) This is a non - GAAP financial measure. For a reconciliation of the metri
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 14
Slide 15: Estimated Alliant Adjusted EBITDA Reconciliation to Net Income
ESTIMATED ALLIANT ADJUSTED EBITDA RECONCILIATION TO NET INCOME For the year ended (in thousands) December 31, 2022 1 December 31, 2022 2 Estimated Alliant Net Income $15,000 $20,000 Adjustments: Income tax expense 5,500 7,500 Interest expense 22,000 22,000 Amortization and depreciation 17,500 10,500
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