Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Q1 2025 Earnings Presentation
23 slides from Walker & Dunlop's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings
Q1 Q1 2025 EARNINGS May 1, 2025
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 federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar
Slide 3: Significant Demand for CRE Investment Opportunities
SIGNIFICANT DEMAND FOR CRE INVESTMENT O P P O RT U N I T I E S Dry Powder Targeting Commercial Real Estate Investment Opportunities (North America) (in billions) $350 100% $300 95% $250 90% $200 85% $150 80% $100 75% $50 $0 70% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 4: Rebound in Multifamily Sales Volume Back to Pre-Pandemic Levels
R E B O U N D I N M U LT I FA M I LY S A L E S V O L U M E B A C K T O P R E - PA N D E M I C L E V E L S 4 *Data above includes only conventional multifamily Source: MSCI Real Capital Analytics
Slide 5: Investor Buying Sentiment Reflects Desire to Transact
INVESTOR BUYING SENTIMENT REFLECTS DESIRE TO TRANSACT Zelman Quarterly Apartment Transaction Survey on Superior Opportunity in Today’s Multifamily Environment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q
Slide 6: 2024 Multifamily Absorption Rate Above Pre-COVID Average
2 0 2 4 M U LT I FA M I LY A B S O R P T I O N R AT E WA S 2 . 2 X A B O V E P R E - C O V I D AV E R A G E 6 Source: RealPage
Slide 7: Future Undersupplied Multifamily Markets Should Drive Rent Growth
F U T U R E U N D E R S U P P L I E D M U LT I FA M I LY M A R K E T S H O U L D DRIVE RENT GROWTH 7 Source: RealPage
Slide 8: Delta Between Cost of Homeownership and Renting Is Prohibitively Wide
D E LTA B E T W E E N C O S T O F H O M E O W N E R S H I P A N D R E N T I N G I S P R O H I B I T I V E LY W I D E $2,600 $430,000 $2,400 $410,000 $390,000 $2,200 $370,000 $2,000 $350,000 $1,800 $330,000 $1,600 $310,000 $1,400 $290,000 $1,200 $270,000 $1,000 $250,000 Median Single-Family List Pric
Slide 9: Growth in Most Products Reflects Pent Up Demand for CRE Investment
GROWTH IN MOST PRODUCTS REFLECTS PENT UP DEMAND FOR CRE INVESTMENT Total Transaction Volume (in millions) $3,500 $3,319 $3,000 $2,553 $2,500 $2,000 $1,839 $1,512 $1,500 $1,167 $975 $1,000 $903 $808 $500 $148 $176 $14 $16 $- Fannie Mae Freddie Mac HUD Brokered Principal Lending and Property Sales Inv
Slide 10: Q1'25 Consolidated Key Financial Metrics
Q 1 ’ 2 5 C O N S O L I D AT E D K E Y F I N A N C I A L M E T R I C S Total Revenues Diluted EPS Adjusted EBITDA1 Adjusted Core EPS2 (in thousands) (in thousands) $1.19 $237,367 $74,136 $0.35 $228,059 $64,966 $0.85 $0.08 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 10 1) This is a non-GAAP finan
Slide 11: Capital Markets
C A P I TA L M A R K E T S Q1’25 KEY FINANCIAL METRICS YEAR-OVER-YEAR Q1’25 Q1’24 % Change (in thousands) Consolidated Total Transaction Volume $7,035,932 $6,394,459 10% Total Revenues $102,570 $81,897 25% Net Income $2,360 ($6,700) 135% Adjusted EBITDA1 ($13,327) ($19,297) 31% • Increase in total r
Slide 12: Servicing-Related Revenues
C O N T I N U E D S E RV I C I N G P O RT F O L I O G R O W T H D R I V E S S T R O N G C A S H G E N E R AT I O N > As of March 31, 2025, the servicing portfolio had a weighted average remaining life of 7.5 years and a weighted-average servicing fee of 24.4 bps > Only $10.3 billion of Agency loans,
Slide 13: Servicing & Asset Management (SAM)
S E RV I C I N G & A S S E T M A N A G E M E N T ( “ S A M ” ) Q1’25 KEY FINANCIAL METRICS YEAR-OVER-YEAR (in thousands) Q1’25 Q1’24 % Change Total Revenues $131,903 $141,235 (7%) Net Income $19,126 $43,283 (56%) Adjusted EBITDA1 $107,902 $119,658 (10%) • Ended Q1’25 with total managed portfolio of
Slide 14: Full-Year 2025 Financial Outlook
FULL-YEAR 2025 FINANCIAL OUTLOOK 2024 ACTUAL 2025 GROWTH OUTLOOK HIGH SINGLE-DIGITS TO Diluted Earnings Per Share $3.19 DOUBLE-DIGITS Adjusted Core Earnings Per Share $4.97 FLAT TO HIGH SINGLE-DIGITS Adjusted EBITDA $329 MILLION FLAT TO HIGH SINGLE-DIGITS 2025 Financial Outlook is based on Walker &
Slide 15: Business Area Goals Will Allow Us to Achieve Annual Guidance
BUSINESS AREA GOALS WILL ALLOW US TO ACHIEVE ANNUAL GUIDANCE 2024 ACTUAL 2025 GOAL Average Transaction Volume per Banker/Broker $172 MILLION +16% $200 MILLION Zelman and Apprise Revenues $32 MILLION +56% $40-$50 MILLION WDAE Tax Credit Equity Syndication $400 MILLION +50% $600 MILLION WDIP Capital D
Slide 16: Continued Focus on Market Share Growth Across Business Lines
CONTINUED FOCUS ON MARKET SHARE GROWTH ACROSS BUSINESS LINES #1 FANNIE MAE HUD #2 #4 FREDDIE MAC #4 SBL LENDER #7 INVESTMENT SALES DUS® Lender in 20241 Lender Overall in 20242 Optigo® Lender in 20241 Overall in 20243 Broker in 20244 1) Fannie Mae and Freddie Mac, respectively 2) HUD.gov MF and OHP L
Slide 17: Continued Focus on Growing Volume per Banker/Broker
CONTINUED FOCUS ON GROWING VOLUME PER BANKER/BROKER Average Transaction Volume per Banker/Broker $200 $172 Million $137 Million Million 2023 2024 2025 GOAL 17
Slide 18: Strong Momentum Across Emerging Business Lines
STRONG MOMENTUM ACROSS EMERGING BUSINESS LINES Apprise Revenues Small Balance Lending (SBL) Revenues Zelman Revenues (in thousands) (in thousands) (in thousands) $10,679 $2,965 $5,910 $1,971 $3,746 $4,667 +50% +58% +129% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 18
Slide 19: Appendix
APPENDIX
Slide 20: Consolidated Adjusted EBITDA Reconciliation to Consolidated Net Income
C O N S O L I D AT E D A D J U S T E D E B I T D A R E C O N C I L I A T I O N T O C O N S O L I D AT E D N E T I N C O M E (in thousands) Three months ended March 31, 2025 Three months ended March 31, 2024 Walker & Dunlop Net Income $2,754 $11,866 Adjustments: Income tax expense 2,519 2,864 Interes
Slide 21: Adjusted Core EPS Reconciliation
A D J U S T E D C O R E E P S R E C O N C I L I AT I O N (in thousands), except per share amounts Three months ended March 31, 2025 Three months ended March 31, 2024 Walker & Dunlop Net Income $2,754 $11,866 Adjustments: Provision (benefit) for credit losses 3,712 524 Net write-offs --- — Amortizati
Slide 22: Adjusted EBITDA Reconciliation to Net Income by Segment: Capital Markets
A D J U S T E D E B I T D A R E C O N C I L I AT I O N T O NET INCOME BY SEGMENT Capital Markets Three months ended March Three months ended March (in thousands) 31, 2025 31, 2024 Walker & Dunlop Net Income $2,360 ($6,700) Adjustments: Income tax expense (benefit) 2,181 (1,744) Interest expense on c
Slide 23: Adjusted EBITDA Reconciliation to Net Income by Segment: SAM
A D J U S T E D E B I T D A R E C O N C I L I AT I O N T O NET INCOME BY SEGMENT SAM Three months ended March Three months ended March (in thousands) 31, 2025 31, 2024 Walker & Dunlop Net Income $19,126 $43,283 Adjustments: Income tax expense (benefit) 17,651 11,153 Interest expense on corporate deb