Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Q3 2024 Earnings Presentation
17 slides from Walker & Dunlop's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings
Q3 Q3 2024 EARNINGS November 7, 2024
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: Q3'24 Consolidated Key Performance Metrics
Q 3 ’ 2 4 F I N A N C I A L R E S U LT S R E F L E C T H E A LT H Y CRE MARKET Q3’24 Consolidated Key Performance Metrics Total Transaction Volume Diluted EPS Adjusted EBITDA1 Adjusted Core EPS2 (in millions) (in thousands) $0.85 $1.19 $11,616 $78,905 $1.11 $74,065 $0.64 $8,555 +36% +33% +7% +7% Q3'
Slide 4: Q3'24 Total Transaction Volume Driven by Increase in Debt Financing and Property Sales
Q 3 ’ 2 4 T O TA L T R A N S A C T I O N V O L U M E D R I V E N B Y I N C R E A S E IN BOTH DEBT FINANCING AND PROPERTY SALES VOLUME Total Transaction Volume (in millions) $4,500 $4,028 $4,000 $3,603 $3,500 $3,149 $3,000 $2,508 $2,500 $2,001 $2,000 $1,739 $1,546 $1,500 $1,072 $1,000 $500 $272 $87 $
Slide 5: Consistent Servicing Portfolio Growth Drives Strong Cash Generation
C O N S I S T E N T 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 Servicing Portfolio and Servicing-Related Revenues (in millions) $160,000 $160 $140,000 $134,081 $128,959 $140 $120,778 $120,000 $113,920 $126 $122 $103,378 $120 Servicing-Related Rev
Slide 6: Capital Markets Q3'24 Key Financial Metrics Year-over-Year
C A P I TA L M A R K E T S Q3’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR Q3’24 Q3’23 % Change (in thousands) Consolidated Total Transaction Volumes $11,616,107 $8,555,467 36% Total Revenues $143,712 $117,696 22% Net Income $21,830 $7,050 210% Adjusted EBITDA1 ($4,601) ($15,704) 71% • Increase in total
Slide 7: Servicing & Asset Management Q3'24 Key Financial Metrics
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 ” ) Q3’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR (in thousands) Q3’24 Q3’23 % Change Total Revenues $144,884 $148,140 (2%) Net Income $37,482 $45,427 (17%) Adjusted EBITDA1 $117,455 $124,849 (6%) • Ended Q3’24 with total managed portfolio of $
Slide 8: YTD 2024 Financial Performance Reflects Resilient Platform
YTD 2024 FINANCIAL PERFORMANCE REFLECTS R E S I L I E N T P L AT F O R M YTD’24 Consolidated Key Performance Metrics Total Transaction Volume Diluted EPS Adjusted EBITDA1 Adjusted Core EPS2 (in millions) (in thousands) $2.25 $3.60 $26,459 $233,972 $1.87 $3.25 $212,541 $23,688 +12% -17% +10% +11% YTD
Slide 9: Full-Year 2024 Financial Outlook
FULL-YEAR 2024 FINANCIAL OUTLOOK YTD 2024 ACTUAL1 2024 GROWTH OUTLOOK MID SINGLE-DIGITS TO Diluted Earnings Per Share - 17% LOW TEENS MID SINGLE-DIGITS TO Adjusted Core Earnings Per Share + 11% LOW TEENS MID SINGLE-DIGITS TO Adjusted EBITDA + 10% LOW TEENS 2024 Financial Outlook is based on Walker &
Slide 10: Multifamily Rents Have Held Up Despite Surge in New Supply
M U L T I F A M I L Y R E N T S H AV E H E L D U P D E S P I T E S U R G E I N N E W S U P P LY 20% 700,000 600,000 15% 500,000 10% 400,000 300,000 5% 200,000 0% 100,000 -5% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 20
Slide 11: Opportunity to Grow Productivity as Transaction Activity Recovers
O P P O RT U N I T Y T O G R O W P R O D U C T I V I T Y A S TRANSACTION ACTIVITY RECOVERS CRE activity was at a peak in 2021, with record levels of transaction activity Average Transaction Volume per Banker/Broker Pre-pandemic, 2019 represented more W&D has the opportunity normalized market to grow
Slide 12: Technology-Enabled Businesses Gaining Momentum
T E C H N O L O G Y- E N A B L E D B U S I N E S S E S GAINING MOMENTUM Apprise Revenues Small Balance Lending (SBL) Revenues (in millions) (in millions) $8.6 $3.3 $2.7 $5.1 $2.4 $3.7 Q1'24 Q2'24 Q3'24 Q1'24 Q2'24 Q3'24 12
Slide 13: Appendix
APPENDIX
Slide 14: 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 AT 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 Three months ended Three months ended Nine months ended Nine months ended (in thousands) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Walker & Dun
Slide 15: 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 Three months ended Three months ended Nine months ended Nine months ended (in thousands), except per share amounts September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Walker & Dunlop Net Income $28,802 $21,458 $63,331 $
Slide 16: 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 September Three months ended September (in thousands) 30, 2024 30, 2023 Walker & Dunlop Net Income $21,830 $7,050 Adjustments: Income tax expense (benefit) 7,073 2,386 Interest expense
Slide 17: 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 September Three months ended September (in thousands) 30, 2024 30, 2023 Walker & Dunlop Net Income $37,482 $45,427 Adjustments: Income tax expense (benefit) 10,756 15,040 Interest expense on corpo