Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Q2 2024 Earnings Presentation
17 slides from Walker & Dunlop's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Earnings
Q2 Q2 2024 EARNINGS August 8, 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: Q2'24 Total Transaction Volume Driven by Strong Debt Brokerage Platform
Q 2 ’ 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 S T R O N G D E B T B R O K E R A G E P L AT F O R M Total Transaction Volume (in millions) $4,000 $3,853 $3,500 $3,316 $3,000 $2,500 $2,231 $2,000 $1,511 $1,504 $1,531 $1,500 $1,213 $1,153 $1,000 $500 $148 $186 $215 $- $- Fannie M
Slide 4: Healthy Transaction Activity in Q2'24 Consolidated Key Performance Metrics
H E A LT H Y T R A N S A C T I O N A C T I V I T Y I N Q 2 ’ 2 4 Q2’24 Consolidated Key Performance Metrics Total Transaction Volume1 Total Revenues Diluted EPS (in millions) (in thousands) $272,615 $0.82 $8,449 $270,676 $8,412 $0.67 - - 1% - 18% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 4 1) Total transa
Slide 5: Adjusted EBITDA and Adjusted Core EPS Continue to Grow
ADJUSTED EBITDA AND ADJUSTED CORE EPS CONTINUE TO GROW Q2’24 Consolidated Key Performance Metrics Cont’d. Adjusted EBITDA1 Adjusted Core EPS2 (in thousands) $80,931 $1.23 $70,501 $0.98 +15% +26% Q2'23 Q2'24 Q2'23 Q2'24 5 1) This is a non-GAAP financial measure. For a reconciliation of the measure to
Slide 6: Exceptional Track Record Maintains Market-Leading Ratings
E X C E P T I O N A L T R A C K R E C O R D M A I N TA I N S M A R K E T- L E A D I N G R AT I N G S 2020 Top Multifamily Lenders 2023 Top CRE Capital Providers 2020 Volume 2023 Volume Company (billions) Company (billions) 1 Walker & Dunlop $24.1 1 JLL $64.3 2 Berkadia $21.5 2 CBRE $32.6 3 CBRE $21.
Slide 7: Capital Markets Q2'24 Key Financial Metrics Year-over-Year
C A P I TA L M A R K E T S Q2’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR Q2’24 Q2’23 % Change (in thousands) Consolidated Total Transaction Volumes1 $8,448,501 $8,412,218 -% Total Revenues $118,170 $125,985 (6%) Net Income $11,039 $16,107 (31%) Adjusted EBITDA2 ($8,532) ($10,334) (17%) • Decline in tot
Slide 8: Servicing & Asset Management Q2'24 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 ” ) Q2’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR (in thousands) Q2’24 Q2’23 % Change Total Revenues $148,232 $142,840 4% Net Income $40,432 $35,732 13% Adjusted EBITDA1 $124,502 $108,459 15% • Ended Q2’24 with total managed portfolio of $150.3
Slide 9: W&D's At-Risk Portfolio Maintains Strong Credit Fundamentals
W & D ’ S AT- R I S K P O R T F O L I O M A I N TA I N S S T R O N G C R E D I T F U N D A M E N TA L S At-Risk Servicing Portfolio — Key Credit Metrics WAVG Debt Service Coverage Ratio1 >2x Underwritten Loan-to-Value2 61% Fixed-Rate Loans3 92% Defaulted Loans3 0.08% Delinquent Loans3 0.08% Maturiti
Slide 10: 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 Total Transaction Volumes Diluted EPS (in millions) $15,133 $1.61 $14,843 $1.02 -2% -37% YTD 2023 YTD 2024 YTD 2023 YTD 2024 Adjusted EBITDA1 Adjusted Core EPS2 $2.39 (in thousands) $155,067 $2.14 $138,476 +12% +12% 10 YTD 2023
Slide 11: Full-Year 2024 Financial Outlook
FULL-YEAR 2024 FINANCIAL OUTLOOK 1H’24 ACTUAL1 2024 GROWTH OUTLOOK MID SINGLE-DIGITS TO Diluted Earnings Per Share - 37% LOW TEENS MID SINGLE-DIGITS TO Adjusted Core Earnings Per Share + 12% LOW TEENS MID SINGLE-DIGITS TO Adjusted EBITDA + 12% LOW TEENS 2024 Financial Outlook is based on Walker & Du
Slide 12: Client Navigator Achieved a Website Satisfaction Score of 88%
CLIENT NAVIGATOR ACHIEVED A WEBSITE SATISFACTION SCORE OF 88% 1 , 88% AHEAD OF INDUSTRY BENCHMARKS 2 W&D Client Navigator 86% National 85% 85% Banks 84% Credit Online Unions Investment Financial 82% Advisors Super Regional Banks 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 Six months ended Six months ended (in thousands) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Walker & Dunlop Net Income $22,663
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 Six months ended Six months ended (in thousands), except per share amounts June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Walker & Dunlop Net Income $22,663 $27,635 $34,529 $54,300 Adjustments: Pr
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 Three months ended (in thousands) June 30, 2024 June 30, 2023 Walker & Dunlop Net Income $11,039 $16,107 Adjustments: Income tax expense (benefit) 3,359 5,572 Interest expense on corpo
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 Three months ended (in thousands) June 30. 2024 June 30, 2023 Walker & Dunlop Net Income $40,432 $35,732 Adjustments: Income tax expense (benefit) 16,521 14,787 Interest expense on corporate debt