Walker & Dunlop, Inc · NYSE:WD

Walker & Dunlop — Q3 2020 Earnings Presentation

15 slides from Walker & Dunlop's earnings presentation, Oct 29, 2020

  1. Slide 1: Third Quarter 2020 Earnings

    THIRD QUARTER 2020 EARNINGS October 29, 2020

  2. 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

  3. Slide 3: People, Brand and Technology Are Driving Strong Financial Performance: Q3

    PEOPLE, BRAND AND TECHNOLOGY ARE DRIVING STRONG FINANCIAL PERFORMANCE Q3 Key Performance Metrics Total Revenues Diluted Earnings Per Share (in millions) $247,016 $1.66 $212,267 $1.39 Q3'19 Q3'20 Q3'19 Q3'20 3

  4. Slide 4: People, Brand and Technology Are Driving Strong Financial Performance: YTD

    PEOPLE, BRAND AND TECHNOLOGY ARE DRIVING STRONG FINANCIAL PERFORMANCE Year-to-Date Key Performance Metrics (through 9/30/20) YTD Total Revenues YTD Diluted Earnings Per Share (in millions) $733,998 $5.11 $600,029 $4.11 YTD 2019 YTD 2020 YTD 2019 YTD 2020 4

  5. Slide 5: W&D vs. S&P 600 Financials

    W&D VS. S&P 600 FINANCIALS Total Revenues Net Income Trailing PE Multiple 16% 22% 17.3 16.5 15.8 10% 10.1 11% 9.0 8.5 6% 4% 4% 3% 3-Yr CAGR 5-Yr CAGR 3-Yr CAGR 5-Yr CAGR 6/30/2015 6/30/2017 6/30/2020 S&P 600 Financials Median S&P 600 Financials Median S&P 600 Financials Median Walker & Dunlop Walker

  6. Slide 6: Agencies Have Continued Providing Liquidity to Market Through 2020

    A G E N C I E S H AV E C O N T I N U E D PROVIDING LIQUIDITY TO MARKET THROUGH 2020 Breakdown of Debt Financing Volume by Capital Source 23% 25% 45% 43% 56% 77% 75% 55% 57% 44% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 (1) Agency Other Capital Sources 1) Includes loans brokered to banks, life insurance companie

  7. Slide 7: W&D's GSE Market Share Has Reached an All-Time High

    W&D’S GSE MARKET SHARE HAS REACHED AN ALL-TIME HIGH Combined Fannie Mae and Freddie Mac Market Share ($ in millions) $18,000,000,000 12.9% 12.2% $16,000,000,000 11.2% 11.3% 10.2% 10.6% 9.8% $14,000,000,000 9.6% $12,000,000,000 $10,000,000,000 7.1% $8,000,000,000 $16,939 $15,121 $13,959 $6,000,000,00

  8. Slide 8: Servicing Portfolio and Related Cash Revenues Continue to Grow

    S E RV I C I N G P O RT F O L I O A N D R E L AT E D C A S H R E V E N U E S C O N T I N U E TO GROW > As of September 30, 2020, the servicing portfolio had a weighted average remaining life of 9.4 years and a weighted average servicing fee of 23.4 bps > Over the next two years, only $4.7 billion of

  9. Slide 9: W&D's Multifamily Portfolio Performance Remains Strong

    W & D ’ S M U LT I FA M I LY P O R T F O L I O PERFORMANCE REMAINS STRONG W&D Loans in Forbearance* by Loan Type Loans in Loan Type Loans in Portfolio % in Forbearance Forbearance Fannie Mae 2,517 1 0.04% Freddie Mac 1,713 6 0.4% HUD 1,115 2 0.2% 9 *As of 9/30/20

  10. Slide 10: Vision 2020: $1 Billion in Annual Revenues

    VISION 2020 $1 BILLION IN ANNUAL REVENUES $30B+ $8B+ $100B+ $8B+ annual debt annual property servicing portfolio asset management financing volume sales volume platform 10

  11. Slide 11: Vision 2020: Debt Financing Volume and Servicing Portfolio

    VISION 2020 $30B+ $8B+ $100B+ $8B+ annual debt annual property servicing portfolio asset management financing volume sales volume platform Debt Financing Volume Servicing Portfolio (in millions) (in millions) $103,378 $31,445 14% 16% $93,225 $26,574 $85,689 $24,875 $25,334 CAGR CAGR $74,310 $63,081

  12. Slide 12: Vision 2020: Property Sales Volume and Assets Under Management

    VISION 2020 $30B+ $8B+ $100B+ $8B+ annual debt annual property servicing portfolio asset management financing volume sales volume platform Property Sales Volume Assets Under Management (in millions) (in millions) $5,393 $5,262 28% X% $1,958 $1,937 CAGR CAGR $3,031 $1,423 $2,713 $2,574 $1,520 $182 $-

  13. Slide 13: Vision 2020: Total Revenues

    VISION 2020 $1 BILLION IN ANNUAL REVENUES Total Revenues (in millions) $951 14% $725 $817 CAGR $712 $575 $468 2015 2016 2017 2018 2019 TTM 2020 (1) 13 1) For the trailing 12 months ended 9/30/20

  14. Slide 14: Path to Becoming the #1 Multifamily Lender in the U.S.

    PAT H T O B E C O M I N G T H E # 1 M U LT I FA M I LY L E N D E R I N T H E U . S . Top Multifamily Lenders Company Amount (millions) Number Avg. Size (millions) 1 JP Morgan Chase $ 22,739 6,638 $ 3.4 2 Wells Fargo $ 20,364 921 $ 22.1 3 CBRE $ 19,347 1,164 $ 16.6 4 Berkadia $ 17,785 898 $ 19.8 5 Wa

  15. Slide 15: Phone 301.215.5500 7501 Wisconsin Avenue, Suite 1200E Bethesda, Maryland 20814

    Phone 301.215.5500 7501 Wisconsin Avenue, Suite 1200E Bethesda, Maryland 20814

Walker & Dunlop — Q3 2020 Earnings Presentation on 6ix