FIRST QUARTER 2024 HIGHLIGHTS
• Total transaction volume of $6.4 billion, down 5% from Q1’23
• Total revenues of $228.1 million, down 4% from Q1’23
• Net income of $11.9 million and diluted earnings per share of $0.35, down 55% and 56%, respectively, from Q1’23
• Adjusted EBITDA1 of $74.1 million, up 9% from Q1’23
• Adjusted core EPS2 of $1.19, up 2% from Q1’23
• Servicing portfolio of $132.0 billion as of March 31, 2024, up 6% from March 31, 2023
• Declared quarterly dividend of $0.65 per share for the second quarter of 2024
BETHESDA - Walker & Dunlop, Inc. (NYSE: WD) (the “Company,” “Walker & Dunlop,” or “W&D”) reported total revenues of $228.1 million for the first quarter of 2024, a decrease of 4% year over year. First quarter total transaction volume was $6.4 billion, down 5% year over year. Net income for the first quarter of 2024 was $11.9 million, or $0.35 per diluted share, down 55% and 56%, respectively, year over year. Adjusted EBITDA was up 9% to $74.1 million, reflecting the strength of the Company’s recurring revenue streams. As well, adjusted core EPS, which primarily strips out non-cash revenues and expenses, was up 2% from the first quarter of 2023 to $1.19. The Company’s Board of Directors declared a dividend of $0.65 per share for the second quarter of 2024.
“Q1 2024 began with optimism for imminent Fed rate cuts and ended with broad acceptance of ‘higher for longer.’ The market uncertainty along with rising rates slowed transaction volume significantly. The W&D team closed $6.4 billion of total transaction volume in the quarter, down 5% from Q1 2023,” commented Walker & Dunlop Chairman and CEO Willy Walker. “While lower origination volumes with the GSEs and HUD reduced mortgage servicing rights as well as non-cash revenues and diluted EPS, both adjusted core EPS and adjusted EBITDA, which eliminate the impact of non-cash revenues and expenses, were up 2% and 9%, respectively, on the quarter. These numbers exemplify the durability of the W&D business model."
"As we enter Q2, there are plenty of signs that commercial real estate investors are working ‘higher for longer’ into their actions -- to refinance properties, buy and sell properties, or raise new capital," continued Walker. "We believe our full-year 2024 financial guidance is achievable given the volume of loan refinancings and equity capital looking to be deployed between now and year-end. And while higher rates and uncertain Fed policy are headwinds, the onus is on our team to provide our clients with solutions in challenging markets."
"Finally," added Walker, “Walker & Dunlop's business model -- that includes a scaled, low risk servicing business generating strong cash flow -- allows us to invest in our people, brand, and technology to continue exceeding our clients' expectations."
