The following is a summary of the Walker & Dunlop, Inc. (WD) Q1 2024 Earnings Call Transcript:
Financial Performance:
Walker & Dunlop reported Q1 transaction volume of $6.4 billion, down 5% YoY.
Q1 diluted earnings per share was $0.35, a 56% decline YoY, due to lower volumes and absent one-time benefits.
Despite lower volumes, adjusted core EPS was $1.19, representing a 2% YoY increase.
Adjusted EBITDA increased by 9% from Q1 of the previous year to $74 million.
The company ended Q1 with over $200 million in cash.
Business Progress:
Walker & Dunlop experienced a 40% YoY increase in debt brokerage volume.
Growth was observed in small-balance lending and appraisals with Q1 appraisal revenue and small balance lending revenues growing by 20% and 17%, respectively.
The company's Affordable Equity revenues stood at $18 million in Q1, and there are plans to boost fundraising and disposition activity.
A new technology portal for clients has been launched and is expected to increase engagement and save on licensing fees.
Walker & Dunlop plans to focus on acquiring new loans outside of its portfolio and maximizing opportunities in different property asset classes.
In terms of financing solutions, the company is accelerating its lending business using preferred equity and is in the process of reviving a major investment fund.
The company aims to exploit market opportunities for capital deployment across various segments besides multifamily assets through various funds and strong partnerships.
More details: Walker & Dunlop IR
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