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Business Wire
a day ago
- Business
- Business Wire
Walker & Dunlop Arranges $160 Million Loan for Master Planned Community in the Coachella Valley
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. announced today that it has arranged a $160 million loan for a master planned community located in California's acclaimed Coachella Valley in the City of Rancho Mirage. The loan has a $27 million re-advance component for total proceeds of $187 million. Walker & Dunlop Capital Markets, led by Sean Reimer, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly, Ari Hirt, and Christopher de Raet, were exclusive advisors to the borrower, EC Rancho Mirage Holdings Limited Partnership and its affiliates, to arrange the construction financing for the completion of the first phase of the community. Intervest Capital Partners and Builders Capital provided the capital. The master planned community, Cotino™, a Storyliving by Disney™ Community, is expected to contain approximately 1,900 residential units, a 24-acre lagoon with Crystal Lagoon s ® technology, a voluntary private club, a town center and various other amenities. 'Featuring a stunning backdrop of the Coachella Valley's natural beauty and close proximity to Palm Springs amenities, the desire to live in Rancho Mirage remains high,' said Reimer, managing director of New York Capital Markets at Walker & Dunlop. 'We are honored to work on this community, a groundbreaking project that blends unique lifestyle amenities and award-winning homebuilders. We look forward to seeing this extraordinary community come to life.' Walker & Dunlop is one of the top providers of capital to the U.S. multifamily market; in 2024 the firm originated over $30 billion in debt financing volume, including lending over $25 billion for multifamily properties. This vast experience has made them a top advisor on all asset classes for many of the industry's top developers, owners, and operators. To learn more about Walker & Dunlop's broad financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
Business Wire
5 days ago
- Business
- Business Wire
Walker & Dunlop Reports Second Quarter 2025 Financial Results
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. (NYSE: WD) (the 'Company', 'Walker & Dunlop' or 'W&D') reported quarterly total transaction volume of $14.0 billion, a 65% increase from the second quarter of the prior year, reflecting W&D's execution on the rebounding demand for financing and capital deployment in the commercial real estate market after a slow start to the year. Total revenues increased 18% to $319.2 million in the second quarter of 2025, generating a 50% increase in net income to $34.0 million, or $0.99 per diluted share, a 48% increase year over year. Second quarter 2025 adjusted EBITDA was $76.8 million, down 5% over the same period in 2024. Adjusted core EPS was down 7% year over year to $1.15. Both adjusted EBITDA and adjusted core EPS remove non-recurring and non-cash revenues and expenses. One of the biggest sources of the increases in net income and diluted EPS for the quarter was an increase in the fair value of expected net cash flows from servicing, net ("MSR income"), non-cash revenue that did not benefit adjusted EBITDA or adjusted core EPS. The Company's Board of Directors declared a dividend of $0.67 per share for the third quarter of 2025. 'Walker & Dunlop's second quarter results demonstrate terrific performance by our team in what appears to be the advent of the next commercial real estate investment cycle,' commented Walker & Dunlop Chairman and CEO, Willy Walker. "Total transaction volume increased 65% year over year, driving 18% revenue growth and a 48% rise in diluted earnings per share. We are gaining market share with our largest capital partners while broadening our Capital Markets capabilities into hospitality, data centers, and Europe. This strong performance underscores the momentum we are seeing across the capital markets as investors begin to recycle equity, refinance assets, and deploy a significant amount of capital that sat on the sidelines during the Great Tightening.' Walker continued, 'Walker & Dunlop's strategic investments, scale, and brand position us well to meet our clients' needs and grow over the next several years. We remain focused on scaling our technology and data-enabled businesses -- such as appraisals and small balance lending -- to make us more insightful to our clients and efficient as a provider of services. We expect continued growth in our Capital Markets platform as the next cycle gains momentum.' ________________________________________ (1) Adjusted EBITDA is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of adjusted EBITDA to net income, refer to the sections of this press release below titled 'Non-GAAP Financial Measures,' 'Adjusted Financial Measure Reconciliation to GAAP' and 'Adjusted Financial Measure Reconciliation to GAAP by Segment.' (2) Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to diluted EPS, refer to the sections of this press release below titled 'Non-GAAP Financial Measures' and 'Adjusted Core EPS Reconciliation.' Expand (1) Brokered transactions for life insurance companies, commercial banks, and other capital sources. (2) Includes debt financing volumes from Walker & Dunlop Investment Partners, Inc. ('WDIP') separate accounts. Expand DISCUSSION OF QUARTERLY RESULTS: Total transaction volume grew 65% in the second quarter of 2025, reaching $14.0 billion, reflecting broad-based strength across nearly all transaction types and underscored by our strong debt financing activity with Fannie Mae and Freddie Mac (collectively, the 'GSEs'). GSE debt financing volume increased 83% year over year, led by a 106% increase in Fannie Mae debt financing volume, one of our most-profitable products. Our year-to-date GSE lending volumes drove market share gains to 11.4%, up from 10.3% in 2024. Fannie Mae lending volumes in the second quarter included the refinancing of a $941 million loan portfolio. Large, structured transactions generate lower margins on loan origination and debt brokerage fees, net ('origination fees') and MSR income. We are seeing an increase in large transactions in the market and expect origination fee and MSR income margins to be in line with our second quarter results as we move into the second half of 2025. HUD debt financing volumes increased 55% in the second quarter of 2025, as our team continues to execute well in the market, evidenced by our ranking as the second largest HUD lender in 2024. The 64% increase in brokered debt financing volume during the second quarter of 2025 reflected the strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial-backed securities, and other private capital providers amid the ongoing rebound of the commercial real estate market after a slow start to the year. Property sales volume increased 51% in the second quarter of 2025, as the macroeconomic fundamentals supporting the multifamily market; such as record supply absorptions, a significant decrease in new construction starts in most markets, and affordability of renting versus owning, continue to drive a recovery in the multifamily acquisitions market. DISCUSSION OF QUARTERLY RESULTS: Our servicing portfolio continues to grow, primarily as a result of additional Fannie Mae, Freddie Mac, and HUD (collectively, 'Agency') debt financing volumes over the past 12 months, partially offset by principal paydowns and loan payoffs. During the second quarter of 2025, we added $1.7 billion of net loans to our servicing portfolio, and over the past 12 months, we added $4.6 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae loans. $10.9 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years. These loans, with a weighted-average servicing fee of 28.1 basis points, represent only 9% of the total Agency loans in our portfolio. Over the next five years, 50% of Agency loans will mature, providing an opportunity for us to refinance these loans in the coming years. The mortgage servicing rights ('MSRs') associated with our servicing portfolio had a fair value of $1.4 billion as of both June 30, 2025 and 2024. Assets under management totaled $18.6 billion as of June 30, 2025 and consisted of $16.0 billion of low-income housing tax credit ('LIHTC') funds managed by our affordable housing investment management team, and $1.7 billion of debt funds and $0.9 billion of equity funds managed by our registered investment advisor, WDIP. The 6% increase in assets under management was primarily driven by increases in all three fund categories. DISCUSSION OF KEY PERFORMANCE METRICS: The increases in Walker & Dunlop net income and diluted EPS were largely driven by the increase in total transaction volume during the quarter. Revenues increased 18%, while expenses only increased 13%, driving the expansion in our operating margin. The increase in net income was the primary factor in the growth of return on equity. The increase in personnel expense as a percentage of total revenues was primarily the result of the increase in commissions due to the growth in total transaction volume for the quarter. The increase in revenues significantly outpaced a 3% rise in other operating expenses, lowering our other operating expenses as a percentage of total revenues. Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and investment management fees and an increase in personnel expense. These changes were partially offset by increases in origination fees, servicing fees, property sales broker fees, and other revenues. Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased. ________________________________ (1) At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing ('DUS') loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio. For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans. (2) Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur. (3) Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac small balance pre-securitized loans ('SBL') portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here. Expand DISCUSSION OF KEY CREDIT METRICS: Our at-risk servicing portfolio, which is comprised of loans subject to a defined risk-sharing formula, increased primarily due to the level of Fannie Mae loans added to the portfolio during the past 12 months. We take credit risk exclusively on loans backed by multifamily assets and have no credit exposure to losses in any other sector of the commercial real estate lending market. As of June 30, 2025, eight at-risk loans were in default with an aggregate unpaid principal balance ('UPB') of $108.5 million, unchanged from March 31, 2025, compared to five at-risk loans in default with an aggregate UPB of $48.6 million as of June 30, 2024. The collateral-based reserves on defaulted loans were $8.6 million and $5.6 million as of June 30, 2025 and 2024, respectively. The approximately 3,200 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio. During 2024, the Company received requests to repurchase five GSE loans. As of June 30, 2025, the Company has repurchased four of the loans and has a forbearance and indemnification agreement in place for the other loan. The Company foreclosed on one of the repurchased loans and now holds an Other Real Estate Owned asset. The asset not yet repurchased, which must be repurchased by March 29, 2026, has a balance of $23.2 million, net of collateral posted. All repurchased and indemnified loans are delinquent and in non-accrual status. We recorded a provision for credit losses of $1.8 million in the second quarter of 2025, primarily related to an updated loss reserve for a loan that previously defaulted, combined with a slight increase related to growth in the at-risk servicing portfolio. SECOND QUARTER 2025 FINANCIAL RESULTS BY SEGMENT Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's income from operations, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level: Interest expense on corporate debt, which pays a variable interest rate, decreased $1.1 million, or 6% year over year, primarily due to a decrease in short-term interest rates, partially offset by an increase in the balance of corporate debt outstanding due to our refinancing our debt in the first quarter of 2025. Our corporate debt carries a floating rate of interest tied to one-month Secured Overnight Financing Rate ('SOFR') that resets monthly and changes in that index rate directly impact our cost of borrowing. Income tax expense increased $4.5 million, or 57% year over year, driven by a 64% increase in income from operations and a $0.1 million shortfall in excess tax benefits in Q2 2025 compared to a $0.4 million benefit in Q2 2024. The shortfall resulted from the change between the grant date and vesting date fair values of share-based compensation that vested during the quarter. Absent the $0.5 million difference in excess tax benefits year over year, income tax expense would have increased 49%. Partially offsetting the increase due to income from operations was a reduction in losses from noncontrolling interests year over year. Losses from noncontrolling interest increase operating income upon which tax expense is calculated. (in thousands) Q2 2025 Q2 2024 $ Variance % Variance Origination fees $ 93,764 $ 63,841 $ 29,923 47 % MSR income 53,153 33,349 19,804 59 Property sales broker fees 14,964 11,265 3,699 33 Net warehouse interest income (expense), loans held for sale ("LHFS") (1,760 ) (1,950 ) 190 (10 ) Other revenues 12,670 11,665 1,005 9 Total revenues $ 172,791 $ 118,170 $ 54,621 46 % Personnel $ 116,441 $ 92,480 $ 23,961 26 % Amortization and depreciation 1,146 1,138 8 1 Interest expense on corporate debt 4,468 5,299 (831 ) (16 ) Other operating expenses 5,309 4,642 667 14 Total expenses $ 127,364 $ 103,559 $ 23,805 23 % Income (loss) from operations $ 45,427 $ 14,611 $ 30,816 211 % Income tax expense (benefit) 12,285 3,359 8,926 266 Net income (loss) before noncontrolling interests $ 33,142 $ 11,252 $ 21,890 195 % Less: net income (loss) from noncontrolling interests — 213 (213 ) (100 ) Walker & Dunlop net income (loss) $ 33,142 $ 11,039 $ 22,103 200 % Key revenue metrics (as a % of debt financing volume): Origination fee rate (1) 0.82 % 0.95 % Agency MSR rate (2) 1.03 1.17 Key performance metrics: Operating margin 26 % 12 % Adjusted EBITDA $ 1,323 $ (8,532 ) $ 9,855 (116 )% Diluted EPS $ 0.97 $ 0.33 $ 0.64 194 % Expand ____________________________________ (1) Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing. (2) MSR income as a percentage of Agency debt financing volume. Expand CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS: The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses. The increase in origination fees was primarily the result of the increase in our overall debt financing volume, particularly the 81% increase in our Agency debt financing volume during the second quarter of 2025 (Agency debt financing volume has higher origination fees than our brokered volume), partially offset by a decline in the origination fee rate due to (i) the competitive environment in the multifamily debt financing market during the quarter and (ii) the aforementioned large Fannie Mae portfolio originated in the second quarter of 2025, with no comparable activity in the second quarter of 2024. The increase in MSR income was largely a result of the increase in Agency debt financing volume year over year, partially offset by a decrease in the Agency MSR rate. The Agency MSR rate decreased due to a decline in the weighted-average servicing fee ('WASF') on Fannie Mae originations and a decrease in the loan term. The WASF on our Fannie Mae loans declined due to (i) the aforementioned competitive environment and (ii) the aforementioned large Fannie Mae portfolio originated in the second quarter of 2025. The loan term has decreased as more of our borrowers are opting for five-year loan terms in light of the volatility and uncertainty surrounding long-term interest rates, and we expect this trend to continue. Property sales broker fees increased year over year primarily due to the 51% increase in property sales volume, partially offset by a decline in the margin on the sales due to the competitive multifamily environment noted previously. Personnel expense increased in the second quarter of 2025 primarily due to (i) an increase in variable compensation expenses, resulting from the growth in transaction volume year over year, (ii) salaries and benefits costs due largely to a 5% increase in average segment headcount, and (iii) an increase in severance expense resulting from the separation of several underperforming producers. The increase in adjusted EBITDA was primarily due to increases in origination fees and property sales broker fees, primarily driven by the improvement in transaction volumes, partially offset by increased personnel expense. SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS: The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services. The $4.6 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year. Investment management fees decreased primarily due to a reduction in the accrual for investment management fees from our LIHTC funds that are driven by asset dispositions within the funds, partially offset by an increase in revenues from our private credit investment management strategies. The reduction in the accrual for LIHTC investment management fees was due to fewer expected asset dispositions in 2025 than 2024 and a reduction in the expected collections for the year due to the challenging market dynamics in the LIHTC space. Placement fees and other interest income decreased primarily due to a lower average placement fee rate driven by lower short-term interest rates year over year. The increase in other revenues was primarily related to an increase in syndication fees earned from our LIHTC operations as we syndicated a large fund in 2025, resulting in a 45% increase in gross equity placed. Personnel costs increased due to a combination of incremental increases in salaries and benefits, commissions, and bonus accruals. The increase in amortization and depreciation was primarily driven by an increase in amortization of MSRs. The decrease in adjusted EBITDA was primarily related to decreases in placement fees and other interest income and investment management fees. FINANCIAL RESULTS - CORPORATE (in thousands) Q2 2025 Q2 2024 $ Variance % Variance Other interest income $ 3,335 $ 3,870 $ (535 ) (14 )% Other revenues 2,379 404 1,975 489 Total revenues $ 5,714 $ 4,274 $ 1,440 34 % Personnel $ 22,704 $ 20,510 $ 2,194 11 % Amortization and depreciation 1,908 1,732 176 10 Interest expense on corporate debt 1,489 1,629 (140 ) (9 ) Other operating expenses 21,632 21,189 443 2 Total expenses $ 47,733 $ 45,060 $ 2,673 6 % Income (loss) from operations $ (42,019 ) $ (40,786 ) $ (1,233 ) 3 % Income tax expense (benefit) (5,288 ) (11,978 ) 6,690 (56 ) Walker & Dunlop net income (loss) $ (36,731 ) $ (28,808 ) $ (7,923 ) 28 % Key performance metric: Adjusted EBITDA $ (36,443 ) $ (35,039 ) $ (1,404 ) 4 % Diluted EPS $ (1.08 ) $ (0.85 ) $ (0.23 ) 27 % Expand CORPORATE – DISCUSSION OF QUARTERLY RESULTS: The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups ('support functions'). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results. The increase in total revenues was primarily driven by (i) interest income on invested capital outstanding during the quarter, with no comparable activity in the prior year, and (ii) an increase in income from our deferred compensation plan that drives an equal and offsetting increase in personnel expense. The rise in personnel costs was driven by higher salaries and benefits associated with an 8% increase in the average segment headcount and the aforementioned increase in expense from our deferred compensation plan, partially offset by a year-over-year decline in our subjective bonus compensation accrual. YEAR-TO-DATE 2025 CONSOLIDATED OPERATING RESULTS Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's income from operations, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level: Interest expense on corporate debt decreased $3.3 million, or 9%, from the first half of 2024, primarily due to a decrease in interest rates year over year, as our term loan carries a floating interest rate tied to one-month SOFR. Additionally, in the first quarter of 2025, we refinanced our corporate debt, increasing the debt balance outstanding and resulting in the write off of $4.2 million of unamortized debt issuance costs. The impact of this write-off is included in other operating expenses and allocated to each of the segments proportionally in the same manner as corporate debt expense. Income tax expense increased $4.2 million, or 39%, from the first half of 2024, primarily as a result of the 23% increase in income from operations and a $1.4 million shortfall in realizable excess tax benefits in the first half of 2025 compared to a $1.0 million benefit last year. The shortfall resulted from the difference between the grant date and vesting date fair values of share-based awards. Absent the $2.4 million difference in excess tax benefits year over year, income tax expense would have increased 15%. Partially offsetting the increase due to income from operations was a reduction in losses from noncontrolling interests year over year. Losses from noncontrolling interest increase operating income upon which tax expense is calculated. DISCUSSION OF YEAR-TO-DATE-RESULTS: The increase in total transaction volume was primarily driven by a 61% increase in Agency debt financing volume, a 24% increase in brokered debt financing volume, and a 54% increase in property sales volume year over year. The growth in Walker & Dunlop's net income and diluted EPS were principally attributable to a 23% increase in income from operations, driven by higher origination fees and MSR income associated with increased transaction volume, partially offset by increased compensation costs due to higher average headcount and commissions on transactions. This growth was partially offset by the year-over-year increase in our effective tax rate, as discussed above. Adjusted EBITDA decreased primarily due to decreases in placement fees and other interest income and investment management fees, coupled with an increase in personnel expense. These changes were partially offset by increases in origination fees, property sales broker fees, and servicing fees. Adjusted core EPS decreased largely for the same reasons that adjusted EBITDA decreased. YEAR-TO-DATE 2025 FINANCIAL RESULTS BY SEGMENT FINANCIAL RESULTS - CAPITAL MARKETS (in thousands) YTD Q2 2025 YTD Q2 2024 $ Variance % Variance Origination fees $ 139,061 $ 107,541 $ 31,520 29 % MSR income 80,964 54,247 26,717 49 Property sales broker fees 28,485 20,086 8,399 42 Net warehouse interest income (expense), LHFS (2,546 ) (3,524 ) 978 (28 ) Other revenues 29,397 21,717 7,680 35 Total revenues $ 275,361 $ 200,067 $ 75,294 38 % Personnel $ 202,907 $ 171,667 $ 31,240 18 % Amortization and depreciation 2,287 2,275 12 1 Interest expense on corporate debt 8,655 10,150 (1,495 ) (15 ) Other operating expenses 11,544 9,694 1,850 19 Total expenses $ 225,393 $ 193,786 $ 31,607 16 % Income (loss) from operations $ 49,968 $ 6,281 $ 43,687 696 % Income tax expense (benefit) 14,466 1,615 12,851 796 Net income (loss) before noncontrolling interests $ 35,502 $ 4,666 $ 30,836 661 % Less: net income (loss) from noncontrolling interests — 327 (327 ) (100 ) Walker & Dunlop net income (loss) $ 35,502 $ 4,339 $ 31,163 718 % Key revenue metrics (as a % of debt financing volume): Origination fee rate 0.84 % 0.90 % Agency MSR rate 1.06 1.14 Key performance metrics: Operating margin 18 % 3 % Adjusted EBITDA $ (12,004 ) $ (27,829 ) $ 15,825 (57 )% Diluted EPS $ 1.04 $ 0.13 $ 0.91 700 % Expand CAPITAL MARKETS - DISCUSSION OF YEAR-TO-DATE-RESULTS: The increase in origination fees was primarily the result of the 39% increase in our debt financing volume. Origination fees did not grow on pace with transaction volumes because of a tightening in our origination fee rate from 90 basis points in 2024 to 84 basis points in 2025 that was driven by the aforementioned large Fannie Mae transaction originated in the second quarter of 2025 and the competitive environment in the multifamily debt financing market. The increase in MSR income is primarily attributable to a 92% increase in Fannie Mae debt financing volume, partially offset by a decline in the Agency MSR rate. The Agency MSR rate declined primarily as a result of the aforementioned large Fannie Mae transaction. Property sales broker fees increased year over year primarily due to the 54% increase in property sales volume, partially offset by a decline in the margin on the sales due to the competitive multifamily environment noted previously. The increase in other revenues was primarily related to increases in investment banking revenues and appraisal revenues year over year. The increase in investment banking revenues was primarily driven by increased M&A activity in the first half of 2025 compared to 2024. Appraisal revenues increased due to increased market activity year over year. Personnel expense increased primarily due to increases in (i) commission costs resulting from growth in transaction volume, (ii) salaries and benefits, largely related to a 4% increase in average segment headcount, and (iii) increased severance expense, primarily resulting from the separation of several underperforming producers. Partially offsetting these increases was a decrease in stock-based compensation. The increase in adjusted EBITDA was primarily due to increases in origination fees, property sales broker fees, and other revenues, partially offset by increased personnel expense. FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT (in thousands) YTD Q2 2025 YTD Q2 2024 $ Variance % Variance Origination fees $ 1,629 $ 1,533 $ 96 6 % Servicing fees 165,914 160,461 5,453 3 Investment management fees 17,259 28,342 (11,083) (39) Net warehouse interest income, LHFI — 824 (824) (100) Placement fees and other interest income 62,273 72,773 (10,500) (14) Other revenues 25,563 25,534 29 0 Total revenues $ 272,638 $ 289,467 $ (16,829) (6) % Personnel $ 42,289 $ 38,132 $ 4,157 11 % Amortization and depreciation 110,380 106,244 4,136 4 Provision (benefit) for credit losses 5,532 3,460 2,072 60 Interest expense on corporate debt 20,741 22,137 (1,396) (6) Other operating expenses 13,982 11,851 2,131 18 Total expenses $ 192,924 $ 181,824 $ 11,100 6 % Income (loss) from operations $ 79,714 $ 107,643 $ (27,929) (26) % Income tax expense (benefit) 23,079 27,674 (4,595) (17) Net income (loss) before noncontrolling interests $ 56,635 $ 79,969 $ (23,334) (29) % Less: net income (loss) from noncontrolling interests (32) (3,746) 3,714 (99) Walker & Dunlop net income (loss) $ 56,667 $ 83,715 $ (27,048) (32) % Key performance metrics: Operating margin 29 % 37 % Adjusted EBITDA $ 219,833 $ 244,159 $ (24,326) (10) % Diluted EPS $ 1.65 $ 2.47 $ (0.82) (33) % Expand SERVICING & ASSET MANAGEMENT - DISCUSSION OF YEAR-TO-DATE-RESULTS: The $4.6 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year. Investment management fees decreased primarily as a result of a decline in revenue from our LIHTC funds that are driven by asset dispositions within the funds due to fewer expected dispositions in 2025 than 2024, and a reduction in the expected collections for the full year due to the challenging market dynamics in the LIHTC space. Placement fees and other interest income decreased largely as a result of lower average placement fees earned on escrow deposits due to lower short-term interest rates. The increase in personnel expense was primarily driven by increases in salaries and benefits, primarily resulting from a 7% increase in average segment headcount year over year, and several smaller increases in variable compensation such as severance expense, production bonuses, and company bonuses. Amortization and depreciation expense increased primarily as a result of an increase in the amortization of MSRs. The decrease in adjusted EBITDA was primarily related to decreases in placement fees and other interest income and investment management fees. FINANCIAL RESULTS - CORPORATE (in thousands) YTD Q2 2025 YTD Q2 2024 $ Variance % Variance Other interest income $ 6,924 $ 7,669 $ (745 ) (10 )% Other revenues 1,684 1,532 152 10 Total revenues $ 8,608 $ 9,201 $ (593 ) (6 )% Personnel $ 38,082 $ 34,731 $ 3,351 10 % Amortization and depreciation 3,890 3,415 475 14 Interest expense on corporate debt 2,885 3,246 (361 ) (11 ) Other operating expenses 41,815 39,857 1,958 5 Total expenses $ 86,672 $ 81,249 $ 5,423 7 % Income (loss) from operations $ (78,064 ) $ (72,048 ) $ (6,016 ) 8 % Income tax expense (benefit) (22,601 ) (18,523 ) (4,078 ) 22 Walker & Dunlop net income (loss) $ (55,463 ) $ (53,525 ) $ (1,938 ) 4 % Key performance metric: Adjusted EBITDA $ (66,052 ) $ (61,263 ) $ (4,789 ) 8 % Diluted EPS $ (1.62 ) $ (1.58 ) $ (0.04 ) 3 % Expand CORPORATE - DISCUSSION OF YEAR-TO-DATE-RESULTS: The increase in personnel expense was primarily due to an increase in salaries and benefits, driven by an 7% increase in our average segment headcount year over year, partially offset by a decrease in our subjective bonus accrual. CAPITAL SOURCES AND USES On August 6, 2025, the Company's Board of Directors declared a dividend of $0.67 per share for the third quarter of 2025. The dividend will be paid on September 5, 2025, to all holders of record of the Company's restricted and unrestricted common stock as of August 21, 2025. On February 12, 2025, our Board of Directors authorized the repurchase of up to $75.0 million of the Company's outstanding common stock over a 12-month period starting from February 21, 2025 (the '2025 Share Repurchase Program'). As of June 30, 2025, we have not repurchased any shares of common stock under the 2025 Share Repurchase Program. Any repurchases made pursuant to the 2025 Share Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time. CONFERENCE CALL INFORMATION Listeners can access the Company's quarterly conference call for more information regarding our financial results via the dial-in number and webcast link below. Presentation materials related to the conference call will be posted to the Investor Relations section of the Company's website prior to the call. An audio replay will also be available on the Investor Relations section of the Company's website, along with the presentation materials. ABOUT WALKER & DUNLOP Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry. NON-GAAP FINANCIAL MEASURES To supplement our financial statements presented in accordance with United States generally accepted accounting principles ('GAAP'), the Company uses adjusted EBITDA, adjusted core net income, and adjusted core EPS, which are non-GAAP financial measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. When analyzing our operating performance, readers should use adjusted EBITDA, adjusted core net income, and adjusted core EPS in addition to, and not as an alternative for, net income and diluted EPS. Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, stock-based compensation, the fair value of expected net cash flows from servicing, net, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management's discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies. We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financial information, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results; the ability to better identify trends in the Company's underlying business and perform related trend analyses; and a better understanding of how management plans and measures the Company's underlying business. We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company's results of operations in conjunction with the Company's GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled 'Adjusted Financial Measure Reconciliation to GAAP' and 'Adjusted Financial Measure Reconciliation to GAAP By Segment.' FORWARD-LOOKING STATEMENTS Some of the statements contained in this press release 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 expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as 'may,' 'will,' 'should,' 'expects,' 'intends,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' or 'potential' or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, and (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations. For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled 'Risk Factors' in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at Walker & Dunlop, Inc. and Subsidiaries Consolidated Statements of Income and Comprehensive Income Unaudited Quarterly Trends Six months ended June 30, (in thousands, except per share amounts) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 2025 2024 Revenues Origination fees $ 94,309 $ 46,381 $ 93,942 $ 73,546 $ 65,334 $ 140,690 $ 109,074 MSR income 53,153 27,811 55,920 43,426 33,349 80,964 54,247 Servicing fees 83,693 82,221 82,961 82,222 80,418 165,914 160,461 Property sales broker fees 14,964 13,521 21,175 19,322 11,265 28,485 20,086 Investment management fees 7,577 9,682 (3,110 ) 11,744 14,822 17,259 28,342 Net warehouse interest income (expense) (1,760 ) (786 ) (2,186 ) (2,147 ) (1,584 ) (2,546 ) (2,700 ) Placement fees and other interest income 35,986 33,211 43,962 43,557 41,040 69,197 80,442 Other revenues 31,318 25,326 48,787 20,634 26,032 56,644 48,783 Total revenues $ 319,240 $ 237,367 $ 341,451 $ 292,304 $ 270,676 $ 556,607 $ 498,735 Expenses Personnel $ 161,888 $ 121,390 $ 169,178 $ 145,538 $ 133,067 $ 283,278 $ 244,530 Amortization and depreciation 58,936 57,621 68,054 57,561 56,043 116,557 111,934 Provision (benefit) for credit losses 1,820 3,712 4,529 2,850 2,936 5,532 3,460 Interest expense on corporate debt 16,767 15,514 15,921 18,232 17,874 32,281 35,533 Goodwill impairment — — 33,000 — — — — Fair value adjustments to contingent consideration liabilities — — (48,955 ) (1,366 ) — — — Other operating expenses 33,455 33,886 47,604 31,984 32,559 67,341 61,402 Total expenses $ 272,866 $ 232,123 $ 289,331 $ 254,799 $ 242,479 $ 504,989 $ 456,859 Income from operations $ 46,374 $ 5,244 $ 52,120 $ 37,505 $ 28,197 $ 51,618 $ 41,876 Income tax expense 12,425 2,519 10,955 8,822 7,902 14,944 10,766 Net income before noncontrolling interests $ 33,949 $ 2,725 $ 41,165 $ 28,683 $ 20,295 $ 36,674 $ 31,110 Less: net income (loss) from noncontrolling interests (3 ) (29 ) (3,671 ) (119 ) (2,368 ) (32 ) (3,419 ) Walker & Dunlop net income $ 33,952 $ 2,754 $ 44,836 $ 28,802 $ 22,663 $ 36,706 $ 34,529 Other comprehensive income (loss), net of tax 1,469 709 (880 ) 1,051 907 2,178 894 Walker & Dunlop comprehensive income $ 35,421 $ 3,463 $ 43,956 $ 29,853 $ 23,570 $ 38,884 $ 35,423 Effective Tax Rate 27 % 48 % 21 % 24 % 28 % 29 % 26 % Basic earnings per share $ 1.00 $ 0.08 $ 1.32 $ 0.85 $ 0.67 $ 1.08 $ 1.02 Diluted earnings per share 0.99 0.08 1.32 0.85 0.67 1.07 1.02 Cash dividends paid per common share 0.67 0.67 0.65 0.65 0.65 1.34 1.30 Basic weighted-average shares outstanding 33,358 33,264 33,192 33,169 33,121 33,311 33,050 Expand June 30, (in thousands, except per share data and unless otherwise noted) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 2025 2024 Transaction Volume: Components of Debt Financing Volume Fannie Mae $ 3,114,308 $ 1,511,794 $ 3,225,633 $ 2,001,356 $ 1,510,804 $ 4,626,102 $ 2,414,172 Freddie Mac 1,752,597 808,247 1,553,495 1,545,939 1,153,190 2,560,844 2,128,116 Ginnie Mae - HUD 288,449 148,158 116,437 272,054 185,898 436,607 200,038 Brokered (1) 6,335,071 2,552,943 4,893,643 4,028,208 3,852,851 8,888,014 7,171,925 Principal Lending and Investing (2) 147,800 175,500 207,000 165,875 214,975 323,300 230,775 Total Debt Financing Volume $ 11,638,225 $ 5,196,642 $ 9,996,208 $ 8,013,432 $ 6,917,718 $ 16,834,867 $ 12,145,026 Property Sales Volume 2,313,585 1,839,290 3,450,614 3,602,675 1,530,783 4,152,875 2,697,934 Total Transaction Volume $ 13,951,810 $ 7,035,932 $ 13,446,822 $ 11,616,107 $ 8,448,501 $ 20,987,742 $ 14,842,960 Key Performance Metrics: Operating margin 15 % 2 % 15 % 13 % 10 % 9 % 8 % Return on equity 8 1 10 7 5 4 4 Walker & Dunlop net income $ 33,952 $ 2,754 $ 44,836 $ 28,802 $ 22,663 $ 36,706 $ 34,529 Adjusted EBITDA (3) 76,811 64,966 94,577 78,905 80,931 141,777 155,067 Diluted EPS 0.99 0.08 1.32 0.85 0.67 1.07 1.02 Adjusted core EPS (4) 1.15 0.85 1.34 1.19 1.23 2.00 2.39 Key Expense Metrics (as a percentage of total revenues): Personnel expense 51 % 51 % 50 % 50 % 49 % 51 % 49 % Other operating expenses 10 14 14 11 12 12 12 Key Revenue Metrics (as a percentage of debt financing volume): Origination fee rate (5) 0.82 % 0.90 % 0.94 % 0.93 % 0.95 % 0.84 % 0.90 % Agency MSR rate (6) 1.03 1.13 1.14 1.14 1.17 1.06 1.14 Other Data: Market capitalization at period end $ 2,395,939 $ 2,901,726 $ 3,282,018 $ 3,834,715 $ 3,311,629 Closing share price at period end $ 70.48 $ 85.36 $ 97.21 $ 113.59 $ 98.20 Average headcount 1,400 1,394 1,391 1,356 1,321 Components of Servicing Portfolio (end of period): Fannie Mae $ 70,042,909 $ 69,176,839 $ 68,196,744 $ 66,068,212 $ 64,954,426 Freddie Mac 39,433,013 38,556,682 39,185,091 40,090,158 39,938,411 Ginnie Mae - HUD 11,008,314 10,882,857 10,847,265 10,727,323 10,619,764 Brokered (7) 16,864,888 17,032,338 17,057,912 17,156,810 17,239,417 Principal Lending and Investing (8) — — — 38,043 25,893 Total Servicing Portfolio $ 137,349,124 $ 135,648,716 $ 135,287,012 $ 134,080,546 $ 132,777,911 Assets under management (9) 18,623,451 18,518,413 18,423,463 18,210,452 17,566,666 Total Managed Portfolio $ 155,972,575 $ 154,167,129 $ 153,710,475 $ 152,290,998 $ 150,344,577 Key Servicing Portfolio Metrics (end of period): Custodial escrow account deposits at period end (in billions) $ 2.7 $ 2.4 $ 2.7 $ 3.1 $ 2.7 Weighted-average servicing fee rate (basis points) 24.1 24.4 24.2 24.1 24.1 Weighted-average remaining servicing portfolio term (years) 7.4 7.5 7.7 7.7 7.9 Expand ________________________________ (1) Brokered transactions for life insurance companies, commercial banks, and other capital sources. (2) Includes debt financing volumes from our WDIP separate accounts. (3) This is a non-GAAP financial measure. For more information on adjusted EBITDA, refer to the section above titled 'Non-GAAP Financial Measures.' (4) This is a non-GAAP financial measure. For more information on adjusted core EPS, refer to the section above titled 'Non-GAAP Financial Measures.' (5) Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing. (6) MSR income as a percentage of Agency debt financing volume. (7) Brokered loans serviced primarily for life insurance companies. (8) Consists of interim loans not managed for our interim loan joint venture. (9) WDAE assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture. Expand June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2025 2025 2024 2024 2024 Risk-sharing servicing portfolio: Fannie Mae Full Risk $ 61,486,070 $ 60,493,946 $ 59,304,888 $ 57,032,839 $ 55,915,670 Fannie Mae Modified Risk 8,556,839 8,682,893 8,891,856 9,035,373 9,038,756 Freddie Mac Modified Risk 10,000 15,000 15,000 69,400 69,510 Total risk-sharing servicing portfolio $ 70,052,909 $ 69,191,839 $ 68,211,744 $ 66,137,612 $ 65,023,936 Non-risk-sharing servicing portfolio: Fannie Mae No Risk $ — $ — $ — $ — $ — Freddie Mac No Risk 39,423,013 38,541,682 39,170,091 40,020,758 39,868,901 GNMA - HUD No Risk 11,008,314 10,882,857 10,847,265 10,727,323 10,619,764 Brokered 16,864,888 17,032,338 17,057,912 17,156,810 17,239,417 Total non-risk-sharing servicing portfolio $ 67,296,215 $ 66,456,877 $ 67,075,268 $ 67,904,891 $ 67,728,082 Total loans serviced for others $ 137,349,124 $ 135,648,716 $ 135,287,012 $ 134,042,503 $ 132,752,018 Loans held for investment (full risk) $ 36,926 $ 36,926 $ 36,926 $ 38,043 $ 25,893 Interim Loan Joint Venture Managed Loans (1) 76,215 173,315 173,315 424,774 570,299 At-risk servicing portfolio (2) $ 65,378,944 $ 64,450,319 $ 63,365,672 $ 61,237,535 $ 60,122,274 Maximum exposure to at-risk portfolio (3) 13,382,410 13,200,846 12,893,593 12,454,158 12,222,290 Defaulted loans (4) 108,530 108,530 41,737 59,645 48,560 Defaulted loans as a percentage of the at-risk portfolio 0.17 % 0.17 % 0.07 % 0.10 % 0.08 % Allowance for risk-sharing as a percentage of the at-risk portfolio 0.05 0.05 0.04 0.05 0.05 Allowance for risk-sharing as a percentage of maximum exposure 0.25 0.24 0.22 0.24 0.25 Expand ___________________________________ (1) This balance consists entirely of interim loan joint venture managed loans. We indirectly share in a portion of the risk of loss associated with interim loan joint venture managed loans through our 15% equity ownership in the joint venture. We had no exposure to risk of loss for the loans serviced directly for our interim loan joint venture partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table. (2) At-risk servicing portfolio is defined as the balance of Fannie Mae DUS loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio. For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans. (3) Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur. (4) Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac SBL portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e. loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here. Expand ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP Unaudited June 30, (in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 2025 2024 Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA Walker & Dunlop Net Income $ 33,952 $ 2,754 $ 44,836 $ 28,802 $ 22,663 $ 36,706 $ 34,529 Income tax expense 12,425 2,519 10,955 8,822 7,902 14,944 10,766 Interest expense on corporate debt 16,767 15,514 15,921 18,232 17,874 32,281 35,533 Amortization and depreciation 58,936 57,621 68,054 57,561 56,043 116,557 111,934 Provision (benefit) for credit losses 1,820 3,712 4,529 2,850 2,936 5,532 3,460 Net write-offs — — — (468 ) — — — Stock-based compensation expense 6,064 6,442 7,702 6,532 6,862 12,506 13,092 MSR income (53,153 ) (27,811 ) (55,920 ) (43,426 ) (33,349 ) (80,964 ) (54,247 ) Write-off of unamortized issuance costs from corporate debt paydown — 4,215 — — — 4,215 — Goodwill impairment, net of contingent consideration liability fair value adjustments (1) — — (1,500 ) — — — — Adjusted EBITDA $ 76,811 $ 64,966 $ 94,577 $ 78,905 $ 80,931 $ 141,777 $ 155,067 Expand _______________________ (1) For the three months ended December 31, 2024, includes goodwill impairment of $33.0 million and contingent consideration liability fair value adjustments of $34.5 million. Expand ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT Unaudited Capital Markets Three months ended June 30, Six months ended June 30, (in thousands) 2025 2024 2025 2024 Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA Walker & Dunlop Net Income (Loss) $ 33,142 $ 11,039 $ 35,502 $ 4,339 Income tax expense (benefit) 12,285 3,359 14,466 1,615 Interest expense on corporate debt 4,468 5,299 8,655 10,150 Amortization and depreciation 1,146 1,138 2,287 2,275 Stock-based compensation expense 3,435 3,982 6,786 8,039 MSR income (53,153 ) (33,349 ) (80,964 ) (54,247 ) Write-off of unamortized issuance costs from corporate debt paydown — — 1,264 — Servicing & Asset Management Three months ended June 30, Six months ended June 30, (in thousands) 2025 2024 2025 2024 Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA Walker & Dunlop Net Income (Loss) $ 37,541 $ 40,432 $ 56,667 $ 83,715 Income tax expense (benefit) 5,428 16,521 23,079 27,674 Interest expense on corporate debt 10,810 10,946 20,741 22,137 Amortization and depreciation 55,882 53,173 110,380 106,244 Provision (benefit) for credit losses 1,820 2,936 5,532 3,460 Net write-offs — — — — Stock-based compensation expense 450 494 905 929 Write-off of unamortized issuance costs from corporate debt paydown — — 2,529 — Adjusted EBITDA $ 111,931 $ 124,502 $ 219,833 $ 244,159 Corporate Three months ended June 30, Six months ended June 30, (in thousands) 2025 2024 2025 2024 Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA Walker & Dunlop Net Income (Loss) $ (36,731 ) $ (28,808 ) $ (55,463 ) $ (53,525 ) Income tax expense (benefit) (5,288 ) (11,978 ) (22,601 ) (18,523 ) Interest expense on corporate debt 1,489 1,629 2,885 3,246 Amortization and depreciation 1,908 1,732 3,890 3,415 Stock-based compensation expense 2,179 2,386 4,815 4,124 Write-off of unamortized issuance costs from corporate debt paydown — — 422 — Adjusted EBITDA $ (36,443 ) $ (35,039 ) $ (66,052 ) $ (61,263 ) Expand ADJUSTED CORE EPS RECONCILIATION Unaudited Quarterly Trends Six months ended June 30, (in thousands) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 2025 2024 Reconciliation of Walker & Dunlop Net Income to Adjusted Core Net Income Walker & Dunlop Net Income $ 33,952 $ 2,754 $ 44,836 $ 28,802 $ 22,663 $ 36,706 $ 34,529 Provision (benefit) for credit losses 1,820 3,712 4,529 2,850 2,936 5,532 3,460 Net write-offs — — — (468 ) — — — Amortization and depreciation 58,936 57,621 68,054 57,561 56,043 116,557 111,934 MSR income (53,153 ) (27,811 ) (55,920 ) (43,426 ) (33,349 ) (80,964 ) (54,247 ) Goodwill impairment — — 33,000 — — — — Contingent consideration accretion and fair value adjustments 41 40 (48,822 ) (1,204 ) 822 81 1,334 Write-off of unamortized issuance costs from corporate debt paydown — 4,215 — — — 4,215 — Income tax expense adjustment (1) (2,429 ) (11,355 ) (177 ) (3,602 ) (7,413 ) (13,784 ) (16,063 ) Adjusted Core Net Income $ 39,167 $ 29,176 $ 45,500 $ 40,513 $ 41,702 $ 68,343 $ 80,947 Reconciliation of Diluted EPS to Adjusted core EPS Walker & Dunlop Net Income $ 33,952 $ 2,754 $ 44,836 $ 28,802 $ 22,663 $ 36,706 $ 34,529 Diluted weighted-average shares outstanding 33,371 33,296 33,223 33,203 33,154 33,333 33,101 Diluted EPS $ 0.99 $ 0.08 $ 1.32 $ 0.85 $ 0.67 $ 1.07 $ 1.02 Adjusted Core Net Income $ 39,167 $ 29,176 $ 45,500 $ 40,513 $ 41,702 $ 68,343 $ 80,947 Diluted weighted-average shares outstanding 33,371 33,296 33,223 33,203 33,154 33,333 33,101 Adjusted Core EPS $ 1.15 $ 0.85 $ 1.34 $ 1.19 $ 1.23 $ 2.00 $ 2.39 Expand __________________________________ (1) Income tax impact of the above adjustments to adjusted core net income. Uses quarterly or annual effective tax rate as disclosed in the Condensed Consolidated Statements of Income and Comprehensive Income in this press release. The effective rate is adjusted for the impacts of excess tax benefits and shortfalls. Expand Category: Earnings
Business Wire
04-08-2025
- Business
- Business Wire
Walker & Dunlop Arranges $105 Million Refinance for Nashville Mixed-Use High-Rise
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. announced today that it has arranged $105 million in loan proceeds to refinance 805 Lea, a 356-unit, Class-A high-rise mixed-use property located in Nashville, Tennessee. Walker & Dunlop's Real Estate Finance Senior Managing Director Stephen Farnsworth and his team arranged the loan on behalf of Key Real Estate Company. The financing, provided by Nuveen (a TIAA company), includes a three-year term with two optional 12-month extensions. Built in 2021, 805 Lea is a 356-unit high-rise apartment community located on 0.691 acres in the heart of downtown Nashville. The property includes 10,203 square feet of ground-floor retail across three suites. Residents at 805 Lea enjoy a full suite of luxury amenities, including 24-hour concierge service, a 29th-floor sky lounge, a saltwater swimming pool, a state-of-the-art fitness center, two outdoor fire pits, and more. 'Working with both an experienced financing team at Walker & Dunlop and sponsor at Key Real Estate allowed for a swift execution through a volatile market,' said Marc Roth, director of Real Estate Debt Originations at Nuveen Real Estate. 'We're excited about the opportunity to lend on a best-in-class and well-positioned tower in one of the fastest growing markets in the country.' Ideally located between the Gulch and SoBro neighborhoods, 805 Lea offers residents walkable access to Nashville's top dining, entertainment, and employment hubs. Positioned at the edge of the Central Business District and next to Music City Center, the property places over 10,000 jobs within walking distance. Just blocks from Broadway, Whole Foods, and the CMA Theater, it is steps away from some of the city's most popular restaurants and cultural attractions. 'Nashville continues to stand out as one of the nation's most attractive investment markets,' said Farnsworth. 'The city's diverse culture, high quality of life, and absence of a state income tax have drawn both Fortune 100 companies and a growing population of young professionals. With its resilient and diversified economy, we believe Nashville will continue to deliver strong fundamentals for years to come. We're proud to work alongside Key Real Estate and Nuveen to ensure 805 Lea remains a cornerstone in this thriving community.' Walker & Dunlop is one of the top providers of capital to the U.S. multifamily market; in 2024 the firm originated over $30 billion in debt financing volume, including lending over $25 billion for multifamily properties. To learn more about our capabilities and financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
Business Wire
21-07-2025
- Business
- Business Wire
Walker & Dunlop Announces Second Quarter 2025 Earnings Conference Call Details
BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today that it will release its second quarter 2025 results before the market opens on August 7, 2025. The Company will host a conference call to discuss the quarterly results on August 7, 2025, at 8:30 a.m. Eastern time. Listeners can access the call by dialing (888) 394-8218 from within the United States or (773) 305-6853 from outside the United States and are asked to reference the Confirmation Code: 1660785. A simultaneous webcast of the call will be available via the link below: A webcast replay will be available on the Investor Relations section of the Company's website at About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
Business Wire
16-07-2025
- Business
- Business Wire
Walker & Dunlop Secures $91 Million Loan for Blue Rock Village in California
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. announced today that it arranged $91.45 million in loan proceeds for the refinance of Blue Rock Village, a 560-unit, Class-B, garden-style multifamily property located in Vallejo, California. Walker & Dunlop Multifamily Finance's Bryan Frazier and Blake Hockenbury, arranged the loan on behalf of long-term client, Prime Residential. The team secured a 10-year, full-term interest-only loan at a fixed rate from Freddie Mac. Blue Rock Village is thoughtfully designed to offer residents unmatched convenience and quality of life. Minutes from Blue Rock Springs Golf Course, top-rated schools, popular restaurants, and bustling business centers, this community is ideally situated. Residents also benefit from close access to Kaiser Permanente, as well as cultural, shopping, and entertainment options in nearby San Francisco. 'We're proud to share the successful refinance of a 560-unit multifamily property for a long-standing client we've had the privilege of working with for years,' said Frazier, managing director of Multifamily Finance at Walker & Dunlop. 'This transaction not only strengthens the asset's long-term financial position—it reflects a relationship built on trust, performance, and shared vision. We would like to thank Prime for continuing to put their confidence in our team. It's an honor to support their continued success.' Blue Rock Village was developed in two phases but now functions as a unified, cohesive residential community. The property consists of 41 buildings, 38 of them residential buildings, housing a total of 560 units, including a leasing office, fitness center, and maintenance building, all situated on 35.69 acres. Residents enjoy a variety of amenities, including a spa, swimming pools, dog parks and more. Walker & Dunlop is one of the top providers of capital to the U.S. multifamily market; in 2024 the firm originated over $30 billion in debt financing volume, including lending over $25 billion for multifamily properties. To learn more about our capabilities and financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
