Loading...
•
Mar 31, 2020
Walker & Dunlop Q1 2020 Earnings Report
Walker & Dunlop reported record revenues and transaction volume, but also recorded a provision expense related to the COVID-19 pandemic.
Key Takeaways
Walker & Dunlop reported a record total revenue of $234.2 million, up 25% from Q1 2019. Net income was $47.8 million, or $1.49 per diluted share, up 8% and 7%, respectively, from the first quarter of last year. The company's total transaction volume grew 91% year-over-year to a record $11.4 billion.
Record total transaction volume of $11.4 billion, up 91% from Q1’19
Record total revenues of $234.2 million, up 25% from Q1’19
Net income of $47.8 million and diluted earnings per share of $1.49, up 8% and 7%, respectively from Q1’19
Servicing portfolio of $94.8 billion at March 31, 2020, up 8% from March 31, 2019
Walker & Dunlop
Walker & Dunlop
Forward Guidance
The COVID-19 pandemic has dramatically changed the underlying fundamentals of the U.S. economy. While property sales activity has slowed significantly and many commercial real estate capital sources have pulled out of the market, Fannie Mae, Freddie Mac, and HUD remain very active, and we continue to benefit from a strong pipeline of transactions.
Positive Outlook
- Fannie Mae and Freddie Mac remain very active.
- HUD remains very active.
- Strong pipeline of transactions.
- Closed the largest transaction in Walker & Dunlop’s history, a credit facility of over $2 billion on a portfolio of workforce housing properties in the Mid-Atlantic region.
- Team has not skipped a beat in closing financings and guiding our clients through this challenging period.
Challenges Ahead
- COVID-19 pandemic has dramatically changed the underlying fundamentals of the U.S. economy.
- Property sales activity has slowed significantly.
- Many commercial real estate capital sources have pulled out of the market.
- Recorded a provision expense of $23.6 million related to the COVID-19 pandemic and its expected impacts on future losses in the servicing portfolio, resulting in a $0.54 reduction in diluted earnings per share.
- At the end of April, the first month principal and interest payments were due following the onset of COVID-19 in the U.S., we had $1.6 million of outstanding advances under our Fannie Mae and HUD servicing agreements.