Walker & Dunlop Q3 2024 Earnings Report
Key Takeaways
Walker & Dunlop reported a strong third quarter in 2024, with a 36% increase in total transaction volume driving a 33% increase in diluted earnings per share. The company's key financial results improved, reflecting the ongoing recovery and strong fundamentals in the commercial real estate market.
Total transaction volume increased by 36% to $11.6 billion compared to Q3 2023.
Total revenues increased by 9% to $292.3 million compared to Q3 2023.
Net income increased by 34% to $28.8 million, and diluted earnings per share increased by 33% to $0.85 compared to Q3 2023.
The servicing portfolio reached $134.1 billion as of September 30, 2024, a 4% increase from September 30, 2023.
Walker & Dunlop
Walker & Dunlop
Forward Guidance
Walker & Dunlop believes that it is at the beginning of the next commercial real estate cycle where profits will be harvested, loans will be refinanced, and capital will be deployed, all generating demand for Walker & Dunlop’s capital and services.
Positive Outlook
- Commercial real estate market continues to improve.
- Strong fundamentals are attracting capital to the market.
- Acquisition and financing activity is increasing.
- Servicing and asset management business will continue to generate strong recurring cash revenues.
- Continued investments in people, brand, and technology position the company well for future growth.
Challenges Ahead
- Rate movements have been headwinds.
- Presidential election have been headwinds.
- Closing of one of LIHTC funds was delayed in the third quarter of 2024.
- Decline in syndication and other revenues related to a decline in gross equity raised year over year.
- Increase in other operating expenses was primarily related to increases in expenses associated with multi-year software and data contracts.