Walker & Dunlop Inc Stock Price, News & Analysis

Walker & Dunlop arranged debt and equity financing for the acquisition of The Bungalows on Pine Cliff, a build-for-rent housing development in Flagstaff, Arizona. The structured transaction comprises $37.6 million in bridge financing. The deal involved a joint venture with Dome Equities, aiming for programmatic raises for multiple BFR developments across Arizona. The BFR sector is gaining traction, catering to growing demand from young families and retirees. Walker & Dunlop has closed over $1 billion in BFR financing, asserting its leadership in this emerging asset class.

Walker & Dunlop has announced $55.68 million in financing for three skilled nursing facilities in the Chicago area: Chalet Living & Rehab Center ($24.64 million), The Grove of Evanston ($18.88 million), and The Grove of La Grange Park ($12.16 million). Senior Managing Director Joshua Rosen emphasized the company's expertise in HUD loan programs, securing significant debt savings. With its position as the #1 capital provider in the U.S. multifamily market and significant transaction volume, Walker & Dunlop continues to support essential healthcare facilities during the pandemic.

Walker & Dunlop has appointed John Ducey as its Affordable Chief Production Officer to enhance its affordable housing financing across the U.S. Ducey brings extensive experience, having previously worked at Fannie Mae, where he was responsible for LIHTC equity investments. The company's goal is to originate $60 billion in affordable housing volume over the next five years, reinforcing its commitment to tackling the affordable housing crisis. With $17 billion in affordable financing volume over the last three years, Walker & Dunlop is a leader in the sector.

Walker & Dunlop expands its multifamily appraisal business, Apprise, by appointing Sidney Womack and Kelly Hyde as Managing Directors. Womack will lead valuation in Arkansas, Louisiana, Mississippi, Oklahoma, and Texas, while Hyde oversees operations in Colorado, Idaho, Montana, New Mexico, Utah, and Wyoming. Both bring extensive experience in multifamily valuation, enhancing Apprise's competitive edge through technology and expertise. The firm has valued over $150 billion in commercial real estate and operates across all 50 states, serving a diverse client base.

Walker & Dunlop reported Q1 2021 revenues of $224.3 million, a 4% decline YoY, with a net income of $58.1 million and diluted EPS of $1.79, up 20% from Q1 2020. Total transaction volume was $9.0 billion, down 20% due to decreased multifamily financing. The adjusted EBITDA was $60.7 million. The company declared a quarterly dividend of $0.50 per share for Q2 2021. Despite a strong start to 2021, there was a noted decrease in agency debt financing volumes, particularly with Fannie Mae.

Walker & Dunlop has announced an agreement to acquire a controlling interest in Zelman & Associates, a top housing research and investment banking firm. Founded in 2007, Zelman is recognized for its in-depth research and advisory services in the housing sector. The deal aims to enhance Walker & Dunlop's insights into housing markets and strengthen its investment banking operations focused on the multifamily and single-family rental sectors. The transaction is expected to close in Q3 2021, pending regulatory approvals.

Walker & Dunlop, Inc. has been ranked as the fourth largest lender in the U.S. commercial real estate industry, according to the 2020 Mortgage Bankers Association loan origination rankings. The company's lending volume grew at a 25% compound annual growth rate over the past decade, rising from $2.7 billion in 2010 to $24.7 billion in 2020. Notably, Walker & Dunlop's debt financing surged 32% in 2020, even as the overall market declined by 27%.

CEO Willy Walker emphasized future growth opportunities driven by technology, talent, and market presence.

Walker & Dunlop's Investment Sales team has released its 2020 Student Housing Year-End Report, which aggregates key data from the student housing market. The report highlights a decline in transaction volume but notes resilient rent collections and active transactions. Key findings include rising land and materials costs, ongoing cap rate compression, and a shift in buyers from foreign to domestic. Despite GSE caution, a recovery in debt markets is expected. The report emphasizes strong investment opportunities within the construction pipeline across 50 major markets.