WD - Earnings call transcript Q3 2021

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Kelsey Duffey

Good morning, everyone. I'm Kelsey Duffey, Vice President of Investor Relations at Walker & Dunlop, and I'd like to welcome you to Walker & Dunlop's Third Quarter 2021 Earnings Conference Call and Webcast. Hosting the call today is Willy Walker, Walker & Dunlop Chairman and CEO. He is joined by Steve Theobald, Chief Financial Officer. Today's webcast is being recorded and a replay will be available via webcast on the Investor Relations section of our website. Instructions]. [Operator posted of and our we Investor to earnings section Relations website, our morning, presentation release the This www.walkerdunlop.com. the will These point slides on Steve for reference during touch some of serve what Willy as call. a and Please also the metric call. EBITDA adjusted this will the of non-GAAP course financial during that note we reference non-GAAP release the Please our for metric. refer earnings to a financial website on posted reconciliation of this carefully our to urged read earnings are statements in the Investors language release. forward-looking deemed not made Act within forward-looking this be which facts, Statements Private of Reform statements are meaning Litigation historical the on of the may call, Securities XXXX.

so. will future our disclaim and statements, or & forward-looking information to the to our Forward-looking current statements annual otherwise materially. Willy. no and or differ any update results detailed whether factors be Walker with as do filed describe is now I reports obligation to obligation events the under found expectations, information, More actual a can expressly our SEC. turn may and result in alter risk Dunlop about over new we call quarterly of

William Walker

Good everyone. Thank positioning and changed the competitive investments estate technology have morning, brand Kelsey, Walker fundamentally our ongoing & in real commercial in you, people, industry. Dunlop's and

& reflects continued performance financial our quarter strengthening third Our our and and diversification Dunlop's of the capabilities Walker services business is that results.

quarter the more the the third and with sales billion record X during XXX% For volumes in the the of had quarter second our XXXX. volume than GSEs billion, consecutive year. the and the strong QX record originated in QX which with QX, of boosted up financing volumes, first in unlike transaction a debt to quarter, we property months was we $XX.X in one volumes $X.X from closed combination we total very brokerage of QX, GSEs,

up XX% see share XX% $XX.X The diluted revenues of $X.XX, this business up million continued cash-generating in transaction you EBITDA from XX% lifted year. to increase components As in year-over-year of last of quarter generated earnings million, strength XXX% of the slide, by per our QX adjusted from million record $XX.X volume drove third the in the on $XXX XXXX. can total of and

to of our our acquisition also of of And XX%, While of XX% dramatically. share growth growth revenue history we business in revenues to our our growth X is facet from quarter. objective with fantastic, billion technology Capital, diluted plan growth QX in great, the long-term our is and of is 'XX people, Drive years to our $X every year 'XX. acquisition $X to from adjusted and continuing Drive growth all and strategic earnings and sequential titled of last of double this announcing while the brand achieve growth X% growth per the year-over-year growing to core delivered invest in largest this to by the billion The terrific of over Alliant EBITDA

from up and the Our QX the billion. only XXXX, of progress towards first XX% billion, $XX financing fantastic. to towards our us Drive from well volume X quarters $XX is QX have of volume months billion, on of $XX year-to-date in XXXX XXXX, up X of goal pace 'XX XX% debt

lending third in diversification right up side reflects XXXX slide basis. growth the remained XXX% XXX% platform, XXXX a As over on left markets of you of capital from surging in levels, of volumes and sales, bridge on multifamily in The slide, our side can strong this the see shows the combined the with our our and QX exceedingly property from QX 'XX quarter. up which this growth historic

property XXX% and sales from closed we XXXX of billion X the up from market. from W&D XXXX. up volume, up quarters the of year team XXXX, $X.X $X.X reflecting of XXX% the QX from the record the have the a third in strength and in last first Our Year-to-date, volume, billion XXX% brand and same team of sales quarter our up XXX% closed period

from comprised quarter sales of Agency in XX% during pandemic. as the million also We track Fannie, HUD multifamily revenues increase billion, third cash Drive in of resulting proprietary of Galaxy, its XX% the $XXX team in total countercyclical slide, insights their Walker 'XX MSR property sales in originations, grew $X.X sales volume $X our well QX billion you the a million. revenues to in million, very designated into of growth ability our of to give sales. goal our of $XXX and from last the to see of property of uncover volume QX investment database, is Zelman's pipeline quarter. Dunlop We marketing $XX can transaction role annual on both Freddie & of in transaction greater revenues the resulting originations growth are volume played down applying the to grew With of to materials research QX and to billion incorporating our XX% to on XX% new on XX% and debt originated healthy only revenues, XX% year-over-year not when year-to-date and by EBITDA revenue opportunities. Due capital but a $X.X and strong from our brokerage year XXXX, $XX over in achieving year-over-year, billion this

We and exceptional brokerage, trend about no had by agency it, our make appraisals quarter expanding team. our to from than revenues MSR Yet multifamily our will to from asset faster balance debt lending we as grow business. lending great sales, continue a grow We our management, expect bankers brokers mistake small business lending. income adding and this continue to servicing core property

to small and new closing loan our is part $XXX originations increase, and to of of will year, in grew exciting last experience goal million processes, year SBL experience. traction our $XX further technology our in powered by we This product we differentiated of where very market. and the $X this customer technology 'XX and business, from to brand dramatically soon underwriting and continue gaining that volume the automate loan We in people, is a per billion SBL Drive our believe TapCap customer will million year. We have a the scale achieve QX we launch XX% transform to the

A platform, out make which X our XXX%. year, we that year than with footprint and solutions to is GeoPhy, Our years appraisal ago up to Apprise national formed the appraisals Apprise XXX QX technology using technology Apprise multifamily to QX JV ago, and this competition. in built faster XX performed partner appraisals and in products better appraisal grew the disrupt has using is market. a

a acquisition see also to to to businesses W&D. opportunities to expected this Alliant be which is expect stand-alone and this great wonderful is competitive. The move use for make We lending but business, close later more Capital, of sales Apprise our a property significant tool valuation month,

tax sixth tax immediately lending, largest expertise a low-income housing credits credit syndication. in housing of leader industry market syndicator in will States development with become United We the and and in the the affordable

match an to We we and powerhouse our of syndication Horwitz, quarters of To our capabilities lender in having of tax HUD for Thompson, W&D's Alliant lending large affordable to capabilities housing the have housing scaling have bring X partner business, unified Alliant billion been a & and establish solutions combination comprehensive XXXX. years, CEO, affordable credit Dunlop, first loans and Alliant's originated our Walker platform Sheri affordable the with asked housing tremendous affordable lending with to success who run to capital has with had clients. Shawn $X

have team built, we in revenue and QX of Our are the technology profitability transaction have we the reflective growth the have volume, implemented. developed and we brand

a to employee. W&D banks have revenue are with where scaled the and organizations. point biggest $X people million over competitors we only diversified per have and world's services We largest of our Yet, X,XXX

scale we the lending loan which take share will we dominate our the as business, So to market. big banks, small continue from

the property lending debt sales off with small underlying of to And disintermediate finance very Steve evident profitability of continue innovative gain call to results at subscription great over services crossroads dramatic the is kicks and like plan billion brand appraisals will & What our will lenders that scale, $XXX is from we business. firms. our in digital servicing that turn balance Walker I will much incumbent We CoStar's if to service a yet, Steve? emerging that portfolio share to we be and of providers. positioning. take and cash businesses large advantage detail. financial service data people, continue growth should and to the and and incredible the technology, and discuss sits And more W&D now Dunlop's in our brokerage

Stephen Theobald

Thank everyone. Willy, and morning, you, good

commercial for deliver executed successfully up and continues also $X return to estate we differentiated our big third us within Mae the we billion the financing ability clients billion, results financial a third quarter saw QX unabated, platform enabled technology Freddie of Fannie extremely broad our team's third our and provide brokerage well volumes, total only Our to but multifamily record 'XX. loans. from strong our and further meet diversification team volume and brand of particularly assets, people, environment to market Investor a and clients' quarter strategies. needs appetite of with transaction our capabilities multifamily, demonstrate real with attractive in to of our $XX.X did quarter, close the nearly GSE not property In and GSE XXX% way, sales and originate Mac debt market options which

throughout are same $XXX of $XXX amidst amount bringing by million an QX of of volume period property is strong and the attract to cash new to we the last $XXX up clients quarters year, servicing transaction Slide quarters for brokerage data have reflecting to million over seen XXXX. of revenues X on WD's X revenues tools generated recorded the strong into our analytic servicing fees, an We sales first of in over X, cash and and driven year, first significant in increase total fees grow shown backdrop the the fees. $XX translating innovative volumes leverage record market year, in near of of that QX, last in growth of million Origination XX% the broad As servicing mortgage were the increase total of XXXX strong XX% fees rights the volumes we recovery XXXX. transaction ability quarter, the billion now over capital solutions XX% brand, and year-to-date

new growth revenues as QX, all growth Year-to-date drive XXXX, in a and a servicing the originations our QX year this of 'XX, capabilities of continued X XX% path recording increased significant to the from At cash of from quarter, XX%, but XX% rights years. up GSE revenues percentage in mortgage XX% due over QX percentage same slightly on despite of time, servicing business quarters the for sequential commissions was up year. all achieving XX% business last QX $XXX of the which which to quarter and servicing 'XX see drove in the billion fees. making third to initiatives, revenue weighted will expansion our investments EBITDA As with in at the QX to in you cash of the $XX areas Personnel our in and in compared objectives, down a our XX% technology slide, on of 'XX The adjusted points. average 'XX, to million expense. growth ending propel the continues XX.X in million revenue in fee quarter can our from and to as we're $XXX basis for previous portfolio margin servicing reflects respectively, same future periods future personnel and revenues grow, emerging streams of Drive the a should increase and XX% this from this jump XX%

During to a reduced the which of transaction, full third million professional to margin quarter our margin onetime point to fee XX%, of related $X.X QX, recorded bringing also operating year-to-date Alliant we percentage expenses operating XX%.

target return bringing of XX% to on the XX% XX%. X equity annual within range ROE our first QX XX%, was for the to year, of Finally, months

Our servicing to continues perform portfolio extremely $XXX well. billion

have continued credit industry, We underpinning the and defaults pandemic support multifamily strong related that performance no portfolio. healthy should the the of continued fundamentals rent including believe figures, growth

of $XXX assumption million cash, debt, million acquire entered value at-risk the our tied Based portfolio. $XX combination to the its of agreement, next another potential acquisition and recorded and $X.X we of WD we X at driven on stock cash common to cash years. agreement The million, total additional $XXX in make certain the closing into by be terms definitive of over enterprise earn-out Alliant affiliates. for we of the growth million. Alliant's credit portion Under purchase will for of balance price Capital $XXX a we mid-November end will projected in XXXX, closing acquire a consideration quarter, third that the an the announced Alliant purchase August, debt At Alliant's of the million. of a the have paid a will at solely of of losses outstanding provision which will $XXX an During million,

secured have in $XXX the to commitments refinance at place Alliant to We closing subject million, term transaction. the our senior loan

and of and We loan our the floor initial XX the to of original well a debt and repay price is leverage the to will The a target. loan an and plus execution of our XX.XX%, which to markets the XX debt entering Alliant the month X a over model acquisition. since XXXX. interest ever points first to proceeds XXX The as with of oversubscribed at company adjustment, of excellent term market, SOFR the issue basis the the fund of in testament first was use track spread spread $XXX inside record cash million portion business discount a a in hit basis point strong strength SOFR-based debt credit and raise, the priced existing term well was

We diluted transaction are positive close impact Alliant quarter share. targeting but fourth per expect later earnings have a this mid-November we closing, Based immaterial on the to a to transaction month. on the

portion majority third a closing Alliant and incur write-off QX. of expected associated income our to costs the integration in including with onetime transaction we approximately million, deferred existing to offset from QX, in expect $X.X the were do in net of the loan the will a issuance While which recognized of related term costs additional costs of a quarter,

securitization As Slide million million EPS Alliant. and This to expect debt per with of $XXX both to $XXX X, loan from million we associated XXXX, includes on costs the generate term of to payments earnings the assumed $X.XX revenues Alliant from and outlined incremental in $X.XX $XX the diluted the service share. debt estimate

our generate EBITDA estimates refinance will approximately Alliant's These include properties providing seeing $XX new opportunities the to synergies we from XXXX, not do expect sell Alliant to boost meaningful in core adjusted growth to are of strong expect from EBITDA We funds. the million underlying a adjusted we that in business. realize or

our For we within deliver return on are margin equity the on annual to and ranges. operating year, full target track

flat We are growth also to share. per affirming for diluted X% percent our expectation in earnings

in Alliant. financing rationale acquisition on next scorecard recognizes Director, As double-digit of also The performance lending forecast achieve XX% total XXXX XXXX, it we of FHFA capacity. Sandra for that The areas the increased will growth year XXXX size In have surge reflected The expected our financing market the of in on billion to FHFA adjusted the to be the high-growth at this Their the Mae puts we track in areas to in was in in a years. indicative grow $XXX increase MBA billion that business, and over multifamily XXXX. caps several multifamily increase is scorecard, August annual year. goal EBITDA, which $XXX an last of the the EBITDA in billion. the the our from to is in Like Thompson, our in billion must GSE's year-to-date with are strong which aligns directly of Freddie cash-generating XXXX, growth. strategic estimate be Mac well multifamily which adjusted the billion market an XX% mission-driven by volume projecting for seen $XXX the released lending XXXX combined the our mid-October, Fannie $XXX positive acting for market in affordable and from GSE is behind of released the of multifamily the for units, issued XX% $XXX are

multifamily increase XXXX. with billion issued finance market last forecast values the increases XXXX, our year. the maintained and well in their than projects higher week, own that life continued due and multifamily significantly funds banks, in growth with is for companies, on Freddie the financing is forecast quarter growing MBA the while XXXX, ended Mac we expectations lending both lending in provide industry. tailwinds We with $XXX GSE at to consistent volumes. billion million will property market $XXX our multifamily This for as However, capacity our of NOI the sheet. debt just GSEs balance the overall the opportunity of us have the for GSEs overall providers that leading to and capital insurance next cash our the additional the the Year-to-date in $XXX provides to originations in in other presence with as market significant

model this generating long-term and the meaningful towards position cash as our to us feel about very pursue of financial progress over ongoing investors business in turn small make of shareholders automated XX, and the Zelman the acquisition November actively our of on Board and approved including of to results dividend to for investments as $XXX Directors acquisition align flows, the of the record Willy. the time, call to 'XX we After $XXX our closed strong to supporting $X.XX dividend of technology, the we million profitable new current platform. objectives. invest our the strategic million our continued over strong between closing our brand also and morning. you of the our generate our Yesterday, fourth announced of of that balance Thank balance a with to QX, expect per XXXX. back During quarter, Associates quarterly We I'll expect we soon somewhere additional continues and be share to payable financial lending your At financial good flexibility ability time Drive giving people, now rollout to cash during have our continue Alliant strategy. sheet. to time & growth same

William Walker

you, Steve. Thank

XXXX XXXX digital to W&D's and a to from leveraging company went company. to scale to I from growth public a going XXXX, finance gaining family-owned public development from in gain XXXX XXXX, XXXX in on X XXXX. of in The Freddie phases: Mae, and look scale as Mac business think our rested at it's lending partnerships as mortgage HUD We success small arena. and multifamily Fannie with diversifying our appropriate the to

the this million that to As period investing scale million hiring from revenues million, during In platform debt the country. we slide, grew the we you success brokerage see brokerage to from began $XXX in firms small XXXX, talent can by our financial XXXX, $XXX and diversifying. to and gained on of EBITDA $XXX scaling across to platform and begin XXXX heavily acquiring brokerage

the property business acquisition Financial. the Engler entered also with sales multifamily We of

As of you stage than can million see $X.X driving doubling here, the incredible, more to diversification and results $XXX up $XXX the revenues were to billion million. from EBITDA

does year. So and Drive by scaled customers financing and revenue loans, digital XXXX but use new business our million. used XXXX, of with our existing and to can't increased and to our with helped volume $XX billion business to bankers refinancings more era doing our brokers, QX without finance XXX from billion Walker portfolio. in $X and but points in our the the to our our and billion are macro due simply of successfully of last quarters at than spelled to to the acquire past & have clients this it strong number technology revenues technology, plan than continues this and environment, recovery and by number and QX up in proof growth. XX% portfolio. are new mean a transaction are the of that $X taking of point transaction beats now of era. & to of and how is new -- market use clients today, yet our largely refinancing XXX% new enter to us XXX which business year by out win diversified we QX were what in done generate rather volume we the X QX grew drivers in business, We Walker new include our existing We exactly are volume proof financial in has less due in brokers the over and estate technology Nothing bankers fantastic total technology. commercial execute of real loans many The services Dunlop clear and digital over industry? digital loans we The having over the are to But $XXX of had EBITDA and 'XX identified XX% existing that And dramatic XX% transaction to technology refinancings was Dunlop total is

seamlessly margins, will existing Beyond growing loans originate Today, we national appraisals. platforms efficiently to using find, achieving will significant brand debt and to businesses to the people, our underwrite than faster and appraisals which amounts by and of we and the integrating close transactions technology generate and to and competition. significantly our businesses These have scale the businesses small property Drive sales have and high of grow and more loans 'XX. underwrite technology, ability digitally-enabled contribute small our fast to operating

management, syndication credit and tax on While existing people, under XXX industry. will we to professionals capabilities. financing be in which technology expertise scale brand debt close will digital assets acquisition rapidly Alliant businesses billion syndicator housing with tax with affordable expertise W&D affordable the in integrated continue servicing and our their Alliant, soon in $XX to brings businesses, to our W&D's invest the credit of combine talented to scaled a along and we deep new with

W&D's Steve our We partners clients. drive and on JPMorgan. technology incredible SOFR-based their to term work to significant our first will the ever transaction, is us thank allowed at pricing and in groundbreaking and for will success the offering want truly leveraged Steve team make the of refinance loan. The achievement their and and a be loan. Alliant mentioned, To more take his down team by we what also fund insightful as to I efficient investment Alliant will

has a at across We with exceeding media Dunlop The Walker recently expand webcast colleagues over leader brand XX% has to on Walker and record X.X helps views, & XXX,XXX XXX,XXX. average and Linneman I guests our webcast on views for brand fantastic of Webcast increase quarter the with it continues several channels, weekly. the other another total success. million brand the Dunlop views & contributing success total lockstep a to and hit The thank Peter huge to one accumulated with third in as our Our thought propelled people my Walker watching industry our XX,XXX in like in all business. the quarter in all grow would differentiates and hits amazing us year-over-year your in alone, of positioning market are work.

well extremely brand to company, continue 'XX, firm, as on investing a estate to are people, more faster positioned We enterprise executing solutions to a on clients providing real for now specialty build and the I Drive I'll and capital morning, technology-enabled a that in than a and the just us joining want isn't any to technology Kelsey this thank competition. our ask for open company continuing to isn't efficiently services the everyone lines to focused but finance and and just questions.

Kelsey Duffey

Instructions]. [Operator

is question of Henry Coffey coming first Our Securities. from Wedbush

Henry Coffey

begin competitive combination? where so the ability to How many the your players" table Alliant the transaction that working that know many origination? guess right in you But "large bring have in things to tax-related direction. the how you at quite space marketplace that I common there, look investing I both to and and is don't be do when to since the to of look at seem

William Walker

think combination the will extremely look average the or Alliant But if do have proposition but street, if you at XX down W&D showed of lot of who list it. that, might are all we it There And would X. compelling. the our they to make the the and into identify I indicators, names tax market, walking a the that showed offering of I you, if I to just know couple the a you of in it person market Henry, on confidence people probably

of, And players league it. very fragmented as and a start table, we stuck the have wall. we so if we the have Henry, our will, that in at it And and tables, march does It have already look And businesses, lending -- successfully up. space market. other as not successfully we you in to multifamily very done share at we we loan have the in look market space league it's kind done large to

Alliant syndicator as market the credit in X% country a syndications. tax And the of share largest whopping so sixth total has

in to So to go what lending the we space us what ability space and from the that in to plan done do. multifamily X% is X% we've do for X% to exactly

Henry Coffey

So it's out fair that their work other teams WD say to business? the that to there way in loan are happened might as multifamily there

William Walker

thing and quick growth the built you if that is would getting which that all the years add one just I is on our to that, the last at Just Henry, have X explosive look team going sales very in out due investment over business, that and we the best people.

of the have in point best best Walker as country. we It build & multifamily very joining time will are type hope see the up we in long obviously, business. very line to success took there, this the investment the that country of We reputation. clearly in because And a Dunlop's similar where brokers sales tipping they a hit have platform the it very

Henry Coffey

-- of core looking the How multifamily brokered was and then multifamily? you're segment business. of much at it And as outside the the of was how activity much just

William Walker

That's do multi breakout a have the capital good non-multi in of percentage you question. Steve, markets? versus

Stephen Theobald

Willy, was volume And think this been to quarter of multifamily. of debt financing strong me, don't -- anecdotally, that XX% for and is that we've historically, multi, a that I this XX% but our in is range. front Henry, within I have quarter very Yes,

Henry Coffey

'XX characteristics. XXXX? its sounds outlook We for of -- how follow year. looking residential that own is market market, is mind that cyclical your Is course, the the at That forecast your It as what like my another do in driving up from And that? impact of what colleagues. has many -- does just was

William Walker

you So -- very core business things, quarter I what to -- was I showed along look, weakness they think interesting to buildings real CoStar's the the was their probably found apartment full. watch and reason continues Henry CoStar. data obviously all showed chug Apartments.com the And United one States of data they the that weakness be they interesting where commercial are in in because is the But dominate Apartments.com. And estate in space. about

those need on to down expectations of advertise buildings their and led owners so And to Costar don't bring that on Apartments.com. Apartments.com QX then

it emblematic -- QX to over that look of market next is instances the The their now. coming supply months. the listings than do there rent far fundamentals volumes. to online that is That right are think XX% at as a many to driving is is up. dynamics extremely active of up it for renters be very relates down. and quarter-over-quarter. live That increases, origination apartments. have looking the of There But XX%, setting for all REITs you is aggregate multifamily the is place XX%, XX to it in to multifamily strong is are available a And driving are there I rents are XXXX Apartments.com is going right now, more that

able the other would in players $XXX and market. As a all as of the recent Walker all, And Bankers to financing Mac's year, significant is and QX XXXX market this Steve and financials, did quite as MBA and top huge for Dunlop's to market. and opportunity But the that first were estimate, and as everyone & for adding multifamily most positioning mentioned, another of put of it's and take Freddie we Walker sources Freddie there. capital. extremely Freddie $XX shows I what say billion saw industry. it strong on very week, Mortgage a capital that multifamily what other billion there's in as anything just But work with Freddie which difference And Fannie we Association important HUD were in the over last growth between projection the QX remember is the Fannie not -- to know, nearly of & Dunlop's the

And XXXX. between so will that across for we incredible access has to what we market a fill XXXX, can Fannie HUD for the capital while great an Fannie, and and have other scorecard and do demand gap the of that going what lots also to have country in is team Freddie Freddie that

Kelsey Duffey

KBW. of coming from will The Rahmani be next question Jade

Jade Rahmani

what's on the compression rate thoughts cap your space. about multifamily driving in Curious

William Walker

Capital.

the for said not -- flows. decades Just a Linneman We're There straight now, is buyer Peter equity take up work multifamily capital, all after large capital acquisitions, deal Denver. down research $XXX -- in as as It's to we're XXX well seeing and of many done $XXX into his times both that published Webcast going now has Jade. of amount awarded as Walker he's all on It's thinks in flows. million, amount we down right right million, the get to it's in buyer tied capital huge capital -- going -- go everyone tied seeing is it's we've rates here now, They're cash. cash. They're right are are interest that that to sell what to market in say to deployed an just multifamily unprecedented a trying cap And a of not. rates. very and

market, And huge equity so there of is the rates. a cash huge driving in And is of what's amount amount cap a capital. that

Jade Rahmani

in growth You XXXX expect that the over robust? for volumes growth XXXX is transaction market? think still for the And overall outlook for do you

William Walker

There dynamics we in over is not that are would now. the see XXXX XXXX the of that given says that nothing market growth we seeing right

Jade Rahmani

business? thoughts estate constraints do the the seeing on chain, you're transitional and supply real inflation, improvement also you on labor impacts any Just perhaps supply developers -- lending with side, Some that projects? capital staffing and deals impact impacts mind, to is could or those bridge inflation wage potential on chain potential well that your constraints come as as

William Walker

And Dunlop's as saying yesterday Walker long a the a move investing. as one still say you of what that the people X-year cheap I that's his it to Chairman as debate did and his sovereign far I a yields for and the starved to And due debt than he debt between conference yesterday had Powell from know, consistent you on to and the U.S. negative know globe to that around time. past and showing that who low range member, press still is see. didn't real rates relates So -- the of and permanent reinstates stay XX-year. at view is And just sovereign spread here several transitory relates seen standpoint, to will meeting look, my that with sovereign do the X-year the pressures. great capital. have more as inflationary a transitory obviously Board world while to X.XX% more be to we've members and it's And is relatively it. it are for we than I historic pretty data I after it his staying the in outlook is sitting view up a about view that as and significantly inflation saying tighten had can fundamentals over been We've the Board where place incredibly yield position, at a Board the XX-year we're still debt Jade, our my believe long weeks, mid-X.XXs time & as the fun still

to continue capital. haven think will and commercial huge a we amount see so I see to And as volume safe global transaction something of for we I will a of estate continue think real

If in about you think question -- Yes, cap cap property. -- investing can rates rates rates. cap right multifamily low. But a buy about asked the now still you are multifamily you

and the put it. property multifamily and things and it opportunity property You happen: X push tighter have you bought on at rate that carry that cap can potentially rents; still to one, positive a two, have sell leverage than

invest, particularly an and capital in And and capital commercial those most so global down. estate which is United is for the making are multifamily, rates States, flows that those attractive cap driving variables to X exceedingly market that driving real

Jade Rahmani

in margin been related, -- come side. growth I've GSE just in margins And is non that impressed all Okay. on have lastly, by strong. the extremely with somewhat the businesses, the then

at came that remain compared real EBITDA look the be do you brokers, which consistent? thinking How were leverage? and deal, in there's think Alliant we at estate relatively the example, are operating For anticipate Zelman potential Post to margins pending margins commercial outlook? you you adjusted XX.X%, industry-leading of to closing Do XX%. would and expecting we about the margin

William Walker

over this quick you it. just Steve second. on I'll some a turn to I'll really give in thoughts

technology. one many, investors the is is, Walker and a, to invest outcome our great market one & of it are fact our have And of that going reinforce appreciate The of many share you have Dunlop small multiples as have technology, as very that people as to the is, why it's people. confidence what people first to margins, versus out W&D against would the that our of pointing I having existing should doing get and lay grow challenging very the set. base to X,XXX change with humans of companies that health they're be technology the they as they from the at opportunity efficiencies in relates the to competitors and come, other as that big profitability is, head-to-head a are that we they're think all we versus in size platform. I human challenged the lots use capital. reasons way to off the the competitive I of implement start And doing to our only maintaining And particularly both will well growth

and of there that feel brand margins. lots they're I with lots of people so And lower sitting and

technology the market people. have We're grow we take opportunity to have and and fewer more share. applying We

where on be that dive think we growth a overall you that. And margins? your sitting reflective into our So than that little and question maintaining rather bit will Steve, of are of I'd I be much deeper margins they on to thoughts are. want

Stephen Theobald

near Yes. the to would wouldn't Jade, and add I In that. significant echo a change expect margin from what a standpoint. I Willy term, said

efficiencies I Adding continue to investments a margin I is make we think in technology expect in -- laid tax business. near in actually expand a make business long a know, our I syndication relatively as growing those EBITDA and this and -- is think, point, to over term, -- to Willy's -- But here to time would business. much we're X-year But from the positive. continuing It's is is, run. the in I Alliant as the plan the credit you change. out in I high investments drive organization margins think the wouldn't expect over

Kelsey Duffey

comes Steve from Our of next JMP. question Delaney

Steven Delaney

hear You me now?

William Walker

Yes.

Steven Delaney

the as congrats a fantastic. everybody seeing on the lenders my quarter. extend That's -- healthy, on in -- I'll report to, have, we've extremely direct Congrats others about an Willy, a fantastic talks about multifamily. vibrant there broadly, mentioned interim you earnings been you've that's market comments, spoken an not all several and and quarters. your out especially last lending, in the types, In property much CRE that in area

product at more basis? joint or opportunities when you to look those curious, you're a funds that, you directing Or that opportunities that are as just brokered or do bridge debt banks? venture you a see direct just seeing I'm So on other

William Walker

call. Great the on have Sure, to Steve. you

concerns grown that pulled we mentioned it's XXXX when markets in we dramatically about during space So the it credit because almost the from because completely basically back just pandemic. of

is joint we're a there. with to the has recall, to do ventures venture. all And you it's business see success. we've have volume doing not ventures. think of joint joint in I fantastic multifamily the true huge fan as the amount And so space. And been a huge a one of venture I'm great joint ever Blackstone joint of a we a done, loans is and doing That venture bridge that

this. huge space the debt a mind, is know, think as keep There of other both today. well to trying interim I to in multifamily funds as the you do as Steve, in thing are, permanent number financing

exceedingly floaters that LTV will. credit We will, disciplined be in the entrants XX% a have to market, product, standpoint you if borrowing to not X-year on been if new from that you doing are multifamily loans

who debt to are institutional person -- in down down are I loan are But going And These the they from but my lending our permanent won't need a waiting equity. it & looked program and the the transitional large and it. names, take largest on just interim an a because it, that for then word borrowers reasoning it's and put and bridge using to GSE LP took borrowers they're our institutions largest take that why so on -- big Dunlop. product they actual raise it some at are Walker asset borrowers. to to There's I stabilize go

run value as characterize competitors a I bridge if sort that to really will, borrowers looking some it leverage and would proposition I deals be borrowers to some for doing, high into smaller good not at with you lending. think you transitional of feel are what and on operators, teams our I going where been problems so offer that it's product our can on, their And These established origination to lower we're leveraged huge transactions. has able that of

Steven Delaney

frothy a good hear rising that see problems fringe you it's And -- Well, all concerned going as to is market. little I'm to a Willy. tide some raises suggest, ships, that somewhat lifts of it because the while that on we're

So...

William Walker

Many I'd our thing just is all this. this are of quick Steve, CLO-ing paper. one the there, competitors add And

We are not.

CLO the sit a balance to market seizes if there's lot any degree that's on and So up to sheets. going

soon. And just going so Dunlop's originating either up we're I'm into the the Walker I'm these on saying or way Blackstone. anytime not holding predicting market freezes that venture the they're loans, them & we're balance CLO that with joint sheet

the of are mechanism competitors CLO far than is markets here the the more there funding our so And using paper. that stable sell out many to

Steven Delaney

And increase GSE Yes. the in from the the follow-up FHFA. my caps, XX% caps Good question would on be point.

it had the affordable. we it of ample, up. to that caution go but then XX% And market, that have ourselves be sounds given I must to think, obviously,

on that more there's larger if the in It CMBS benefit demand I'm whether and where tremendous if and might large thoughts into -- to a and as your would there -- on well? there on consider the whatever. may market that's whether private are the going increase So to Freddie if borrowers have the FHFA market was going caps FHFA increase we're whether to that be fill GSEs look me up wondering to the or loan -- flexible any would demand. not get a Fannie midyear the the market situation segment elsewhere and But affordable seem that

William Walker

Sure, Steve.

line other if are that if done major One didn't to I think doing and the do outlined the multifamily, the The sources capital owner thing developers and business scenario. concerning client it the on borrowers, reasonably class lots a base I fund. our a, what we other properties is, is second needs have So of our in was has we glass that would brass of call, X A not glass it with traditional that, cities bottom to of W&D, that things to our what be types that. quick the that's and capital brass solutions you meet is, business on just all nor of big, is and

comments, we've mentioned done $X lending billion in in alone I affordable my of As XXXX year. this alone, just

lending of a the space amount we've is done space in. that a so And affordable tremendous

bring to there; so of base And on every made that on in and partner as are developments partnerships developer the major caps into to and C, the in affordable, country. have to mind And that's you a Alliant we b, we affordable record; history Walker company's client Dunlop track & the focused in and fact with we our have of largest just keep owner increasingly has attack GSEs have focused their acquisition a a, in the all the very strong industry. Alliant further the affordable

refinance flow never So sell, Alliant not that's base, we a out us beyond before. us to to only to great they're the Alliant that whom or deal that introduce that, is will that able has of met be either come going all but to client many have going we've we to whole

strengths market, they But focused into that needs Walker our the that flexibility to on and client possible overall & of the our clearly, plays we not all with so market. have base. percentage with and want to part I an affordability, as expanded continue cap And much very for Dunlop think, agencies said, well the affordable just meet the the as the of

Steven Delaney

affordable work try explore Yes. your to executions? you apart agency the are or type doing from pursue single-family to And initiatives, rental as the build-to-rent any market you market

William Walker

so. much Very

both as huge able will to if to help you together. are us the I come team as a Dunlop it in to, tell BFR Walker be having relates analyze will, they markets has research well have Zelman as & that doing We dedicated a at SFR, have that on SFR, to BFR. all you single-family, that multifamily, been these X

I multifamily give well multifamily Mae, imagine, different it nobody Fannie SFR, To lots SFR, brings It's Fannie of with you of the forever. CEO bifurcated. personal BFR worlds market kind of on and into and know, space. X of that, SFR, been as single-family together. know It on the hundreds worlds side, an people, BFR have you multifamily side of single-family brings market people the I space that the in the Steve, BFR can from side. other of developers brings relationships almost have the the example than you and As at single-family Mae, Lennar the X these basically tens

And X so exciting melding the then research really the years these a is our many doing has at competition. there. real that and value-add been so team deal and in is worlds that developed a And Zelman a that for number over I and players and above have relationships of very, to innovative research from large a this very of know fact very, level space flow is very is far has the

the doing in pleased And of the BFR amount sales And and way, BFR the so in thing. very SFR, seeing We're SFR, by the space. space with financing also we're doing just quick there. one what we're

now. we So they're team right a asset here BFR the Denver, have listing in

are will. we the vertical, in space investment in that so also you sales And the and BFR if

Steven Delaney

Everyone stay well.

William Walker

Thanks, Steve.

Kelsey Duffey

Steve. Thanks,

time. this at questions further no have We

to remarks. So concluding over the for I will back Willy turn call

William Walker

today. analysts. joining I Appreciate from everyone the Great. us the questions appreciate

of California quarter." thanks was Thrilled put work getting on Henry Kelsey, seeing to thanks everyone meetings your very, place Really great one. this against it and by end this you very happy strategy the think strategy execution to a a we week, momentum and said who team. us Board a meetings great of again W&D Have and the I we joining at and you in And to great have As the we're Thursday week. "Amazing call strategy. the that team. words, both in thanks morning. you. Great our I and this his wish -- on all everyone gained, for Steve, the for

Stephen Theobald

all. Thanks

Walker & Dunlop (WD) 6 Nov 212021 Q3 Earnings call transcript