WD - Earnings call transcript Q4 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 Fourth Quarter and Full Year 2021 Earnings Conference Call and Webcast. Hosting the call today is Willy Walker, Walker & Dunlop's Chairman and CEO. He is joined by Stephen Theobald, Chief Financial Officer. Today's webcast is being recorded and a replay will be available via webcast on the Walker & Dunlop Investor Relations section of our website. we Relations earnings www.walkerdunlop.com. section morning, to and This Investor the of Instructions] posted release our presentation [Operator our website, slides touch reference Willy a serve some These what of point and during on for will the call. Steve as reference we EBITDA, diluted share note per financial course the adjusted non-GAAP will also metric, the Please of earnings during that adjusted and this call. financial appendix of a these non-GAAP for the reconciliation presentation the metrics. earnings to refer Please of release. Investors language earnings are urged in the carefully statements forward-looking to read our this are Securities meaning which facts, Act be on historical made the Statements XXXX. within deemed call, of may not of forward-looking Litigation statements Private the Reform

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

William Walker

Thank happening truly the are decided daily are benefiting offices. leases quarterly this and committing to call creativity, We new Walker you, a the now We and Dunlop's everyone. community morning, the Bethesda, our space, York & spectacular. New offices corporate few pandemic physical Board two our Maryland. earnings meeting these new when in in in just teamwork and from of from headquarters be to held Kelsey, of others the City. are sense and we sign building, space, pleasure good doing It's office our depths The in to both in that collaboration, were

new from of recruited Walker $XXX financial transaction Walker an total brokerage, a produced volume sales XX% Record debt we continued implementation firm. our transaction in investment company the incredible a & last the over X finance The and W&D. from brand $X.XX. and being and volume where Yet of of of and contributed year to clients advantage led in intermediary done Dunlop QX reporting in relationships. generated has billion, results, of bankers between revenues Galaxy XXX% of of client did over have quarter new volume Dunlop per in transaction $XX both & services of year full noteworthy up $X.X being to to between professionals existing of accomplishment accounted services loans Walker a and to have been in increased continued where billion talented and helped the and more those to Property data brokers What services Our financial last technology-enabled on fantastic $XX quarterly to acts mortgage-centric businesses of transaction X database billion, in most up XX% into results. a QX, the in we diluted during the we up share year. valuable dramatically the to $XX.X years and XXXX. true grow X We volume quarter quarter. These investors in an and our Debt XX% to record QX. our we our acts early transformation as fantastic investing wide grew lenders billion a brokerage new technology margin. QX amongst we up technology with million reflective transaction borrowers Dunlop has multifamily largest earnings EBITDA, total technology us buyers launched grew refinancings and XX% by $XXX volume to by in quarter, XXXX, tool history XX% over million, last how we quarter for Since QX, & W&D's past built, due a been XXX% as adjusted given is solutions. Dunlop year this This to have broker over have our total Walker sales and than properties & businesses all the and our volume in brand sellers quarter the W&D, in of people,

as year, and being portfolio For Walker & XX% these amazing of transaction technology the tell our being bankers is that a solutions volume to with our Dunlop. our of similar efficacy technology numbers the and and new of with clients these It full total story, XX% combination talented have results. to loans done brand new refinancing brokers, driven

our And grown with and throughout ended as HUD, quarter originating fourth the with dramatically, year largest largely of a the the had and have neck to affordable finish CBRE again of capital as XXXX in year record X largest lending we We industry. multifamily continue properties. providers fourth and businesses services lender neck Mac's we While the lending, $X.X multifamily Mae's Fannie billion we strong mortgages, largest Freddie once of year partner. on and

has very rolled our closing loan quoting, in have acquired current TapCap's list loan foundation over the app. customers. its and small QX our their our processes. results core and and and true lay technology bankers views, with a lending we TapCap research our been received that and and XX,XXX Zelman's intelligence during Since and entry small the market banking. as in industry-leading have W&D subscription with new of It team. to was pleased engagement colleagues and quote to launch, our small for our services acquisitions the strategic site with fantastic businesses, are prospective her client e-mail of enhances year. now app automating & We pleasure relationships. the loan part with X Zelman has Ivy highly brokers and the investment the nearly client Associates research we Beyond out insights made housing-focused is provides our XX,XXX balance and underwriting Zelman an market

is the services industry, have the powerhouse one multifamily XXXX. and full Finally, that Alliant housing the started working XXth be affordable and history of Alliant a W&D acquisition it underserved Horwitz a Capital in at end largest with We in and suite pleasure right now just the W&D's the of closed the the of at Shawn have is market. fastest-growing and us. of have sectors team most to to them

a we made back X-year interest and called a plan will changes macroeconomic achieving going strategic about will focused instructive thought constantly we the Walker I and our rising in & And business year moment, are changing through where Dunlop. the towards how run in fantastic We growth have major progress are moment. X on just investor the for I questions it rates, landscape inflation, Drive to 'XX. to But given and they be our economic would look impact at

in Housing see Dunlop have at a Reserve. basis a $X.XX compound XX earnings a provide annual as $XXX also XX and dramatically billion, have We've low dramatic us had growth Walker a over X high capital in investing rate past and we of manner. allows services XX% high $X.XX acting a of has when past low model had countercyclical revenues the X and have we Finance permanent $X.XX and this upmarkets to and compound from Federal over can the on adjusted that of businesses, share per & the growth in we a the grow annual consistent of administrations, a and had million rate to directors Federal million distinct Administration, XX%. in at grow of markets grown growth years, the to to and slide, of wildly XX-year decade. $XX you of the dislocate. a at past from By from new And decade million yet, EBITDA compound This chairs annual EBITDA $XXX the X close allowed to EPS of points We've business industrials of technology-enabled continuous, XX,XXX at XX,XXX. X.XX%. treasury XX% a Over at Dove at presidential rate revenues and

been change of radically including past in the pandemic terms yet of that over performance. dramatic of has decade, all and incredibly and our seen have performance a both growth We lives, throughout financial W&D's plenty changed consistent

X-year forward the ambitious highly in as last to $X XXXX goal looking by overreaching Drive of an strategic growth the year, to doubling plans billion $X billion we launched XXXX. 'XX now So from revenues

And Our 'XX financing in set progress our XXXX. Drive We we XXXX, after grew grow XX% to $XX by goal $XX simply a towards to the X only Property year increased XXXX just in fantastic. to grow to X $XX a by to volumes volumes billion to $XX it billion. to is billion. debt set by XXX% Sales, we and by billion year, In goal

'XX what XXXX achieve $XXX billion, ended X% XXXX of billion, maintain need we portfolio to to at which growth, servicing Our loan billion. Drive finished $XXX goal we is and to at $XXX our

we and billion to billion We Finally, Alliant our XXXX with added Capital, $XX to the to of XXXX ended with assets acquisition of achieved under $XX billion under $X.X ambitious by the 'XX goal of AUM grow set XXXX. and assets management. management goal Drive in

the gender-focused on companies long social, goals financial incredibly us on Equity published just large our go some goals, a were to W&D XXXX the ranks including select is puts to index. diversity which more Index, added Beyond share diverse to a diverse W&D. companies, at compensation us was that DC-based the only Washington our companies to ambitious publicly are Gender still to contains ambitious that commitment in Diversity high in the and DE&I to way environmental, governance while which W&D Business number prestigious goals, for we Corporate Journal's XXX in to group equitable, world and tied quantitative featured industry 'XX and diversity, and W&D inclusion XX traded we senior our putting Bloomberg with ranked this executive of Index quantitative have also these and statement. large metrics, and be companies And to increase Drive inclusion. among the make XXXX in equity, proxy

work most Finally, XX Magazine, W&D can always is being years, if we've making honor the said made important great great once the place of last receive you we X place again I that a now was outlook have to recognized to and that Fortune as turn they for out I'll to to then future. list. by full call discuss will a work our I'll place financial year back more the and over performance, and Steve? work, fourth our to Steve quarter have great provide the detail financial follow come to for on results the have. a follow

Stephen Theobald

$XXX to and the of volume transaction fourth $XX very strong XX% total earnings, and drove you, everyone. morning, million. year-over-year, EBITDA. solid Willy, adjusted up record quarter, billion, good record increase ended which in total volumes, recognized revenues transaction Thank XXXX In with we XX%

was XXXX. full volume the a XXXX phenomenal totaled $X.X over XX% revenues prior year, billion, For XX% total of transaction from billion, $XX year. the increase up an

of servicing property the in XX% XXXX, we last weighted by the $XX in fees real property W&D 'XX. year. points volume As brokerage sales the the with of was million, brokerage, to and ended in year-over-year. QX ahead over billion business. cash quarterly respectively, stage XXX% fees XX% market $XXX from sales and growth a The driven commercial million diversification our in of volumes, up drove year the which transaction servicing quarter, estate growth portfolio, fourth to up and XXX%, force increase by of fee loans the cash EBITDA of our and look servicing for were XX.X set the average brand strength which $XXX quarter adjusted QX debt basis and sales generated and growth The continued debt up and the generated same servicing

double-digit of Due adjusted slightly of per business was X% year-over-year, growth mix from in $X.XX lending-centric calls. over noncash MSR to quarter introducing metric impacts earnings we down shift for full year's few an diluted year, the the credit for stock million, EBITDA and EPS in share evaluating be this earnings as business compensation. capabilities and that origination, earnings of generation XX% non-GAAP $X.XX lending last expenses up massive servicing XXXX, than goal were provided our to For should the gains, QX of significant higher during from servicing eliminating the XXXX, useful in excludes our of the up combined mortgage was from with service we a last EBITDA X% centric, of EPS provision decline depreciation, by cash our projections growth are and rights. our of impact sales on GSE the reflecting the we the quarter loan revenues metric This amortization losses associated volumes. crushing to diluted year. the property driving fees adjusted XX% and growth $XXX EBITDA XXXX

For share $X.XX fourth in compared QX quarter last was adjusted $X.XX the of to earnings per year. the XXXX, of

XXXX, in of dramatic in as was year up fourth personnel XX% QX largely of increases a XX%, of servicing to in revenues XXXX strongest XX, fees, cash you volumes. from in and loan of of XXXX. transaction the on of of in compared EPS personnel represented closely and growth QX the in $X.XX property see earnings per earnings our XX% fees. including adjusted expense compared all all in commission $X.XX to to For XXXX, to origination Slide Commissions percentage due share is and years as expenses QX escrow revenues, was with adjusted EBITDA high with adjusted tracked personnel expenses sales expense. quarter Historically, our just due XX% can all last

people year, from XX% personnel expense, XX%, new charges. in to by our revenues XXXX. with reflects expense primarily investments expense in onetime expanding $XX.X to our For ratio quarter increased year-over-year the continue Staying percentage launch with a product up fourth Along expenses increase million, full expenses was elevated as and our in the personnel operating of year-over-year businesses commissions XXXX other and offerings. due acquire

first, loan to in secured related that of $X.X original million term costs our deferred acquisition. with off mid-December the senior The the conjunction paid Align with in we the issuance write-off

of performance Due the additional our expense investment of onetime amount. interest are achieved schedule. million entire the & incredible to team, related the going has sales. ahead $X investment was earned of Walker team second acquisition no that the was There this of to sales as earn-out due noncontrolling a of Dunlop from operating businesses huge The XXX the be QX will previously well onetime operating last in not earn-out revenues expense from forward XX%, the during points quarter prior servicing rights the mentioned year noncash expenses as onetime cash shift down our margin Those for XX% was quarter. the mortgage from the to as margin. this in year accounted to year incurred well servicing expenses basis a

range the margin operating to year XX%. our outside Full XX% them, just quarter. to our quarter our been for on margin XX% without of in was range of have operating would year equity XX%, the XX% target So the annual ROE within XX%. was for of the annual to bringing Return XX%, target XX%

are With XX% return outlook growth, we year. that establishing XX% our revenue are have are services establishing our factors coming business financial we our and from are our margin core transition we XXXX an important Due acquisitions at operating an for per the growth, making investments of in the the double-digit technology-enabled in the range emerging past XX% to growth of double-digit range to we several equity And target EBITDA. There over the platforms, we the products in are to to strong annual year, establishing driven mention. XX%. on completed and lending-centric share growth in XXXX are and more adjusted double-digit guidance of to earnings

servicing $XX over growth $X rights As noncash revenue the in cash is lending the pushing businesses we from our escrow to expand we deposits the saw we increases million to in drop increased XXXX, in our XXXX. million in $X.X in revenues mortgage and in should we of and could earnings, driving levels. XXXX, yet on deposits. our record pandemic, XXXX, on continue only from EBITDA is an In There the Due result also increased due to upside the see cash if trend caps, GSE years, This to a these margin. the escrows. dramatic operating lending significantly volumes increase rates services X billion earned past prior on in rates and our earnings in margin earned revenues

additional year. sheet. $X year rates ended pretax on with will balance As million of $XXX from XX we back basis approximately increase the translates We of deposit earn million escrows. per point the the into up, rate cash Every in earnings move our more

current top ratio expectations X.Xx. W&D. down year EBITDA we ended and growth and recruiting position in additional cash acquisitions to with debt-to-adjusted hand us to on As And capital to new the banking and pursuing on brokerage supplement to for that below a receptivity ability our the our debt with generation our soften EBITDA We and in based market December, we expect cash strong drop our offering of will debt deleveraging, too sometime this the give continue XXXX.

increase. future February brand of on and also XX% of XXXX to continue share, fourth dividend $X.XX approved the -- enable made annualized sufficient sales 'XX. dividend Walker XX% towards $X.XX since as per results us while is dramatically adjusted Drive XXXX dramatically Board strong Our people, technology allow per tremendous a the XXXX share. the investments the our continue XXX%. at continue increasing retaining dividend the achievement of income our ratio of net and capital dividend. Directors so investing growing property was us quarterly to we XX% growth a annual progress EBITDA. year This Dunlop quarterly share $X.XX of of The in and increase initiated of debt we grew in investing to Levels the have the brokerage per to represents increase & XXXX dividend a of ever made company. continue for the than cumulative we payout of That's in and more a in a Yesterday, current transformative

time the now in XXXX your turn and debt financial property continue giving extremely markets morning. our financial ability leadership the strong you leveraging Thank this offerings Willy. back deliver investing for now I'll results expand to the to us And beyond. position financing in businesses new to product our position strong, sales to in Our current over our is call while and

William Walker

Thank you, Steve.

from firm more earnings, More As technology. their the driving of real to clients technology-enabled are for just company services commercial to range US performance strong cash financial opportunities and continue our wide into amount finance needs Steve EBITDA people, outlined, has is looking and meet limitless. global and invest the mortgage-centric and brand our and look are our a a almost ability of to to fantastic estate, W&D huge commercial transition financial investing in company in capital estate a growth growth real

Dr. Peter a Walker a are webcast, During stated, multifamily. age recent for Linneman golden in we

with grow grow assets positioned on debt, suite in and GSE with the to that And lending full large service partners us now years. coming multifamily credits and multifamily bankers industry, crisis lending transaction investment the strong now the will exceptionally The their investors GSEs several an new to has business, dramatically, confidence the a to our compression. viewed permanent director proxy XX by continued fixed & The a focus with excellence financial increased our soon, and of have global new she brokers syndicate grow next services Alliant real past with And the continue from Capital markets. and acquisition inflationary is investing providing over meet expect Walker GSE lending growth, providers and XXXX. and needs presence multifamily Alliant limited market back is the Walker interest Dunlop's FHFA the affordable to strong institutional in and Multifamily tax affordable housing development should and expands have and caps affordable over HUD and in ability In opportunity and most enduring yet. have XXXX The leader, great to in of in we industry support and our volumes. transaction get dynamics a GSEs United is albeit after volumes in client team the Chris buyer revenues to commercial for macro the and allowed industry, at relatively provide the should market, list. alpha to years, Chris and volumes and that property well, active as operational low multifamily multifamily of giving and pandemic income talent was become new piece Northern -- growth of actively years of his We rates yield-starved in Michigan inflationary Its cap acquisition the the the and wish as a very team currently the to many clients. very the refinancing well supply, our every added rent by best a multifamily with the lenders built largest in the simply estate and in more sales potential States, world, astounding. one broadly Nicholson, pressures, done of top & for rate W&D generate investment business wealth seller XX investment piece, in XX the aren't relationships California. sales We sales traded having teams yet MSAs just has annual Dunlop

our adding senior specialty We housing. such products, in added on will the for manufactured team last and new affordable also and growing XXXX continue we into Chicago, student MSAs, housing, brokers and while focus the in housing acquired team FourPoint as current year we

As Mae's in X largest market multifamily, add talented landscape. are the by for being XX shown for the and we opportunities partner numerous. Fannie vast of there growth is Outside last the of expand bankers to brokers lending multifamily share opportunity the to years, multifamily always have

in and do capabilities While do lack fantastic, need lending. the other classes. multifamily were and truly of our Walker main The in are office, is origination exceedingly our and retail, There Dunlop we brand bankers XXXX our more doesn't and team multifamily industrial & volumes expanded X commercial outsized hospitality. reasons mortgage more sales drives strong volumes banking in to asset mortgage investment of

non-multifamily activities in lending sales industrial. hospitality and focus on building commercial retail, and We in will office, out groups investment expanding coming the assets over our years

well Dunlop's drive our offering the easy, Walker Technology volumes driving is of increased will is and service that Dunlop revenues. X expansion as nothing as & transaction businesses. While logical growth emerging of these & of are Walker

Express. platform our and appraised business appraisal small WD balance automated lending Our

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is continue knock technology, better I ranking the the leading me investing public is on brand, for of earnings total recent XX revenues that for I talk XXXX revenue an and of record this reach explosive about growth a growth. EBITDA In than the $X yet with most record Those real compared people generated growth Marriott, W&D. a investments company as is has X is when take the W&D the scale people, technologically companies, of was year. listed vengeance, average X growth largest there most next Lockheed team a client given to that the their and brand And the context. year our business the is a outperformed firm employee The total volume, to based transformation in beats pride brand Business all Drive better capital our member due over open of the I financial than of X-year I'll revenues. to successful about a with not began plan level. I call X-year every 'XX. commercial us this services from to components investors DC-based W&D any The on Martin, was reason down even start for cash wrap a due And a record next even brand, strategic over better XXth only continue W&D's Thank transaction what technology and certain period Before lines for to Yet into the X,XXX record of team's for in And bank return Dunlop's estate return people, that Walker thank for to with you W&D turn Apple and markets total I no only Carlyle, And million sophisticated and faster. team returning and outperforming the and to over flow and company. to in years. lending-centric to if was has of game the everyone pride, consistent, questions. the the the our amazes Washington to that Dunlop and want out. of exceptional per number & what of the to and want takes year to earth, X grow moment. goals the are mega-cap delivering morning, center. to put a X and And companies up to of call, now the level top exciting achieve such I our and fantastic in year broader to the often Kelsey various CoStar. our incredible growth now fantastic over the invariably companies and to the and base X in X we will this Journal XXXX. joining our stocks Think shareholder track year and X-year list, on better than than you look Walker at stocks shareholder &

Kelsey Duffey

[Operator Coffey of Instructions] from coming Henry Wedbush The question Securities. Henry? is first

Henry Coffey

on another Congratulations one to is adjusted fantastic those great and number. of was will help multifamily that much of we per that. multifamily. morning. share How to And we volume need look quarter on in outside year. jump much universe? your a insanely how This part, the of Good the the was really over quarters the that adjusted obviously, of to an amplify brokered growth EBITDA grab transaction where the earnings When focus at

William Walker

brokerage to to I north of I'm you correct it XX% it I history, at probably swag but XX% I'm into am somewhere Steve, number, -- got haven't Henry, -- on off I multi. that? is from think I drilled volume going that there. of would directionally that

Stephen Theobald

Yes, you are.

William Walker

actual and number multi X/X about it's you, get commercial. Henry, can X/X to about the Yes, we but

Henry Coffey

terms then well or. goals, in year I'm to Alliant this in as factors for understand of And Alliant really the targeted assuming that

that's sales business the the opportunities at So tax-related business I don't end? the for placement, as How do does really they that come work, of in describe does the business but end commissions, if how generating sales come work kind does commissions any what lending addition know to of opportunities? Do at transactions? credit WD in property how from front back that them the the of tax to and loans terms credit addition in

William Walker

Yes.

Henry, fees think, off Alliant process. two are, primary you streams out, revenue as I syndication for point the the earned

that and time them those fees funds, are the earned execution. new closed as are as raised a disposed off. of investments upfront back for significant then management and portion over paid end to are on are are properties So Alliant funds are there's providing into fees collected the And asset

that's component component the base second there. of the So -- revenue key

of financing terms benefit the our to the and core investment in side. In sales business

discussed -- about the in we model, did those assume in our first fall, year. call in any we in opportunities our from synergies the not on revenue initial from Alliant back As the side

opportunities well some new guidance However, opportunities on opportunities should we've our tax XXXX. to able we into of the been as year. addition, for in are to for investments execute that obviously investment as Alliant well. as to side the able factored financing debt building be That's And a credit pipeline both sales we send in

Henry Coffey

off there's build-to-rent more and and sort one area, housing that, future thank all. great -- single-family questions. a the those taking just areas the new you are just and that for equation expect And my we housing I'll the question. How with and -- are Great. you listen developing? -- two to these And year sort the of manufactured businesses for of and again answer. In What get in should in after

William Walker

interest. your Henry thanks for

way. Henry, I this it So would put

during less BFR/SFR best got on coming a funded that the actually the deals have happen. anticipated. number I actual industry will would into out financing. pipeline growth probably but the the was And I in was in say, strong, 'XX, great starts year generation the the year than with that the pipeline fee the of to XXXX the team, focused of We XXXX be think of team

putting in the now housing institutional are is lot our focused they've up. focused hot a to and extremely it that pipeline space better point there. the our of out, SFR/BFR that's built So that feeling and on market lot space work on you clients a an money about But and right actually team

Kelsey Duffey

Our next Jade come KBW. Rahmani of will from question Jade?

Jade Rahmani

much. very you Thank

a rates that at the the rising magnitude this? from be pleased reacted looked in to outlook earnings. Has people's increasingly just of Have modeling since investors which EPS, metric capital? cash first the really, all of is always or of Solid to the and given terms to uncertain perspective introduction to for impact the institutional my property guess see it and rising outlook your respect -- at changed I question deploying sentiment adjusted of rates. would cash we've quarter a with client

William Walker

it pipeline Jade, a do look in well been we can't love the Orlando, dozens opportunities every Council on. And all I the have -- it love can suite having is capital it where to one to week work. clients. We and put met Florida, what want seeing as class, the us we're last, Show Multifamily capital deployed Housing to our got deploy than was We relates from of next as we've more with asset down meeting market. we to I day as the at National I more before at product. to with

can say any -- not I've about with, been a there now, the So been who there rates or has I one. rising single not right has that macro environment investor spoken concern unequivocally, had has either

Jade Rahmani

really, And feel Good really language the strong. just release and so far we to from in like it XQ, the pipeline, your you the hear. say press sounds comments,

William Walker

The -- as putting don't CAGR annual back don't time up went consistent manage versus have you in we very X-year Q-to-Q I mean, I business look, been stock a we basis. bank and returns the So time Jade, again. the is to because a we reason from know,

we this we good are And as from So well and as and all feel our QX look positioning you in looks pipeline extremely numbers that about our a any made it operating I take that both we earnings at don't our the the which in environment know, give Steve release the tone that said, macro don't like. you we today. comments overall With to versus the QX. what market of relates as also, have and can

Jade Rahmani

of in single-family on earnings which rates at protection discounted on still with, and get terms to prepayment rising income it's corporate anything interest then the under-followed the interest longer in know way warehouse and of mortgage flow there and with main the rates even by times view, there it's terms I of servicing both rate my we asset I somewhat are sensitivity grown sensitivities, else just missing looking for expense, big in the basis. the interest investors. gets times, would be it's valued tremendously, side, for and suppose, in multifamily In cash you company companies, rates? there's sense difference Is escrow and misunderstood finally, Dunlop, accurate, to the we're example, confirm sensitivities But that lumped though a with a Walker interest residential these duration. to

William Walker

would of interest rates because built points tell on Yes, value go agree you I that the value not of it The are in value. value there's significant into do rates, with is the just impacted rates but a Jade, MSR the I expansion it's contraction in -- that, not third in we nor you impact the significant impacted. terms in can't distant first don't by when see of X on and up valuation rates a terms down. protections that the go when we see of isn't prepayment

Jade Rahmani

XX-month related. any but acceleration. so banks the an of On caps, that caps a quarter, the also we've fourth rents. They seen But in trailing XX% in GSE hit driving the the volumes higher there side, housing, huge on now are other is multifamily GSEs the like it in and know factors should I there have their the use you uptick sounds they focus underwriting, volumes and decline timing be lower a some mentioned affordable and

And so you be could the a Any into growth metric decline? improved. X underwriting of if see more but be that you're account, use attributes using taking forward-looking X coverage months trailing if you say, ratios could volumes or debt XX, your rent and months did of last service eclipsed to why

William Walker

out they A were both. capital, countercyclical of caps in capped XXXX in lot to new a a they played were huge were that They to they XXXX. put amount degree stepped under in down of then XXXX A, for and and capped a in XXXX $XX role factors. billion that

billion As you XXXX. stepped for Jade, $XX up to know, that back

second The XX-week back were on caps look they rolling a XXXX. is as that it those relates in to

you Once acting look back Thompson added came director, And XXXX. to back. in if competitiveness the look of XX-week that she in as removed into so half will, of their, Sandra the first lack XXXX,

have do of have under source in in lending a affordable look means likely back they now, don't that they must a as that my right bring scorecard. result their they significant XX-week which not as they But are the back So the that the market. underscored of they're to you comments, to affordability I have doesn't a capital. deal if any it, of agencies, most be that competitive And amount

If the asset, the you be of have capital. in source likely will affordability they most competitive

Freddie is will, Walker and back is And the that properties hard valuable Fannie to to both meet doing things so one then focus, towards on their goals their are if can actively affordable shift and we that the rate. very so affordable you Dunlop so and one of we Alliant underwrite & lend working and very are of why reasons that market

their more supply a they go almost need FHFA market. to and so very is Fannie right that Freddie our mission-focused to meet to figure capital in their the customers' those we'll out competitive and and that needs. trying And the now, market dynamic meeting trying But they ever find to it's keep and how than mission. and with deals we're are supplying also

Stephen Theobald

underwriting had Jade, using to on -- agency be impact asked new or a would volumes market is desire or in for I add, terms specifically the not of underwriting. that's in TXX really I in that any question issue. market, the you And the nor the on their you're be don't think

seen GSE And for than on in levering years, the said, XX% at all think the secular XX%. are past I to I or not think issue. any range had XX% don't X up as that's overall shift where XX% you've That's volumes. more to way the impact a a deals leverage the new levels rather I owners

Kelsey Duffey

comes from Steven Our JMP. next of question Delaney

Steven Delaney

analogy, a now Alliant and keeps is railcar Congratulations is and new like the down train but talking good every track slow then over the shining on year. rolling when tell dependable you just another I then just that and you that and people gaining and think yet old on to great a down, hit clients, like I to last back a like year. This momentum corny stop years WD you

shiny there place there more market over the are observe or railcars quickly, you on hit any X. do thing it? first you as year So think The -- are to next as

William Walker

to this Steve, all, So of first morning. you great on have

Alliant Second put of Look, of all, for that thanks a focus coverage was you us XXth. be forth I know our all your will of you certainly acquisition. there would in too XXth Steve. W&D. well, to

incredible that for an opportunities. constantly is out looking have business team we So development

fantastic human at human in As ways keeps capital the you platform that up capital them we brings this know, and is built company that a W&D. and of acquiring so successfully and a one have then company having

the pay platform on and to Dunlop them so then is them identify done companies believe we've & great be And the them go for is leverage and broader to market fantastic and time what from Walker returns ability we get prices time something again. able

just have yes, cars thing which Alliant would think to more our plenty on. One, is X ever. So I Steve, hit largest we'll other acquisition say things. I important, though, I one say was would

Dunlop and super the Alliant moved Walker Sean & Alliant seamlessly integrate with over have important. Walker Thompson, into We business integration That Dunlop. to HUD leveraging and our Sheri to is & who platform ran working Horwitz

large to the that, maximum make leverage if very can. need that and So we you valuable will, we that very is, to acquisition sure possibly

The other technology. thing in is investments

before do has that Walker And we of technology last affordable and easily keep year past in TapCap We And a company are to in of These call, understand and companies Enodo company extremely investments value them continue investors buy been we that. invest as can big acquired banking while & go the the going technology and ours a must acquired us the over technology. investing in we and kind we focused or and that. mentioned see years, mortgage housing W&D. to we have them been the year, important we're will on Dunlop how integrate several differentiator and to into

Steven Delaney

And goals setting we get from those. out of companies another is your meeting then obvious that your setting strategy comfortable that and and with characteristic some WD aren't

this revise I those you sales property or Looking soon if already something last would mean as consider quarter towards these call. X now Is on so, the has the you as financing at X, Slide revising? maybe taken And that first within you and those your will you on progress quarter goal. earnings your well X goals debt just particular, set in

William Walker

existing glory ourselves us knows sit let "Oh, billion last that by a existing billion go say the adding management and beyond our all, billion, asset of for both acquisition to say, moment we're bask everybody $XX it in August almost getting when let's announced just closed not But here". that would AUM it. to this, great, the to in -- we're we and of first the in well us as $XX $XX reset we let as the Alliant year, So at before at end But going $X I we totally billion of Alliant of XXXX. business

as So recast we've goals well already gone the asset business management and for for some of Alliant. existing as our

sales on of the years? fantastic property say, need But nature, I'm think goals are as fair we'll your we we to expect question I debt okay, achieving over things and is great, not or do couple you through brokerage that What progress. should of sure getting we Steve. and XXXX to move it next one a if that quarter-over-quarter, whether probably So or close stop

Steven Delaney

quick And may. Steve, if for Willy. one I Thanks, one

a of XXXX your look annual rear any be say, -- If dividend window percentage of -- that to $XXX. continue the rate it we expect EPS little new also, board I the to as any that comment on payout to of Board to look look of that just And any kind way. adjustment and we adjustment in set what there numbers want the we going an okay, Your would on compared XX% that $XXX, to it at we're basis. a dividend, we've if or is dividend at policy. that's posted assume looking Does come should might

Stephen Theobald

Yes.

I'll reverse go Steve, order here. in So

that's dividend we basis the an can to Board. the in quarter review change. point. to confirm, the the been -- the that we mean, our and annual since pattern has I 'XX Obviously, of February But think just on the change We circumstances every I initiated So of with level -- we've make about dividend pattern established. at talk it

In we're about and the Board, our terms But looking at past. the more basis that's done with combination for Board of future a go-forward paying with on expected the in we going the to have conversation a because is of what we're the adjusted conversation be the forward. it's honest, our generation results liquidity because how that dividend EBITDA and

the Board. it with is look forward of a more So

William Walker

is And Delaney, mentioned I'll Steve, Steve in the one of point just which XX% quick just the point, payout just Steve ratio. you and quick on of as earnings jump in real

know, the you earnings. as actually the big cash there number follow So to is

in the there. And a that noncash so -- XXs high of lot past, earnings in was XX

Understood. in cash growth basis the on and earnings, earnings, a EBITDA payout it that was number than the is actually Yes. percentage lower in past. growth the ratio with on cash Now significantly in a

So we'll with going the that thought process. EPS go adjusted forward in

Kelsey Duffey

another And Rahmani. question we have from Jade

Jade Rahmani

that business and the at is have business we billion, fourth the the loan close grown it we're in those should least same quarter's businesses for the of was for to of $XX.X -- around at last the watermark business, competitors. so brokered range -- loan brokered time, in than more think usually Since dramatically. so amount. terms about kind high some And the Is quarter there sales investment double seasonality,

a that really of cadence rate. run And like to billion but of through sales. as $XX.X that maybe growth for question should same of think sense be model new I and XXXX, makes toward kind the fourth it a we on investment -- for top quarterly then year, the but assuming quarter the like

make any we to help So that projections. qualitative set have commentary around you just could level provide sure

William Walker

here. in Yes, I'll jump Jade,

the of quarter business. from a tax the it of in capital markets mean accurate a way the typically, think decks the flow about terms of in standpoint. is I folks activity I fourth trying there's clear as you're lot to are year thinking

look back of volumes typically, down on always come if over this. and back history, course So But and then to volumes, brokerage watermark to build at in over high the sales up the specifically there the would exceptions lower year. go would side in QX a overall are terms our transaction you level property of then debt QX the the be and and it

Jade Rahmani

say, headcount, basis. Okay. Zelman, talk could and to excluding rate growth And producer a fourth what quarter the is, year-over-year on you on Alliant for the

William Walker

you Jade, know, haven't teams, a Yes. we're you. I we It's major -- continuously -- not mean, get we add haven't as but done acquisition. mean can we we -- to that I

they've from only I'll And brand established. and peer to seen interested of sales see be I report seen far think growth because team debt that investment competition. it's seen something of in a and existing we've speaks some tells very growth me growth our we've the outstrips but to just we've companies astounding robust I the team. the lot the the the think what it not that market, brokerage kind a and

Jade Rahmani

what debt side. is? versus floating you just of mix lastly, then the And the on Do Okay. know fixed

William Walker

the by by Alliant, now. and year, lot just have of the way, the I brokers without right at Jade, we're XXX don't W&D. to end at bankers And fix

I to were to up the think last ended from want year but at yes, have I say, -- I and we comparison just QX, year's don't last So, $X.XX.

--XX% growth year-on-year in year. volume banker So the by broker another the and XX% end of

team. number put our… growth don't on XXX-plus-percent the we the obviously, And far on on then number outships So that bodies float-to-fixed, I have that of

Stephen Theobald

issue floating a the Jade Fannie pretty of been we've done issue I de it, less think call was smaller were couple in last margins, for and of that's bigger amount has overall more, when in et Freddie of rate much minimis. It's become that us. cetera, of years, business The terms we an -- not focused

Jade Rahmani

Okay.

for target what this be your year? Are in that? expecting double-digit you the growth on would headcount, producer Just

William Walker

of our beginning with conversation Howard President. year, a every have Smith, I the who's At Jade,

and things get banker revenue the volume in to growth, we growth at think double-digit and time, same as EBITDA add earnings I yet growth annual of the number the of to be, goal one relates put it with go number it bankers we to I'll way. working not been and it. want basis to to to go is XX his I've on but headcount. far on hiring and XX% as But hits out this plus year, is to one better broker it's now our years miss brand Howard his that unbelievable you going from out and an Howard we're and and seeing is that's And tell As brokers for banking now investment of and hire. and objective what you're the The the between goals gaining he our team the sales going is I'm always platform. and teams because to collaboration leverage just going see. right the on

of combination that the so is technology brand And gains. what's getting and all the people, these coming together outsized

lot in too. now, we and some so want come a Walker recruiting of to clearly other there best getting market And the things bankers & out be to to while the we're very from right leverage Dunlop, brokers

Kelsey Duffey

We have no questions further at time. this

back over will I out. So close it Willy turn to to this

William Walker

what's Thank for work past team the It's team backdrop only XXXX get and incredible we've is of company. all an you, our everything for this you, us Jenna this -- all ready financials was your that done your that morning. in leading all exciting macro W&D. for And and and the thank call. Relations you for done getting work and the to Thank done, and our this year at rest the is joining to really strength of more Investor in and everyone, for Kelsey Steve the the

to today. you, again for a the joining W&D doing year for team thanks everyone, and you on day, Hope all fantastic thank today. the So us everyone we're for have and

Walker & Dunlop (WD) 3 Feb 222021 Q4 Earnings call transcript