42% Increase in Net Income and Diluted Earnings per Share Generate Strong Finish to 2024

FOURTH QUARTER 2024 HIGHLIGHTS

Total transaction volume of $13.4 billion, up 45% from Q4'23
Total revenues of $341.5 million, up 24% from Q4'23
Net income of $44.8 million and diluted earnings per share of $1.32, both up 42% from Q4'23
Adjusted EBITDA⁽¹⁾of $94.6 million, up 8% from Q4'23
Adjusted core EPS⁽²⁾ of $1.34, down 6% from Q4'23
Servicing portfolio of $135.3 billion as of December 31, 2024, up 4% from December 31, 2023
Declared quarterly dividend of $0.67 per share for the first quarter 2025, up 3% from the fourth quarter of 2024

FULL-YEAR 2024 HIGHLIGHTS

Total transaction volume of $39.9 billion, up 21% from 2023
Total revenues of $1.1 billion, up 7% from 2023
Net income of $108.2 million and diluted earnings per share of $3.19, both up less than 1% from 2023
Adjusted EBITDA⁽¹⁾of $328.5 million, up 9% from 2023
Adjusted core EPS⁽²⁾ of $4.97, up 6% from 2023

Walker & Dunlop, Inc. (NYSE:WD) (the "Company," or "Walker & Dunlop") reported quarterly total transaction volume of $13.4 billion, up 45% from the fourth quarter of 2023, which drove total revenues of $341.5 million, up 24% year over year. Net income and diluted earnings per share for the fourth quarter of 2024 were both up 42% year over year to $44.8 million and $1.32, respectively. Adjusted EBITDA increased 8% to $94.6 million, reflective of the growth in total transaction volumes year over year. Adjusted core EPS, which primarily removes non-cash revenues and expenses, was down 6% year over year to $1.34. The Company's Board of Directors declared a dividend of $0.67 per share for the first quarter 2025.

"We had a strong finish to 2024, delivering impressive financial results across the board in the fourth quarter including $13.4 billion of total transaction volume, up 45% year over year," commented Walker & Dunlop Chaiman and CEO, Willy Walker. "A rebound in transaction activity, coupled with durable revenues from servicing and asset management, contributed to both year-over-year and sequential growth across almost every area of our business – resulting in $1.32 of diluted earnings per share, our highest quarterly EPS since the Great Tightening began. This strong finish to the year helped us close the significant gap to our annual financial targets after an exceedingly slow start to the year, testament to the talent, teamwork, and tenacity of the Walker & Dunlop team."

Walker continued, "Moving into 2025, we believe the worst of the Great Tightening is behind us and that W&D is extremely well positioned to meet the market needs over the next several years. We have invested in our people and client relationships, expanded our service offering, and harnessed the power of technology to generate market share gains and growth. And as the commercial real estate market recovers and transaction volumes rebound, our capital markets business, along with servicing and asset management, will generate strong financial results and shareholder returns."

________________________________________
(1)	Adjusted EBITDA is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of adjusted EBITDA to net income, refer to the sections of this press release below titled "Non-GAAP Financial Measures," "Adjusted Financial Measure Reconciliation to GAAP" and "Adjusted Financial Measure Reconciliation to GAAP by Segment."
(2)	Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to Diluted EPS, refer to the sections of this press release below titled "Non-GAAP Financial Measures" and "Adjusted Core EPS Reconciliation."

CONSOLIDATED FOURTH QUARTER 2024 OPERATING RESULTS

TRANSACTION VOLUMES
(in thousands)		Q4 2024		Q4 2023	$ Variance			% Variance
Fannie Mae	$	3,225,633	$	1,692,405	$	1,533,228		91	%
Freddie Mac		1,553,495		1,308,263		245,232		19
Ginnie Mae - HUD		116,437		316,960		(200,523	)	(63	)
Brokered ⁽¹⁾		4,893,643		2,885,454		2,008,189		70
Principal Lending and Investing ⁽²⁾		207,000		218,750		(11,750	)	(5	)
Debt financing volume	$	9,996,208	$	6,421,832	$	3,574,376		56	%
Property sales volume		3,450,614		2,877,399		573,215		20
Total transaction volume	$	13,446,822	$	9,299,231	$	4,147,591		45	%

(1)	Brokered transactions for life insurance companies, commercial banks, and other capital sources.
(2)	Includes debt financing volumes from our interim loan program, our interim loan joint venture, and Walker & Dunlop Investment Partners, Inc. ("WDIP") separate accounts.

DISCUSSION OF QUARTERLY RESULTS:

Total transaction volumes increased 45% in the fourth quarter of 2024, reflecting the relative strength and continued demand throughout the multifamily market despite the continued volatility of interest rates during the fourth quarter of 2024.
Transaction volumes with Fannie Mae and Freddie Mac, (collectively, the "GSE's), the largest providers of capital to the multifamily sector, increased 91% and 19%, respectively, year over year. Walker & Dunlop was ranked as the largest Fannie Mae lender for the sixth consecutive year and fourth largest Freddie Mac lender for 2024.
HUD financing volumes declined in the fourth quarter of 2024, against our strongest quarter of the year in 2023 amidst high interest rates and elongated processing times. Walker & Dunlop ranked was as the second largest HUD lender for HUD's fiscal year ended September 30, 2024, up from the fifth largest HUD lender in 2023.
The substantial increase in brokered volume was primarily the result of an expanding supply of capital from life insurance companies, banks, commercial mortgage-backed securities, and other private capital providers as the broad commercial real estate market continues to rebound.
The increase in property sales volume was driven by additional liquidity supplied to the commercial real estate sector year over year, as higher interest rates and lower acquisition activity challenged the macroeconomic environment throughout 2023.


MANAGED PORTFOLIO
(dollars in thousands, unless otherwise noted)		Q4 2024		Q4 2023	$ Variance			% Variance
Fannie Mae	$	68,196,744	$	63,699,106	$	4,497,638		7	%
Freddie Mac		39,185,091		39,330,545		(145,454	)	-
Ginnie Mae - HUD		10,847,265		10,460,884		386,381		4
Brokered		17,057,912		16,940,850		117,062		1
Principal Lending and Investing		-		40,139		(40,139	)	(100	)
Total Servicing Portfolio	$	135,287,012	$	130,471,524	$	4,815,488		4	%
Assets under management		18,423,463		17,321,452		1,102,011		6
Total Managed Portfolio	$	153,710,475	$	147,792,976	$	5,917,499		4	%
Custodial escrow account balance at period end (in billions)	$	2.7	$	2.7
Weighted-average servicing fee rate (basis points)		24.2		24.1
Weighted-average remaining servicing portfolio term (years)		7.7		8.2

DISCUSSION OF QUARTERLY RESULTS:

Our servicing portfolio continues to expand as a result of additional Agency debt financing volumes over the past 12 months, partially offset by principal paydowns and loan payoffs.
During the fourth quarter of 2024, we added $1.2 billion of net loans to our servicing portfolio, and over the past 12 months, we added $4.8 billion of net loans to our servicing portfolio, almost all of which were Agency loans.
$9.9 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years. These loans, with a weighted-average servicing fee of 26.2 basis points, represent only 8% of the total Agency loans in our portfolio.
The mortgage servicing rights ("MSRs") associated with our servicing portfolio had a fair value of $1.4 billion as of both December 31, 2024 and 2023.
Assets under management as of December 31, 2024 consisted of $15.9 billion of low-income housing tax credit ("LIHTC") funds, $1.5 billion of debt funds, and $1.0 billion of equity funds managed by WDIP. The 6% increase in assets under management was driven by increases in all three categories.


KEY PERFORMANCE METRICS
(in thousands, except per share amounts)		Q4 2024			Q4 2023		$ Variance			% Variance
Walker & Dunlop net income	$	44,836		$	31,599		$	13,237		42	%
Adjusted EBITDA		94,577			87,582			6,995		8
Diluted EPS	$	1.32		$	0.93		$	0.39		42	%
Adjusted core EPS	$	1.34		$	1.42		$	(0.08	)	(6	)%
Operating margin		15	%		14	%
Return on equity		10			7
Key Expense Metrics (as a % of total revenues):
Personnel expenses		50	%		46	%
Other operating expenses		14			13

DISCUSSION OF QUARTERLY KEY PERFORMANCE METRICS:

Walker & Dunlop net income and diluted EPS both increased 42% in the fourth quarter of 2024, primarily as a result of higher origination fees and MSR income from a 48% increase in Agency debt financing volume year over year. The increase in net income also drove the increase in return on equity to 10% for the fourth quarter of 2024.
Adjusted EBITDA increased 8%, primarily due to increases in (i) origination fees, (ii) servicing fees, (iii) property sale broker fees, and (iv) other revenues and a greater benefit from fair value adjustments to contingent consideration liabilities. The increase in other revenues was driven by a gain on the sale of a portfolio of assets, a portion of which closed in the fourth quarter of 2024. These increases were partially offset by (i) decreases in investment management fees and investment banking revenues and (ii) an increase in variable compensation and (iii) an increase in other operating expenses.
Adjusted core EPS, which excludes, among other items, the impacts of non-cash MSR income and amortization, the provision for credit losses, and acquisition-related costs, such as amortization of intangible assets, decreased to $1.34 in the fourth quarter of 2024 from $1.42 in the fourth quarter of 2023. The decrease was driven by increases in personnel and miscellaneous expenses and decreases in investment management fees and investment banking revenues in the fourth quarter of 2024 compared to the fourth quarter of 2023, partially offset by increases in origination fees, servicing fees, property sales broker fees, and other revenues.


KEY CREDIT METRICS
(in thousands)		Q4 2024			Q4 2023		$ Variance		% Variance
At-risk servicing portfolio ⁽¹⁾	$	63,365,672		$	58,801,055		$	4,564,617	8	%
Maximum exposure to at-risk portfolio ⁽²⁾		12,893,593			11,949,041			944,552	8
Defaulted loans ⁽³⁾	$	41,737		$	27,214		$	14,523	53	%
Key credit metrics (as a % of the at-risk portfolio):
Defaulted loans		0.07	%		0.05	%
Allowance for risk-sharing		0.04			0.05
Key credit metrics (as a % of maximum exposure):
Allowance for risk-sharing		0.22	%		0.26	%

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(1)	At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing ("DUS") loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.
	For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.
(2)	Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.
(3)	Defaulted loans represent loans in our Fannie Mae at-risk portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.

DISCUSSION OF QUARTERLY KEY CREDIT METRICS:

Our at-risk servicing portfolio, which is comprised of loans subject to a defined risk-sharing formula, increased primarily due to the level of Fannie Mae loans added to the portfolio during the past 12 months. We take credit risk exclusively on loans backed by multifamily assets and have no credit exposure to losses in any other sector of the commercial real estate lending market.
As of December 31, 2024, six at-risk loans were in default with an aggregate unpaid principal balance ("UPB") of $41.7 million compared to three at-risk loans in default with an aggregate UPB of $27.2 million as of December 31, 2023. The collateral-based reserves on defaulted loans were $4.0 million and $2.8 million as of December 31, 2024, and 2023, respectively. The approximately 3,000 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio.
During 2024, we received five loan repurchase requests from the GSEs totaling $87.3 million. Two of the requests came in the fourth quarter of 2024, both of which were existing defaulted loans within our at-risk portfolio. We indemnified three of the loans and repurchased the other two. We recorded a provision for credit losses of $4.5 million in the fourth quarter of 2024, primarily related to an increase in the estimated losses associated with these five repurchased and indemnified assets. As of December 31, 2024, the aggregate carrying value of these five repurchased and indemnified assets totaled $77.2 million, and we have collateral-based reserves of $13.4 million for those assets. Additionally, we incurred $8.5 million of repurchase-related costs, including critical repairs and maintenance, included in other expenses in the fourth quarter of 2024.

FOURTH QUARTER 2024

FINANCIAL RESULTS BY SEGMENT

Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment's income from operations, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:

Interest expense on corporate debt decreased 14% from the fourth quarter of 2023, primarily as a result of a decrease in interest rates on our term loan year over year, as our term loan was repriced lower in May 2024 and carries a floating interest rate.
Income tax expense increased 6% from the fourth quarter of 2023, primarily driven by the 32% increase in income from operations, partially offset by several one-time tax benefits and an approximately 130 bps decrease in our blended state income tax rate year over year. Blended state income tax rates vary year to year based on several elements including changes in the activity within the various states.


FINANCIAL RESULTS - CAPITAL MARKETS
(in thousands)	Q4 2024			Q4 2023				$ Variance		% Variance
Loan origination and debt brokerage fees, net ("Origination fees")	$	91,732		$	64,946		$	26,786		41	%
Fair value of expected net cash flows from servicing, net ("MSR income")		55,920			34,471			21,449		62
Property sales broker fees		21,175			15,135			6,040		40
Net warehouse interest income (expense), loans held for sale ("LHFS")		(2,458	)		(2,491	)		33		(1	)
Other revenues		14,693			17,020			(2,327	)	(14	)
Total revenues	$	181,062		$	129,081		$	51,981		40	%
Personnel	$	122,601		$	93,948		$	28,653		30	%
Amortization and depreciation		1,139			1,138			1		0
Interest expense on corporate debt		4,451			4,909			(458	)	(9	)
Goodwill impairment		33,000			48,000			(15,000	)	(31	)
Fair value adjustments to contingent consideration liabilities		(38,125	)		(48,500	)		10,375		(21	)
Other operating expenses		5,913			4,957			956		19
Total expenses	$	128,979		$	104,452		$	24,527		23	%
Income (loss) from operations	$	52,083		$	24,629		$	27,454		111	%
Income tax expense (benefit)		11,586			6,362			5,224		82
Net income (loss) before noncontrolling interests	$	40,497		$	18,267		$	22,230		122	%
Less: net income (loss) from noncontrolling interests		—			748			(748	)	(100	)
Walker & Dunlop net income (loss)	$	40,497		$	17,519		$	22,978		131	%
Key revenue metrics (as a % of debt financing volume):
Origination fee rate ⁽¹⁾		0.94	%		1.05	%
MSR rate ⁽²⁾		0.57			0.56
Agency MSR rate ⁽³⁾		1.14			1.04
Key performance metrics:
Operating margin		29	%		19	%
Adjusted EBITDA	$	4,173		$	(1,608	)	$	5,781		(360	)%

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(1)	Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
(2)	MSR income as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
(3)	MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS:

The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.

The increase in origination fees during the fourth quarter of 2024 was primarily driven by the 56% increase in debt financing volume, partially offset by a decline in the origination fee margin resulting from the large increase in brokered debt financing volume. GSE debt financing volume increased 59%, while brokered debt financing grew 70% over the fourth quarter of last year.
MSR income grew year over year due to a 48% increase in Agency debt financing volume and an increase in the Agency MSR rate. The Agency MSR rate increased primarily due to an increase in Fannie Mae volume as a percentage of Agency volume from 51% in the fourth quarter of 2023 to 66% in same quarter of 2024. Fannie Mae is our most-profitable debt financing product.
Property sales broker fees increased year over year as a result of the 20% increase in property sales volumes, coupled with an increase in the property sale fee margin.
The decrease in other revenues was primarily related to a decrease in investment banking revenues year over year.
Personnel expense increased in the fourth quarter of 2024 primarily due to an increase in commission expenses related to higher origination fees and property sales broker fees and an increase in subjective bonus expense tied to overall company performance.
The goodwill impairments in the fourth quarter of 2024 and 2023 were related to macroeconomic and transaction market conditions driving lower projected transaction activity and related cash flows from the GeoPhy acquisition. The fair value adjustments to contingent consideration liabilities were also impacted by further challenges in the forecasted macroeconomic conditions and transaction markets driving lower projected achievement of earnout hurdles tied to transaction activity and related revenues, resulting in a $38.1 million benefit in the fourth quarter of 2024 compared to a $48.5 million benefit in the fourth quarter of 2023.
The increase in adjusted EBITDA was primarily the result of the increases in origination fees, property sales broker fees, and the net benefit of goodwill impairment and fair value adjustments to contingent consideration liabilities, partially offset by the increase in personnel and the decrease in other revenues.


FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT
(in thousands)	Q4 2024			Q4 2023			$ Variance			% Variance
Origination fees	$	2,210		$	1,262		$	948		75	%
Servicing fees		82,961			79,887			3,074		4
Investment management fees		(3,110	)		537			(3,647	)	(679	)
Net warehouse interest income, loans held for investment ("LHFI")		272			414			(142	)	(34	)
Placement fees and other interest income		40,278			40,738			(460	)	(1	)
Other revenues		34,687			16,829			17,858		106
Total revenues	$	157,298		$	139,667		$	17,631		13	%
Personnel	$	23,967		$	20,738		$	3,229		16	%
Amortization and depreciation		65,155			53,043			12,112		23
Provision (benefit) for credit losses		4,529			636			3,893		612
Interest expense on corporate debt		9,986			11,104			(1,118	)	(10	)
Fair value adjustments to contingent consideration liabilities		(10,830	)		—			(10,830	)	N/A
Other operating expenses		24,602			12,117			12,485		103
Total expenses	$	117,409		$	97,638		$	19,771		20	%
Income (loss) from operations	$	39,889		$	42,029		$	(2,140	)	(5	)%
Income tax expense (benefit)		7,007			11,269			(4,262	)	(38	)
Net income (loss) before noncontrolling interests	$	32,882		$	30,760		$	2,122		7	%
Less: net income (loss) from noncontrolling interests		(3,671	)		(3,311	)		(360	)	11
Walker & Dunlop net income (loss)	$	36,553		$	34,071		$	2,482		7	%
Key performance metrics:
Operating margin		25	%		30	%
Adjusted EBITDA	$	123,768		$	110,543		$	13,225		12	%

SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS:

The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services.

The $4.8 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
Investment management fees decreased primarily due to a reduction in the accrual for investment management fees from our LIHTC funds that are driven by asset dispositions within the funds. Continued slowdowns in the property sales market resulted in lower than anticipated disposition revenues during the year.
Other revenues increased, primarily as a result of the gain on sale described below, partially offset by a decrease in syndication fees resulting from a lower volume of capital syndicated into our LIHTC funds. During the fourth quarter of 2024, we entered into a contract to sell a portfolio of Affordable assets, including interests held by a part of the business known as Walker & Dunlop Affordable Preservation ("WDAP"), which were acquired as part of the Alliant acquisition. The sale of one of the assets closed during the fourth quarter, generating a gain on sale of $26.5 million and $21.3 million of adjusted EBITDA. The remaining assets are expected to close in the first half of 2025, as various consents are received. This was a discrete decision to realize a healthy return on this portfolio and exit a part of the business that was not part of our long-term plans, and in no way a reflection of our dedication to the Affordable sector, or our broader Affordable business.
Personnel expense increased primarily due to increased salaries and benefits resulting from an increase in average segment headcount year over year combined with an increase in subjective bonus expense tied to overall company performance.
Amortization and depreciation increased primarily due to the write-off of intangible assets associated with WDAP in connection with our agreement to sale interests in WDAP.
The provision for credit losses in 2024 was primarily attributable to the loan repurchase and indemnification agreements we have with the GSEs, as noted above in our Key Credit Metrics, with no comparable activity in the prior year.
The change in fair value adjustments to contingent consideration liabilities was primarily due to an $10.8 million contingent consideration revaluation related to Walker & Dunlop Affordable Equity ("WDAE") in the fourth quarter of 2024 with no comparable activity in the fourth quarter of 2023.
Other operating expenses increased, primarily as a result of the repurchase-related expenses noted in the Key Credit Metrics section above and costs to sell the portfolio of Affordable assets noted above, with no comparable activity in the prior year.


FINANCIAL RESULTS - CORPORATE
(in thousands)	Q4 2024			Q4 2023				$ Variance		% Variance
Other interest income	$	3,684		$	4,472		$	(788	)	(18	)%
Other revenues		(593	)		1,116			(1,709	)	(153	)
Total revenues	$	3,091		$	5,588		$	(2,497	)	(45	)%
Personnel	$	22,610		$	11,179		$	11,431		102	%
Amortization and depreciation		1,760			1,834			(74	)	(4	)
Interest expense on corporate debt		1,484			2,585			(1,101	)	(43	)
Other operating expenses		17,089			17,281			(192	)	(1	)
Total expenses	$	42,943		$	32,879		$	10,064		31	%
Income (loss) from operations	$	(39,852	)	$	(27,291	)	$	(12,561	)	46	%
Income tax expense (benefit)		(7,638	)		(7,300	)		(338	)	5
Walker & Dunlop net income (loss)	$	(32,214	)	$	(19,991	)	$	(12,223	)	61	%
Key performance metric:
Adjusted EBITDA	$	(33,364	)	$	(21,353	)	$	(12,011	)	56	%

CORPORATE – DISCUSSION OF QUARTERLY RESULTS:

The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups ("support functions"). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results.

Other revenues, which primarily consist of gains and losses on equity-method investments, shifted from a gain in the fourth quarter of 2023 to a loss in the fourth quarter of 2024, due to the underperformance of several equity-method investments.
The significant increase in personnel expense was primarily driven by an increase in subjective bonus expenses tied to company performance, coupled with an increase in salaries and benefits.

FULL-YEAR 2024

CONSOLIDATED OPERATING RESULTS

Interest expense on corporate debt increased 2% from 2023, primarily as a result of an increase in interest expense on borrowings to support our LIHTC operations, which increased year over year as the amount of borrowings increased.
Income tax expense decreased $4.5 million, or 13%, from 2023, primarily driven by a 5% decrease in income from operations and due to several one-time tax benefits and an approximately 130 bps decrease in our blended state income tax rate year over year. Blended state income tax rates vary year to year based on several elements including changes in the activity within the various states.


FULL-YEAR OPERATING RESULTS AND KEY PERFORMANCE METRICS
(in thousands)	2024			2023			$ Variance		% Variance
Debt financing volume	$	30,154,666		$	24,202,859		$	5,951,807	25	%
Property sales volume		9,751,223			8,784,537			966,686	11
Total transaction volume	$	39,905,889		$	32,987,396		$	6,918,493	21	%
Total revenues		1,132,490			1,054,440			78,050	7
Total expenses		1,000,989			916,243			84,746	9
Walker & Dunlop net income	$	108,167		$	107,357		$	810	1	%
Adjusted EBITDA		328,549			300,123			28,426	9
Diluted EPS	$	3.19		$	3.18		$	0.01	-	%
Adjusted core EPS	$	4.97		$	4.68		$	0.29	6	%
Operating margin		12	%		13	%
Return on equity		6			6

DISCUSSION OF FULL-YEAR RESULTS:

Total transaction volume increased 21% in 2024, primarily driven by a 37% increase in brokered debt financing volume, highlighted by a $1.2 billion transaction in the third quarter. Both GSE debt financing volume and property sales volume also increased by 11%, with an acceleration in multifamily property sales and debt financing activity throughout the year.
The 9% increase in total expenses outpaced the 7% growth in total revenues for the year, driving a 5% decrease in income from operations. The decrease in income from operations was fully offset by a greater decrease in income tax expense as noted above. The growth in total revenues was primarily driven by increases in origination fees, MSR income, servicing fees, placement fees and other interest income, and other revenues, partially offset by declines in investment management fees and investment banking revenues.
The increase in total expenses was primarily driven by increases in personnel expenses and amortization and depreciation and increases in the provision (benefit) for credit losses and other expenses associated with loan repurchases and indemnifications in 2024, with no related activity in 2023. The provision for credit losses and other expenses attributable to repurchased and indemnified loans totaled $24.7 million in 2024. The net benefit for credit losses in 2023 related primarily to an annual update of our historical loss rate.
Adjusted EBITDA increased 9% primarily due to increased origination fees, servicing fees, placement fees and other interest income and other revenues and a decrease in net write-offs, partially offset by decreases in investment management fees and investment banking revenues and increases in personnel and other operating expenses. The aforementioned gain on sale of a portfolio of Affordable assets was a significant part of the increase in other revenues.
Diluted EPS increased less than 1% year over year, compared to a 6% increase in our adjusted core EPS year over year. Adjusted core EPS reflects the year-over-year growth of our recurring revenue streams but excludes the decrease in non-cash MSR income and the increase to non-cash provision for credit loss expenses, while diluted EPS incorporates the impact of those non-cash items. Additionally, net write-offs, a reduction for adjusted core EPS decreased, resulting in increased adjusted core EPS. This reduction for net write-offs is not included in diluted EPS.

FULL-YEAR 2024

FINANCIAL RESULTS BY SEGMENT


FULL-YEAR FINANCIAL RESULTS - CAPITAL MARKETS
(in thousands)	2024			2023			$ Variance			% Variance
Origination fees	$	271,996		$	232,625		$	39,371		17	%
MSR income		153,593			141,917			11,676		8
Property sales broker fees		60,583			53,966			6,617		12
Net warehouse interest income (expense), LHFS		(8,780	)		(9,497	)		717		(8	)
Other revenues		47,449			57,755			(10,306	)	(18	)
Total revenues	$	524,841		$	476,766		$	48,075		10	%
Personnel	$	399,256		$	375,450		$	23,806		6	%
Amortization and depreciation		4,551			4,550			1		0
Interest expense on corporate debt		19,489			18,779			710		4
Goodwill impairment		33,000			62,000			(29,000	)	(47	)
Fair value adjustments to contingent consideration liabilities		(39,491	)		(62,500	)		23,009		(37	)
Other operating expenses		20,744			19,994			750		4
Total expenses	$	437,549		$	418,273		$	19,276		5	%
Income (loss) from operations	$	87,292		$	58,493		$	28,799		49	%
Income tax expense (benefit)		20,275			14,824			5,451		37
Net income (loss) before noncontrolling interests	$	67,017		$	43,669		$	23,348		53	%
Less: net income (loss) from noncontrolling interests		353			2,489			(2,136	)	(86	)
Walker & Dunlop net income (loss)	$	66,664		$	41,180		$	25,484		62	%
Key revenue metrics (as a % of debt financing volume):
Origination fee rate		0.92	%		0.97	%
MSR rate		0.52			0.59
Agency MSR rate		1.14			1.16
Key performance metrics:
Operating margin		17	%		12	%
Adjusted EBITDA	$	(28,258	)	$	(46,333	)	$	18,075		(39	)%

CAPITAL MARKETS – DISCUSSION OF FULL-YEAR RESULTS:

The increase in origination fees was largely driven by a 25% increase in debt financing volume year over year, partially offset by a decline in our origination fee rate related to the shift in the mix of our debt financing volume towards brokered debt financing volume.
MSR income grew largely as a result of a 10% increase in Agency debt financing volume year over year, partially offset by a lower Agency MSR rate due to a lower increase in Fannie Mae debt financing volumes than other Agency volumes. Fannie Mae is our most-profitable debt financing product.
Property sales broker fees primarily increased year over year as a result of the 11% increase in property sales volumes.
The decrease in other revenues was primarily related to the closing of a $7.5 million transaction in 2023, the largest investment banking deal in the Company's history, with no comparable transaction in 2024.
Personnel expense increased year over year primarily as a result of higher commission costs related to the increase in origination fees during 2024 and an increase in subjective bonus expense tied to company performance, partially offset by a decrease in salaries and benefits due to lower average segment headcount.
The goodwill impairments in 2024 and 2023 were related only to the GeoPhy acquisition, which was impacted by macroeconomic and transaction market conditions driving lower projected transaction activity and related cash flows. The fair value adjustments to contingent consideration liabilities were also impacted by challenges in the forecasted macroeconomic conditions and transaction markets driving lower projected achievement of earnout hurdles, tied primarily to transaction activity and related revenues, resulting in a $39.5 million benefit in 2024 related to several acquisitions, compared to a $62.5 million benefit in 2023 related exclusively to the GeoPhy acquisition.


FULL-YEAR FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT
(in thousands)	2024			2023			$ Variance			% Variance
Origination fees	$	4,566		$	1,784		$	2,782		156	%
Servicing fees		325,644			311,914			13,730		4
Investment management fees		36,976			45,381			(8,405	)	(19	)
Net warehouse interest income, LHFI		1,747			3,864			(2,117	)	(55	)
Placement fees and other interest income		153,350			141,374			11,976		8
Other revenues		69,366			59,526			9,840		17
Total revenues	$	591,649		$	563,843		$	27,806		5	%
Personnel	$	83,050		$	74,407		$	8,643		12	%
Amortization and depreciation		226,067			214,978			11,089		5
Provision (benefit) for credit losses		10,839			(10,452	)		21,291		(204	)
Interest expense on corporate debt		43,834			42,489			1,345		3
Fair value adjustments to contingent consideration liabilities		(10,830	)		—			(10,830	)	N/A
Other operating expenses		43,064			28,582			14,482		51
Total expenses	$	396,024		$	350,004		$	46,020		13	%
Income (loss) from operations	$	195,625		$	213,839		$	(18,214	)	(9	)%
Income tax expense (benefit)		45,437			54,198			(8,761	)	(16	)
Net income (loss) before noncontrolling interests	$	150,188		$	159,641		$	(9,453	)	(6	)%
Less: net income (loss) from noncontrolling interests		(7,562	)		(6,675	)		(887	)	13
Walker & Dunlop net income (loss)	$	157,750		$	166,316		$	(8,566	)	(5	)%
Key performance metrics:
Operating margin		33	%		38	%
Adjusted EBITDA	$	485,382		$	456,826		$	28,556		6	%

SERVICING & ASSET MANAGEMENT – DISCUSSION OF FULL-YEAR RESULTS:

The $4.8 billion net increase in the servicing portfolio over the past 12 months was the principal driver of the growth in servicing fees year over year.
Investment management fees decreased primarily due to a reduction in the accrual for investment management fees from our LIHTC funds that are driven by asset dispositions within the funds. Continued slowdowns in the property sales market resulted in lower than anticipated disposition revenues for 2024.
Placement fees and other interest income increased largely as a result of higher placement fees earned on deposits due to higher short-term interest rates and an increased average escrow balance in 2024.
Other revenues increased, primarily as a result of the aforementioned gain on the sale of a portfolio of assets by our affordable business, partially offset by a decrease in syndication fees resulting from a lower volume of capital syndicated into our LIHTC funds.
Personnel expense increased primarily due to increased salaries and benefits resulting from an increase in average segment headcount year over year combined with an increase in subjective bonus expense tied to company performance.
The provision for credit losses in 2024 was primarily attributable to the loan repurchase and indemnification agreements we have with the GSEs, with no comparable activity in 2023.
The change in fair value adjustments to contingent consideration liabilities was primarily due to an $10.8 million contingent consideration revaluation related to WDAE in the fourth quarter of 2024, with no comparable activity in 2023.
Other operating expenses increased, primarily as a result of legal fees and other costs associated with property improvements and operating costs on assets controlled through loan repurchase or indemnification, with no comparable activity in the prior year.


FULL-YEAR FINANCIAL RESULTS - CORPORATE
(in thousands)	2024			2023			$ Variance			% Variance
Other interest income	$	14,611		$	13,146		$	1,465		11	%
Other revenues		1,389			685			704		103
Total revenues	$	16,000		$	13,831		$	2,169		16	%
Personnel	$	76,940		$	64,433		$	12,507		19	%
Amortization and depreciation		6,931			7,224			(293	)	(4	)
Interest expense on corporate debt		6,363			7,208			(845	)	(12	)
Other operating expenses		77,182			69,101			8,081		12
Total expenses	$	167,416		$	147,966		$	19,450		13	%
Income (loss) from operations	$	(151,416	)	$	(134,135	)	$	(17,281	)	13	%
Income tax expense (benefit)		(35,169	)		(33,996	)		(1,173	)	3
Walker & Dunlop net income (loss)	$	(116,247	)	$	(100,139	)	$	(16,108	)	16	%
Key performance metric:
Adjusted EBITDA	$	(128,575	)	$	(110,370	)	$	(18,205	)	16	%

CORPORATE – DISCUSSION OF FULL-YEAR RESULTS:

Total revenues increased as a result of higher interest income earned on our corporate and fund cash balances.
The 19% increase in personnel expense was primarily driven by an increase in subjective bonus expenses tied to company performance, coupled with an increase in salaries and benefits.
The increase in other operating expenses was primarily the result of increased legal fees due to higher transaction activity, increased travel and entertainment as we hosted an all company gathering in 2024 with no comparable event in 2023 due to our cost reduction efforts, increased rent expense due to renewing and extending several office leases, and normal growth in software related expenses year over year.

CAPITAL SOURCES AND USES

On February 12, 2025, the Company's Board of Directors declared a dividend of $0.67 per share for the first quarter of 2025, a 3% increase year over year, and the seventh consecutive annual increase in the Company's dividend since it was initiated in 2018, representing cumulative growth of 168% over the past seven years. The dividend will be paid on Ma

Walker & Dunlop Reports Fourth Quarter 2024 Financial Results