Walker & Dunlop (WD) 15 Feb 242023 Q4 Earnings call transcript

Good day and welcome to the Q4 2023 Walker & Dunlop, Inc. Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kelsey Duffey, Senior Vice President of Investor Relations. Please go ahead.

Thank you, Taryn. everyone. morning, Good joining year for Dunlop's quarter fourth Thank earnings Walker call. full XXXX and you & I me Walker and have CEO, our and with CFO, this morning Greg Florkowski. Chairman our Willy website being live available is today. recording call This later on our will and webcast be a our website details the release on and webcast. press earnings accessing Both provide archive section we www.walkerdunlop.com. website, posted and This our earnings morning presentation to of release our the Investor Relations call. touch some serve of point what on as during Greg and slides the These for will a Willy reference that reference this during of will financial to reconciliation adjusted note metrics. non-GAAP non-GAAP also EPS Please of appendix core EBITDA we financial a the metrics, the the presentation the and call. Please for adjusted these earnings of course refer earnings release. Investors forward-looking urged are carefully our read to the in statements language are Litigation Reform of on facts, within call, historical statements forward-looking made may Act Securities meaning deemed this of Private the which not XXXX. the be Statements

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

sequentially This the all way the and the together that drove in third real rates rally headwinds Kelsey print in and you, of for same the resulting CPI total billion to highest still but QX and industry estate XX% basis our year, quarter the in the a our from quarter. the commercial saw down a challenging transaction and up deals $X.X with lower volume XXX end point fourth 'XX, year, the year, of year. volume held the quarterly first but from Thank good started expected for morning a everyone. throughout was of the November in year than quarter time in was out the pipeline XXXX nice we

see solid across the from X, per just can QX 'XX million, more to other unique you revenues related metrics, last year. financial EPS year. down on than up largely a off our last X% deal which of was As transaction of QX share Slide earnings diluted $X.XX. board, same and total $XXX core of the QX including of performance expenses X% non-cash strips and adjustments of due EPS, revenues X good to Adjusted from out was was period

business $XX X% nice down to a each 'XX. billion. team, $XX the year challenging of volume QX, QX year due XXXX, significant business year model, W&D transaction and uptick grew in down XXXX. Finally, our adjusted total full a was in $XXX XX% underlying was after the adjusted very Yet from quarter from million down exceptional only model, reflecting EBITDA the W&D results full million, QX X% of EBITDA management to strength throughout $XX to cost when only from million QX were the

stabilize estate is have impact from belief a we eventual ease recovery. market's weathered the tightening we will the that rates news well head questions around will the hopeful Fed market's welcome extremely dramatic potentially how much when the We benefit effectively tightening that to industry. will for questions clearly by there very to the is answer great that are are and that and real XXXX in ease on constructive The market. positioned have are to as Yet the start and and commercial those Fed and and down, done the

slow year to not incorporate their try rate cuts business investors a seeing planning. to as into currently or developers the are We start and

which to moved their to on estate improvement X% makes capital commercial asset. a X.XX% IRR the type and year, and we determine acquisition we an Slide, begins rate would of exceedingly to this quarters, over to credit on in an back subsequent it year X of the or shown cost That As up for XXXX pricing, the landscape. also this and sale Fed of of easing QX. only difficult down real transaction in sellers continues ease, compute If X.XX% establish to uptick nice ten QX expect in the and an started volume volatility a rally with buyers in

XX% to multifamily billion decline property in the XXXX, $X.X the quarter, full billion, market slightly sales down from less of sales than XX%. Our $X.X volume team fourth broader our year closed bringing of

we result, XXXX. and XX% share billion a in X.X% declined QX Debt increased brokerage to a was in the year in $X.X volume XX% from down XXXX for $XX.X full market to As to billion. X.X%

and $X.X as Our year the share GSE at billion volumes strong, market lender Mae's and for Freddie largest at again third year loan billion deliveries. Mac's remained Fannie finishing partner $X.X the dust fifth consecutive once of largest

Our loan focus totals. and lending significant our housing on small balance GSE to affordable added volume

stable, their provided very some research research covering housing the best Our to be as the Zelman, with subscription of industry. W&D revenues as continues arm, known

the our sector, We with from banking And and other grew faster X year X% third in business the more apprise to market enabled our the detail. market financial mentioned share, team business. revenues over Greg? year transactions, the largest in that largest tech also significantly. I the our XXXX. I'll Mac, last as that balance group's our all than results ended We capabilities XX% up to full volumes banking GSE nicely market year, with turn call the we the market family commercial and share Freddie invested quarter expanding both. boosted with a small with into the now ending to review technology single balance lending lender extended Mae Fannie fourth Greg in and and fourth Zelman's in team to in importance XXXX brand XXXX thanks investment in quarter, albeit and W&D investment the and have the closed expanded the small

Willy transaction and you, activity. real conditions year depressed of good This everyone. that market was Thank estate persistent, morning investment and a commercial volatile

long-term quarterly was XX% due rates year However, finish recapping sequential little volume. we quarterly Revenues with during X% Asset Total on quarter the the transaction deep to performance XXXX. a its will the activity Markets for our that in a quarter results segment of our sale Capital November strongest financial in of compensation. that a towards Management $XXX the segment. When gain segment, annual financial increased same delivered quarterly spend but followed results strength outlook segment Capital expense up this continued a that revenues were in uptick to volume segment variable X, to due in coupled benefited year-over-year financing agents on decline the to from due mix sentiment the declined year sharp last strongest year-over-year, for with third from the this consolidated performance our down Markets fourth of quarter more drove margin transaction Slide XXXX. Fed's compared XXXX. Beginning and our current I our our for delivered million, with time our XX% on to transaction decline total weighted heavily positive the Personnel quarter. segment stronger before and activity improved remarks the led the in performance of servicing

realized disposition management. $XX loss based affordable down associated a transaction for end Markets the million under year. and compensation tax a quarter Our $X X, segment we quarter billion in years last revenues gains more pace the macroeconomic QX Typically, from deals. The of is which costs. This maturing proportion Revenues quarter, the 'XX, the Management assets year. quarter-over-quarter. due benefits market adjusted and last of but compared positive Dunlop quarter to of our billion million meaningfully quarter, $XX revenues strongest compensation conditions were EBITDA activity in down of we same variable in recognize of million & of this dispositions the Walker $XXX to compared of sector Servicing last The this year Alliant high $X fourth a & slow Asset Capital challenges formerly Slide to to million assets down quarter performance to caused a equity, periods quarter the credit this million is of by dispose become as management remain produced favorable. expect adjusted at or X our in of to lower loss portfolio portfolio revenues, $X SAM and of the investment the deals reflected this EBITDA, of result, from driven on fourth when servicing lower and These to compared were the shown from improved only revenues the as in and $XXX

though, history most equity affordable year its team Our XXXX. of originations its $XXX during new successful equity have of in million did equity syndicating

offsetting placement recurring decline servicing activities, generated to for adjusted majority of X% million, EBITDA fees, QX million. XX% fees. still related servicing revenues Our to year-over-year, management declined down was of $XXX this from X the margin investment But operating including points percentage segment XX%, the while and fees up $XXX

performance, want touch to to which Before I I discuss our consolidated credit, continues hold annual well. on up

loans Slide our $XX the basis at-risk on with just X, points. X totaling defaulted portfolio, shown million year in we or As ended X

during other leaving of sharing cover our the cycle. losses million that sufficient $XX million defaulted allowance estimating risk may on which loans, currently of defaults are potential to $X materialize end, overall year to any compares We the at reserves

to repurchase. the outstanding in resolve to expect the team these to loan loans, we not that and quarter. defaulted Fannie repurchase led loss to requested expect and borrower loan Mae complete addition our a that that In to the the on first reported working asset we $XX quarter management do We last issue the is any million with incur we repurchase

the on X are our and loans delinquent year. over loans portfolio $X.X as years. credit January well, portfolio the we The at-risk at-risk debt is average underwritten more The of just monitor illustrated over remainder weighted by to XX was value also at-risk X had the compared as ratio service days billion of to We of times. remains X only this XXXX, over very maturing such fundamentals of XX% performing loan that carefully loans X than and only are Slide. The coverage next last

maintained rate specifically to coverage cycle. loans also approach have is disciplined times credit over portfolio, it to those a floating broad over In maturing of ratio XX% in DUS short, are the and at-risk service credit we loans, about debt good weighted lender to X of only a continue are where as years given and As we feel average relate we our the loans. XX the the fundamentals consistent, for

down full back to was Turning consolidated year our of volume financial total $XX transaction year-over-year. XX% results, billion

transaction our activity from share billion, down earnings down asset $X.X platform and totaled the which XX% continues was XX% servicing scaled, XXXX. lower per per and Our impacted only to be management from year, Diluted revenues, significantly full contributed $X.XX by to for share XXXX.

recurring durable XX%. the the share our by core However, segment EBITDA EPS XXXX million EPS. and EBITDA $XXX $X.XX core down totaled cash servicing asset X% flows while adjusted was year-over-year, down of and management adjusted generated adjusted per adjusted supported

operating X%, was XX% XXXX. was and compared equity respectively margin XX% on in return to Finally, XX% and

have fantastic million year flow strong generates $XXX model ended on that We of cash we the with business cash a and hand.

over first tax company the Alliant the decreases to and earnout XX% installment liabilities. pace now as Our the another years. to shares our events amount This bonuses, settle as earnout achieve and connected aggregate pay repurchase remain achieved X to we cash year stock full next in on of always will employee also have pay position the vesting we they quarter

increase a the $X.XX $XX our of cumulative the program. share X% dividend per X This initiated earnings, XXX% years. the increase is last cash at sixth share, and we and Given a of represents $X.XX approved share dividend increase our quarterly since yesterday, a a board over million in XXXX dividend February repurchase stability authorized annual our of per

strength is business. our generation cash durability to in the us of dividend XXXX to support still while yet again, model giving business Our a and the increase a downturn, the confidence to capital testament retaining

financial in decline cutting and with year, upsizing remain to respect managed a position, refinancing our loan We activity and tone we past personnel preserving the market. to actively we withstand business XXXX. the cautious our we transaction cautious entering the costs, in XXXX sharp while exited strong by and G&A and Over term a struck capital

will and diluted likely not the earnings investment last benefit in to we For transaction year. range is to the net credit in repeat resulting a the nor than last to will we $XX QX for CECL update our start from million banking from annual slower transaction off year starters, per the an $X.XX activity to $X.XX perspective, going we methodology, $X.X QX as closed is of share, losses be replicate million slow

outlook, stated the year, Mac stable Mae X to volumes and to this expect Freddie year similar declining be our have That be interest a even XXXX relates maybe XXXX. Fannie disregard lending potential rates cannot of would they to large their disappointing for given it but the As we full outcome our view partners. and

that Finally, the drivers our opportunities. There interest inflation there there the are including we X are challenges, loans macroeconomic rates, multifamily of but undoubtedly political and impact control, year. over are $XXX Those will this that do many next not elections are billion maturing years. over business

are over that gain our also we clients. our market their XXXX those opportunities for and bankers to million added with selling with year. and recapitalizing on are was XXXX giving to and ways meet brokers to developers understand focused and efforts, our win in X.X of those but under for clear XXXX technology will this platform customers We LIHTC are our make deals, assets. and XX being a team recruiting developers We are leveraging units year year evaluating a There or those their better share delivered our reviewing many construction Last us dispositions, in to our through assist multifamily challenging data opportunity business. with

we Finally, business levered us will February to will debt that announced fund million that us market cash of meet bridge as did and from have just business. capital we base a flow allow billion when our $X.X the demand, fund solid close of of to strong in allow and invest to operations we and capital raise our when the $XXX capital raised first in new generate

team XXXX. the opportunities focused will We that that have performed is a has in terrific the growth and team that on us return over help long-term to

adjusted Slide teens this share, is EPS full in result, per year. to year adjusted core diluted low digits earnings As as guidance and shown XX, a on the our mid-single increase for EBITDA to

I technology are not rear view the we the mirror, and model of While continue our business move exceeding executing to with long-term cash back and our XXXX to strong this challenges XXXX into and in call expectations, strategy our long-term on brand up extremely turn the business morning. the will clients people, your to you time over set success. Thank for flows generating now for Willy. the

Thank you, Greg.

credit in drove in and the exceptional. Performance performance And As top is solid brand performance. QX, line was in rate to consistent takes balance you X the they the do shifts healthy of cuts book and of investment debt not our metrics explain why those just in financial our remains why markets and thanks our XXXX. sheet while rally heard, are performance so so strong bottom team those where our QX years and prospect in macro

client continuously revenues built and businesses. revenue Our offering and and business away balance have invested debt in over strong have earnings our and supplies sheet Alliant we cash like wonderful core our model our broadened that position finance so and decades, because are businesses we which sales with us have from durable earnings. a Zelman And and diversified

Our book at-risk of we both taken because have thorough healthy portfolio loans. underwriting fixed markets. bullish throughout rate credit and perspective conservative, is XX% is bearish our the

have a are exposure have business and benefited of long-term classes this real only no our performance, and risk view we take on view CLOs continually to We them and financial strong has we investor not long-term We innovating and so company And estate are no also in investing both. of returns. but and our because our our team multifamily. asset brand credit commercial outside

generated and competitors and the Slide in medium cycles over competition Dunlop and on As us of These firms, than real business lenders establishing business Walker aren't grow a X XX, services, executing. We selecting years, services commercial exceptional the estate and estate space. plans, are achieving has here. ambitious the technology back. and than when to allows and firms convenient and the a highly invest that XX focusing returns others through pull finance specialty specialty direct finance due short, to any past our technology outperformance companies firms shareholder Note model is total you our picking greater real W&D's faster period. and & on goals over we can then see those that time to domestic firms, long-term, bold, team cherry X, thanks aren't we global

invest highly We never mindful plans, market such is the and and hospitality company have bold, Fed while office, and you views is is early scale made in months is forward. and brand tightening we than do. That as risk what returns near. what few over when sheet business and the is in equally XXXX often generate better environment exceptional market as important XXXX, avoided last technology an in didn't is W&D believe The predict sales to And stop will and Long-term the widespread sectors. be day. that outlook, to that will going did every up we and people you too over investing advantage ambitious return shareholder the run multifamily that in what to balance do continue reflected to have normal. financing conditions a a investments market way competitive easing taking retail it it we has And that and be making

impairs optimistic, commercial weeks clearly our rent average credit X market saw of multifamily growth XX%, just to York solid our negative exceptional active results when loan million X.X% only XXXX as solid management, below points financing we as is real no reserves model, these ago, team outlook and the estate Greg generate New XXXX Just in we and dividend. demonstrated in Yet an in Similarly, while data outlined, our in Community fell cut on decline way the by sales in any REIT business yet saw traded as W&D's the the and is stabilized. Therefore, publicly reflect portfolio, we XXXX QX. year, markets. very X.X% volume cautious. almost adjusted EBITDA And challenging in not loan transition marketing in dramatically for rent $XXX their loss Bank X% increase outlook have their

we EPS of As achieve earnings set $XX servicing management be earnings in lending, path diluted in going total growing newer in 'XX, still our the XXXX. the the sales of balance growth including we off And a $XX scaling our XXXX we to were asset $X exciting. to plan, targets we our of small to have and and stated and a debt robust Yet market in X-year here 'XX, has businesses we sit Through But the share focused which including per $XX us throughout of market is our of a businesses and billion volumes, and banking. condition challenging. remain that share. numerous and property on generating achieve headwinds, to the financial current drive today revenues scaling as investment very course XXXX, brand know appraisals of technology extremely drive people, is market, to on XXXX, we

with of our and What We to on a our a continue strong the ambitious right our significant strategic on CWCapital a doubling or the understand team plan. achieving ambitious with points we this fundamental macro XX without like and of in is W&D long-term strategy is W&D is acquired accelerated to long that finish strategy making first when such 'XX X-year and environment. I'd also for couple will to people to focus call culture. investors acquisitions, that the highly fully the have business drive for size goals underpinning business achieving our history as of that growth, in total have XXXX,

the at being and culture years. contributions President, thank executive, want once I Our to outstanding over of XX to again Howard of for and the year. retired end to such an for of W&D all Howard me steward his Smith, partner the past our

Second, excitement management our about I my want to team. current reiterate

who talented with every they both what they work group executives have love at of W&D, blessed are the day. do We to and wildly a people

year competitors. at Third, velocity, "it's abundantly the some over some And year thrilled in part industry. the of W&D new of that joined and the super home". we've of their our remarkable perspective spirit been W&D level our and broker and and One unique the from being who beginning exceptional talent largest to the about is intentionality, most of banking on energy W&D formidable We recruit W&D is past exciting. fortunate join of are brokerage best at clear and growth wrote, platform the to

thankful results dynamic deeply on most I commercial As is hard the reflect in real achieved. Dunlop earth. great blessed team be I'm market our work & to company estate back Walker for a the on XXXX, all and

just We ask and growing for to continue morning have the questions. the and team, clients, XXXX. Thank meeting will you brand any this and open plan to and do competition Karen our for all line technology I we to the in joining delighting that us now

take [Operator KBW. our Instructions] first from with question We'll Rahmani Jade

Appreciate the it's about about to thing to balanced ask how outlook, the wanted commentary I credit, prudent the do. holding I think that's up.

January XXXX. outlook? Greg, looked think, as vintages loans remarks, supply. have on [ the ] by of the I XXXX you excess delinquent cite you all feeling you about to XXXX focusing geographies portfolio did are and your And with How strategizing X at in

Will. look ahead, yes, think, I So -- go

No, Greg, no, no. go.

is think as up and my remarks few that, going the just say well. credit said that, for I was last quarters, about as in I our I to Jade Yes, said holding we've

I book think a our loans X delinquent is of at-risk to loan. book close on in X,XXX

how about their our So they're and doing. borrowers we're and capitalized feeling good really are are performing assets how how

are of ones We longer-term, the duration. going be to longer but markets, are looking different at have most we

So cited really to to that be there the X years. visage going you 'XX is XX maturing in 'XX to

in are now. focus is that likely macro where the that farther maturing the given years X that's the we're just looking our are deals out So next much at than right

this years. coverage said us good ratio, reiterate over flowing we've just limited got going-in saying, I And feeling cash X has on at real and the we're what the debt I'd that, service that is the which again, positioned we've where LTVs we low cycle. call next about maturities been think So point with and Xx in assets what over

only Jade XX% say, fixed Yes, I'd in rate. that, behind and just jump

floating So have 'XX many now seeing then and only 'XX longer-term just Greg and rate what was we of billion portfolio portfolio, rate. And fixed right are loan 'XX. loans. on X.X all at-risk on maturities it, vintages debt our in the problems said, are XX% the in that are $X.X And fixed people of 'XX rate are as the

we the at So even that rate on was X%. have a be in don't risk significant refi portfolio needs to loan It done fixed redone at X.X%.

So well extremely today particularly as And industry, good. generally lot we done covering has of with floating the fortunate to have industry feeling not to speaking, a that. concerns But multifamily in are and you the deals know advanced debt broader rate and on were from them. very credit 'XX it 'XX that

factor in look during the have when reserve, and probably for I X then 'XXs which and clearly, lots look reasons. there period know period there. performance different terms a lot pressure expectations you 'XXs, of But in your multifamily decades, credit of strong periods, the then to back at And CECL current you of early very there's of loss a is prior the was

So XXXX, there are took to coming a uptick quarters? CECL that in general in the lot reasonable reserves is place. it of In releases a expect

losses which million. the in GFC loans XX total XX-year over lost Yes, at on and history included back $XX last I would look years, our at look probably even defaulted yes, we've the period, actually I I our during think that say entire

and credit about includes record some Xx. included you're the by had than of the and So our of COVID included that track today is excellent greater cycles it I post talking think GFC, what happened an ultimately, we've CECL that reserve that

absolutely to we've got going the market history, and we So adequate monitor reserves the continue like we're feel to given fundamentals.

I of in guidance last level forward-look the you have a for Xx the now, reserves at to least reasons and forward take One QX year of forward-look reserves or or for X release Xx or continue I as loss said. we aren't X are years basis. We'll had the of average Right like reserves our gave next a we're expecting our going X that look to historical think we've the on a was maintain to that rate.

that But that through. an see some anything absent don't we'll on normal and growth, eye in just than look, for sure. more the talked both now, Willy went credit through So fundamentals change keep I right we I just

Kyle We'll Jefferies. move question next to our from with Joseph

for I from little just get flattish probably agency your Greg, guys it kind want -- in kind like From to more are what of a bit of guidance. on First baking commentary, sounds volume. one you

So, sense is of Or in there so up origination want to a that a that channels just for the function servicing? Is than 'XX. other agency? of incremental kind get of growth opening more

think, to Kyle, great you. hear I Yes,

is we last and I XX think added a brokers I one couple bankers year. of things, mentioned

So we even bankers as market brokers. us, that on sure making were bolstering bringing our the was shifting and still we were on talent and

share gain flat to opportunity even an in have environment. we a think we So

and than XXXX to a be there's prior for -- Markets likely think lot sales for of I opportunity going there's Capital team those this deals some help importantly, of investment an transactions online those to in to and assets. And coming think get there's involved I be in year capitalize deliveries builders them in years. more there's our merchant

be and not billion multifamily in as active, $XXX there's market is to projecting from while MBA So certainly may the Fannie data. perspective Freddie increase The 'XX. market to

have brokered we going Capital there's team a Markets. well. transactions Obviously, as very to So talented be or likely there

to that share growth, have even So Freddie try ways results to take those we platform to are we'll if generate diversified think there's flat us deliver I and many and the and for year-on-year. our Fannie different capture

Yes and kind of...

Very helpful. And then...

market are counter that going in to is It said is, to to flat quick and as and capital the provide cyclical cyclical counter add XXXX role Greg thing, reiterate Greg to XXXX. which provide is said, Kyle, let in this me Their between needed thing the one signaling just Fannie that their to market. want Freddie -- They one are market volumes the capital. I that be ridiculous I in capital and is market if other are can his their to commentary.

in on for And than Freddie the everyone be that we to Fannie's needs hearing with is in to Freddie in where Greg largest Fannie the from as in Freddie's outlook said, XXXX. call reason that to no largest I do is in this XXXX it meet refinancing demand. the reflecting other relates are year seeing point partner should market that underscore dramatically we up we Mac's just Mae Mac, third the outlook and them. same relates Fannie work to were opportunity refinancing market their volume it want and as the as while anything about a as XXXX. as and So There are what can't multifamily partner, to they

yes, that's multifamily. Slide maturity in a the just my good next segue But XX, on question, to on wall

and -- upcoming of of areas. sort quality market, And then geographic you color to this the geographic ways? floating areas of it's know, if knowledge your result you're Class Class can us maturity as there's portfolio, on target whether specifically, I of any, B Just the versus give this don't a fixed, looking A, any or avoid and given

XXXX about the in commercial $XXX of refinancings real billion the at in XXXX look in in maturities to scheduled billion $XXX be were number were Association, Mortgage loans overall per XXXX, to the that estate pushed 'XX the refinanced you if $XXX So Bankers were total number, and somewhere billion XXXX. for

across present commercial enough need XXXX. XXXX find the $XXX over the spectrum we total as that had So refinancing challenge billion significant banks the back. CMBS market see for particularly now. That's volume a is capital financing, in to pull going real to meet to growth to estate

of at expect in probably market's cycles bad continued You actually have XXXX when have insurance Freddie is through very companies and they could been deal see interesting part times beyond the and consistent good in CMBS. And refi maturing very XX% doing volume that is 'XX. even times expand very, Life to their amount flow Fannie XX%. the about agencies, of about in books the out the in a that small own growth

question. And those relates real and the recapitalization refinancing how we've But 'XX like, financing, as as think the to to I maturity deals to preferred in up And Kyle, that new able equity it so not to us are a in preferred of to going opportunity refinanced a for team, take lot borrowers' mezzanine needs. structured are them position go it finance trust go but that, competition. anything needs got your capital to portfolio, to for out. whether that the get them meet them no well much there's what type is them equity lot look above first of to refinance fortunately both need a that, be a be And opportunities doubt the coming in loans or or equity to into got some as those of 'XX, in the question, out specific is from we've our or

Citizens question our Delaney from to with Steve [Operator move We'll Instructions] next JMP.

to your the as on And the great or so period, execution, to opportunistic was about But you're the sort where sit over given being buyback, far the of we talking haven't that buyback. the today? and wondering any that's I think Willy, of understandable. obviously, news looking board, on should last 'XX, you year back a was programmatic dividend the or increase as you the end shares as buyback as repurchased environment, uncertain

issue We talked this about just yesterday.

As a record time, you track know, have back you've in covered we us buying quite some stock. of for Steve, opportunistic being because

end very it reiterated to underscored outlook. very, strong. at in just our the on to as in very relates you his Jade's our credit response As And credit cash credit, comments, feel question Greg our provisions year position the of good we as and is

will we the said, we that the as see potential and share we Steve, we I year rates you will with than is say, growth if think how So said, picks programmatic, authorize I volume transaction programmatic. expect see that would as million to as to goes. I it of buybacks. a that also we say would the find not authorization, Board down programmatic be up, come opportunistic would now, for in situation. more could But start ourselves the more $XX

didn't probably know these get EPS And I commented XXXX. on -- gave right. by Willy of Greg, $XX you I figure a

both second last You this GAAP about tried talking the the cases, I GAAP think, to year, half if earnings EPS referring on -- to for earnings XXXX. of we're believe, over the for mentioned convert $XXX million, are I of all as some to you on measure? or In just basis of clarity or we, a other

we implemented we not EPS. had yet for gave -- Steve yes, the adjusted -- Yes, when

GAAP but to in give low guidance mid-single all balance as adjusted from year for So adjusted the mid-single remarks, and digits refer to EBITDA we're trying core, or to teens. we GAAP core to I EPS, adjusted in my transition similar diluted GAAP we're EPS continuing to guidance. But full to did give

in I final you your as that anything Is sharing. Fannie When as define for missing? your at-risk And your loss just else bridge a thing Mae portfolio, well that's there assume I'm book, clarity. there

exclusively. That's

book our We left the bridge million. nearly then the have vast Mae sheet $XX of $XX on at-risk majority and is portfolio, million Fannie loans our balance of

Willy, be up of they're or X a to down housing this residential W&D fact year on likely CM bad. the maybe maybe XX kind good a really out Most obviously there's some sectors both are some their single-family anything capital X step banks, given there's residential there'll from or commercial than mode some problems hotel, life, REITs I in mortgage be flows a years multifamily. are in know estate. and real not non-agency these in little I But for next pullback the of with Is that -- constrained? other industry bit commercial office REITs think I multifamily like to of or everything and really there, even the much the hunker some think so those

W&D the the are said that have We do growing doing of that just turn, rates a me, some is with you're take. And statement, loans and were would loss been investors And risk massive office want years say, that do That's watch in step various missing fine. There at and the the traded you're said those oh, CLO loans. but times over willing reiterate 'XX business and sort not of credit company. to XX rate benefits. every publicly again, a risk in to to I that's I significant caveat or you And which yes, paid I'd fundamentals that we disciplined doing been super said, it with we've that what in very risk this know 'XX as us watching is we've just Steve, take. we from aspects loans of a been to opportunities high. that when enough. And that's not originators not the CLO by met of of floating share, to the as past interest us profile fast and you low for and we've of in don't that who like believe has market plenty would incur lots

of go we going decisions deploy? So the we exactly anything. us the of But much we how I as sharing what know, agreement, got pool at I we're will won't network. comment well bottom plenty risk the have that your providers underwrite to the everything. line, at to other and is you've getting depending capital look not right. hey, risk think all we're a make We'll And Can taking, think you look saying, And coming capital you will of to give not we distribution general paid do. on on for on depending and we're obviously

be not of that while investors I invested present W&D credit very opportunities, to necessarily will takes it. the you're I to opportunity itself, in they is plenty that do company conservative going think a but also that there does a would that And mean reiterate outlook.

a the Well, for everyone. on color difficult close year to thank for both a and congrats solid you

to with move our McCanless next from Jay We'll Wedbush question Securities.

end XQ, end the in Greg, between think earnings. to range? Maybe to to low about, I the talk versus said would -- get of that to happen $X.XX talk to potentially could for you $X.XX you somewhere what have high the

it's to look banking activity matter affordable or activity look, investment -- business. generate our it then transaction in quarter whether is like some businesses what like think, a of our quarter, looks in whether other of first some dispositions ultimately, first going I can the fees the what our in Certainly, that be syndication and

other a those revenue the platform, either likelihood of range there's variables, got, I'd as streams the coming or we've transaction are within obviously, the from then but there activity and opportunities because So investment different through. affordable say banking big

your just EBITDA? year seen? to to sense some volatility maybe the up? we think underpinning EPS regarding get the were the some we've assumptions see where trying what guys year to for going of maybe for of talk XX-year guide then full Just And are the and And you about year full continue ends assumptions, this a full and of

So I'll Greg. jump in there,

the couple Jay, So of things. a

starts sitting We really of not We meeting the Walker First active of yesterday on said, my play were Council like of negative the pile the do cut, of number a rate let's if talked of okay, client of little some clients all, there rallies sort with this to deployed. because NMHC, much Fed who colleagues. on my maybe be pile said, a and a so the sitting W&D of about equity Housing with down, I XX-year you comes rate question of at here was, one this now out. to think are individual Multifamily capital. the capital, one from much get right great. And capital There's to the out funds Fed meeting out the webcast I National meetings, the bit, the cut, said, leverage. And don't a we client we're Fed funds in

move losses. the a client your band a the probably that So negative going on IRR so end the the I and we're much to client you stand I at in going I'm financing the leverage the the volume at rate then then happy you comes the me for probably thinks one and more month, a the when it's you XXX not win on 'XX, doing a curve, that then a do said, of the that they're to to so of should I ought acquisition going XXX, think people clients. said that down make end to to a as that, to picking there. position? to said, to provide from But that do to end the really And in think that at cap business client be it's the need goes get that being which just good And him, XX-year dramatic He much say where and make dry that high both look curve that have refinancing of as at be to years volumes this year, coming bet. The There that amount redone. move. been needs is which no. down, our the it back I transaction not 'XX year, realizes that you're volume you you assumption to short why stabilize with to XXX, capital the as of a get you And ton big volume it's overall is needs going I based this I if then short to at get year. curve closer And if volumes as back positive last the of think us somewhere on it pay XX-year do in sit the but XX yourself better, seeing long still shouldn't. in XX-year 'XX think deploy a a powder of ways. and if point. X statement. And sidelines question, is point it's the want specific pre-requisite If I I we're you is floating well, to take to Xs, coming based to And XX it to this X.X leverage. And it's underscore market of when is and the win are said of year. my rates amount is to gotten XXX the an I the the going and as that of think realize they as cost Fannie bet the should which of get that do there outlook relief XXX that the end to we you is the saying Freddie point well said on taking just up shouldn't do rates piece amount down, the more rally and the which some of the in the replacement think you obviously into on it ridiculous capital into sitting market end will think borrowers, same to final is credit sales be loans is

And as don't so 'XX we have and in statements, them game for refinancings in we and have of getting the underscored name and of refinancings going public out the and our a portfolio. in our is lot these comments

to an them Walker in need with them people's situations from of pull instance, redo refinance some one to we don't we and in Walker other very be a the those difficult win sense that are to what is as for there aren't and want who So do done loans competition loans, as lenders other to other company of and sitting in swift in away those them them. as where & solid go deals have in Dunlop banks, are fortunately so consistently there's outlook have portfolios. And out the could away, positive as those & Dunlop, and competing trying past

Dunlop's exposure in opportunities on potential any market? With you there to all New the the and/or in get some there those City, to are that with debt buzz sheet to York be properties involved recently fund balance entities about regulated recently going raised & rent-regulated is Walker

Number don't to been market. terribly portfolio, have no, agencies all, a of agency New -- first exposure of competitive in we our in York our to relates it lot that as have never one,

very can it do So me, anything. our of have front as in say period been can't tell time, Fannie having Mae we in I have long for anything I in don't a of actual number an relates I at-risk to from not portfolio, that, company this but you

at-risk City. portfolio We we Mae bridge in our have New relates it on to have quite in limited our And very Fannie as York certain exposure loans none. portfolio, I'm

operators City. control space we into? in market-based more who we'd dive loans. So to like New actually understands the make Is risk market who with that On rent-controlled those and market a work to it question. In it proper space, to understand the housing affordable that York you're you've the are great affordable sure no good in. got to That's market, relates how operator as love rent housing to deals, lending a a they're the

the go can deals I going like the bus to now Walker shouldn't returns, a the I at the just we the deal, there's opportunities back to off challenging we'll Steve of we're while probably And expect If to but back risk-adjusted look said do what do because investors everything. loan. we on in markets so previously, risky

I've it. of like when on now? about if there's Walker And there before, you space? question Would some the of that a were you involved people, not asked funds that last this continues to you thoughts outlook and had, but get positive as there then topic feel updated have & the love conversation for conversions Dunlop more -- like being on get I if committed to are And opportunities your towards Willy, office positive as I kind in a you think to some be general press looks

the property. since construction in had things exceedingly loan had of was had an Look, owned loan. office It Fargo deal LA. we It on it. a the The owner property. an cost low. the agency takeout so takeout did the building the actual Fantastic XXXXs, Jay, to basis it we and unique couple conversion QX, early very did and we I did that mean, the was a conversion in was in Wells done

second The is, it small a footprint. was

love multi given footprint. he had be the final that multi in And and is, borrower conversion zoning that. we doing or the been smaller we that to will talented will, if was as applicable from And successful office continue it to to the you able who the as has do conversion. people doable are it. do to So to And the piece to on office very,

office people cost my of oh, that a that's believe are the the is. of is if impaired the reason and on of somewhat, There saying, comments you I've solve because it that lot this of just don't that about inventory ton of the because it is all for and been footprint, are basis. location will, office I I buildings because the think tempered

thing saying people converting And is to these bunch shouldn't we is, good so conversion. would what actual new a for properties. Sure. the did multifamily us in is But like debt the QX I put do very just buildings a one do into we outlined for that in loans whole supply into this process? and panacea think construction I'm And the conversion loan by the office I just multifamily takeout of then opportunity creating of that an good see a final of

an to put find With the conversion, for was the with that into type deal it asset help that someone appropriate capital operator a that and and we done. of primed get

or additional for remarks. questions are time. turn any I'd there appears like over closing further to conference It this no the at back

hope you who W&D those Congrats the this very look morning. forward particularly questions everyone, Thank all we again XXXX. thank XXXX to for I a your everyone QX time and a to on solid in talking to I W&D. QX great asked you team And after and day. much has very interest and

call. today's concludes again for This Thank you participation. your

You disconnect great day. now have and a may