Bethesda, Maryland – October 11, 2016
Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it has funded $1 billion in total on-balance sheet loan originations and preferred equity investments since the Company began lending using its balance sheet in 2012. Over the past four years, the Company has provided bridge loans through its interim loan program (ILP) and preferred equity investments to 61 multifamily properties across the United States, including student and seniors housing transactions. Clients seeking to acquire and/or reposition properties that do not currently qualify for permanent financing through Fannie Mae, Freddie Mac or HUD have been primary customers of the Company’s on-balance sheet lending operations. Walker & Dunlop has placed permanent financing on over 80 percent of the ILP loans that have repaid to date. As of September 30, 2016, the balance of the interim loan portfolio was $265 million, and the balance of the preferred equity investments was $15.5 million.
Executive Vice President, Jeff Goodman, commented, “Lending our own capital has been a massive success for Walker & Dunlop. First, it provides a product our clients need. Second, it feeds business into our core, long-term first-trust lending business. Third, it has generated wonderful returns for Walker & Dunlop. And finally, it has had a perfect credit track record.“ Goodman continued, ”Walker & Dunlop is currently focused on building an asset management business which will allow the Company to move our interim lending and preferred equity investment operations off-balance sheet to continue expanding its capital offerings and origination capabilities.”
The financing of Amber Gardens, located in Tempe, Arizona, is the most recent transaction closed through the ILP. Walker & Dunlop provided a $13.6 million bridge loan to a long-term client of the Company to complete the acquisition and planned renovation of a Class B multifamily property that will cater to young, working professionals. The 18-month, interest-only bridge loan provides the sponsor with time to complete interior and exterior renovations necessary to reposition the property.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.
Forward Looking Statements
The statements regarding the anticipated benefits of building an asset management platform contained in this press release constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement. While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to a decline in general economic conditions and multifamily and commercial real estate market conditions that result in decreased interim loan origination volumes. For a further discussion of this and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent SEC filings. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.