(Mark Your Calendars. The 11th Annual RealShare Washington, DC convenes at the Ritz Carlton, June 1.)
WASHINGTON, DC-Walker & Dunlop has posted solid earnings for the first quarter, with revenues totaling $34.4 million, an increase of 19% over first quarter 2011. Driving this growth was an increase in originations and fees. Specifically, origination volume reached $674.5 million, a 33% increase over Q1 2011 and origination-related fees were $10.3 million, a 40% rise over that same period last year. Its servicing fees totaled $9.4 million, up 22% over that same quarter.
The company’s Q1 net income was $5.8 million, however, a decrease of 12% from last year’s $6.6 million. Willy Walker, the company’s CEO, attributes that to a few factors including the addition of personnel and related overhead as well as a small increase in the company’s loan loss provision.
“I am thrilled at our growth,” he tells GlobeSt.com. “It was a strong quarter for us, especially when you compare our revenue growth and profitability against our competitors’ revenue growth and profitability. The fact that we are 12% under [last year’s Q1 net income] doesn’t concern me at all.”
The firm also executed on several strategic initiatives, positioning itself for additional growth. It expanded its capital-markets presence outside of the mid-Atlantic, opening an office in Florida. Walker declined to discuss where else the firm might expand, but did say growth was in the cards. “You can expect to hear further announcements from us,” he says. “We’ve been explicit in our statements that we want to build a national platform. So let’s say that you can expect additions any point west of Pennsylvania.”
The company also reports its Cushman & Wakefield alliance is gaining traction with a solid pipeline. It expects loans to rate-lock during the second quarter of this year. “The growth of the brokerage business is something else we have been clear about as a key strategic initiative for us,” Walker says.
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