Walker & Dunlop, Inc. (NYSE:WD) Q3 2023 Earnings Call Transcript

Willy Walker: So, Jade, it’s a very appropriate question. We just ran through exactly that with our board and management team at our annual strategic offsite. The tangible addressable market in multifamily is enormous. And even though Walker & Dunlop is the largest agency lender in the country, the third largest multifamily lender in the country and the sixth largest provider of capital in the commercial real estate industry, which all if you think about who we compete with in those markets and us having those rankings is pretty great. We’re still of the total multifamily revenues on an annual basis. We are still I think the number that came out of the strategic offsite was less than 2 percent of total revenues out of the tangible addressable market in multifamily.

The largest area that we play in today as it relates to annual revenue opportunity is in the asset management space. And as you know, relative to other asset managers in multifamily, we are tiny. So we clearly see great growth drivers in the asset management business. But the other piece to it is if you think about the team that we have in place and our rankings, when transaction volumes come back, we’re like a bow and arrow that is loaded ready to explode in the sense that we have the team, we have the brand, we have the client relationships. And so one of the great things as it relates to overall growth for us is I mean, you think about our investment sales team. We have added to our investment sales team since they did $20 billion of investment sales in 2022.

So that team that we have on the field can easily expand from $20 billion to $25 billion to $30 billion when and if the market comes back. So I feel extremely good as it relates to overall growth drivers of the existing businesses we’re in. But then we have the opportunity to scale in some areas of the market that have extremely large, tangible, addressable markets where we today are very small, like small balance lending, like asset management, like appraisals.

Jade Rahmani: Thanks very much.

Operator: And that was our final question for today. I’ll turn the floor back over to Willy Walker for any additional or closing remarks.

Willy Walker: I want to thank all of the analysts on the call today for their questions and coverage of W&D. Thanks again to our team for all you do every single day. Thanks to everyone who listened in on the call today. Appreciate your interest in Walker & Dunlop.

Operator: Thank you. This does conclude today’s teleconference. We thank you for your participation. You may disconnect your lines at this time.