Commercial mortgage lender Walker & Dunlop reported 69% year-over-year revenue growth for 2012 with the firm’s loan origination volume shooting up 76%.
In addition, servicing fees grew a steep 55% in 2012. The company posted 2012 revenue of $256.8 million, up from $152.4 million in 2011.
The adjusted net income for the year ended Dec. 31, excluding selected expenses relating to the acquisition of CWCapital, rose 39% to $48.4 million, or $1.87 per diluted share, compared to $34.9 million, or $1.60 per diluted share, a year earlier.
Comparatively, the GAAP net income for the year ended Dec. 31 declined 3% to $33.8 million, or $1.31 per diluted share, compared to $34.9 million, or $1.60 per diluted share, in 2011.
The GAAP net income in the fourth quarter of 2012 grew 5% from the previous year to $11.5 million, or 34 cents per diluted share.
Looking ahead, Willy Walker, Walker & Dunlop’s chairman and CEO, said, “As the economy recovers and the financing markets heat up, there is a fantastic opportunity for us to continue growing in a fast, yet measured and risk-appropriate manner.”
Walker expects to originate between $10 to $12 billion in commercial real estate loans during 2013.
Loan originations hit $7.1 billion for fiscal 2012, rising from $4 billion the previous year. This figure is made up of eight months of Walker & Dunlop prior to the acquisition of CWCapital and four months of loan originations as a combined enterprise.
“The acquisition of CWCapital was extremely well executed, immediately accretive to earnings, and coupled with our organic growth, increased loan originations 76%, revenues 69% and added $0.27 of adjusted diluted earnings per share,” said Walker.
Mortgage banking activities increased 82% from the previous year, reaching $186.5 mililon in 2012, up from $102.7 million a year earlier.
Gains from mortgage banking activities for the fourth quarter of 2012 were $79.4 million opposed to $33 million in the fourth quarter of 2011, showing a 140% increase.
“Walker & Dunlop’s 75th year was one of transformative growth, strong profits, and the ascension to a market leadership role that we have long desired,” said Walker. “We ended 2012 as one of the largest providers of capital to commercial real estate in the United States.”
