Tue, Sep. 13, 7:34 AM
Thu, Aug. 25, 12:20 PM
- Commercial real estate transaction volumes of $254.25B for year's first seven months, fell 15.4% from the same period in 2015, according to Real Capital Analytics (RCA). In July, $30.08 of deals was down 25% from a year earlier.
- Cap rates (except for hotels), however, continue to slide.
- As to whether there's a bubble, CBRE's (NYSE:CBG) Spencer Levy says no. as fundamentals across markets and asset classes remain strong. Levy also cites an influx of foreign buyers, noting their cost of capital is low and they're patient investors (but don't foreigners always pour in at the top?).
- Canaccord's Ryan Meliker isn't so sure about a non-bubble, noting teeny cap rates are a function of invisible interest rates. If rates can't stay low forever, than cap rates have to rise.
- One major source of demand has backed off: U.S. REITs' purchase volume fell 64% Y/Y in the first half vs. an 11% increase for institutional investors.
- RCA's Jim Costello sums up the bull case: Would an investor rather buy European bonds with negative yield, stick money in a bank vault, or buy some apartment towers which may face plenty of competition, but still generate some return on investment.
- Source: SNL Financial's Tom Yeatts, Jake Mooney and Chris Hudgins
- Tickers of note: WD, HF, STWD, MMI
Wed, Aug. 3, 1:00 PM
Wed, Aug. 3, 9:11 AM
- Q2 net income of $32M or $1.05 per share vs. $20.2M and $0.67 one year ago. Revenue of $147.9M gained 30% Y/Y.
- Total transaction volume of $5.4B up 42% Y/Y. Loan origination volume of $4.8B up 37%, with Fannie Mae loans of $2.4B up 111%. Investment sales volume of $624M up 96%.
- Gains from mortgage banking activities of $102.5M up 46% Y/Y. Gains attributable to MSRs of $55.6M up 72%; Loan origination fees of $37.6M up 25%.
- Servicing fees of $32.8M up 17% Y/Y. Servicing portfolio size of $57.3M up 20%.
- Total expenses of $96.2M up 18%, with personnel costs up 21%. Personnel expense as a percent of revenue of 38% down from 40%.
- 121K shares bought back for $2.7M during quarter. YTD buybacks of 396K shares for $9.2M.
- CC is underway
- Previously: Walker & Dunlop beats by $0.36, beats on revenue (Aug. 3)
- WD +5.5% in light premarket action.
Wed, Aug. 3, 6:01 AM
Tue, Aug. 2, 5:30 PM
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Wed, Jun. 29, 7:54 AM| Wed, Jun. 29, 7:54 AM
Tue, Jun. 21, 8:04 AM
- The company has completed the purchase of a $3.8B commercial mortgage servicing portfolio from a subsidiary of Oppenheimer Holdings for $44.6M.
- The portfolio is made up of 480 loans insured by HUD, with a weighted average servicing fee of 17 basis points.
- WD: "With the addition of this portfolio, the Company will immediately begin interacting with our new customers in the process of servicing their loans and meeting their future financing needs."
Mon, Jun. 20, 2:57 PM
- U.S. commercial real estate prices could fall as much as 5% in the next year thanks to tightened regulations, a wave of debt maturities, and property sales from publicly-traded REITs, says Pimco.
- The shakeout will be a welcome one for those with capital ready to put to work, say portfolio managers John Murray and Anthony Clarke in their report titled, "U.S. Real Estate: A Storm Is Brewing."
- Commercial real estate prices coming off of a big post-crisis boom have declined 3% in the past three months, according to Moody's and Real Capital Analytics, and real estate deals in NYC are forecast to decline up to 30% this year, according to Cushman & Wakefield.
- Interested parties include: Walker & Dunlop (NYSE:WD), HFF (NYSE:HF), iStar (NYSE:STAR), Ladder Capital (NYSE:LADR), Resource Capital (NYSE:RSO)
Tue, Jun. 14, 9:43 AM
- Walker & Dunlop (WD) has hired a couple of experienced rainmakers to join its Phoenix office.
- Prior to joining WD, Jim Pierson and Keaton Merrell were co-founders and principals of Legacy Capital Advisors, and have provided debt placement of more than $4B combined through their careers.
- Source: Press Release
Fri, Jun. 10, 7:17 AM
- The company has hired a South Florida team to join its Capital Markets group. The three SVPs and their support-staff will be based out of Miami, WD's newest office.
- The company's goal is to grow its sales force by 25% year year-end, and hiring well-seasoned teams is a big part of that strategy. This particular group has closed in excess of $13B in deals.
- Source: Press Release
Tue, Jun. 7, 7:35 AM
- The portfolio is made up of more than 480 multifamily and healthcare loans insured by HUD. The seller for $45M is Oppenheimer Multifamily Housing & Healthcare Finance.
- After the closing (expected June 20), Walker & Dunlop (NYSE:WD) will be the largest HUD Multifamily/Healthcare servicers in the U.S.
- Source: Press Release
Wed, May 25, 4:32 PM
- After a slow Q1 (the slowest since Q4 of 2012), commercial property prices grew 0.9% in Q1 for the value-weighted U.S. Composite Index, according to CoStar Group.
- Transaction volume has become more volatile though, with composite pair volume of $33.4B through the end of April, down 92.% from a year ago.
- Other measures are showing strength, with the average time on the market down 19.7% Y/Y, and the sale-price-to-asking-price ratio narrowing by 2.9 percentage points to 94.3% - the highest this ratio has been since August 2006. The share of properties withdrawn from the market by discouraged sellers fell 8.8 percentage points to 30.9%.
- Interested parties: Walker & Dunlop (NYSE:WD), HFF (NYSE:HF), iStar (NYSE:STAR), Ladder Capital (NYSE:LADR)
Thu, May 5, 9:58 AM
- A weak commercial property market took a bite out of Walker & Dunlop's (NYSE:WD) Q1 results reported yesterday morning.
- The stock tumbled big-time out of the gates, but managed to recover much of that opening loss by the end of the session. It's higher by another 5.4% in early action today after JMP Securities upgrades to Outperform from Market Perform. The $25 price target is 15% upside from yesterday's close.
- Prior to yesterday's weak earnings result, WD had already dipped 24% YTD. We seem to recall learning something in school about markets being discounting mechanisms.
Wed, May 4, 8:11 AM
- Q1 net income of $15.5M or $0.50 per share vs. $21.3M and $0.66 one year ago. Revenues of $94.2M fell 16%. Adjusted EBITDA of $32.4M down 8%.
- Total transaction volume of $2.6B down 40% Y/Y.
- Gains from mortgage banking activities of $46.3M fell 36% Y/Y thanks to lower origination volume.
- Servicing fees of $31.6M up 18% Y/Y as the servicing portfolio grew to $51B from $46.1B.
- Net warehouse interest income of $6.7M down 55% Y/Y.
- Expenses of $70.1M down 9%, thanks to a 15% drop in personnel costs. As a percent of total revenue, comp cost of 36% was flat Y/Y.
- 275K shares bought back during quarter for $6.5M.
- Conference call at 8:30 ET
- Previously: Walker & Dunlop misses by $0.12, misses on revenue (May 4)
- WD flat premarket
Wed, May 4, 6:02 AM