What occurred

The inventory market was rebounding strongly on Thursday, a welcome change following one of many worst declines for the reason that COVID-19 pandemic began. However business actual property finance firm Walker & Dunlop (NYSE:WD) was having an particularly nice day. As of two:50 p.m. EDT, the true property monetary inventory was up by 11.5%, handily outpacing the general market.

So what

Walker & Dunlop reported its third-quarter earnings on Thursday morning. To place it mildly, buyers have been happy with the outcomes.

Picture supply: Getty Photographs.

On the headline numbers, the corporate reported $247 million in income, which was 16% increased than a 12 months in the past. Earnings got here in at $1.66 per share, which represents 19% year-over-year development.

Impressively, this development got here at a time when general transaction quantity truly declined by 6% from the identical quarter in 2019. Development was fueled by the mortgage-servicing portfolio, which now’s $103.four billion in measurement (13% bigger than a 12 months in the past), in addition to by a lot increased agency-backed loan-origination volumes, which include increased origination charges and helped loan-origination and debt-brokerage charge revenue develop by 29%.

Now what

A notable accomplishment is that Walker & Dunlop was in a position to accomplish its year-end 2020 objectives (which it set in 2015) forward of schedule, regardless of the COVID-19 pandemic. The corporate has greater than doubled the dimensions of its mortgage-servicing portfolio over these 5 years, grown annual origination quantity from $16 billion to greater than $30 billion, and almost doubled annual income. And if the corporate retains doing what it is doing, it might produce related outcomes over the following 5 years, as properly.