Dear Fellow Shareholders
William M. Walker, Chairman and CEO
Walker & Dunlop’s people, brand, and technology differentiated the company in 2022, and
despite an extremely challenging market, we met our clients’ needs across all of our business
lines. In the process, we gained significant market share, continued investing in growth, and
delivered financial results reflective of our company’s diversified and durable business
model.
The Federal Reserve raised interest rates 425 basis points during 2022, disrupting liquidity and the
cost of capital and dramatically reducing commercial real estate transaction activity in the second
half of the year. In the face of those headwinds, we delivered $63 billion of transaction volumes,
down 7%, and held annual total revenues flat at $1.3 billion. Although our diluted earnings per
share was down 22% to $6.36, we grew adjusted EBITDA1 5% to $325 million. The reduction
in earnings per share was primarily due to lower non-cash revenue from mortgage servicing rights
from the loans we originated, and the increase in adjusted EBITDA was primarily due to cash revenues
and earnings from our scaled loan servicing and asset management businesses.
Our people, brand, and technology in multifamily financing and property sales allowed us to gain
significant market share in our core businesses during the year. We ended 2022 as the third largest
Freddie Mac Optigo® lender, up one notch in the annual rankings; second largest HUD
lender, up one notch in the league tables; and the #1 Fannie Mae DUS® lender for the
fourth consecutive year. Our combined market share with Fannie Mae and Freddie Mac was 12.7%, making
us the largest Agency lender in the country in 2022 — something we have never done before! And
our multifamily property sales team grew annual volume by 2% in a market that was down
17%2, taking W&D’s market share from 7.8% in 2021 to 10.2% of the market in
20223. This is exceptional performance in a wildly competitive and challenging market.
We expect market conditions to remain challenging in the first half of 2023 but are extremely well
positioned to provide solutions to our clients, retain our exceptional team, and execute on our
five-year business plan, the Drive to '25.
The Drive to '25’s ambitious goals can all be achieved due the investments we
have made and W&D’s incredible team. Yet, originating close to $100 billion in total
transaction volume will be challenging. We need our technology-enabled businesses of small balance
lending and appraisals to grow rapidly. We also need to broaden the depth and capabilities of our
research and investment banking businesses acquired through Zelman & Associates. Our acquisition
of Alliant was strategic and has the ability to dramatically grow our business volumes in affordable
lending, tax credit syndication, and affordable property sales. Finally, we expect the technology
acquired with GeoPhy, applied to both our core and emerging businesses, to transform the way we find
clients and process their business. By achieving these components of the Drive to '25,
we will generate over $2 billion in annual revenues and $13 of diluted earnings per share in 2025.
Beyond financial metrics, the Drive to '25 contains environmental, social, and
governance (ESG) targets to increase diversity, reduce our carbon footprint, and expand our
affordable housing activity. In the context of our mission — to create communities -
with ideas and capital - where people live, work, shop, and play — our ambitious
Drive to '25 goals and ESG targets reflect our commitment to the people of Walker
& Dunlop, the communities where we work and live, and our customers who use our ideas and
capital to create communities across the country.
Since going public in 2010, we have generated outstanding shareholder returns. While our financial
performance and stock price significantly underperformed in 2022, we are committed to returning to
the level of growth that investors have come to expect from Walker & Dunlop in the coming years.
We are focused on the things we control — meeting our clients’ needs, investing in new
businesses and technologies, closely managing expenses, and maintaining an extraordinary team of
professionals. Due to the strength of our business model and recurring revenues from our scaled
servicing and asset management businesses, we are extremely well positioned to emerge from the Fed
tightening cycle with the people, brand, and technology to win.
I would like to personally thank you for your investment in Walker & Dunlop and continued
confidence in our team and mission.
Sincerely,

William M. Walker
Chairman & CEO
This Annual Report contains forward-looking statements within the meaning
of federal securities law. Please see page 3 of our 2022 Form 10-K filed with the Securities and
Exchange Commission for additional information regarding forward-looking statements.