Walker & Dunlop (NYSE:WD) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsGreg Florkowski - EVP & CFOKelsey Duffey - SVP of Investor RelationsMatthew Hurwit - VP in Equity ResearchWilly Walker - Chairman and CEOConference Call ParticipantsJade Rahmani - Managing Director and Equity Research AnalystSteve Delaney - Managing Director and Senior Equity AnalystOperatorGood day, welcome to the Q4 2025 Walker & Dunlop, Inc. earnings call. Today's conference is being recorded. At this time, ...

Walker & Dunlop (NYSE:WD) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker4Good day, welcome to the Q4 2025 Walker & Dunlop, Inc. earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kelsey Duffey. Please go ahead.Speaker2Thank you, Cynthia. Good morning, everyone. Thank you for joining Walker & Dunlop's fourth quarter and full year 2025 earnings call. I have with me this morning our Chairman and CEO, Willy Walker, and our CFO, Greg Florko ...

Investor Presentation Fourth Quarter 2025 Legal Disclaimer FORWARD-LOOKING STATEMENTS. Certain statements in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, references to: potential or expected future cash flows; estimated or expected returns, sometimes referred to as initial IRR, updated IRR, expected IRR, or current-to-maturity IRR; potential discount rates; potential future investments; e ...

Core Insights - Rithm Capital Corp. (NYSE:RITM) is identified as a high-growth, low P/E stock with strategic progress made in 2025, resulting in 19% of earnings available for distribution to equity holders [1] - The company reported strong fourth-quarter and full-year results, highlighting durable momentum from acquisitions and a diversified alternative asset management platform, ending the year with over $100 billion in investable assets [2] - Net income for the fourth quarter was $53.1 million, or $0.09 per share, while earnings available for distribution totaled $418.9 million, or $0.74 per share; for the full year, net income reached $567.2 million, or $1.04 per diluted share, with earnings available for distribution of $1.3 billion, or $1.4 per common share [3] Strategic Positioning - As Rithm enters 2026, it is well-positioned for growth due to strategic investments across asset management, Newrez, Genesis, and its investment portfolio, providing a strong foundation to capture opportunities for clients and shareholders [4] - The company operates as a global asset manager and Real Estate Investment Trust (REIT), focusing on real estate, credit, and financial services sectors, managing investments in mortgage servicing rights, residential loans, commercial real estate, and consumer loans [5]

(1) Full Year 2025 Financial Highlights: (1) | Q4 2025 | | Q3 2025 FY 2025 FY 2024 | | | | | --- | --- | --- | --- | --- | --- | | Summary Operating Results: | | | | | | | (1) | | | | | | | | $ | 0.09 | $ | 0.35 $ 1.04 | $ 1.67 | | GAAP Net Income per Diluted Common Share | | | | | | | GAAP Net Income (in millions) | $ | 53.1 | $ | 193.7 $ 567.2 $ 835.0 | | | Non-GAAP Results: | | | | | | | (1)(2) | | | | | | | | $ | 0.74 | $ | 0.54 $ 2.35 | $ 2.10 | | Earnings Available for Distribution per Diluted Common ...

Financial Data and Key Metrics Changes - The company reported a net income of $42 million for Q4 2025, translating to a 13% annualized return on common equity, with diluted earnings per share at $0.48, exceeding the quarterly dividend of $0.40 per share [2][10] - Book value per share increased to $15.25 at year-end from $15.16 on September 30 [2] - The total debt-to-equity ratio rose to approximately 10-to-1 from 9-to-1 at the end of Q3 2025, reflecting growth in non-recourse debt associated with securitizations [15] Business Line Data and Key Metrics Changes - The company completed 19 securitizations in 2025, totaling $6.7 billion in UPB, a significant increase from 2 securitizations in 2024 [3] - Retained investments from securitizations grew to $528 million, up nearly tenfold from $54 million in 2024 [3] - The correspondent production segment reported a pre-tax loss of $1 million due to spread widening on jumbo loans and lower overall channel margins [12] Market Data and Key Metrics Changes - Approximately 60% of shareholders' equity is deployed to seasoned investments in MSRs and GSE credit risk transfer investments, with MSRs accounting for 46% of shareholders' equity [5] - The weighted average coupon of the loans underlying the MSR investment is 3.9%, providing stable cash flows [5] - The UPB of loans acquired from PFSI's correspondent production totaled $3.7 billion, with $2.9 billion being conventional conforming volume [12] Company Strategy and Development Direction - The company aims to optimize returns by recycling capital into higher-yielding assets, targeting ROEs in the 13%-15% range [8] - The relationship with PFSI is highlighted as a competitive advantage, providing a consistent pipeline of loans for investment [4] - The company expects to complete approximately 30 securitizations in 2026, with targeted returns on equity for retained investments in the low to mid-teens [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate earnings that support dividends and drive long-term shareholder value [9] - The company anticipates that prepayment speeds will remain elevated but expects to offset declines in profitability through additional recapture [17][18] - Management noted that the market for securitizations remains robust, with stable to tightening spreads in the non-agency space [43] Other Important Information - The company raised $150 million of new unsecured financing during the quarter [14] - The MSR asset at year-end was valued at $3.6 billion, slightly down from the prior quarter due to higher levels of runoff [11] Q&A Session Summary Question: Return expectations for the interest rate strategy - Management indicated that prepayments are expected to remain elevated, but they plan to offset profitability declines through additional recapture from PFSI [17][18] Question: Competition in the non-agency space - Management noted healthy competition from companies like Rocket Mortgage and UWM, but stated that they have been outperforming in terms of originations [23][24] Question: Financing costs for securitization - Management described the financing market as competitive, with a focus on risk management through facilities that minimize mark-to-market risk [30][31] Question: MSR sales for risk management - Management is open to considering MSR sales if higher returning assets are available, highlighting their agility in managing the portfolio [37][38] Question: Spread behavior in the non-agency market - Management reported stable to tightening spreads in the non-agency space, supporting continued securitization activity [43]

Core Insights - PennyMac Financial Services, Inc. (PFSI) reported a net income of $106.8 million for Q4 2025, translating to $1.97 per diluted share, with total net revenues of $538.0 million. The book value per share increased to $82.77 from $81.12 as of September 30, 2025 [1][4]. Q4 2025 Highlights - Pretax income was $134.4 million, down from $236.4 million in the prior quarter but up from $129.4 million in Q4 2024 [4]. - Total loan acquisitions and originations reached $42.2 billion in unpaid principal balance (UPB), marking a 16% increase from the prior quarter and an 18% increase from Q4 2024 [4]. - The servicing portfolio grew to $733.6 billion in UPB, up 2% from September 30, 2025, and up 10% from December 31, 2024 [15][4]. Full-Year 2025 Highlights - Net income for the full year was $501.1 million, up from $311.4 million in 2024, representing a return on equity of 12% [4]. - Total net revenue for 2025 was $2.0 billion, an increase from $1.6 billion in 2024 [4]. - Total loan production for the year was $145.5 billion in UPB, a 25% increase from 2024 [4]. Production Segment - The production segment's pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in Q4 2024 [4][9]. - Production segment net revenues totaled $371.0 million, reflecting a 3% increase from the prior quarter and a 42% increase from Q4 2024 [9]. - Total locks, including those for PennyMac Mortgage Investment Trust (PMT), were $46.8 billion in UPB, up 8% from the prior quarter and 29% from Q4 2024 [4]. Servicing Segment - Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in Q4 2024 [15]. - Net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in Q4 2024 [17]. - The servicing segment's expenses totaled $116.6 million, up from $102.1 million in the prior quarter, primarily due to increased provisions for losses on active loans [20]. Corporate and Other - The pretax loss for Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in Q4 2024 [21]. - Corporate and Other net revenues totaled $13.1 million, consisting of $6.9 million in management fees and $6.0 million in other revenue [22]. - Total expenses for Corporate and Other were $43.4 million, down from $55.5 million in the prior quarter [23].

Group 1 - Rithm Capital Corp. will release its fourth quarter and full year 2025 financial results on February 3, 2026, prior to the opening of the New York Stock Exchange [1] - A conference call will be hosted by management on February 3, 2026, at 8:00 A.M. Eastern Time [1] - The earnings release will be available on the Company's website in the Investors – Events & Presentations section [2] Group 2 - Participants can access the conference call by dialing specific numbers based on their location, with a pre-registration encouraged [2] - A simultaneous webcast of the conference call will be available for public listening on the Company's website [3] - A telephonic replay of the conference call will be available for a limited time after the call's completion [4] Group 3 - Rithm Capital Corp. is a global alternative asset manager with expertise in managing credit and real estate assets [5] - The firm operates an integrated investment platform that includes asset-based finance, lending, mortgage servicing rights, and structured credit [5] - Rithm has established a unique owner-operator model through its subsidiaries, enabling it to source, finance, and manage investments effectively [5]

Onity Group (NYSE:ONIT) 2025 Conference Summary Company Overview - Onity Group operates as a non-bank mortgage servicer and originator, managing both owned and sub-serviced Mortgage Servicing Rights (MSRs) [1][2] - The company engages in various types of loans including forward loans, reverse loans, conventional loans, and small balance commercial and multifamily loans [2] Business Model - Onity has two primary business segments: servicing and origination - **Servicing**: Manages MSRs for itself and for other clients, with a focus on both owned and sub-serviced MSRs [1][2] - **Origination**: Operates through correspondent lending and direct-to-consumer channels, utilizing advanced technologies like quantitative modeling and machine learning [3] Financial Performance - Year-to-date Return on Equity (ROE) was reported at 25% with a book value per share of approximately $62, reflecting a $2.71 increase year-over-year [3] - The debt-to-equity ratio stood at 3.1 to 1 as of the end of the third quarter [3] Market Insights - The mortgage origination market is projected to reach approximately $1.9 trillion, with a servicing market estimated at $14.5 trillion, typically six to eight times the origination market [5] - Onity's investment thesis highlights profitability that is comparable or superior to peers, with a more attractive valuation, indicating a value play for investors [6] Strategic Initiatives - The company is focused on capital-like growth through sub-servicing and aims to enhance its scale to improve net income margins [4] - Onity has announced a transaction to exit the reverse sub-servicing market, simplifying its business model and allowing for redeployment of approximately $9.6 billion in assets [10][12] Competitive Landscape - The company has signed nine new clients in the sub-servicing space and is negotiating with several large clients for future growth [12] - The competitive landscape is evolving with significant M&A activity, including notable transactions involving larger players like Bayview and Rocket [22][25] Technology and Operational Efficiency - Onity emphasizes the importance of technology and operational superiority, having achieved 12 consecutive quarters of adjusted pre-tax income, with the most recent quarter reporting $31 million [7][16] - The company has received multiple awards for service excellence from GSEs and has a competitive cost structure compared to peers [14][15] Future Outlook - Onity expects to exceed its ROE guidance of 16%-18% and anticipates strong growth in its UPB [17] - The company is focused on organic growth and optimizing liquidity to handle market fluctuations [16][17] Conclusion - Onity Group is positioned for growth in the mortgage servicing and origination markets, with a balanced business model that leverages technology and operational efficiency to enhance profitability and shareholder value [18][28]

Summary of Franklin BSP Realty Trust (FBRT) FY Conference Call Company Overview - **Company Name**: Franklin BSP Realty Trust (FBRT) - **Ticker Symbol**: FBRT - **Type**: Commercial Mortgage REIT - **Public Since**: 2021 via a reverse merger with Capstead Mortgage - **External Manager**: Benefit Street Partners, owned by Franklin Templeton - **Assets Under Management (AUM)**: $90 billion, with $13 billion in commercial real estate [2][3] Financial Performance - **Core Portfolio Size**: $4.4 billion, aiming for a target of around $5 billion [4] - **Net Leverage**: Approximately 2.5 times as of September 30 [4] - **Dividend Yield**: Currently at 14%, significantly high compared to the book value [5][15] - **Stock Price**: Trading at about 70% of book value [5] Portfolio Composition - **Asset Focus**: 75% of the portfolio is in multifamily assets, with the remainder in hospitality and industrial [4][5] - **Geographic Focus**: Primarily in the Southwest, Southeast, and Sunbelt areas, with significant exposure to Texas and the Carolinas [6] - **Office Assets**: Only about 2% of the portfolio is in office assets, with no new loans originated in this category since 2020 [7] Recent Developments - **CLO Issuance**: Issued a $1.1 billion CLO to recapitalize and free up cash for reinvestment into the core loan portfolio [9] - **Acquisition of NewPoint**: Closed on July 1, 2025, acquiring agency licenses and a bridge loan portfolio, which is expected to enhance origination capabilities [10][11] - **NewPoint's Performance**: Achieved record agency originations of $2.1 billion in the latest quarter [10] - **Mortgage Servicing Rights (MSRs)**: Integration of MSRs expected to contribute to book value growth over time [12] Future Outlook - **Dividend Coverage**: Management is focused on achieving dividend coverage by the second half of 2026, with a path outlined for improvement [15][19] - **Earnings Growth**: Expected contributions from CLO issuance, REO asset management, and NewPoint integration to enhance earnings per share [16][18] - **REO Management**: Strategy to stabilize and sell multifamily REO assets rather than liquidating immediately, with expectations of adding 8-12 cents to earnings per share [17][18] Key Risks and Considerations - **Market Conditions**: The company is navigating a challenging environment with legacy portfolio issues but has maintained a focus on multifamily assets to mitigate risks [7] - **Interest Rate Impact**: Portfolio is divided between loans originated before and after interest rate hikes, with 40% of the portfolio in pre-hike loans [6] Conclusion Franklin BSP Realty Trust is strategically positioned within the commercial mortgage REIT sector, focusing on multifamily assets and leveraging recent acquisitions to enhance growth and dividend coverage. The company is actively managing its portfolio and capital structure to navigate current market challenges and capitalize on future opportunities.