Builders Capital Mortgage Corp. reports second quarter 2024 results

Second highest quarterly total of $830,000 achieved, just below the previous year's record

Calgary, Alberta–(Newsfile Corp. – August 29, 2024) – Builders Capital Mortgage Corp. (TSXV: BCF) (“Builders Capital” or “the Company”) today announced the release of its second quarter financial results for the period ended June 30, 2024.

Highlights include:

• We distributed $0.20 per share to our Class A public shareholders in the second quarter of 2024, again meeting our distribution target, as we have done every quarter since our inception over 10 years ago.

• Subsequent to the quarter end, we distributed $0.40 per share to our Class B shareholders based on second quarter 2024 earnings, representing a 16% annualized return on the original issue price of the shares of $10.00.

• Reached 2^and highest result in our history for total earnings in a quarter at $830,000, only surpassed by the $833,000 achieved in the same quarter last year

• Earnings per share remained constant at $0.26 compared to the first quarter of 2024.

• Operating expenses (excluding interest and provisions for potential credit losses) were in line with expectations at 9.5% of sales.

• We continue to maintain a balanced exposure between Alberta and BC, with 54% of our mortgage book currently invested in Alberta. Changing affordability constraints in BC have led management to shift a greater portion of our loan concentration back to the Alberta market.

• We achieved a weighted average loan-to-value ratio of around 77% for our mortgage portfolio, narrowly missing our target of 75%.

Sandy Loutitt, President of Builders Capital, commented on these results:

“We are pleased to present results for the quarter, which delivered positive, consistent earnings. However, we see potential risks arising from a growing inventory of unsold homes in our British Columbia markets. The management team continues to originate, underwrite and manage loans, carefully managing risk without compromising on returns.”

“We are very pleased to be able to offer our Profit Participation Bond offering to qualified investors, which will help us meet the increasing demand for mortgages in our sector. Our current demand for high quality mortgages exceeds our capital supply, so we look forward to using this innovative tool to increase the size of our capital pool for our borrowers, while also offering good yields with short-term liquidity to our new Profit Participation Bond investors.”

Financial overview

The story continues

For a more detailed discussion of the Company's financial results, please refer to Builders Capital's financial statements and management's discussion and analysis for the second quarter of 2024, which are available on the Company's website (www.builderscapital.ca) and filed on SEDAR (www.sedar.com).

About Builders Capital

Builders Capital is a mortgage lender that provides short-term financing for construction to wood-frame residential developers in Western Canada. The company began active operations on December 12, 2013 following the completion of its initial public offering and subsequently acquired a mortgage portfolio from two predecessor companies.

Builders Capital's investment objective is to achieve attractive returns relative to risk in order to provide stable and consistent distributions to shareholders while focusing on capital preservation and meeting the criteria prescribed for Mortgage Investment Corporations (MICs) as set out in the Income Tax Act.

As a MIC, Builders Capital is not subject to income tax provided it distributes all of its taxable income to shareholders as dividends within 90 days of December 31.^st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if his or her share of the company's mortgage investments had been paid directly by the shareholder.

Forward-looking information

This press release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding management's beliefs, estimates and intentions and similar statements regarding anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “outlook,” “target,” “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “plan” or “continue” or similar expressions that suggest future results or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on estimates and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this press release. These include, among others, risks related to mortgage lending, competition for mortgage loans, real estate values, interest rate fluctuations, environmental issues and the general economic environment. The Company cautions that the above list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned not to place undue reliance on forward-looking statements. Although the forward-looking information contained in this press release is based on assumptions that management believes to be reasonable, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information please contact:

Sandy Loutitt, CEO
Phone: (403) 685-9888
Email: [email protected]
Website: www.builderscapital.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the original version of this press release, please visit