Second Highest Quarterly Gross Income of $1,257,830 Reflecting Strong Performance
Calgary, Alberta--(Newsfile Corp. - November 29, 2024) - Builders Capital Mortgage Corp. (TSXV: BCF) ("Builders Capital" or "the Company") announced today the release of its third quarter financial results for the period ended September 30, 2024.
Highlights include:
We distributed $0.20 per share to our Class A public shareholders, maintaining our consistent track record of meeting our distribution target 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 Q3 2024 earnings. This provided an annualized 16% return on the original $10.00 share issue price.
We achieved our second-highest gross income to date of $1,257,830, reflecting strong performance and continued business resilience.
Earnings per share remained steady compared to Q2 2024 at $0.26.
Operating expenses (excluding interest and funds set aside for potential loan losses) were within expectations at 8.7% of revenues.
Consistent with our strategic goals, we have continued to shift a greater portion of our loans to Alberta. During the quarter, the percentage of loans in Alberta increased from 54% to 64%. This trend is driven by continuing affordability constraints in British Columbia.
We slightly missed our target weighted average loan-to-value ratio on our mortgage portfolio of 75% by 2%, consistent with the prior quarter. We are pleased to note that this ratio has remained stable at 77% and has not increased quarter over quarter.
In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:
"We are pleased to present the results for the quarter where we continued to produce positive, consistent returns. We are underwriting carefully and maintaining a conservative posture in our B.C. markets. The management team continues to source, underwrite, and administer loans with a judicious eye to risk management without compromising yield."
"We are pleased to have closed our first tranche of the bond offering which will help diversify risk for our existing shareholders while providing attractive returns for our bond investors."
Financial Overview
Quarter ended September 30, 2024 $
Quarter ended September 30, 2023 $
Quarter ended September 30, 2022 $
Quarter ended September 30, 2021 $
Revenues
1,257,830
1,201,781
938,523
780,972
Total comprehensive earnings
820,864
817,368
700,808
575,009
Net mortgages receivable, end of period
35,428,965
36,327,104
30,392,071
27,293,615
Total assets
37,054,105
37,189,078
32,117,611
29,778,385
Shareholders' equity
29,400,534
29,503,926
27,075,517
26,854,608
Earnings per share
0.26
0.26
0.24
0.20
Cash dividends declared
814,499
817,359
654,078
584,765
Cash dividends declared per Class A share
0.20
0.20
0.2016
0.2016
Cash dividends declared per Class B share
0.40
0.40
0.2742
0.1995
A more detailed discussion of the Company's financial results can be found in Builders Capital's Third quarter 2024 Financial Statements and Management's Discussion and Analysis, which has been posted on the Company's website (www.builderscapital.ca) and filed on SEDAR (www.sedarplus.ca).
About Builders Capital
Builders Capital is a mortgage lender providing short-term course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The Company commenced active operations on December 12, 2013 on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.
Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations ("MIC") as defined in the Income Tax Act.
As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.
Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities legislation, including statements with respect to management's beliefs, estimates and intentions, and similar statements concerning 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", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes 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 which could cause actual results to differ materially from the forward-looking statements contained in this news release. These include, among other things, risks associated with mortgage lending, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters and the general economic environment. The company cautions that the foregoing list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned against undue reliance on any forward-looking statements. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
