Builders Capital Mortgage Corp. reports second quarter results

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Continuous improvements in real estate markets lead to significant portfolio growth

Calgary, Alberta – (Newsfile Corp. – August 23, 2021) – Builders Capital Mortgage Corp. (TSXV: BCF) (“Builders Capital” or “The Company”) announces that it has published its second quarter financial results for the period. until June 30, 2021

Highlights include:

  • The current mortgage portfolio grew by 37%

  • Assets held for sale decreased by 16.6% on an annualized basis and on 19.3% in the quarter

  • Consistent with its targeted distribution commitment, the dividends paid to Class A shareholders for the quarter were USD 0.1995 per share or permanent eight% annual income from the original issue price of $ 10

  • It’s 30th quarter in a row since its inception that Builders Capital achieved its eight% purpose of dissemination

  • In accordance with the objectives of the guidance, the weighted average credit-to-value ratio is approximately 75% achieved in the mortgage portfolio

Commenting on these results, Sandy Louthit, President of Builders Capital, stated:

“Builders Capital’s recent high rate of mortgage payments began in fall 2020 and continues this quarter thanks to an overall good real estate market environment. Our strategy has always been to keep the loan maturity short and our turnover high to maximize the lender. fees and assistance in reducing risks, and fortunately, this strategy continues to be successful. We work hard to encourage our borrowers to complete and sell or refinance their construction projects quickly and efficiently. While this high level of cash inflow did lead to a reduction in the size of our mortgage portfolio and slightly slowed interest income earlier, we are pleased that by the end of the quarter we were able to attract additional quality mortgage investments and increased the portfolio by 50% from the end of April to the end of June. “

“These stronger markets also created an opportunity for us to further reduce our assets held for sale, and we were busy converting non-productive inventories into productive mortgages. We remain very optimistic about our overall business strategy, including our continued pursuit of additional geographic diversification to enable Builders Capital to meet its current and future portfolio and distribution targets. “

Financial overview

Three months ended June 30
2021
$

Three months ended June 30
Feb 2020
$

Six months ended June 30, 2021
$

Six months ended June 30, 2020
$

Income

691 848

704 149

1,395,997

1,563,674

Total comprehensive income

548,076

564,021

1,112,157

1 105 276

Net mortgage receivables, at the end of the period

26 118 180

27 702 357

26 118 180

27 702 357

Total assets

28 669 052

30 813 268

28 669 052

30 813 268

Equity

26 864 364

27,225,059

26 864 364

27,225,059

Earnings per share

0.19

0.21

0.38

0.38

Declared cash dividends

578,472

485 880

1,064,351

868,492

Cash dividends declared per class A share

0.1995

0.1995

0.3967

0.3967

Declared cash dividend per class B share

0.1972

0.2980

0.0756

A more detailed discussion of the Company’s financial results can be found in the Builders Capital Management Discussion and Analysis for the second quarter of 2021, which was posted along with the condensed consolidated interim financial statements for the quarter on the Company’s website (www.builderscapital.ca) and submitted to SEDAR (www.sedar.com).

About Builders Capital
Builders Capital is a mortgage lender providing short-term construction finance to timber-framed home builders in Western Canada. The company began active operations on December 12, 2013 after the completion of the initial public offering, after which it acquired a mortgage portfolio from two predecessor companies.

Builders Capital’s investment goal is to generate attractive returns versus risk to ensure a stable and consistent distribution to shareholders while remaining focused on capital preservation and meeting the criteria set for Mortgage Investment Corporations (“MICs”) as defined v Income tax law

As 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 December 31st.st the end of the year. Such dividends are usually treated by shareholders as interest income, so that each shareholder is in the same tax position as if his proportionate share of the mortgage investment made by the company was made directly by the shareholder.

Forecast information
This press release contains forward-looking statements within the meaning of applicable securities laws, including statements about the beliefs, estimates and intentions of management, as well as similar statements about expected future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements can usually be defined using forward-looking terminology such as forecast, target, may, will, expect, intent, estimate, foresee, believe, should ”,“ plans ”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 results 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, but are not limited to, mortgage lending risks, competition for mortgage lending, property values, interest rate fluctuations, environmental issues and general economic conditions. The company cautions that the above list is not exhaustive as other factors could adversely affect its results, performance or achievements. Readers should not place undue reliance on any forward-looking statements. While the forward-looking information contained in this press release is based on what management believes to be a reasonable estimate, there is no guarantee that actual results will be in line with these forward-looking statements. Except as required by applicable law, Builders Capital assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:
John Strengway CPA, California, CFO
Phone: (403) 685-9888 Email: jstrangway@builderscapital.ca
Web site: www.builderscapital.ca

Neither TSX Venture Exchange nor its Regulatory Service Provider (as defined in the TSX Venture Exchange policy) are responsible for the adequacy or accuracy of this release.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/94112

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