Business
Builders Capital Mortgage Corp. Reports First Quarter 2023 Results
Higher Rates, Fewer Defaults and Fully Invested Capital Drives Higher Profits Calgary, Alberta...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports First Quarter 2023 ResultsHigher Rates, Fewer Defaults and Fully Invested Capital Drives Higher ProfitsCalgary, Alberta--(Newsfile Corp. - May 29, 2023) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announced today the release of its first quarter financial results for the period ended March 31, 2023. Highlights include:We distributed $0.2016 per share to our Class A public shareholders Q1 2023 continuing our 10-year unbroken dividend record since inception.Subsequent to the quarter-end, we distributed $0.3945 per share to our Class B shareholders or the equivalent of an annualized 16% return on the original $10.00 share issue price. Total comprehensive income grew to $829,000, up 25% year-over-year.Earnings per share increased to $0.26, up 13% year-over-year.Assets held for sale were successfully reduced by 35% year-over-year. By quarter-end, assets held for sale represented just 2.6% of shareholders' equity.We further enhanced the geographic diversity of our portfolio with continued growth in the BC market. The proportion of our mortgage funds deployed in Alberta continued to become better balanced, decreasing to 47.6% from 59.5% a year ago. We achieved an approximate weighted average loan-to-value ratio on our mortgage portfolio of slightly better than our 75% target level.In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"Builders Capital is currently firing on all cylinders with our capital fully deployed, our non-productive inventory almost fully liquidated and with rising interest rates steadily improving profitability. We've never missed distributing our planned $.20 per quarter to our A shareholders, and were able to distribute quarterly dividends at an annualized 16% rate to our B shareholders at the end of last month.\"Despite concerns that the Canadian economy may be moving towards recession, demand for housing is expected to remain elevated, driven by increased immigration and robust levels of new household creation. And, while other lenders may be limiting their exposure to construction financing, our specialization gives us the confidence and skill set to continue to effectively and efficiently deploy our capital in this area.\"Real estate prices in most regions in Canada have retreated significant...