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Builders Capital Mortgage Corp. Reports Second Quarter 2023 Results: Higher Rates and Fully Invested Capital Results in Highest-Ever Quarterly Income
Calgary, Alberta--(Newsfile Corp. - August 21, 2023) - Builders Capital Mortgage Corp. (TSXV: BCF...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Second Quarter 2023 Results: Higher Rates and Fully Invested Capital Results in Highest-Ever Quarterly IncomeCalgary, Alberta--(Newsfile Corp. - August 21, 2023) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announced today the release of its second quarter financial results for the period ended June 30, 2023.Highlights include:Total comprehensive income grew to $833,000 in the second quarter of 2023, making this the most profitable quarter in the ten-year history of Builders Capital.We distributed $0.20 per share to our Class A public shareholders continuing our 10-year unbroken dividend payment record since inception.Subsequent to the quarter-end, we distributed $0.40 per share to our Class B shareholders or the equivalent of an annualized 16% return on the original $10.00 share issue price. Earnings per share increased to $0.26.Assets held for sale were successfully reduced by 48% year-over-year. By quarter-end, assets held for sale represented just 2.2% of shareholders' equity. 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 continues to show stronger and stronger results. High demand from builders combined with higher market interest rates has lead to the Company being fully invested in increasingly profitable loans. We have also substantially reduced any non-productive inventory and are not requiring any unusual loan loss provisions. 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 while also growing our retained earnings. The outlook for these conditions to remain or expand is positive, as the Company's operating environment in Western Canada in particular remains strong and resilient.\"\"While there are some concerns in the market that the Canadian economy might slip into recession at a point in the future, the high levels of national and regional immigration and new household creation are expected to keep demand for housing elevated for some time to come regardless. Builders Capital is in a unique p...