Business
Builders Capital Mortgage Corp. Reports Second Quarter 2024 Results
Second Highest Quarterly Total Comprehensive Income of $830,000 Achieved, Just Shy of Last Year's...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Second Quarter 2024 ResultsSecond Highest Quarterly Total Comprehensive Income of $830,000 Achieved, Just Shy of Last Year's RecordCalgary, Alberta--(Newsfile Corp. - August 29, 2024) - 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, 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 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 Q2 2024 earnings. This provided an annualized 16% return on the original $10.00 share issue price. Achieved 2nd highest result in our history for total comprehensive income in a quarter with $830,000, second only to the $833,000 achieved in the same quarter in the previous yearEarnings per share remained consistent with Q1 2024 at $0.26. Operating expenses (excluding interest and funds set aside for potential loan losses) were within expectations at 9.5% of revenues.We continue to maintain a balanced presence in both Alberta and BC with 54% of the current mortgage pool invested in Alberta. Shifting affordability constraints in BC has motivated management to begin a transition to a greater portion of our loan concentration back to the Alberta market. We achieved a weighted average loan-to-value ratio on our mortgage portfolio of approximately 77%, slightly missing our 75% target level.In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"We are pleased to present the results for the quarter which produced positive, consistent returns. However, we see potential risks arising from a growing inventory of unsold houses 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 very excited to bring our participating bond offer to qualified investors, which will help us meet the rising demand for mortgages in our sector. Our current demand for quality mortgages exceeds our capital supply, so we look forward to utilizing this innovative tool to increase the size of our capit...