Business
Builders Capital Mortgage Corp. Reports Second Quarter Results
Ongoing Improvements in Real Estate Markets Lead to Significant Portfolio Growth Calgary, Alb...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Second Quarter ResultsOngoing Improvements in Real Estate Markets Lead to Significant Portfolio GrowthCalgary, Alberta--(Newsfile Corp. - August 23, 2021) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announces that it has released its second quarter financial results for the period ending June 30, 2021. Highlights include:Current mortgage portfolio grows by 37% Assets held for sale were reduced by 16.6% year-over-year and by 19.3% in the quarterConsistent with its targeted distribution commitment, dividends paid to Class A shareholders in the quarter were $0.1995 per share, or a consistent 8% annual return on the original $10.00 issue price This is the 30th consecutive quarter since inception that Builders Capital has achieved its 8% distribution targetIn line with management's targets, a weighted average loan-to-value ratio of approximately 75% was achieved in the mortgage portfolioIn commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"Builders Capital's recent high rate of mortgage payouts started in the fall of 2020 and has continued into this quarter thanks to overall strong real estate market conditions. Our strategy has always been to keep our loan duration short and our turnover high in order to maximize lender fees and to assist in mitigating risk and, happily, this strategy continues to prove successful. We work hard to encourage our borrowers to complete and to sell, or re-finance, their construction projects quickly and efficiently. While this high level of cash inflow did result in a dip in the size of our mortgage portfolio and created a slight drag on interest revenues earlier, we are pleased that through the end of the quarter we succeeded in sourcing additional quality mortgage investments and grew the portfolio by 50% from the end of April to the end of June.\"\"These stronger markets have also created an opportunity for us to further reduce assets held for sale and we have been busy converting non-productive inventory into productive mortgages. We continue to be very optimistic that our overall business strategy, including our ongoing drive for additional geographic diversification, will allow Builders Capital to meet current and future portfolio and distribution targets.\"Financial OverviewThree m...