Business
Builders Capital Mortgage Corp. Reports Third Quarter 2022 Results
Successful Two-Year Trend of Increasing Earnings Continues Calgary, Alberta--(Newsfile Corp...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Third Quarter 2022 ResultsSuccessful Two-Year Trend of Increasing Earnings ContinuesCalgary, Alberta--(Newsfile Corp. - November 15, 2022) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announced today the release of its third quarter financial results for the period ending September 30, 2022. Highlights include:Consistent with our targeted distribution, dividends of $0.2016 per share were paid to Class A public shareholders representing an 8% annualized return on the original $10.00 issue price for the thirty-fifth consecutive quarter since inception.Year-to-date total comprehensive income of $2.1 million up 22% year-over-year.Assets held for sale were successfully reduced by 52% and now represent only 4.3% of shareholders' equity.Geographic diversity of our portfolio was further enhanced with continued growth in the BC market and our recent expansion into Nova Scotia.The net mortgage portfolio grew to represent 114% of Shareholders' equity.In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"Despite signs that the greater economy appears to be slowing, and that a recession is possible in the new year, we continue to regularly receive many inquiries about access to our construction mortgage services and our lending book is currently fully utilized. We expect strong demand for housing and elevated levels of household creation to keep the local and regional construction industry very active for the foreseeable future, even if home prices and sales volumes cool. Fortunately, thanks to Builders Capital's flexible and carefully constructed business model, the success of our builder clients is not necessarily dependent solely upon high real-estate values, but rather the continuation of markets in which margins are sufficient to support the industry.\"Thanks to the ongoing and strong demand that we forecast for our brand of construction finance, we have taken steps to complete a capital raise by way of a rights offering. Through this mechanism, existing shareholders are being given the opportunity to increase their investment in our company on a discounted basis. We anticipate the full sale of these securities will raise a gross amount of about $6.0 million, thereby increasing Builders Capital's capital base by 22%. The n...