Business
Builders Capital Mortgage Corp. Reports Third Quarter 2024 Results:
Second Highest Quarterly Gross Income of $1,257,830 Reflecting Strong Performance Calgary, Alber...
About this update from Builders Capital Mortgage Corp. Class A
[{"type":"text","content":"Builders Capital Mortgage Corp. Reports Third Quarter 2024 Results:Second Highest Quarterly Gross Income of $1,257,830 Reflecting Strong PerformanceCalgary, Alberta--(Newsfile Corp. - November 29, 2024) - Builders Capital Mortgage Corp. (TSXV: BCF) (\"Builders Capital\" or \"the Company\") announced today the release of its third quarter financial results for the period ended September 30, 2024.Highlights include:We distributed $0.20 per share to our Class A public shareholders, maintaining our consistent track record of meeting our distribution target 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 Q3 2024 earnings. This provided an annualized 16% return on the original $10.00 share issue price. We achieved our second-highest gross income to date of $1,257,830, reflecting strong performance and continued business resilience.Earnings per share remained steady compared to Q2 2024 at $0.26. Operating expenses (excluding interest and funds set aside for potential loan losses) were within expectations at 8.7% of revenues.Consistent with our strategic goals, we have continued to shift a greater portion of our loans to Alberta. During the quarter, the percentage of loans in Alberta increased from 54% to 64%. This trend is driven by continuing affordability constraints in British Columbia. We slightly missed our target weighted average loan-to-value ratio on our mortgage portfolio of 75% by 2%, consistent with the prior quarter. We are pleased to note that this ratio has remained stable at 77% and has not increased quarter over quarter. In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:\"We are pleased to present the results for the quarter where we continued to produce positive, consistent returns. We are underwriting carefully and maintaining a conservative posture in our B.C. markets. The management team continues to source, underwrite, and administer loans with a judicious eye to risk management without compromising yield.\"\"We are pleased to have closed our first tranche of the bond offering which will help diversify risk for our existing shareholders while providing attractive returns for our bond investors.\"Financial Overview Quarter ended September 30, 2024$Quarter ended September 30, ...