Calgary, Alberta--(Newsfile Corp. - May 29, 2025) - Builders Capital Mortgage Corp. (TSXV: BCF) ("Builders Capital" or "the Company") announced today the release of its first quarter financial results for the period ended March 31, 2025.
Highlights include:
- Achieved highest-ever quarterly revenue of $1.77 million, representing a 50.1% increase compared to the same period in 2024. This growth was fueled by the full deployment of equity capital and additional funds raised through the closing of two tranches of our bond offering.
- 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 11 years ago.
- Subsequent to the quarter-end, we distributed $0.40 per share to our Class B shareholders based on Q1 2025 earnings. This provided an annualized 16% return on the original $10.00 share issue price.
- Our mortgage portfolio grew by 64.7% year-over-year, increasing to $53.1 million reflecting strong demand for construction financing and the successful launch of our participating bond offering. This strategic capital increase has also contributed to improved revenue and turnover.
- We continue to adopt a conservative lending approach, adjusting loan loss provisions in response to softening market conditions in British Columbia and increasing uncertainty due to factors such as trade tariffs and rising construction costs.
- The company's mortgage portfolio turnover rate remained strong at approximately 7 months, exceeding the target of nine months, indicating efficient capital deployment.
Financial Overview
| Quarter ended March 31, 2025 $ | Quarter ended March 31, 2024 $ | Quarter ended March 31, 2023 $ | Quarter ended March 31, 2022 $ | |
| Revenues | 1,770,360 | 1,179,354 | 1,084,900 | 844,516 |
| Total comprehensive earnings | 920,014 | 816,435 | 829,315 | 664,861 |
| Net mortgages receivable, end of period | 51,582,788 | 31,436,269 | 35,236,623 | 29,426,045 |
| Total assets | 52,173,588 | 32,957,219 | 36,010,916 | 30,682,037 |
| Shareholders' equity | 29,324,740 | 29,378,505 | 29,482,917 | 26,951,410 |
| Earnings per share | 0.29 | 0.26 | 0.26 | 0.23 |
| Cash dividends declared | 806,499 | 814,499 | 710,434 | 624,450 |
| Cash dividends declared per Class A share | 0.20 | 0.20 | 0.1972 | 0.1972 |
| Cash dividends declared per Class B share | 0.40 | 0.40 | 0.2898 | 0.2521 |
A detailed discussion of the Company's financial results can be found in Builders Capital's First quarter 2025 Financial Statements and Management's Discussion and Analysis, which has been posted on the Company's website (www.builderscapital.ca) and filed on SEDAR (www.sedar.com).
About Builders Capital
Builders Capital is a mortgage lender providing short-term course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The Company commenced active operations on December 12, 2013 on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.
Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations ("MIC") as defined in the Income Tax Act.
As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.
Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities legislation, including statements with respect to management's beliefs, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on estimates and assumptions that are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements contained in this news release. These include, among other things, risks associated with mortgage lending, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters and the general economic environment. The company cautions that the foregoing list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned against undue reliance on any forward-looking statements. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For more information, please contact:
Sandy Loutitt, CEO
Telephone: (403) 685-9888 Email: info@builderscapital.ca
Website: www.builderscapital.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253893
SOURCE: Builders Capital Mortgage Corp.
