Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. REPORTS FIRST QUARTER 2023 RESULTS

Builders Capital Mortgage Corp. has released its first quarter financial results for the period ended March 31, 2023.

Highlights include:

• Builders distributed 20.16 cents per share to its Class A public shareholders in Q1 2023, continuing the company's 10-year unbroken dividend record since inception.
• Subsequent to the quarter-end, the company distributed 39.45 cents per share to its Class B shareholders or the equivalent of an annualized 16-per-cent return on the original $10 share issue price.
• Total comprehensive income grew to $829,000, up 25 per cent year-over-year.
• Earnings per share increased to 26 cents, up 13 per cent year-over-year.
• Assets held for sale were successfully reduced by 35 per cent year-over-year. By quarter-end, assets held for sale represented just 2.6 per cent of shareholders' equity.
• Builders further enhanced the geographic diversity of its portfolio with continued growth in the British Columbia market. The proportion of the company's mortgage funds deployed in Alberta continued to become better balanced, decreasing to 47.6 per cent from 59.5 per cent a year ago.
• Builders achieved an approximate weighted average loan-to-value ratio on its mortgage portfolio of slightly better than its 75-per-cent target level.

In commenting on these results, Sandy Loutitt, president of Builders Capital, stated:

"Builders Capital is currently firing on all cylinders with our capital fully deployed, our non-productive inventory almost fully liquidated and with rising interest rates steadily improving profitability. We've never missed distributing our planned 20 cents per quarter to our A shareholders, and were able to distribute quarterly dividends at an annualized 16-per-cent rate to our B shareholders at the end of last month.

"Despite concerns that the Canadian economy may be moving towards recession, demand for housing is expected to remain elevated, driven by increased immigration and robust levels of new household creation. And, while other lenders may be limiting their exposure to construction financing, our specialization gives us the confidence and skill set to continue to effectively and efficiently deploy our capital in this area.

"Real estate prices in most regions in Canada have retreated significantly from the highs reached a year ago and while prices can always sink lower, we believe key economic indicators are pointing to flat or improving markets in the coming months. This, combined with the current status of our mortgage portfolio and the healthy average loan-to-value that we have maintained, assures us that Builders Capital is well positioned to weather any economic storms which may be brewing. Consequently, we expect our recent results to extend for at least the immediate future."

A more detailed discussion of the company's financial results can be found in Builders Capital's first quarter 2023 financial statements and management's discussion and analysis, which has been posted on the company's website and filed on SEDAR.

About Builders Capital Mortgage Corp.

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 Dec. 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.

We seek Safe Harbor.