Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. REPORTS SECOND QUARTER 2023 RESULTS: HIGHER RATES AND FULLY INVESTED CAPITAL RESULTS IN HIGHEST-EVER QUARTERLY INCOME

Builders Capital Mortgage Corp. has released its second quarter financial results for the period ended June 30, 2023.

Highlights include:

• Total comprehensive income grew to $833,000 in the second quarter of 2023, making this the most profitable quarter in the 10-year history of Builders.
• The company distributed 20 cents per share to its Class A public shareholders continuing its 10-year unbroken dividend payment record since inception.
• Subsequent to the quarter-end, the company distributed 40 cents per share to its Class B shareholders or the equivalent of an annualized 16-per-cent return on the original $10-per-share issue price.
• Earnings per share increased to 26 cents.
• Assets held for sale were reduced by 48 per cent year over year. By quarter-end, assets held for sale represented just 2.2 per cent of shareholders equity.
• The company 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, stated: "Builders Capital continues to show stronger and stronger results. High demand from builders combined with higher market interest rates has led to the company being fully invested in increasingly profitable loans. We have also substantially reduced any non-productive inventory and are not requiring any unusual loan loss provisions. We have 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 while also growing our retained earnings. The outlook for these conditions to remain or expand is positive as the company's operating environment in Western Canada in particular remains strong and resilient.

"While there are some concerns in the market that the Canadian economy might slip into recession at a point in the future, the high levels of national and regional immigration and new household creation are expected to keep demand for housing elevated for some time to come regardless. Builders Capital is in a unique position in a market that relies on the services we provide. We are confident that our particular skill set and expertise in the construction finance marketplace will allow us to continue to profitably deploy our capital in this area."

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

About Builders Capital Mortgage Corp.

Builders 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' investment objective is to generate attractive returns, relative to risk, 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 is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its Dec. 31 year-end. Such dividends are generally treated by shareholders as interest income, so that shareholder are in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by shareholders.

We seek Safe Harbor.