Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. REPORTS THIRD QUARTER 2023 RESULTS: ANOTHER QUARTER OF STRONG CONSISTENT PERFORMANCE

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

Highlights include:

• Total comprehensive income ended the quarter at $817,368 in the third quarter of 2023, making this another profitable quarter.
• The company distributed 20 cents per share to its Class A public shareholders, continuing its 10-year unbroken dividend record since inception.
• Subsequent to the quarter-end, it distributed 40 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.
• Earnings per share increased to 26 cents.
• Assets held for sale were reduced by 45 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 Capital, stated: "Builders Capital has achieved another strong quarter. We are pleased with the overall portfolio returns, which are consistent with our previous quarters. We would consider ourselves as cautiously optimistic in that we see continued profitability, though in the later portions of 2023 and early 2024, we can see that profitability will not extend to all of our market segments. Accordingly, we are positioning ourselves to manage forward risk and fully expect to pay our A dividends as we have in the past. 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 while also growing our retained earnings.

"There are concerns in the market that the Canadian economy might slip into recession in the reasonably near future; however, high levels of immigration and new household creation are expected to keep demand for housing elevated for some time to come regardless. 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 Capital's second quarter 2023 financial statements and management's discussion and analysis, which have 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, to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations 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 Dec. 31 year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if the proportionate share of mortgage investments made by the company had been made directly by the shareholder.

We seek Safe Harbor.