Mr. Sandy Loutitt reports

BUILDERS CAPITAL MORTGAGE CORP. RELEASES ANNUAL FINANCIAL STATEMENTS; REPORTS STRONG RESULTS FOR 2023: ANNUAL INCOME UP 21.6% YEAR-OVER-YEAR

Builders Capital Mortgage Corp. has released its annual report and financial results for the year ending Dec. 31, 2023.

Highlights include:

• Consistent with the company's targeted distribution plan and its dividend history since inception, total dividend payments of 80 cents per share were paid to Class A public shareholders in 2023.
• Total comprehensive income grew to $3.3-million, up 21.6 per cent year over year.
• Assets held for sale were successfully reduced by 45 per cent year over year. By year-end, assets held for sale represented just 2.2 per cent of shareholders' equity.
• The company achieved the highest quarterly revenue result in its history, with fourth quarter revenues growing 18.72 per cent to $1.26-million, from $1.06-million in Q4 2022.
• Earnings per share increased to $1.04, up 13 per cent from 92 cents in 2022.

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

"We are happy to publish the results of another productive year. The management team continues to source, underwrite and administer loans with a judicious eye to risk management without compromising yield. A tight housing supply has spurred activity in our sector, creating ample opportunity to place productive loans with builders who are showing improving margins. That said, the rising cost of labour is clearly impacting builder profitability and the underwriting team continues to factor this into our approval process.

"We are very excited to bring our participating bond offer to qualified investors, which will help us meet the rising demand for mortgages in our sector. Our current demand for quality mortgages exceeds our capital supply, so we look forward to utilizing this innovative tool to increase the size of our capital stock for our borrowers while providing good returns with short-term liquidity to our new participating bond investors."

A more detailed discussion of the company's financial results can be found in Builders Capital's fiscal 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.

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 such shareholder's proportionate share of mortgage investments made by the company had been made directly by the shareholder.

We seek Safe Harbor.