Calgary, Alberta--(Newsfile Corp. - April 29, 2026) - Builders Capital Mortgage Corp. (TSXV: BCF) ("Builders Capital" or "the Company") announced today the release of its annual report and financial results for the year ending December 31, 2025.

Highlights include:

• Consistent with our targeted distribution, we paid dividends of $0.80 per share to our Class A public shareholders in 2025. This represents an 8% annual return on the original $10.00 issue price for the eleventh consecutive year since inception.

• Continued strong demand for construction financing, coupled with elevated interest rates led to record setting gross annual revenue of $7.6 million in 2025, an increase of 46.50% over 2024.

• The mortgage portfolio grew by 13.10% year-over-year, increasing to $50.02 million reflecting strong demand for construction financing in the year and the second tranche of our participating bond offering successfully closing. 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 increased uncertainty arising from factors such as trade tariffs, rising construction costs and the geopolitical conflict in the Middle East. As at year end, 81% of our loans are in Alberta, up from 68 % as at December 31, 2024.

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

"Our annual results reflect a strong year, with several key lending parameters being achieved. While we delivered some of our strongest returns to date in the year, we anticipate a more moderate operating environment in the coming year.

A combination of factors is expected to influence housing demand, for a small net positive gain by end of 2026. The National Bank Teranet Index indicates Alberta experienced an average price decline of about 3% from its 2025 peak.

We expect positive drivers, such as oil prices and renewed discussions around expanding market access for oil, to support continued net in migration. However, this may be offset by higher interest rates to address inflation and an abundance of less desirable inventory. Municipal development trends have driven increased high-density supply, which we expect will see limited demand going forward.

In British Columbia, economic conditions remain impacted by tariff uncertainty and evolving regulatory frameworks affecting land title and development. Policy developments, including the ongoing implementation of UNDRIP, have introduced additional complexity in land rights and approval processes, contributing to increased uncertainty in the region, and we continue to reduce our exposure to this market.

Across Western Canada, higher inventory levels are slowing new housing starts, similar to trends seen in the Greater Toronto Area. This may help moderate what we view as excessive land price appreciation in the latter half of 2024, and while land prices tend to be slow to decline, we expect some softening going forward."

Financial Overview

A more detailed discussion of the Company's financial results can be found in Builders Capital's Fiscal 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.sedarplus.ca).

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 31^st 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.

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/295075

Source: Builders Capital Mortgage Corp.