Builders Capital Mortgage Corp.
A Resilient Dividend Play
Published: 12/10/2024
Author: FRC Analysts
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:
BCF - TSX 🔹
- In Q3-2024, BCF recorded its highest-ever quarterly revenue (up 5% YoY), amid higher lending rates, and mortgage originations, beating our estimate by 3%.
- However, EPS was flat YoY, driven by higher loan loss provisions, missing our estimate by 7%. Annual regular dividends remained unchanged at $0.80/share, reflecting a yield of 8.7%.
- Stage three mortgages (impaired) increased QoQ, from 1.7% to 5.7% of mortgages, driven by a builder with two mortgages facing liquidity challenges. However, management is opt
