Strategic Shift to Alberta

As at June 30, 2025, 78% of Builders Capital’s loans were located in Alberta — up from 54% on June 30, 2024. This reallocation reflects management’s view that Alberta currently offers a lower-risk lending environment compared to certain British Columbia markets.

Why Alberta?

• Affordability advantage: Alberta remains relatively more affordable than higher-cost provinces, attracting in-migration and sustained housing demand.
• Strong sales activity: The company reports robust sales and rental demand in Alberta, supporting new construction opportunities.
• Demand for entry- and mid-market homes: Net in-migration is increasing rental demand and stimulating construction of more affordable housing products.

“Alberta’s fundamentals continue to deliver quality lending opportunities which allow us to keep our lending book full and invested in marketable projects.”

Risk-aware Execution

Although Alberta shows strength, management is monitoring rising construction and subtrade costs that may compress builder margins. Builders Capital continues to apply conservative underwriting and increase loan loss provisions where warranted.

Approach to British Columbia

Builders Capital remains active in British Columbia but has taken a cautious stance in response to softer resale markets and falling sales activity in some regions. The company is redirecting underwriting away from higher-risk pockets — notably the Lower Mainland — and refocusing on more affordable product types and stable subregions outside the Lower Mainland.