Broadmark Realty Capital Inc. (BRMK) Misses Q3 EPS by 2c, Revenues Miss

Broadmark Realty Capital Inc. (NYSE: BRMK) reported Q3 EPS of $0.18, $0.02 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $29 million versus the consensus estimate of $31.29 million.

Third Quarter 2020 Financial Highlights

• Total Revenue of $29.0 million for the three months ended September 30, 2020.
• GAAP Net Income of $23.2 million, or $0.18 per diluted common share.
• Core Earnings, a non-GAAP financial measure, of $23.3 million, or $0.18 per diluted common share.

Third Quarter 2020 Loan Portfolio Highlights

• Originated $153.4 million, comprised of 22 loans at a weighted average loan to value of 60.6%.
• Interest income was $21.8 million and fee income was $7.1 million.
• Total loan portfolio of $1.2 billion across 12 states and the District of Columbia.

“We are very happy to have regained momentum as our third quarter origination volumes have returned to pre-COVID levels, reflecting the resiliency of housing fundamentals in our high-growth target markets,” said Jeff Pyatt, President and Chief Executive Officer of Broadmark. “We continue to experience sustained demand for construction loans supported by the current low interest rate environment as well as continued new household formation. Furthermore, we are gaining incremental share in all of our regions, particularly in our newer Southeast and Mid-Atlantic markets as we demonstrate our unparalleled speed and certainty of execution relative to other lenders.”

Mr. Pyatt continued, “We believe that we are incredibly well positioned with our portfolio of primarily residential loans and a continued focus on supporting the effort to meet the housing shortage. The demand for new housing construction has persisted through the pandemic, while other real estate assets remain under pressure. Our lending expertise and no debt balance sheet position us to capitalize on these near and long-term drivers as we focus on the creation of shareholder value in the process.”

For earnings history and earnings-related data on Broadmark Realty Capital Inc. (BRMK) click here.

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