Executive chairman optimistic about continued growth in 2024
Dominion Lending Centres Inc. (DLCG) said it continued its positive momentum in the first quarter of 2024 as the Canadian residential real estate market showed signs of stabilizing after last year's downturn.
The mortgage professional network reported Q1 2024 funded mortgage volumes of $11.2 billion, a 14% increase compared to Q1 2023. Revenues rose 17% year-over-year to $13.7 million.
"We believe the Canadian residential real estate market has stabilized following multiple interest rate increases and market activity seems to be increasing," DLCG executive chairman and CEO Gary Mauris said in the company’s earnings report. "DLCG is well-positioned for the real estate market recovery."
Mauris cited the company's focus on recruitment, retention of franchises and brokers, and onboarding efforts for its connectivity platform Velocity as key areas that fuelled its growth.
The improved revenues flowed through to DLCG's bottom line, with Q1 adjusted EBITDA hitting $5 million versus $2.6 million a year ago. Net income jumped to $2.6 million from a $47,000 net loss in Q1 2023.
"With significant mortgage renewals on the horizon for many Canadians over the next three years, we've also launched a new campaign for our mortgage professionals called 'Gold Rush' that makes it easier for brokers to stay connected with their clients and remain top-of-mind," Mauris said.
During the quarter, DLCG paid a $0.03 per share quarterly dividend totalling $1.4 million. After Q1, the company sold its interest in Impact for $3.7 million, using the proceeds to pay down debt.
"We remain optimistic for fiscal 2024, and we anticipate seeing further positive momentum in our mortgage volumes, revenues, and margins as the real estate market improves over the next 12-18 months with the prospect of declining interest rates starting in 2024," said Mauris.
Headquartered in British Columbia, Dominion Lending Centres was founded in 2006 and operates Canada's largest network of nearly 8,200 mortgage professionals across over 500 locations nationwide.
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