Debt Free Balance Sheet with Cash to Lend for Projects
Meeting Underwriting Standards

Broadmark Realty Capital Inc. (NYSE:BRMK) (the "Company") today announced that President and Chief Executive Officer Jeffrey Pyatt has issued the following letter to shareholders:

To Our Shareholders:

The coronavirus (COVID-19) outbreak continues to escalate, creating a heightened level of fear and uncertainty among the general public and jeopardizing the health of citizens in the United States and around the world. We are closely monitoring the situation, and our thoughts are with all of those whose health has been impacted by the virus.

At Broadmark, we are focused on keeping our employees and their families safe, while continuing to provide a high level of attention and service to our valued customers. As part of our business continuity planning, we have invested in resources and worked with experts to establish protocols and procedures designed to mitigate risk and ensure our business is capable of functioning through disruptive events. This includes measures to enable our employees to work remotely, serve our customers and comply with applicable regulatory and public health requirements.

Importantly, our fortress balance sheet with zero debt is a differentiator for us. Currently, we have ample cash to deploy and we are not dependent on outside lenders to fund our loans or construction draws. Current market conditions illustrate the advantage to borrowers of financing with Broadmark over lending sources that rely on the ability to draw debt to fund their commitments. These attributes give us confidence that we are well-positioned for the long term. That said, we are very mindful of the evolving market conditions and will continue to closely scrutinize every origination opportunity and manage our portfolio.

We have a deep network of borrowers who have relied on us for years to meet their capital needs and, at this time, borrowers across our markets continue to reach out to us seeking financing because of the flexibility and high certainty of execution that we offer. These are coveted qualities during unprecedented times like these. However, while construction draws remain relatively stable to date, it would be natural to expect some slowing related to the timing and pace.

Broadmark continues to operate from a position of strength, even during the current situation. We are in regular communication with our borrowers and believe the overall quality of our loan portfolio remains strong. We recognize that the COVID-19 pandemic and steps taken to combat it could impact borrowers. In this regard, it is important to note that all of the loans in our portfolio are secured by first liens and all are underwritten with loan-to-value ratios at or below 65% at origination and are backed by personal guarantees. Our borrowers have real equity invested and are motivated, however, in the case of foreclosure, we are in a position to complete and exit projects on our terms at the most opportunistic time.

The world has changed considerably since we founded Broadmark ten years ago following the financial crisis, and the current global public health emergency is a stark reminder that developments in financial markets are almost impossible to predict. However, what has remained a constant over the past decade is our commitment to always function as responsible stewards of capital, practice fiscal conservatism, never stray from our strict underwriting criteria, and to communicate with our investors transparently. Our promise on these fronts remains unwavering.

We have an experienced team of dedicated professionals and advisors who will help us manage through the current environment, and internalized management structure aligns our interests with shareholders.

Thank you in advance for your confidence in our capabilities and the trust that you have placed with us. We will continue to work hard every day to protect and enhance the value of your investment over the long term.

Stay safe and healthy.

Sincerely,

Jeffrey Pyatt
President and Chief Executive Officer

Forward Looking Statements

About Broadmark Realty Capital

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