Toronto, Ontario--(Newsfile Corp. - May 13, 2025) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.D) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three months ended March 31, 2025.
Highlights
Quarterly basic and diluted earnings per share of $0.25
Quarterly net income of $11.9 million
Mortgage portfolio of $875.0 million
High quality mortgage portfolio
96.7% of portfolio in first mortgages
96.3% of portfolio is less than 75% loan-to-value
average loan-to-value is 61.1%
"I am very pleased with our first quarter results, both from an earnings and quality perspective. We continue to generate earnings per share well above our dividend. Our underwriting teams originated almost $120 million in new loan business in Q1, which is well above our historic average and is particularly impressive in a market that has so little activity. We have begun to notice slightly less competition within the nonbank sector, and we are hopeful that Atrium MIC can pick up market share over the next year or two.
We have also remained focused on maintaining a low risk profile for the portfolio. In particular, we have reduced our portfolio loan to value over the last twelve months from 64.0% to 61.1%, and the percentage of conventional mortgages has increased from 91.2% twelve months ago to 96.3% at Q1. These initiatives have resulted in a resilient portfolio despite weak real estate markets and a stagnant economy. Our Stage 3 loans have dropped to 2.2% of the mortgage portfolio, the lowest level since Q2 of 2023. Our annualized loan turnover has risen to approximately 55% over the last two quarters which is unusually high, and is a testament to the quality of the loans in the portfolio," said Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management on Wednesday, May 14, 2025 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1-833-491-0507 (call topic: First quarter results). For a replay of the conference call (available until May 28, 2025) please call 1-833-607-0619, passcode 7772119#.
Results of operations
For the three months ended March 31, 2025, Atrium reported assets of $852.8 million, down from $864.3 million at the end of 2024. Net income for first quarter of 2025 was $11.9 million, a decrease of 1.2% from the first quarter of the prior year. Atrium's allowance for mortgage losses at March 31, 2025 totaled $29.1 million, or 3.33% of the mortgage portfolio, which is consistent with $29.6 million or 3.33% of the mortgage portfolio at December 31, 2024.
Basic and diluted earnings per common share were $0.25 for the three months ended March 31, 2025, compared with $0.27 in the comparative period, a decrease of 7.4%.
Mortgages receivable as at March 31, 2025 were $851.6 million, down from $863.2 million as at December 31, 2024. During the three months ended March 31 2025, $118.9 million of mortgage principal was advanced and $120.6 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2025 was 9.56%, compared to 9.98% at December 31, 2024.
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| Three months ended | ||||||
| March 31 | ||||||
| 2025 | 2024 | |||||
| Revenue | $ | 21,963 | $ | 25,193 | ||
| Mortgage servicing and management fees | (2,176 | ) | (2,076 | ) | ||
| Other expenses | (351 | ) | (406 | ) | ||
| Recovery of prior mortgage losses | 43 | - | ||||
| Provision for mortgage losses | (2,204 | ) | (3,854 | ) | ||
| Income before financing costs | 17,275 | 18,857 | ||||
| Financing costs | (5,374 | ) | (6,816 | ) | ||
| Net income and comprehensive income | $ | 11,901 | $ | 12,041 | ||
| Basic earnings per share | $ | 0.25 | $ | 0.27 | ||
| Diluted earnings per share | $ | 0.25 | $ | 0.27 | ||
| Dividends declared | $ | 10,995 | $ | 9,931 | ||
| Mortgages receivable, end of period | $ | 851,615 | $ | 867,078 | ||
| Total assets, end of period | $ | 852,848 | $ | 868,279 | ||
| Shareholders' equity, end of period | $ | 520,460 | $ | 487,276 | ||
| Book value per share, end of period | $ | 10.98 | $ | 11.02 | ||
Analysis of mortgage portfolio
| As at March 31, 2025 | As at December 31, 2024 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| High-rise residential | 18 | $ | 265,281 | 30.3% | 17 | $ | 247,202 | 27.9% | ||||||||||
| Mid-rise residential | 19 | 130,015 | 14.9% | 20 | 139,738 | 15.8% | ||||||||||||
| Low-rise residential | 11 | 117,673 | 13.4% | 12 | 152,827 | 17.2% | ||||||||||||
| House and apartment | 225 | 150,302 | 17.2% | 219 | 154,713 | 17.5% | ||||||||||||
| Condominium corporation | 6 | 1,221 | 0.1% | 6 | 1,279 | 0.1% | ||||||||||||
| Residential portfolio | 279 | 664,492 | 75.9% | 274 | 695,759 | 78.5% | ||||||||||||
| Commercial | 25 | 210,496 | 24.1% | 24 | 190,939 | 21.5% | ||||||||||||
| Mortgage portfolio | 304 | $ | 874,988 | 100.0% | 298 | $ | 886,698 | 100.0% | ||||||||||
| As at March 31, 2025 | |||||||||||||||
| Weighted | Weighted | ||||||||||||||
| Number of | Outstanding | Percentage | average | average | |||||||||||
| Location of underlying property | mortgages | amount | outstanding | loan-to-value | interest rate | ||||||||||
| (outstanding amounts in 000s) | |||||||||||||||
| Greater Toronto Area | 224 | $ | 776,693 | 88.8% | 60.3% | 9.55% | |||||||||
| Non-GTA Ontario | 68 | 53,592 | 6.1% | 64.6% | 8.72% | ||||||||||
| British Columbia | 12 | 44,703 | 5.1% | 70.0% | 10.78% | ||||||||||
| 304 | $ | 874,988 | 100.0% | 61.1% | 9.56% | ||||||||||
| As at December 31, 2024 | |||||||||||||||
| Weighted | Weighted | ||||||||||||||
| Number of | Outstanding | Percentage | average | average | |||||||||||
| Location of underlying property | mortgages | amount | outstanding | loan-to-value | interest rate | ||||||||||
| (outstanding amounts in 000s) | |||||||||||||||
| Greater Toronto Area | 211 | $ | 791,809 | 89.3% | 60.6% | 9.96% | |||||||||
| Non-GTA Ontario | 73 | 40,816 | 4.6% | 69.6% | 9.15% | ||||||||||
| British Columbia | 14 | 54,073 | 6.1% | 75.0% | 10.96% | ||||||||||
| 298 | $ | 886,698 | 100.0% | 61.9% | 9.98% | ||||||||||
For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's interim consolidated financial statements and its management's discussion and analysis for the quarter ended March 31, 2025, available on SEDAR+ at www.sedarplus.ca, and on the company's website at www.atriummic.com.
About Atrium
Canada's Premier Non-Bank Lender
Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders' equity by lending within conservative risk parameters. Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act, so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information about Atrium, please refer to regulatory filings available at www.sedarplus.ca or investor information on Atrium's website at www.atriummic.com.
For additional information, please contact
Robert G. Goodall
Chief Executive Office
Razvan Vulcu
Interim Chief Financial Officer
(416) 867-1053
info@atriummic.com
www.atriummic.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252021
SOURCE: Atrium Mortgage Investment Corporation
