Atrium Mortgage Investment Corporation Announces First Quarter Results with Strong Quarterly Net Income
Toronto, Ontario--(Newsfile Corp. - May 14, 2024) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three month period ended March 31, 2024.
Highlights
Quarterly basic and diluted earnings per share of $0.27
Quarterly net income of $12.0 million
Mortgage portfolio of $886.1 million, up 4.8% over Q1 of the prior year
High quality mortgage portfolio
96.7% of portfolio in first mortgages
91.2% of portfolio is less than 75% loan to value
average loan-to-value is 64.0%
"Atrium began 2024 with another strong quarter. Earnings per share of $0.27 was consistent with our fourth quarter results and significantly exceeded the dividends declared of $0.225. Our lending program is specifically targeting lower risk sectors in order to protect shareholder capital during this downturn in the cycle. Maintaining a defensive portfolio remains our top priority. At quarter end, the weighted average loan to value on the mortgage portfolio remained conservative at 64.0%, and 96.7% of Atrium's mortgages were first mortgages. Despite the mortgage portfolio performing well in Q1, we decided to increase our allowance for mortgage losses in recognition of the continued challenges experienced by real estate markets across Canada. While the prospect of lower rates and easing inflation in the second half of the year should improve market conditions, we intend to remain diligent in managing the existing portfolio and continue to focus on our preferred sectors for new loan business," said Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management on Wednesday, May 15, 2024 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, 2024) please call 1-833-607-0619, password 6057203#.
Results of operations
For the three month period ended March 31, 2024, Atrium reported assets of $868.3 million, slightly down from $877.9 million at the end of 2023. Revenues were $25.2 million, an increase of 6.3% from the first quarter of the prior year. Net income for first quarter of 2024 was $12.0 million, a decrease of 15.3% from the first quarter of the prior year. Atrium's allowance for mortgage losses at March 31, 2024 totaled $24.9 million, or 2.81% of the mortgage portfolio, which is up from $22.6 million or 2.53% of the mortgage portfolio at December 31, 2023.
Basic and diluted earnings per common share were $0.27, for the three months ended March 31, 2024, compared with $0.33 and $0.31 basic and diluted earnings per common share in the comparative period, a decrease of 18.2% (basic) and 12.9% (diluted).
Mortgages receivable as at March 31, 2024 was $867.1 million, down from $876.7 million as at December 31, 2023. During the three month period ended March 31 2024, $78.4 million of mortgage principal was advanced and $81.6 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2024 was 11.25%, compared to 11.42% at December 31, 2023.
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| | Three months ended | | ||||
| | March 31 | | ||||
| | 2024 | 2023 | | |||
| Revenue | $ | 25,193 | $ | 23,707 | ||
| Mortgage servicing and management fees | (2,076 | ) | (2,054 | ) | ||
| Other expenses | (406 | ) | (444 | ) | ||
| Recovery of prior mortgage losses | - | 157 | ||||
| Provision for mortgage losses | | (3,854 | ) | (952 | ) | |
| Income before financing costs | 18,857 | 20,414 | ||||
| Financing costs | | (6,816 | ) | (6,202 | ) | |
| Net income and comprehensive income | $ | 12,041 | $ | 14,212 | | |
| Basic earnings per share | $ | 0.27 | $ | 0.33 | ||
| Diluted earnings per share | $ | 0.27 | $ | 0.31 | ||
| Dividends declared | $ | 9,931 | $ | 9,785 | ||
| Mortgages receivable, end of period | $ | 867,078 | $ | 840,019 | ||
| Total assets, end of period | $ | 868,279 | $ | 854,511 | ||
| Shareholders' equity, end of period | $ | 487,276 | $ | 482,763 | ||
| Book value per share, end of period | $ | 11.02 | $ | 11.08 | ||
Analysis of mortgage portfolio
| As at March 31, 2024 | As at December 31, 2023 | | ||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||
| Property Type | Number | | amount | Portfolio | Number | amount | Portfolio | | ||||||||
| (outstanding amounts in 000s) | ||||||||||||||||
| High-rise residential | 21 | $ | 318,497 | 35.9% | 22 | $ | 323,340 | 36.2% | ||||||||
| Mid-rise residential | 23 | 179,523 | 20.3% | 25 | 208,289 | 23.3% | ||||||||||
| Low-rise residential | 15 | 155,859 | 17.6% | 14 | 153,561 | 17.2% | ||||||||||
| House and apartment | 164 | 125,089 | 14.1% | 153 | 117,943 | 13.2% | ||||||||||
| Condominium corporation | 10 | 1,691 | 0.2% | 10 | 1,786 | 0.2% | ||||||||||
| Residential portfolio | 233 | 780,659 | 88.1% | 224 | 804,919 | 90.1% | ||||||||||
| Commercial | 17 | 105,429 | 11.9% | 19 | 88,640 | 9.9% | ||||||||||
| Mortgage portfolio | 250 | $ | 886,088 | 100.0% | 243 | $ | 893,559 | 100.0% | ||||||||
| As at March 31, 2024 | ||||||||||||||
| Weighted | Weighted | |||||||||||||
| average | average | |||||||||||||
| Location of underlying property | Number of mortgages | Outstanding amount | Percentage outstanding | loan to value | interest rate | |||||||||
| (outstanding amounts in 000s) | ||||||||||||||
| Greater Toronto Area | 173 | $ | 667,028 | 75.3% | 60.8% | 11.40% | ||||||||
| Non-GTA Ontario | 55 | 41,449 | 4.7% | 64.8% | 9.85% | |||||||||
| British Columbia | 21 | 170,161 | 19.2% | 75.7% | 10.89% | |||||||||
| Alberta | 1 | 7,450 | 0.8% | 71.0% | 14.00% | |||||||||
| 250 | $ | 886,088 | 100.0% | 64.0% | 11.25% | |||||||||
| As at December 31, 2023 | ||||||||||||||
| Weighted | Weighted | |||||||||||||
| average | average | |||||||||||||
| Location of underlying property | Number of mortgages | Outstanding amount | Percentage outstanding | loan to value | interest rate | |||||||||
| (outstanding amounts in 000s) | ||||||||||||||
| Greater Toronto Area | 166 | $ | 653,401 | 73.1% | 61.4% | 11.63% | ||||||||
| Non-GTA Ontario | 52 | 40,753 | 4.6% | 64.6% | 9.81% | |||||||||
| British Columbia | 24 | 191,955 | 21.5% | 60.6% | 10.95% | |||||||||
| Alberta | 1 | 7,450 | 0.8% | 71.0% | 14.00% | | ||||||||
| 243 | $ | 893,559 | 100.0% | 61.4% | 11.42% | |||||||||
For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's consolidated financial statements and its management's discussion and analysis for the year ended March 31, 2024, 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 Officer
John Ahmad
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/209167
