Toronto, Ontario--(Newsfile Corp. - August 8, 2024) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three and six months period ended June 30, 2024.
Highlights
Quarterly basic and diluted earnings per share of $0.26
Quarterly net income of $11.5 million
Record mortgage portfolio of $907.8 million
Amended the credit facility to increase the maximum available amount to $340 million
High quality mortgage portfolio
96.8% of portfolio in first mortgages
89.5% of portfolio is less than 75% loan to value
average loan-to-value is 64.4%
"Atrium continued to deliver strong returns for shareholders by posting earnings per share of $0.26 for the second quarter and $0.53 year to date. These results are comfortably above our regular divided rates of $0.225 for the quarter and $0.45 year to date. Our focus remains on navigating through challenging real estate market conditions and the portfolio composition now has 96.8% of the portfolio in first mortgages and 89.5% with a loan to value less than 75%. Despite slower market activity, we managed to source high quality opportunities that increased the mortgage portfolio to a record $908 million at quarter end. We also solidified our funding sources during the quarter by adding Royal Bank to our lending syndicate which is a testament to our strong financial performance and portfolio quality. We continue to believe that credit risk remains elevated across the industry and have prudently increased our provisions accordingly. While we remain hopeful that lower inflation and interest rates will help improve market conditions over the coming quarters, we continue to lend defensively in our preferred sectors," said Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management on Friday, August 9, 2024 at 9:00 a.m. ET to discuss the results. To participate or listen to the conference call live, please call 1-833-491-0507 (call topic: Second quarter results). For a replay of the conference call (available until August 22, 2024) please call 1-833-607-0619, password 5756717#.
Results of operations
For the three months ended June 30, 2024, Atrium reported assets of $885.6 million, up from $877.9 million at the end of 2023. Revenues were $24.9 million, an increase of 5.9% from the second quarter of the prior year. Net income for the second quarter of 2024 was $11.5 million, a decrease of 20.1% from the comparative period. Atrium's allowance for mortgage losses at June 30, 2024 totaled $29.3 million, or 3.23% of the gross mortgage portfolio, which is up from $22.6 million or 2.53% of the mortgage portfolio at December 31, 2023.
For the six months ended June 30, 2024, revenues were $50.1 million, an increase of 6.1% from the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 was $23.6 million, a decrease of 17.7% from the prior year period.
Basic and diluted earnings per common share were $0.26 for the three months ended June 30, 2024, compared with $0.33 and $0.32 basic and diluted earnings per common share respectively in the comparable period. Basic and diluted earnings per common share were $0.53 for the six months ended June 30, 2024, compared with $0.66 and $0.63 basic and diluted earnings per common share respectively for the six months ended June 30, 2023.
Mortgages receivable as at June 30, 2024 was $884.4 million, up from $876.7 million as at December 31, 2023. During the six months ended June 30, 2024, $174.4 million of mortgage principal was advanced and $159.8 million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2024 was 10.93%, 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 | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | $ | 24,930 | $ | 23,548 | $ | 50,123 | $ | 47,255 | ||||
| Mortgage servicing and management fees | (2,170 | ) | (2,052 | ) | (4,246 | ) | (4,106 | ) | ||||
| Other expenses | (244 | ) | (332 | ) | (650 | ) | (776 | ) | ||||
| Recovery of prior mortgage loss | 183 | - | 183 | 157 | ||||||||
| Provision for mortgage losses | (4,365 | ) | (690 | ) | (8,219 | ) | (1,642 | ) | ||||
| Income before financing costs | 18,334 | 20,474 | 37,191 | 40,888 | ||||||||
| Financing costs | (6,805 | ) | (6,045 | ) | (13,621 | ) | (12,247 | ) | ||||
| Net income and comprehensive income | $ | 11,529 | $ | 14,429 | $ | 23,570 | $ | 28,641 | ||||
| Basic earnings per share | $ | 0.26 | $ | 0.33 | $ | 0.53 | $ | 0.66 | ||||
| Diluted earnings per share | $ | 0.26 | $ | 0.32 | $ | 0.53 | $ | 0.63 | ||||
| Dividends declared | $ | 9,971 | $ | 9,822 | $ | 19,902 | $ | 19,607 | ||||
| Mortgages receivable, end of period | $ | 884,401 | $ | 817,421 | $ | 884,401 | $ | 817,421 | ||||
| Total assets, end of period | $ | 885,569 | $ | 831,917 | $ | 885,569 | $ | 831,917 | ||||
| Shareholders' equity, end of period | $ | 490,455 | $ | 489,010 | $ | 490,455 | $ | 489,010 | ||||
| Book value per share, end of period | $ | 11.06 | $ | 11.19 | $ | 11.06 | $ | 11.19 | ||||
Analysis of mortgage portfolio
| As at June 30, 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 | $ | 313,174 | 34.5% | 22 | $ | 323,340 | 36.2% | ||||||||
| Mid-rise residential | 21 | 165,852 | 18.3% | 25 | 208,289 | 23.3% | ||||||||||
| Low-rise residential | 15 | 163,292 | 18.0% | 14 | 153,561 | 17.2% | ||||||||||
| House and apartment | 177 | 132,000 | 14.5% | 153 | 117,943 | 13.2% | ||||||||||
| Condominium corporation | 8 | 1,612 | 0.2% | 10 | 1,786 | 0.2% | ||||||||||
| Residential portfolio | 242 | 775,930 | 85.5% | 224 | 804,919 | 90.1% | ||||||||||
| Commercial | 19 | 131,882 | 14.5% | 19 | 88,640 | 9.9% | ||||||||||
| Mortgage portfolio | 261 | $ | 907,812 | 100.0% | 243 | $ | 893,559 | 100.0% | ||||||||
| As at June 30, 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 | 186 | $ | 711,657 | 78.4% | 60.9% | 11.05% | |||||||
| Non-GTA Ontario | 55 | 39,033 | 4.3% | 65.5% | 9.71% | ||||||||
| British Columbia | 20 | 157,122 | 17.3% | 80.0% | 10.71% | ||||||||
| 261 | $ | 907,812 | 100.0% | 64.4% | 10.93% | ||||||||
| As at December 31, 2023 | |||||||||||||
| 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 | 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 interim consolidated financial statements and its management's discussion and analysis for the three and six month period ended June 30, 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/219303
SOURCE: Atrium Mortgage Investment Corporation
