Atrium Mortgage Investment Corporation Announces a Strong Finish to a Very Successful Year and $0.16 Special Dividend for 2024
Rhea-AI Summary
Atrium Mortgage Investment reported strong financial results for 2024, with annual net income of $47.9 million and earnings per share of $1.06 basic and $1.05 diluted. The company announced a special dividend of $0.16 per share, payable on March 19, 2025, to shareholders of record on December 31, 2024.
The mortgage portfolio demonstrated high quality with 96.7% in first mortgages and an average loan-to-value of 61.9%. Stage 2 & 3 loans decreased significantly from $129.7 million in Q3 to $79 million in Q4. The company increased its funding capacity by expanding its credit facility by $25 million to $340 million and raised $28.8 million through an equity offering.
Total assets were $864.3 million, down from $877.9 million in 2023. Revenues decreased 1.3% to $97.3 million, with the weighted average interest rate on the mortgage portfolio at 9.98%, compared to 11.42% in 2023. The monthly dividend was increased from an annualized rate of $0.90 to $0.93 beginning in December.
Positive
- Special dividend of $0.16 per share announced, above five-year average of $0.13
- 96.7% of portfolio in first mortgages with conservative 61.9% average loan-to-value
- Problem loans decreased significantly from $129.7M to $79M in Q4
- Credit facility increased by $25M to $340M
- Monthly dividend rate increased from $0.90 to $0.93 annually
Negative
- Net income decreased 7.1% to $47.9M from $51.5M
- Revenue declined 1.3% to $97.3M
- Assets decreased to $864.3M from $877.9M
- Portfolio interest rate dropped to 9.98% from 11.42%
- Total annual dividend decreased to $1.0625 from $1.19
Toronto, Ontario--(Newsfile Corp. - March 6, 2025) - 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 year ended December 31, 2024.
Highlights
Annual basic and diluted earnings per share of
$1.06 and$1.05 , respectively, compared to$1.18 and$1.14 b asic and diluted earnings per share, respectively in 2023Annual net income of
$47.9 million , compared to$51.5 million in the prior year$0.16 per share special dividend to shareholders of record on December 31, 2024 to be paid on March 19, 2025High quality mortgage portfolio
96.7% of portfolio in first mortgages95.7% of portfolio is less than75% loan-to-valueaverage loan-to-value is
61.9%
"Atrium's results for calendar 2024 were very strong. Our earnings per share of
Conference call
Interested parties are invited to participate in a conference call with management on Friday, March 7, 2025 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: Fourth quarter results). For a replay of the conference call (available until March 21, 2025) please call 1-833-607-0619, passcode 4174703#.
Results of operations
For the year ended December 31, 2024, Atrium reported assets of
The board of directors declared a special dividend of
per common share paid to shareholders for the year, compared to
Financial summary
Consolidated Statements of Income and Comprehensive Income
| (000s, except per share amounts) | Year | Year | Year | ||||||
| ended | ended | ended | |||||||
| December 31 | December 31 | December 31 | |||||||
| 2024 | | 2023 | 2022 | | |||||
| Revenue | $ | 97,263 | $ | 98,574 | $ | 78,371 | |||
| Mortgage servicing and management fees | (8,558 | ) | (8,465 | ) | (8,526 | ) | |||
| Other expenses | (1,301 | ) | (1,299 | ) | (1,098 | ) | |||
| Impairment loss on investment property held for sale | − | − | (1,832) | ||||||
| Recovery of prior mortgage losses | 268 | 492 | 1,050 | ||||||
| Provision for mortgage losses | (13,839 | ) | (11,894 | ) | (1,914 | ) | |||
| Income before financing costs | 73,833 | 77,408 | 66,051 | ||||||
| Financing costs | (25,981 | ) | (25,923 | ) | (19,719 | ) | |||
| Net income and comprehensive income | $ | 47,852 | $ | 51,485 | $ | 46,332 | |||
| | |||||||||
| Basic earnings per share | $ | 1.06 | $ | 1.18 | $ | 1.08 | |||
| Diluted earnings per share | $ | 1.05 | $ | 1.14 | $ | 1.06 | |||
| | |||||||||
| Dividends declared | $ | 48,171 | $ | 52,095 | $ | 48,736 | |||
| | |||||||||
| Mortgages receivable, end of year | $ | 863,169 | $ | 876,733 | $ | 860,374 | |||
| Total assets, end of year | $ | 864,304 | $ | 877,877 | $ | 874,780 | |||
| Shareholders' equity, end of year | $ | 516,980 | $ | 482,206 | $ | 475,564 | |||
| Book value per share, end of year | $ | 10.96 | $ | 10.97 | $ | 10.97 |
Analysis of mortgage portfolio
| As at December 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 | 17 | $ | 247,202 | 22 | $ | 323,340 | ||||||||||||
| Mid-rise residential | 20 | 139,738 | 25 | 208,289 | ||||||||||||||
| Low-rise residential | 12 | 152,827 | 14 | 153,561 | ||||||||||||||
| House and apartment | 219 | 154,713 | 153 | 117,943 | ||||||||||||||
| Condominium corporation | 6 | 1,279 | 10 | 1,786 | ||||||||||||||
| Residential portfolio | 274 | 695,759 | 224 | 804,919 | ||||||||||||||
| Commercial | 24 | 190,939 | 19 | 88,640 | ||||||||||||||
| Mortgage portfolio | 298 | $ | 886,698 | 243 | $ | 893,559 | ||||||||||||
| 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 | ||||||||||||
| Non-GTA Ontario | 73 | 40,816 | |||||||||||||
| British Columbia | 14 | 54,073 | |||||||||||||
| 298 | $ | 886,698 | |||||||||||||
| 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 | ||||||||||||
| Non-GTA Ontario | 52 | 40,753 | ` | ||||||||||||
| British Columbia | 24 | 191,955 | |||||||||||||
| Alberta | 1 | 7,450 | |||||||||||||
| 243 | $ | 893,559 | |||||||||||||
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 December 31, 2024, available on SEDAR+ at www.sedarplus.ca, and on the company's website at www.atriummic.com.
Restatement of Comparative Consolidated Statement of Cash Flows
In response to commentary received from an issue oriented review of Atrium Mortgage Investment Corporation's continuous disclosure record by the Ontario Securities Commission (the "OSC"), management determined that cash flows from cash advances of mortgages receivable and cash repayments of mortgages receivable, previously classified as investing activities, will be reclassified as operating activities in the consolidated statement of cash flows. In addition, interest and fees on convertible debentures paid and interest and other financing charges paid, previously classified as financing activities, will also be reclassified to operating activities on the consolidated statement of cash flows. The consolidated statement of cash flows for the year ended December 31, 2023 was restated for these reclassifications as illustrated in the table below, with no change to the cash balance at year end. This adjustment had no impact on the consolidated statement of financial position, consolidated statement of changes in shareholders' equity, consolidated statement of income and comprehensive income, earnings per share, or mortgages receivable.
| For the year ended December 31, 2023 | ||||||
| As previously reported | Restatement | Restated | ||||
| Cash provided by operating activities | $ | 77,316 | $ | (42,445) | $ | 34,871 |
| Cash provided by (used in) investing activities | $ | (4,635) | $ | 17,910 | $ | 13,275 |
| Cash used in financing activities | $ | (72,681) | $ | 24,535 | $ | (48,146) |
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/243629
FAQ
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