Atrium Mortgage Investment Corporation Announces a Strong Start to 2025

Rhea-AI Summary

Atrium Mortgage Investment Corporation (AMIVF) reported solid Q1 2025 financial results with net income of $11.9 million and earnings per share of $0.25. The company's mortgage portfolio stands at $875.0 million with impressive quality metrics: 96.7% in first mortgages and 96.3% of the portfolio below 75% loan-to-value, with an average LTV of 61.1%.

The company demonstrated strong origination activity with $118.9 million in new loans during Q1. Notable improvements include reduced Stage 3 loans to 2.2% of the portfolio and increased conventional mortgages from 91.2% to 96.3% year-over-year. The weighted average interest rate on the portfolio was 9.56%, down from 9.98% at the end of 2024. The portfolio remains concentrated in the Greater Toronto Area at 88.8% of total mortgages.

Positive

• Strong loan origination with $118.9 million in new business during Q1
• Improved portfolio quality with Stage 3 loans dropping to 2.2%, lowest since Q2 2023
• High-quality portfolio metrics: 96.7% first mortgages, 96.3% conventional mortgages
• Reduced risk profile with average loan-to-value decreasing from 64.0% to 61.1% year-over-year
• Earnings per share of $0.25 exceeding dividend payout

Negative

• Net income decreased 1.2% year-over-year to $11.9 million
• Total assets declined to $852.8 million from $864.3 million at end of 2024
• Weighted average interest rate decreased to 9.56% from 9.98% in December 2024
• Basic and diluted EPS dropped 7.4% year-over-year from $0.27 to $0.25

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

FAQ

What were AMIVF's key financial results for Q1 2025?

In Q1 2025, Atrium reported net income of $11.9 million, EPS of $0.25, and a mortgage portfolio of $875.0 million. The company maintained a high-quality portfolio with 96.7% in first mortgages and an average loan-to-value of 61.1%.

How has AMIVF's loan portfolio quality changed in Q1 2025?

The portfolio quality improved with Stage 3 loans dropping to 2.2%, conventional mortgages increasing to 96.3% from 91.2% year-over-year, and average loan-to-value decreasing to 61.1% from 64.0%.

What is the geographical distribution of AMIVF's mortgage portfolio in Q1 2025?

As of Q1 2025, 88.8% of AMIVF's mortgage portfolio was concentrated in the Greater Toronto Area, with 6.1% in Non-GTA Ontario and 5.1% in British Columbia.

How did AMIVF's interest rates change in Q1 2025?

The weighted average interest rate on AMIVF's mortgage portfolio decreased to 9.56% in Q1 2025 from 9.98% at the end of December 2024.

What was AMIVF's new loan origination volume in Q1 2025?

AMIVF originated $118.9 million in new loan business during Q1 2025, which was reported as well above their historic average.