Atrium Mortgage Investment Corporation Announces Increased December 2024 Dividend and Portfolio Update

Rhea-AI Summary

Atrium Mortgage Investment has announced a dividend increase for December 2024. The monthly dividend of $0.0775 per common share will be paid on January 10, 2025, to shareholders of record December 31, 2024, representing a 3.3% increase in the annual dividend rate from $0.90 to $0.93 per share.

The company will also pay a special dividend in Q1 2025 to shareholders of record December 31, 2024, with the amount to be determined upon announcing 2024 results. Notably, Atrium has made significant progress in resolving high-risk loans, with approximately 60% of Stage 2 and Stage 3 loans being repaid since Q3, reducing higher risk loans in the portfolio from 14.0% to 5.6%.

Positive

• Monthly dividend increased by 3.3% to $0.0775 per share
• Special dividend announced for Q1 2025
• 60% reduction in high-risk loans since Q3 2024
• Higher risk loans in portfolio decreased from 14.0% to 5.6%

Negative

• Real estate markets remain challenging according to company statement

Toronto, Ontario--(Newsfile Corp. - December 11, 2024) - Atrium Mortgage Investment Corporation (TSX: AI) is pleased to announce that its board of directors has declared a dividend for the month of December 2024 of $0.0775 per common share, to be paid January 10, 2025 to shareholders of record December 31, 2024. This represents a 3.3% increase in the annual dividend rate from $0.90 to $0.93 per common share beginning in December 2024.

In addition, Atrium will pay a special dividend to shareholders of record December 31, 2024 within the first quarter of 2025. The amount of the special dividend will be determined when Atrium announces its 2024 results.

Atrium has also made material progress, as anticipated, in terms of resolving loans classified as Stage 2 (significant increase in credit risk) and Stage 3 (impaired), which totaled $129.7 million at the end of the third quarter. As of December 10, 2024, approximately 60% of these loans have been repaid since quarter end which has substantially reduced the number of higher risk loans in the portfolio to 5.6% from 14.0% based on the third quarter mortgage portfolio balance. While we recognize that real estate markets remain challenging, Atrium is pleased with the progress made to date.

Shareholders are reminded that Atrium offers a dividend reinvestment plan (DRIP) that allows them to automatically reinvest their dividends in new shares of Atrium at a 2% discount from market price and with no commissions. This provides shareholders with an easy way to realize the benefits of compound growth of their investment in Atrium. Shareholders can enroll in the DRIP program by contacting their investment advisor.

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, please refer to regulatory filings available at www.sedarplus.ca or Atrium's website at www.atriummic.com.

For further 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/233425

FAQ

What is the new monthly dividend amount for Atrium Mortgage Investment (AI) in December 2024?

Atrium Mortgage Investment announced a monthly dividend of $0.0775 per common share for December 2024, payable on January 10, 2025.

How much did Atrium Mortgage Investment increase its annual dividend rate in December 2024?

Atrium increased its annual dividend rate by 3.3%, from $0.90 to $0.93 per common share.

When will Atrium Mortgage Investment pay its special dividend for 2024?

The special dividend will be paid within the first quarter of 2025 to shareholders of record as of December 31, 2024.

How much has Atrium reduced its high-risk loans since Q3 2024?

Atrium has reduced approximately 60% of its Stage 2 and Stage 3 loans since Q3 2024, lowering the portfolio's higher risk loans from 14.0% to 5.6%.

What discount do shareholders receive through Atrium's DRIP program?

Shareholders can reinvest their dividends in new shares at a 2% discount from market price through the DRIP program, with no commissions.