Atrium Mortgage Investment Corporation Announces Strong Third Quarter Earnings per Share and an Increase in Monthly Dividend

Rhea-AI Summary

Atrium Mortgage Investment reported strong Q3 2024 results with net income of $11.6 million, up 5.6% year-over-year. Quarterly earnings per share increased to $0.26 from $0.25. The company announced a 3.3% increase in annual dividend rate from $0.90 to $0.93 per share starting December 2024. The mortgage portfolio reached a record $926.3 million, with 97.3% in first mortgages and 90.3% having loan-to-value less than 75%. However, revenues decreased 3.5% to $24.5 million, and the allowance for mortgage losses increased to 3.23% of the portfolio compared to 2.53% at year-end 2023.

Positive

• Net income increased 5.6% to $11.6 million in Q3 2024
• EPS improved to $0.26 from $0.25 year-over-year
• 3.3% increase in annual dividend rate to $0.93 per share
• Record mortgage portfolio of $926.3 million
• Successfully raised $28.8 million through common share offering

Negative

• Q3 revenues decreased 3.5% year-over-year
• Allowance for mortgage losses increased to 3.23% from 2.53%
• Nine-month net income decreased 11.2% from prior year
• Book value per share declined to $11.09 from $11.21
• Weighted average interest rate decreased to 10.52% from 11.42%

Toronto, Ontario--(Newsfile Corp. - November 13, 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 nine months period ended September 30, 2024.

Highlights

• Quarterly basic and diluted earnings per share of $0.26, up from $0.25 basic and diluted in the prior year

• Quarterly net income of $11.6 million, up from $11.0 million in the prior year

• Increase annual dividend rate by 3.3% from $0.90 to $0.93 per common share beginning in December 2024

• Record mortgage portfolio of $926.3 million

• High quality mortgage portfolio

  • 97.3% of portfolio in first mortgages

  • 90.3% of portfolio is less than 75% loan-to-value

  • average loan-to-value is 64.1%

"Despite the ongoing challenges in the real estate market, Atrium continued to produce very strong results for shareholders. Earnings per share for the quarter were $0.26 and our year-to-date earnings per share of $0.79 represents our second best nine-month result reported in our history as a public company. Our conservative 85% dividend payout ratio bodes well for the prospect of another sizable special dividend at year-end. We have continued to maintain our disciplined underwriting with 97.3% of the portfolio composed of first mortgages and 90.3% with a loan-to-value of less than 75%. In Q3 and the early part of Q4, we made substantial progress on the repayment of several Stage 2 and 3 loans. Barring any unforeseen changes, we expect that Stage 2 and 3 loans, as a percentage of the total portfolio, to drop sharply when we release our year-end results. Based on improvements in our borrowing base and stabilizing market conditions, I am pleased to announce an increase in our monthly dividend from an annual rate of $0.90 to $0.93 per share. Shortly after the end of Q3, Atrium also completed a highly successful common share offering for total gross proceeds of $28.8 million to further support the growth and liquidity of our business. We were gratified by the overwhelming investor demand for this offering," said Rob Goodall, CEO of Atrium.

Conference call

Interested parties are invited to participate in a conference call with management on Thursday, November 14, 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: Third quarter results). For a replay of the conference call (available until November 27, 2024) please call 1-833-607-0619, passcode 7754991#.

Results of operations

For the three months ended September 30, 2024, Atrium reported assets of $903.6 million, up from $877.9 million at the end of 2023. Revenues were $24.5 million, a decrease of 3.5% from the third quarter of the prior year. Net income for the third quarter of 2024 was $11.6 million, an increase of 5.6% from the comparative period. Atrium's allowance for mortgage losses at September 30, 2024 totaled $29.9 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 nine months ended September 30, 2024, revenues were $74.6 million, an increase of 2.7% from the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2024 was $35.2 million, a decrease of 11.2% from the prior year period.

Basic and diluted earnings per common share were $0.26 for the three months ended September 30, 2024, compared with $0.25 basic and diluted earnings per common share in the comparable period. Basic and diluted earnings per common share were $0.79 for the nine months ended September 30, 2024, compared with $0.91 and $0.88 basic and diluted earnings per common share respectively for the nine months ended September 30, 2023.

Mortgages receivable as at September 30, 2024 was $902.3 million, up from $876.7 million as at December 31, 2023. During the nine months ended September 30, 2024, $232.6 million of mortgage principal was advanced and $202.0 million was repaid. The weighted average interest rate on the mortgage portfolio at September 30, 2024 was 10.52%, 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						Nine months ended
		September 30,						September 30,
		2024			2023			2024			2023
Revenue	$	24,514		$	24,412		$	74,637		$	72,667
Mortgage servicing and management fees		(2,168	)		(2,153	)		(6,414	)		(6,259	)
Other expenses		(414	)		(241	)		(1,064	)		(1,017	)
Recovery of prior mortgage loss		−			220			183			377
Provision for mortgage losses		(3,488	)		(5,442	)		(11,707	)		(7,084	)
Income before financing costs		18,444			17,796			55,635			58,684
Financing costs		(6,839	)		(6,804	)		(20,460	)		(19,051	)
Net income and comprehensive income	$	11,605		$	10,992		$	35,175		$	39,633
Basic earnings per share	$	0.26		$	0.25		$	0.79		$	0.91
Diluted earnings per share	$	0.26		$	0.25		$	0.79		$	0.88
Dividends declared	$	10,004		$	9,854		$	29,906		$	29,461
Mortgages receivable, end of period	$	902,318		$	863,760		$	902,318		$	863,760
Total assets, end of period	$	903,562		$	864,894		$	903,562		$	864,894
Shareholders' equity, end of period	$	493,610		$	491,776		$	463,610		$	491,776
Book value per share, end of period	$	11.09		$	11.21		$	11.09		$	11.21

 

Analysis of mortgage portfolio

		As at September 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		18		$	302,307			32.6%			22		$	323,340			36.2%
Mid-rise residential		22			163,075			17.6%			25			208,289			23.3%
Low-rise residential		14			166,082			17.9%			14			153,561			17.2%
House and apartment		206			145,057			15.7%			153			117,943			13.2%
Condominium corporation		7			1,339			0.1%			10			1,786			0.2%
Residential portfolio		267			777,860			83.9%			224			804,919			90.1%
Commercial		20			148,437			16.1%			19			88,640			9.9%
Mortgage portfolio		287		$	926,297			100.0%			243		$	893,559			100.0%

 

		As at September 30, 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		201		$	733,262			79.2%			61.3%			10.62%
Non-GTA Ontario		66			43,613			4.7%			66.2%			9.51%
British Columbia		20			149,422			16.1%			76.6%			10.34%
		287		$	926,297			100.0%			64.1%			10.52%

 

		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 interim consolidated financial statements and its management's discussion and analysis for the three and nine month period ended September 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/229850

FAQ

What was Atrium Mortgage Investment 's Q3 2024 earnings per share?

Atrium Mortgage Investment reported earnings per share of $0.26 for Q3 2024, up from $0.25 in the same quarter last year.

How much did Atrium increase its dividend in 2024?

Atrium increased its annual dividend rate by 3.3%, from $0.90 to $0.93 per common share, effective December 2024.

What is the current size of Atrium's mortgage portfolio?

Atrium's mortgage portfolio reached a record $926.3 million as of September 30, 2024.

What percentage of Atrium's portfolio consists of first mortgages?

97.3% of Atrium's portfolio consists of first mortgages as of Q3 2024.