Atrium Mortgage Investment Corporation Announces Strong Second Quarter Earnings per Share
Highlights
Quarterly basic and diluted earnings per share of $0.28 and $0.27, respectively, compared with $0.26 and $0.26 in the previous year
Quarterly net income of $13.1 million, an increase of 13.7% from the previous year
Mortgage portfolio of $921.2 million
Extended the credit facility to May 15, 2027
High quality mortgage portfolio
96.8% of portfolio in first mortgages
94.8% of portfolio is less than 75% loan-to-value
average loan-to-value is 61.3%
"I am pleased with our results for Q2 and for the first six months of 2025. We continue to generate earnings per share well above our dividend. Our underwriting teams had another strong quarter of loan origination, although we expect the volume of new business to taper off somewhat in the second half of 2025 due to a reduced level of market activity. We are focused on preserving a low risk profile for the overall portfolio by maintaining a conservative portfolio loan to value ratio and a very high percentage of conventional mortgages (loans no greater than 75% loan to value). It is important that we remain disciplined in our underwriting in the face of weak real estate markets and a stagnant economy," noted Rob Goodall, CEO of Atrium.
Conference call
Interested parties are invited to participate in a conference call with management on Friday, August 8, 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: Second quarter results). For a replay of the conference call (available until August 22, 2025) please call 1-833-607-0619, passcode 7529494#.
Results of operations
For the three months ended June 30, 2025, Atrium reported assets of $899.0 million, up from $864.3 million at the end of 2024. Net income for the second quarter of 2025 was $13.1 million, an increase of 13.7% from the second quarter of the prior year. For the six months ended June 30, 2025, net income was $25.0 million, an increase of 6.1% from the prior year period. Atrium's allowance for mortgage losses at June 30, 2025 totaled $28.9 million, or 3.14% of the mortgage portfolio, slightly down from $29.6 million or 3.33% of the mortgage portfolio at December 31, 2024.
Basic and diluted earnings per common share were $0.28 and $0.27, respectively for the three months ended June 30, 2025, compared with $0.26 basic and diluted earnings per common share in the comparative period, an increase of 7.7% and 3.8% respectively. Basic and diluted earnings per common share were $0.53 and $0.52, respectively for the six months ended June 30, 2025, compared with $0.53 basic and diluted earnings per common share in the comparative period.
Mortgages receivable as at June 30, 2025 were $897.8 million, up from $863.2 million as at December 31, 2024. During the six months ended June 30, 2025, $223.5 million of mortgage principal was advanced and $180.4 million was repaid. The weighted average interest rate on the mortgage portfolio at June 30, 2025 was 9.30%, 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 | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenue | $ | 21,185 | $ | 24,930 | $ | 43,148 | $ | 50,123 | ||||
| Mortgage servicing and management fees | (2,190 | ) | (2,170 | ) | (4,366 | ) | (4,246 | ) | ||||
| Other expenses | (794 | ) | (244 | ) | (1,145 | ) | (650 | ) | ||||
| Recovery of prior mortgage loss | 95 | 183 | 138 | 183 | ||||||||
| Provision for mortgage losses | (89 | ) | (4,365 | ) | (2,293 | ) | (8,219 | ) | ||||
| Income before financing costs | 18,207 | 18,334 | 35,482 | 37,191 | ||||||||
| Financing costs | (5,094 | ) | (6,805 | ) | (10,468 | ) | (13,621 | ) | ||||
| Net income and comprehensive income | $ | 13,113 | $ | 11,529 | $ | 25,014 | $ | 23,570 | ||||
| Basic earnings per share | $ | 0.28 | $ | 0.26 | $ | 0.53 | $ | 0.53 | ||||
| Diluted earnings per share | $ | 0.27 | $ | 0.26 | $ | 0.52 | $ | 0.53 | ||||
| Dividends declared | $ | 11,048 | $ | 9,971 | $ | 22,043 | $ | 19,902 | ||||
| Mortgages receivable, end of period | $ | 897,767 | $ | 884,401 | $ | 897,767 | $ | 884,401 | ||||
| Total assets, end of period | $ | 898,961 | $ | 885,569 | $ | 898,961 | $ | 885,569 | ||||
| Shareholders' equity, end of period | $ | 524,306 | $ | 490,455 | $ | 524,306 | $ | 490,455 | ||||
| Book value per share, end of period | $ | 11.02 | $ | 11.06 | $ | 11.02 | $ | 11.06 | ||||
Analysis of mortgage portfolio
| As at June 30, 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 | 19 | $ | 272,532 | 29.6% | 17 | $ | 247,202 | 27.9% | ||||||||||
| Mid-rise residential | 16 | 113,610 | 12.3% | 20 | 139,738 | 15.8% | ||||||||||||
| Low-rise residential | 11 | 118,017 | 12.8% | 12 | 152,827 | 17.2% | ||||||||||||
| House and apartment | 249 | 169,167 | 18.4% | 219 | 154,713 | 17.5% | ||||||||||||
| Condominium corporation | 6 | 1,163 | 0.1% | 6 | 1,279 | 0.1% | ||||||||||||
| Residential portfolio | 301 | 674,489 | 73.2% | 274 | 695,759 | 78.5% | ||||||||||||
| Commercial | 25 | 246,706 | 26.8% | 24 | 190,939 | 21.5% | ||||||||||||
| Mortgage portfolio | 326 | $ | 921,195 | 100.0% | 298 | $ | 886,698 | 100.0% | ||||||||||
| As at June 30, 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 | 245 | $ | 815,260 | 88.5% | 60.5% | 9.28% | |||||||||
| Non-GTA Ontario | 67 | 53,004 | 5.8% | 65.3% | 8.53% | ||||||||||
| British Columbia | 14 | 52,931 | 5.7% | 70.0% | 10.37% | ||||||||||
| 326 | $ | 921,195 | 100.0% | 61.3% | 9.30% | ||||||||||
| 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% | ||||||||||
Loan-to-value is calculated as a weighted average of the mortgage commitment, including loans outstanding, divided by the value of the underlying asset. Book value per share is calculated as shareholders' equity divided by the number of shares outstanding at the reporting date.
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 periods ended June 30, 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 Officer
Jeffrey D. Sherman
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/261731
