CA - Atrium Mortgage: A 11% Dividend Yield Or A 8.1% Yield To Maturity On Its Debt

2024-02-07 10:30:57 ET

Summary

• Atrium Mortgage is a Canadian mortgage investment corporation specializing in loans that traditional banks wouldn't underwrite.
• The company's financial results have been strong, with increasing interest rates benefiting its loan book and resulting in a record special dividend.
• Atrium has built up loan loss provisions, but its management expects full repayment or collateral realization on most of the loans.

Introduction

Atrium Mortgage ( AI:CA ) ( AMIVF ) is a Canadian mortgage investment corporation focusing on loans that traditional banks wouldn't underwrite, but offer acceptable financial risk and underwriting risks to the company. According to the most recent annual information form, the size of the mortgages usually varies between C$0.3M to C$30M with the largest single mortgage in its portfolio accounting for C$45M at the end of 2022 (the company still has to file its full-year 2023 results and reports)....

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