AI - Atrium Mortgage Investment Corporation Announces First Quarter Results with Record Quarterly Net Income
Toronto, Ontario--(Newsfile Corp. - May 10, 2023) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) today released its financial results for the three month period ended March 31, 2023.
Highlights
- Record quarterly basic and diluted earnings per share since going public of $0.33 and $0.31, respectively, compared to $0.25 basic and diluted per share in the comparative period
- Record quarterly net income of $14.2 million, up 34.1% from comparative period
- High quality mortgage portfolio
- 95.4% of portfolio in first mortgages
- 96.3% of portfolio is less than 75% loan to value
- average loan-to-value of 60.8%
- 95.4% of portfolio in first mortgages
"Atrium continued to post strong financial results in the first quarter with record net income of $14.2 million. This translated into an EPS of $0.33 which was also a record since becoming a public company over 10 years ago. Our gross mortgage portfolio of $846 million was down marginally over the quarter but remains meaningfully higher on year-over-year basis. The elevated interest rate environment combined with our conservative approach to risk management drove our results. We continue to lend defensively given soft real estate market conditions and uncertainties in the broader economy. The portfolio remained strong at quarter end with no impairments, a weighted average LTV of 60.8% and 95.4% of our mortgages in first position. I am confident that our team has the right depth and experience to manage through the current real estate cycle" said Robert Goodall, CEO of Atrium.
Results of operations
For the three month period ended March 31, 2023, Atrium reported assets of $854.5 million, down from $874.8 million at the end of 2022. Revenues were $23.7 million, an increase of 44.8% from the first quarter of the prior year. Net income for first quarter of 2023 was $14.2 million, an increase of 34.1% from the first quarter of the prior year. Atrium's allowance for mortgage losses at March 31, 2023 totaled $11.7 million, or 1.38% of the gross mortgage portfolio.
Basic and diluted earnings per common share were $0.33 and $0.31, respectively, for the three months ended March 31, 2023, compared with $0.25 basic and diluted earnings per common share in the comparative period, an increase of 32.0% (basic).
Mortgages receivable as at March 31, 2023 was $840.0 million, down from $860.4 million as at December 31, 2022. During the three month period ended March 31 2023, $65.2 million of mortgage principal was advanced and $87.9 million was repaid. The weighted average interest rate on the mortgage portfolio at March 31, 2023 was 11.04%, compared to 10.77% at December 31, 2022.
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| Three months ended |
| March 31 |
| 2023 |
| 2022 |
| Revenue |
| $ |
| 23,707 |
| $ |
| 16,377 |
| Mortgage servicing and management fees |
| (2,054) |
| (1,878) |
| Other expenses |
| (444) |
| (324) |
| Impairment of investment property held for sale |
| - |
| (1,832) |
| Recovery of prior mortgage losses |
| 157 |
| 800 |
| Recovery of (provision for) mortgage losses |
| (952) |
| 1,013 |
| Income before financing costs |
| 20,414 |
| 14,156 |
| Financing costs |
| (6,202) |
| (3,558) |
| Net income and comprehensive income |
| $ |
| 14,212 |
| $ |
| 10,598 |
| Basic earnings per share |
| $ |
| 0.33 |
| $ |
| 0.25 |
| Diluted earnings per share |
| $ |
| 0.31 |
| $ |
| 0.25 |
| Dividends declared |
| $ |
| 9,785 |
| $ |
| 9,648 |
| Mortgages receivable, end of period |
| $ |
| 840,019 |
| $ |
| 785,588 |
| Total assets, end of period |
| $ |
| 854,511 |
| $ |
| 824,886 |
| Shareholders' equity, end of period |
| $ |
| 482,763 |
| $ |
| 474,364 |
Analysis of mortgage portfolio
| |
| As at March 31, 2023 |
| As at December 31, 2022 |
| |
| Outstanding |
| % of |
| Outstanding |
| % of |
| Property Type |
| Number |
| amount |
| Portfolio |
| Number |
| amount |
| Portfolio |
| (outstanding amounts in 000s) |
| High-rise residential |
| 19 |
| $ |
| 272,326 |
| 32.2% |
| 20 |
| $ |
| 300,989 |
| 34.7% |
| Mid-rise residential |
| 31 |
| 240,154 |
| 28.4% |
| 30 |
| 225,281 |
| 26.0% |
| Low-rise residential |
| 13 |
| 129,676 |
| 15.3% |
| 14 |
| 128,244 |
| 14.8% |
| House and apartment |
| 150 |
| 108,528 |
| 12.8% |
| 158 |
| 108,124 |
| 12.5% |
| Condominium corporation |
| 12 |
| 2,082 |
| 0.3% |
| 12 |
| 2,189 |
| 0.3% |
| Residential portfolio |
| 225 |
| 752,766 |
| 89.0% |
| 234 |
| 764,827 |
| 88.3% |
| Commercial |
| 23 |
| 93,138 |
| 11.0% |
| 26 |
| 101,435 |
| 11.7% |
| Mortgage portfolio |
| 248 |
| $ |
| 845,904 |
| 100.0% |
| 260 |
| $ |
| 866,262 |
| 100.0% |
| As at March 31, 2023 |
| 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 |
| 159 |
| $ |
| 571,228 |
| 67.5% |
| 61.6% |
| 11.36% |
| Non-GTA Ontario |
| 59 |
| 39,004 |
| 4.6% |
| 68.0% |
| 8.83% |
| British Columbia |
| 28 |
| 226,800 |
| 26.8% |
| 57.2% |
| 10.57% |
| Alberta |
| 2 |
| |
| 8,872 |
| 1.1% |
| 76.0% |
| 12.77% |
| 248 |
| |
| $ |
| 845,904 |
| 100.0% |
| 60.8% |
| 11.04% |
| As at December 31, 2022 |
| 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 |
| 169 |
| $ |
| 598,207 |
| 69.0% |
| 59.7% |
| 11.04% |
| Non-GTA Ontario |
| 61 |
| 38,950 |
| 4.5% |
| 68.7% |
| 8.25% |
| British Columbia |
| 28 |
| 220,727 |
| 25.5% |
| 56.4% |
| 10.41% |
| Alberta |
| 2 |
| 8,378 |
| 1.0% |
| 71.2% |
| 12.55% |
| |
| 260 |
| |
| $ |
| 866,262 |
| 100.0% |
| 59.4% |
| 10.77% |
For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's consolidated financial statements and its management's discussion and analysis for the quarter ended March 31, 2023, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
Conference call
Interested parties are invited to participate in a conference call with management Thursday, May 11, 2023 at 4:00 p.m. ET to discuss the results. To participate or listen to the conference call live, please call 1 (888) 886-7786 or (416) 764-8658, conference ID 48720415. For a replay of the conference call (available until May 24, 2023) please call 1 (877) 674-6060, conference ID 720415 #.
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.sedar.com or investor information on Atrium's website at www.atriummic.com.
For additional information, please contact
Robert G. Goodall
President and 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/165608