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Toronto, Ontario–(Newsfile Corp. – February 15, 2024) – 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 announced its financial results for the year ended December 31, 2023.
highlight
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We will record basic earnings and annual diluted earnings of $1.18 and $1.14, respectively, compared to basic earnings and annual diluted earnings of $1.08 and $1.06, respectively, in 2022.
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Net income increased 11.1% year over year to $51.5 million
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Total mortgage portfolio was $893.6 million, an increase of 3.2% year over year.
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Recorded special dividend of $0.29 per share on stockholder records as of December 29, 2023
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The prudent allowance for mortgage losses is 2.53% of the total mortgage portfolio.
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High quality mortgage portfolio
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94.6% of portfolio is primary mortgage
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94.0% of the portfolio is less than 75% loan-to-value
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Average loan-to-value is 61.4%
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“2023 was a special year for Atrium and its shareholders. The business posted record earnings of $1.18 per share and an outsized special dividend of $0.29 per share. was achieved during one of the most difficult real estate markets since the early 1990s. In 2023, we maintained a modest portfolio loan-to-value of 61.4% and increased the first mortgage percentage to 94.6% while increasing the We were able to take advantage of quality opportunities. Mortgage losses of 253bps reflect a proactive approach in recognizing increased credit risk in these uncertain economic conditions, and we expect market conditions to improve in the second half of 2024, but remain We are poised to survive the current cycle with ample liquidity and tight risk parameters. .
“Finally, I am pleased to announce that our Chief Operating Officer, Richard Munro, has been appointed President and Chief Operating Officer. This promotion recognizes Richard’s growing role and importance to Atrium. , which positions the company to thrive for many years to come.”I will continue to serve as CEO for the foreseeable future and remain fully involved in the business,” said Atrium CEO Rob Goodall.
Conference call
Interested parties are invited to participate in a conference call with management on Friday, February 16, 2024 at 9:00 a.m. ET to discuss the results. To join the conference call or listen live, please call 1-833-491-0507 (Call Subject: Fourth Quarter Results). To request a replay of the conference call (available until February 28, 2024), please call 1-833-607-0619, password 9177343 #.
Operational performance
For the year ended December 31, 2023, Atrium reported assets of $877.9 million, a record high, up from $874.8 million at the end of 2022. Revenue was $98.6 million, an increase of 25.8% year over year. Net income for 2023 was $51.5 million, an increase of 11.1% from the previous year. As of December 31, 2023, Atrium’s allowance for mortgage losses totaled $22.6 million, representing 2.53% of its total mortgage portfolio.
Basic earnings and diluted earnings per common share for the year ended December 31, 2023 were $1.18 and $1.14, respectively, and basic earnings and diluted earnings per common share for the prior year were $1.08. $1.06, an increase of 9.3% (basic). Basic and diluted earnings per common share for the fourth quarter were $0.27 and $0.26, respectively. This compares to basic and diluted shares of $0.31 and $0.30 in the comparative quarters.
The Board of Directors declared a special dividend of $0.29 for 2023, resulting in a total annual dividend payable to stockholders of $1.19 per common share, compared to $1.13 a year ago.
As of December 31, 2023, mortgage receivables were a record $876.7 million, up from $860.4 million as of December 31, 2022. During the year ended December 31, 2023, $281.5 million of the mortgage principal was prepaid and $263.6 million was repaid. The weighted average interest rate of the mortgage portfolio as of December 31, 2023 was 11.42%, while as of December 31, 2022, he was 10.77%.
Financial overview
Consolidated statement of income and statement of comprehensive income
|
(Excluding numbers in the 000 range and amounts per share) |
Year |
Year |
Year |
||||||
|
Ended |
Ended |
Ended |
|||||||
|
December 31 |
December 31 |
December 31 |
|||||||
|
2023 |
2022 |
2021 |
|||||||
|
revenue |
$ |
98,574 |
$ |
78,371 |
$ |
64,235 |
|||
|
Mortgage repayment and administration fees |
(8,465 |
) |
(8,526 |
) |
(7,241 |
) |
|||
|
Other costs |
(1,299 |
) |
(1,098 |
) |
(1,382 |
) |
|||
|
Impairment loss on investment property held for sale |
− |
(1,832 |
) |
− |
|||||
|
Recovery of past mortgage losses |
492 |
1,050 |
− |
||||||
|
Reserve for mortgage losses |
(11,894 |
) |
(1,914 |
) |
(1,289 |
) |
|||
|
Income before financing costs |
77,408 |
66,051 |
54,323 |
||||||
|
financing costs |
(25,923 |
) |
(19,719 |
) |
(12,530 |
) |
|||
|
Net income and comprehensive income |
$ |
51,485 |
$ |
46,332 |
$ |
41,793 |
|||
|
Basic earnings per share |
$ |
1.18 |
$ |
1.08 |
$ |
0.98 |
|||
|
Diluted earnings per share |
$ |
1.14 |
$ |
1.06 |
$ |
0.98 |
|||
|
Dividend announcement |
$ |
52,095 |
$ |
48,736 |
$ |
41,346 |
|||
|
Mortgage receivables, year-end |
$ |
876,733 |
$ |
860,374 |
$ |
759,225 |
|||
|
Total assets, year end |
$ |
877,877 |
$ |
874,780 |
$ |
775,487 |
|||
|
Shareholders’ equity, end of period |
$ |
482,206 |
$ |
475,564 |
$ |
470,167 |
|||
|
Book value per share, year-end |
$ |
10.97 |
$ |
10.97 |
$ |
10.98 |
Mortgage portfolio analysis
|
As of December 31, 2023 |
As of December 31, 2022 |
||||||||||||||||
|
extraordinary |
% of |
extraordinary |
% of |
||||||||||||||
|
property type |
number |
amount |
portfolio |
number |
amount |
portfolio |
|||||||||||
|
(The unpaid amount is in the 000 range) |
|||||||||||||||||
|
high rise residential building |
twenty two |
$ |
323,340 |
36.2% |
20 |
$ |
300,989 |
34.7% |
|||||||||
|
mid-rise housing |
twenty five |
208,289 |
23.3% |
30 |
225,281 |
26.0% |
|||||||||||
|
low rise housing |
14 |
153,561 |
17.2% |
14 |
128,244 |
14.8% |
|||||||||||
|
house and apartment |
153 |
117,943 |
13.2% |
158 |
108,124 |
12.5% |
|||||||||||
|
Condominium management corporation |
Ten |
1,786 |
0.2% |
12 |
2,189 |
0.3% |
|||||||||||
|
housing portfolio |
224 |
804,919 |
90.1% |
234 |
764,827 |
88.3% |
|||||||||||
|
commercial |
19 |
88,640 |
9.9% |
26 |
101,435 |
11.7% |
|||||||||||
|
mortgage portfolio |
243 |
$ |
893,559 |
100.0% |
260 |
$ |
866,262 |
100.0% |
|||||||||
|
As of December 31, 2023 |
||||||||||||||
|
number of |
extraordinary |
percentage |
weighted |
weighted |
||||||||||
|
Location of underlying asset |
||||||||||||||
|
(The unpaid amount is in the 000 range) |
||||||||||||||
|
metropolitan toronto |
166 |
$ |
653,401 |
73.1% |
61.4% |
11.63% |
||||||||
|
Non-GTA Ontario |
52 |
40,753 |
4.6% |
64.6% |
9.81% |
|||||||||
|
british columbia |
twenty four |
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% |
|||||||||
|
As of December 31, 2022 |
||||||||||||||
|
number of |
extraordinary |
percentage |
weighted |
weighted |
||||||||||
|
Location of underlying asset |
||||||||||||||
|
(The unpaid amount is in the 000 range) |
||||||||||||||
|
metropolitan toronto |
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 details on the financial results and further analysis of the Company’s mortgage portfolio, please refer to Atrium’s Consolidated Financial Statements and Management’s Discussion and Analysis for the Year Ended December 31, 2023, available on SEDAR+ at www.sedarplus.ca Please refer to. The company’s website is available at www.atriummic.com.
Appointed representative director and president
Atrium announced that Chief Operating Officer Richard Munro has been appointed President and Chief Operating Officer, effective February 15, 2024. Richard joined Atrium in September 2006 and most recently he was appointed Chief Operating Officer in February 2022. Prior to this appointment, Richard held the title of Managing Director, Ontario. He has over 18 years of experience in sourcing and managing mortgage investments.
About Atrium
Canada’s leading non-bank lender™
Atrium is a non-bank provider of residential and commercial loans that lends in Canada’s major urban centers where real estate is stable and liquid. Atrium’s objective is to provide stable and safe dividends to shareholders and preserve shareholder capital by lending within conservative risk parameters. Atrium is a Mortgage Investment Corporation (MIC) as defined in Canada. income tax law, Therefore, if taxable income is paid to shareholders in the form of dividends within 90 days of December 31 of each year, the income is not taxed. Such dividends are typically treated by shareholders as interest income, so each shareholder is in the same position as if the mortgage investment made by the company had been made directly by the shareholder. For more information about Atrium, please see its regulatory filings available at www.sedarplus.ca or Investor Information on Atrium’s website www.atriummic.com.
Please contact us for more information.
Robert G. Goodall
chief executive officer
John Ahmad
CFO
(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/198123.
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