In This Article:
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Earnings Per Share (EPS): $0.26 for Q3, $0.79 year-to-date.
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Dividends: Declared dividends of $0.675 year-to-date, annualized rate increased to $0.93 per share.
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Mortgage Portfolio: Reached a record $926.3 million, up from $907.8 million in Q2.
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Principal Advances: $58.2 million for the quarter.
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Repayments: $42.3 million for the quarter.
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Average Mortgage Rate: Decreased from 10.93% to 10.52% in Q3.
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Credit Facility Rate: Decreased to 6.96% from 7.33% in Q2.
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Loan Loss Provision: Increased by $3.5 million in Q3.
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Stage 2 and 3 Loans: Decreased to $129.7 million, down from $159 million two quarters ago.
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Loan-to-Value Ratio: Average decreased to 64.1%.
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First Mortgages: Increased to 97.3% of the portfolio.
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Construction Loans: 4.7% of the total mortgage portfolio.
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Share Offering: Completed with total proceeds of $28.8 million.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Atrium Mortgage Investment Corp (AMIVF) reported a strong EPS of $0.26 for Q3, consistent with Q2 and above the prior year's $0.25.
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The company declared a 3.3% increase in its monthly dividend, raising the annualized rate to $0.93 per common share.
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Atrium's mortgage portfolio reached a record $926.3 million, indicating successful execution of its strategic plan.
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The company completed an oversubscribed bought deal share offering, raising $28.8 million to repay its credit facility, enhancing liquidity.
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Atrium's percentage of first mortgages increased to a record 97.3%, reflecting a focus on lower-risk sectors.
Negative Points
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Year-to-date earnings per share of $0.79 are down from the prior year, despite being the second best in the company's history.
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The mortgage portfolio rate decreased from 10.93% to 10.52% due to rate cuts by the Bank of Canada and a focus on lower-risk loans.
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Provision for credit risk increased by $3.5 million, reflecting ongoing challenges in the mortgage book.
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Real estate market activity remained slow, with principal advances and repayments below historical levels.
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The economic outlook in Canada is uninspiring, with GDP growth below expectations and a high unemployment rate.
Q & A Highlights
Q: The increase in focus on single-family and commercial mortgages. Is this a long-term trend or a temporary decision to align with market conditions? A: Robert Goodall, CEO: It's a more long-term plan, but it also is a lower-risk type of sector, in fact, each are -- so we're particularly focused on it now. Single-family is a lower risk, lower return sector, single-family mortgages. So there's a limit to how large we'll get on it, but we have quite a bit of room where we are now.