Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) September 30, 2017 December 31, 2016
Mortgage category Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial/mixed use 30 $197,604 31.4% 29 $165,231 30.8%
Low-rise residential 34 189,191 30.1% 30 135,701 25.4%
Construction 6 56,298 9.0% 8 49,345 9.2%
House and apartment 118 120,768 19.2% 102 99,456 18.6%
High-rise residential 6 37,380 5.9% 7 53,182 9.9%
Mid-rise residential 4 24,566 3.9% 5 28,787 5.4%
Condominium corporation 14 2,972 0.5% 16 3,548 0.7%
Mortgage portfolio 212 628,779 100.0% 197 535,250 100.0%
Accrued interest receivable   2,502     2,126  
Mortgage discount   (282)     (360)  
Mortgage origination fees   (782)     (626)  
Provision for mortgage losses   (6,800)     (5,800)  
Mortgages receivable   $623,417     $530,590  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (82.9%), which is a core strategy and is unmatched by our peer group.

The weighted average loan-to-value ratio in our mortgage portfolio is 60.7%, with 86.8% of the portfolio below 75% loan-to-value.

Conventional mortgages are those mortgages with a loan-to-value of less than or equal to 75%. Seventy-five percent (75%) loan-to-value is the industry norm for determining a conventional versus non-conventional mortgage. Non- conventional mortgages are those mortgages with a loan-to-value in excess of 75%.
 

(thousands of Canadian dollars)      
Mortgage category September 30, 2017 % December 31, 2016 % % change
Conventional first mortgages $478,035 76.0% $392,096 73.2% %
Conventional second and third mortgages 65,050 10.3% 77,611 14.5% %
Non-conventional mortgages 82,723 13.2% 61,995 11.6% %
Other 2,972 0.5% 3,548 0.7% %
  $628,779 100.0% $535,250 100.0% %

Mortgages by Size

(thousands of Canadian dollars) September 30, 2017 December 31, 2016
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 158 $104,547 16.6% 145 $102,656 19.2%
$2,500,001 - $5,000,000 16 58,780 9.4% 24 89,340 16.7%
$5,000,001 - $7,500,000 12 71,957 11.4% 5 29,972 5.6%
$7,500,001 - $10,000,000 5 43,987 7.0% 8 69,688 13.0%
$10,000,001 + 21 349,508 55.6% 15 243,594 45.5%
  212 $628,779 100.0% 197 $535,250 100.0%

Mortgages by Type

As of September 30, 2017, the average outstanding mortgage balance was $3.0 million (December 31, 2016 – $2.7 million), and the median outstanding mortgage balance was $0.8 million (December 31, 2016 – $1.0 million).

Analyses of our mortgages as at September 30, 2017 by type of mortgage, nature of the underlying property, and location of the underlying property is set out below and on the next page. The tables show the weighted average interest rate excluding lender fees paid by the borrower, which reflects the yield to Atrium including any mortgage discount or premium.
 

(thousands of Canadian dollars)    
Description Number of mortgages Amount Percentage Weighted average interest rate
Type of Mortgage        
First mortgages 165 $520,979 82.9% 8.0%
Second and third mortgages 47 107,800 17.1% 10.2%
  212 $628,779 100.0% 8.3%
Nature of underlying property        
Residential 182 $431,175 68.6%
Commercial 30 197,604 31.4%
  212 $628,779 100.0% 8.3%
Location of underlying property        
Greater Toronto Area 154 $411,650 65.5% 8.4%
Non-GTA Ontario 37 26,243 4.2% 8.5%
Saskatchewan 2 14,966 2.4% 8.2%
Alberta 6 23,589 3.7% 8.9%
British Columbia 13
152,331 24.2% 8.2%
  212 $628,779 100.0% 8.3%