Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) December 31, 2016 December 31, 2015
Mortgage category Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial/mixed use 29 $165,231 30.8% 31 $151,083 33.5%
Low-rise residential 30 135,701 25.4% 23 110,034 24.3%
Construction 8 49,345 9.2% 9 44,701 9.9%
House and apartment 102 99,456 18.6% 110 84,755 18.8%
High-rise residential 7 53,182 9.9% 9 42,245 9.4%
Mid-rise residential 5 28,787 5.4% 7 14,662 3.2%
Condominium corporation 16 3,548 0.7% 18 4,111 0.9%
Mortgage portfolio 197 535,250 100.0% 207 451,591 100.0%
Accrued interest receivable   2,126     2,091  
Mortgage discount   (360)     (440)  
Mortgage origination fees   (626)     (712)  
Provision for mortgage losses   (5,800)     (4,300)  
Mortgages receivable   $530,590     $448,099  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (80.8%), which is a core strategy and is unmatched by our peer group.

The weighted average loan-to-value ratio in our mortgage portfolio is 62.7%, with 88.4% 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 December 31, 2016 % December 31, 2015 % % change
Conventional first mortgages $392,096 73.2% $340,759 75.4% %
Conventional second and third mortgages 77,611 14.5% 89,619 19.9% %
Non-conventional mortgages 61,995 11.6% 17,102 3.8% %
Other 3,548 0.7% 4,111 0.9% %
  $535,250 100.0% $434,268 100.0% %

Mortgages by Size

(thousands of Canadian dollars) December 31, 2016 December 31, 2015
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 145 $102,656 19.2% 154 $118,170 26.2%
$2,500,001 - $5,000,000 24 89,340 16.7% 28 99,800 22.1%
$5,000,001 - $7,500,000 5 29,972 5.6% 13 83,259 18.4%
$7,500,001 - $10,000,000 8 69,688 13.0% 4 32,538 7.2%
$10,000,001 + 15 243,594 45.5% 8 117,824 26.1%
  197 $535,250 100.0% 207 $451,591 100.0%

Mortgages by Type

As of December 31, 2016, the average outstanding mortgage balance was $2.7 million (December 31, 2015 – $2.2 million), and the median outstanding mortgage balance was $0.8 million (December 31, 2015 – $1.0 million).

Analyses of our mortgages as at December 31, 2016 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 159 $432,314 80.8% 8.2%
Second and third mortgages 38 102,936 19.2% 9.7%
  197 $535,250 100.0% 8.5%
Nature of underlying property        
Residential 168 $370,019 69.2%
Commercial 29 165,231 30.8%
  197 $535,250 100.0% 8.5%
Location of underlying property        
Greater Toronto Area 148 $350,026 65.4% 8.5%
Non-GTA Ontario 24 16,009 3.0% 9.0%
Saskatchewan 2 12,375 2.3% 8.5%
Alberta 11 37,032 6.9% 9.2%
British Columbia 12 119,808 22.4% 8.3%
  197 $535,250 100.0% 8.5%