Fact Sheet

Canada's Premier Non-Bank LenderTM

Investor Fact Sheet

Atrium Mortgage Investment Corporation was established in 2001 and is a non-bank lender that makes mortgage loans ranging from $300,000 to $20 million, focused primarily on real estate in major Canadian urban centres. The bank oligopoly in Canada provides safe opportunities for non-bank lenders like Atrium. As of March 31, 2017, Atrium’s mortgage portfolio was $569 million with stable dividends paid monthly, plus a special dividend once a year. Atrium has an uninterrupted record of dividends since its inception. The average mortgage term Atrium provides is 12.6 months which allows mortgage rates to be re-priced as interest rates rise, unlike bond and fixed income funds.

Atrium is managed by Canadian Mortgage Capital Corporation (CMCC), a
major mortgage brokerage and advisory services company, established in 1994.

Current Portfolio Composition

December 31, 2016
($000s)
   
Description Number of mortgages Amount Percentage Weighted
average yield
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% 8.6%
Commercial 29 165,231 30.8% 8.3%
  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% 8.9%
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%
AS OF April 26, 2017
Ticker TSX: AI
Price $11.88
Market cap $368 million
Dividend yield 8.1%

Mortgage Rank

First Mortgage Other Ranks

Type of Real Estate

Residential Commercial

Loan-to-Value

< 75% >75%

Lending Criteria

  • Targeting major Canadian metropolitan centres with local presence
  • Director approval required on every loan
  • Quarterly review on all loans excluding single family mortgages

89.9%

of portfolio
below 75%
loan-to-value

61.8%

Weighted
average
loan-to-value

12.6 months

Average
mortgage
term

$3.1 million

Average
mortgage
 

Downside Protection

  • Atrium and the Manager manage default risk by diligent monitoring of the mortgage portfolio, active communication with borrowers and aggressive enforcement procedures on problematic borrowers.
  • A mortgage investment corporation (MIC) provides downside protection relative to an equity investment.

Downside Protection Relative to Equity Investment

$0.38(Equity)

$0.62(Mortgage)

Iniital Structure

$0.28(Equity)

$0.62(Mortgage)

10% drop in value

Funded with equity Provided by REITs or private investors

Atrium provides mortgage Secured by 100% of property value

Portfolio Growth

  • The portfolio has grown conservatively and prudently over time.
  • Focus of investments in major Canadian metropolitan centres.
  • Atrium only lends in provinces where it has expertise and a local office.

Access to Real Property Transactions

  • Management relationships provide access to high quality real estate transactions in major urban centres.
  • Ability to execute financing structures that are customized to the unique needs of borrowers to compete with the comparatively inflexible financing structures offered by large financial institutions.

Mortgage Portfolio

Management

Rob G. Goodall

President & CEO, Founder

  • Founder and President of the Manager, Canadian Mortgage Capital Corporation
  • Former National Managing Director of the Real Estate Finance Group of a major trust company
  • Director of DREAM Office REIT

Jeffrey Sherman FCPA, FCA

Chief Financial Officer

  • Experienced corporate director and CFO
  • Author of over 20 books on finance and treasury, presents courses to executives across Canada

Bram Rothman

Managing Director, Ontario

  • 7 years experience with the company during which he has placed over $1 billion in debt
  • MBA from Schulich School of Business with specialization in Real Property Development
  • Experience with a major real estate company

Richard Munroe

Managing Director, Ontario

  • 10 years of mortgage origination and lending experience
  • Deep understanding of term, construction , mezzanine and equity financing

Pete Ivanovic

Managing Director, Ontario

  • 6 years of commercial real estate experience from Institutional and Private lending perspectives
  • MBA from Schulich School of Business with specialization in Real Estate Infrastructure
  • Expertise in land, servicing, construction, term, mezzanine loans, syndications and A/B structures

Phil Fiuza

Managing Director, Single Family

  • Over 25 years of single family and alternative mortgage lending
  • Former Vice President, single family lending for BC-based trust company
  • Managed single family lending for top-50 Ontario credit union

Daniel Stewart

Managing Director, Alberta

  • Over 25 years of real estate lending experience throughout Western Canada and Western U.S.
  • Former Vice President, Mortgage Banking of People's Trust Company in Calgary
  • Former Vice President, Business Development with Maverick Real Estate Corporation

Marianna Dobslaw

Managing Director, British Columbia

  • Over 25 years of residential and commercial mortgage financings
  • Former Vice President, Citibank Canada; MBA from the University of British Columbia

Board of Directors

Rob G. Goodall President and CEO, Atrium / President and CEO, Canadian Mortgage Capital Corporation
Mark L. Silver Chair of the Board, Atrium / President, Optus Capital Corporation
Peter P. Cohos President, Copez Properties Ltd.
Robert H. DeGasperis President, Metrus Properties
Andrew Grant President, PCI Group
Nancy Lockhart Director, Barrick Gold Corp. / Director, Loblaw Companies Ltd. / Director Gluskin Sheff +Associates
David Prussky Director, Lonestar West Inc.