Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) June 30, 2018 December 31, 2017
Mortgage category Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial/mixed use 24 $184,636 26.0% 27 $167,622 26.5%
Low-rise residential 32 209,334 29.5% 36 234,343 37.1%
Construction 9 80,410 11.3% 8 64,828 10.3%
House and apartment 104 104,614 14.7% 120 86,287 13.6%
High-rise residential 6 28,047 4.0% 7 44,949 7.1%
Mid-rise residential 12 99,840 14.1% 4 31,471 5.0%
Condominium corporation 14 2,713 0.4% 14 2,887 0.4%
Mortgage portfolio 201 709,594 100.0% 216 632,387 100.0%
Accrued interest receivable   2,685     2,537  
Mortgage discount   (242)     (262)  
Mortgage origination fees   (569)     (706)  
Provision for mortgage losses   (9,900)     (7,200)  
Mortgages receivable   $701,568     $626,756  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (80.6%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 61.0%, with 86.9% 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 June 30, 2018 % December 31, 2017 %
Conventional first mortgages $524,329 73.9% $467,583 73.9%
Conventional second and third mortgages 89,509 12.6% 72,609 11.5%
Non-conventional mortgages 93,043 13.1% 89,308 14.1%
Other 2,713 0.4% 2,887 0.5%
  $709,594 100.0% $632,387 100.0%

Mortgages by Size

(thousands of Canadian dollars) June 30, 2018 December 31, 2017
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 140 $95,648 13.5% 161 $105,386 16.7%
$2,500,001 - $5,000,000 19 73,290 10.3% 19 69,755 11.0%
$5,000,001 - $7,500,000 10 59,995 8.5% 10 60,555 9.6%
$7,500,001 - $10,000,000 9 81,521 11.5% 5 42,920 6.8%
$10,000,001 + 23 399,140 56.2% 21 353,771 55.9%
  201 $709,594 100.0% 216 $632,387 100.0%

Mortgages by Type

As of June 30, 2018, the average outstanding mortgage balance was $3.5 million (December 31, 2017 – $2.9 million), and the median outstanding mortgage balance was $0.9 million (December 31, 2017 – $0.8 million).

Analyses of our mortgages as at June 30, 2018 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 151 $571,927 80.6% 8.12%
Second and third mortgages 50 137,667 19.4% 10.26%
  201 $709,594 100.0% 8.54%
Nature of underlying property        
Residential 177 $524,958 74.0% 8.60%
Commercial 24 184,636 26.0% 8.37%
  201 $709,594 100.0% 8.54%
Location of underlying property        
Greater Toronto Area 151 $428,613 60.4% 8.65%
Non-GTA Ontario 25 17,402 2.5% 8.50%
Saskatchewan 2 19,798 2.8% 7.90%
Alberta 4 16,931 2.4% 8.92%
British Columbia 19
226,850 31.9% 8.36%
  201 $709,594 100.0% 8.54%