Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) June 30, 2017 December 31, 2016
  Outstanding % of Outstanding % of
Mortgage category Number Amount Portfolio Number Amount Portfolio
Commercial/mixed use 30 $185,711 32.4% 29 $165,231 30.8%
Low-rise residential 30 155,864 27.2% 30 135,701 25.4%
House and apartment 95 104,672 18.3% 102 99,456 18.6%
High-rise residential 7 49,036 8.6% 7 53,182 9.9%
Construction  6 48,319 8.4% 8 49,345 9.2%
Mid-rise residential 5 26,405 4.6% 5 28,787 5.4%
Condominium corporation 15 3,059 0.5% 16 3,548 0.7%
Mortgage portfolio 188 573,066 100.0% 197 535,250 100.0%
Accrued interest receivable   2,239     2,126  
Mortgage discount   (329)     (360)  
Mortgage origination fees   (681)     (626)  
Provision for mortgage losses   (6,400)     (5,800)  
Mortgages receivable   $567,895     $530,590  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (81.2%), which is a core strategy and is unmatched by our peer group.

The weighted average loan-to-value ratio in our mortgage portfolio is 60.3%, with 89.3% 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, 2017 % December 31, 2016 %
Conventional first mortgages $441,370 77.0% $392,096 73.2%
Conventional second and third mortgages 67,433 11.8% 77,611 14.5%
Non-conventional mortgages 61,204 10.7% 61,995 11.6%
Other 3,059 0.5% 3,548 0.7%
  $573,066 100.0% $535,250 100.0%

Mortgages by Size

(thousands of Canadian dollars) June 30, 2017 December 31, 2016
  Outstanding % of Outstanding % of
Mortgage amount Number Amount Portfolio Number Amount Portfolio
$0 - $2,500,000 139 $89,868 15.7% 145 $102,656 19.2%
$2,500,001 - $5,000,000 15 58,410 10.2% 24 89,340 16.7%
$5,000,001 - $7,500,000 9 54,223 9.4% 5 29,972 5.6%
$7,500,001 - $10,000,000 5 44,112 7.7% 8 69,688 13.0%
$10,000,001 + 20 326,453 57.0% 15 243,594 45.5%
  188 $573,066 100.0% 197 $535,250 100.0%

Mortgages by Type

As of June 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 – $0.8 million).

Analyses of our mortgages as at June 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 146 $465,767 81.2% 8.0%
Second and third mortgages 42 107,299 18.8% 10.0%
  188 $573,066 100.0% 8.4%
Nature of underlying property        
Residential 158 $387,355 67.6% 8.5%
Commercial 30 187,711 32.4% 8.3%
  188 $573,066 100.0% 8.4%
Location of underlying property        
Greater Toronto Area 132 $355,323 62.0% 8.5%
Non-GTA Ontario 33 23,649 4.2% 8.5%
Saskatchewan 2 13,880 2.4% 8.5%
Alberta 7 25,947 4.5% 9.5%
British Columbia 14 154,267 26.9% 8.1%
  188 $573,066 100.0% 8.4%