Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) March 31, 2018 December 31, 2017
Mortgage category Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial/mixed use 26 $174,196 26.6% 27 $167,622 26.5%
Low-rise residential 38 250,335 38.3% 36 234,343 37.1%
Construction 8 69,788 10.6% 8 64,828 10.3%
House and apartment 114 100,953 15.4% 120 86,287 13.6%
High-rise residential 5 20,501 3.1% 7 44,949 7.1%
Mid-rise residential 3 37,000 5.6% 4 31,471 5.0%
Condominium corporation 14 2,800 0.4% 14 2,887 0.4%
Mortgage portfolio 208 655,573 100.0% 216 632,387 100.0%
Accrued interest receivable   2,653     2,537  
Mortgage discount   (252)     (262)  
Mortgage origination fees   (625)     (706)  
Provision for mortgage losses   (9,500)     (7,200)  
Mortgages receivable   $647,849     $626,756  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (81.6%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 61.0%, with 86.2% 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 March 31, 2018 % December 31, 2017 %
Conventional first mortgages $488,910 74.6% $467,583 73.9%
Conventional second and third mortgages 73,552 11.2% 72,609 11.5%
Non-conventional mortgages 90,311 13.8% 89,308 14.1%
Other 2,800 0.4% 2,887 0.5%
  $655,573 100.0% $632,387 100.0%

Mortgages by Size

(thousands of Canadian dollars) March 31, 2018 December 31, 2017
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 153 $104,469 15.9% 161 $105,386 16.7%
$2,500,001 - $5,000,000 17 61,584 9.4% 19 69,755 11.0%
$5,000,001 - $7,500,000 11 65,601 10.0% 10 60,555 9.6%
$7,500,001 - $10,000,000 5 45,224 6.9% 5 42,920 6.8%
$10,000,001 + 22 378,695 57.8% 21 353,771 55.9%
  208 $655,573 100.0% 216 $632,387 100.0%

Mortgages by Type

As of March 31, 2018, the average outstanding mortgage balance was $3.2 million (December 31, 2017 – $2.9 million), and the median outstanding mortgage balance was $0.8 million (December 31, 2017 – $0.8 million).

Analyses of our mortgages as at March 31, 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 159 $534,988 81.6% 8.12%
Second and third mortgages 49 120,585 18.4% 10.20%
  208 $655,573 100.0% 8.50%
Nature of underlying property        
Residential 182 $481,377 73.4% 8.55%
Commercial 26 174,196 26.6% 8.36%
  208 $655,573 100.0% 8.50%
Location of underlying property        
Greater Toronto Area 156 $406,972 62.1% 8.60%
Non-GTA Ontario 30 21,450 3.3% 8.59%
Saskatchewan 2 18,166 2.8% 7.99%
Alberta 4 17,243 2.6% 8.92%
British Columbia 16
191,742 29.2% 8.30%
  208 $655,573 100.0% 8.50%