Our investment strategy is to invest in commercial and residential mortgages from borrowers whose financing needs are not being met by the larger financial institutions. To maintain a stable yield on our mortgage portfolio, we manage risk through maintenance of a diversified mortgage portfolio, conservative underwriting and diligent and aggressive mortgage servicing. A typical loan in our portfolio has an interest rate of 8% to 10% per annum, a one or two year term and monthly interest only mortgage payments. Mortgage loan amounts are generally $500,000 to a maximum of $20,000,000. As at December 30, 2016, the weighted average loan-to-value on our mortgage portfolio was 62.7% and the weighted average interest rate was 8.5%.
Our objectives are: (i) to preserve our shareholders’ equity, and (ii) to provide our shareholders with stable and secure dividends from our investments in mortgage loans within the criteria mandated for a MIC. Working within conservative risk parameters, we endeavour to maximize yields, dividends and common share value through the sourcing and efficient management of our mortgage investments.
As at December 30, 2016:
Mark L. Silver is President of Optus Capital Corporation. Mr. Silver has made significant real estate investments in both development stage and income producing properties in the residential, commercial and industrial sectors over his 30 year business career. Over the last 15 years, these investments have been made through his company, Optus Capital Corporation. Mr. Silver was a founding partner and Chief Executive Officer of Universal Energy which was sold in 2009 to Just Energy Group Inc. He co-founded Direct Energy Marketing and grew the company to over $1.3 billion in revenues before selling to Centrica PLC (also known as British Gas) in 2000.
Robert G. Goodall founded CMCC, Atrium’s manager, in 1994 and is president and chief executive officer of the company and CMCC. CMCC is a major mortgage brokerage firm registered in four provinces, and has five offices across Canada. For the 15 year period from 1996 to 2011, CMCC arranged financing on over $6 billion of real estate in Ontario. During that time, CMCC also had the exclusive mandate to originate mortgages and manage the existing mortgage portfolio of a Toronto based trust company. Prior to founding CMCC, Mr. Goodall spent seven years with Royal Trust, where the last three years were served as National Managing Director of the Real Estate Finance Group for a portfolio of $1.4 billion in commercial and multi-residential real estate loans, including fixed and floating rate mortgages, construction loans, and high-ratio mezzanine loan facilities. Mr. Goodall is a trustee of Dream Office REIT and Dream Industrial REIT and director of a registered charity, Jump Math. Mr. Goodall has an HBA from the Ivey Business School, and an MBA from the Schulich School of Business.
Peter P. Cohos is the President of Copez Properties Ltd., a Calgary-based real estate investment company. He was previously the Chief Executive Officer of Triovest Realty Advisors Inc. a national commercial real estate advisory company which has approximately $7 billion in assets under management. Mr. Cohos has worked in the commercial real estate industry since 1985, founding Copez Management Ltd., Tonko Development Corp. and then Tonko Realty Advisors Ltd., which merged with Redcliff Realty Management Inc. in 2011. Tonko Development Corp. was a publicly traded corporation from 1995 through 2002. During that time, Mr. Cohos was President and Chief Executive Officer, as well as a member of its board. Mr. Cohos’ extensive and varied real estate career is augmented by his Honours degree in Business Administration from the University of Western Ontario and a MBA from the University of Capetown, South Africa.
Robert DeGasperis is President of Metrus Properties and DG Group, family owned and operated real estate companies that have operated primarily in the Greater Toronto Area (GTA) for over 40 years. Metrus Properties has developed, and currently manages, approximately 13 million square feet of industrial, retail and office properties throughout the GTA. Its mandate is to acquire, develop and manage all asset classes, and it develops and manages master planned communities throughout the GTA. The DG Group has completed award-winning communities including the Beaches, Toronto; Springdale, Brampton; Bayview Hill, Richmond Hill and Lakeshore Woods, Oakville. Mr. DeGasperis is a director of both ConDrain Company (1983) and Con-Cast Pipe. Mr. DeGasperis, through a family foundation, continues his commitment to sponsorship of numerous hospitals, charities, youth groups and community organizations.
Andrew Grant is the president and founding partner of PCI Group, a major developer in British Columbia. PCI Group was established in 1982, and is continually active in the BC real estate market. Mr. Grant is actively involved in the Vancouver real estate community: he is past president of the Urban Development Institute (UDI); past chair of St. George's School; a supporter of the University of British Columbia athletics; and a former Director of Great Northern Way Trust.
Nancy Lockhart is a director of Loblaw Companies Limited and chair of its environmental, health and safety committee, and a member of its governance, employee development, nominating and compensation committee; as well as a director of Gluskin Sheff + Associates, Inc., and a member of its compensation, nominating and governance committee. She is a member of the board of Barrick Gold Corporation where she sits on the governance and nominating committee and chairs the corporate responsibility committee. She was formerly Chief Administrative Officer of Frum Development Group and a Vice President of Shoppers Drug Mart Corporation. Ms. Lockhart is a director of the Centre for Addiction and Mental Health Foundation, a director of The Canada Merit Scholarship Foundation. a director of The Royal Conservatory of Music, and Chair of Crow's Theatre Company. She is a former Chair of the Ontario Science Centre, former President of the Canadian Club of Toronto and a former Chair of the Canadian Film Centre. Ms. Lockhart is also a former director of the Canada Deposit Insurance Corporation and a former director of Retirement Residence REIT. Ms. Lockhart was awarded the Order of Ontario in 2006.
David Prussky is well-recognized in the Canadian junior markets with many business successes investing in early stage companies. He a chairman of the board of Lonestar West Inc., a growing infrastructure servicing company with operations throughout North America. Mr. Prussky was previously a director of Carfinco Financial Group Inc., Canada’s largest public non-prime automotive lender, which was successfully sold to a large bank in 2015, and is a past director of several other public companies. Mr. Prussky received his MBA from York University in 1980 and an LL.B from York University in 1985.
We currently pay dividends of $0.073333 per common share every month, an annual rate of $0.88. The record date is the last business day of the month, and the dividend is usually payable on the 12th of the month following. If you own shares on the record date, you will receive the dividend. We have increased this regular dividend every year during our three years as a public company.
When we issue our financial results in February each year, we also declare a special dividend so that all of our earnings during the previous year that ended December 31 are paid out to our shareholders. Our payout ratio during the year is relatively low - in 2015 it was 90% - a reflection of our conservative approach. Of course, including the special dividend, our payout ratio is approximately 100%.
Under Section 130.1 of the Income Tax Act, taxable dividends paid to shareholders (other than capital gains dividends) are taxed as interest income. As a Mortgage Investment Corporation, we do not pay any income taxes, provided that we distribute all of our taxable income each year (and meet certain other requirements). In effect, we flow interest income that we earn on our investments in mortgages through to our shareholders.
We have an uninterrupted record of paying dividends since our inception in 2001. For the full years that Atrium has been listed on the Toronto Stock Exchange, our dividend record is shown below.
Dividends per share -
|Regular dividend Monthly amount||Regular dividend Annual rate||Special dividend||Total dividends|
|2017||$0.073333||$0.88||To be announced||2016||$0.07167||$0.86||$0.10||$0.96||2015||$0.07000||$0.84||$0.09||$0.93|
Shareholders may join our Dividend Re-Investment Plan ("DRIP"). Through the DRIP your monthly and special dividends are automatically reinvested in additional shares of Atrium at a 2% discount to the five-day weighted average price, and of course there is no commission.
To join the DRIP, please contact your investment advisor if your shares are held in a brokerage account. If your shares are registered, please contact Computershare Trust Company of Canada, by calling 1(800) 564-6253 or by visiting Computershare's self-service web portal, Investor Centre, located at www.computershare.ca.
If you have any questions regarding your Dividend Re-Investment Plan, please email firstname.lastname@example.org or telephone (416) 607-4200.
|Annual Financial Statements||
2016 Annual Report
2016 Annual Financial Statements
2016 Management's Discussion and Analysis
2016 Annual Information Form
2016 Third Quarter Shareholder Report
2016 Third Quarter Management's Discussion and Analysis
2016 Third Quarter Financial Statements
2016 Second Quarter Shareholder Report
2016 Second Quarter Management's Discussion and Analysis
2016 Second Quarter Financial Statements
2016 First Quarter Shareholder Report
2016 First Quarter Management's Discussion and Analysis
2016 First Quarter Financial Statements
|Annual Financial Statements||
2015 Annual Report
2015 Annual Financial Statements
2015 Management's Discussion and Analysis
2015 Annual Information Form
Management Information Circular
2015 Third Quarter Shareholder Report
2015 Third Quarter Management's Discussion and Analysis
2015 Third Quarter Financial Statements
2015 Second Quarter Shareholder Report
2015 Second Quarter Management's Discussion and Analysis
2015 Second Quarter Financial Statements
2015 First Quarter Shareholder Report
2015 First Quarter Management's Discussion and Analysis
2015 First Quarter Financial Statements
|Annual Financial Statements||
2014 Annual Report
2014 Annual Financial Statements
2014 Management's Discussion and Analysis
2014 Annual Information Form
2014 Third Quarter Shareholder Report
2014 Third Quarter Financial Statements
2014 Third Quarter Management's Discussion and Analysis
2014 Second Quarter Shareholder Report
2014 Second Quarter Financial Statements
2014 Second Quarter Management's Discussion and Analysis
2014 First Quarter Shareholder Report
2014 First Quarter Financial Statements
2014 First Quarter Management's Discussion and Analysis
|Annual Financial Statements||
2013 Annual Report
2013 Annual Financial Statements
2013 Management's Discussion and Analysis
2013 Annual Information Form
2013 Third Quarter Financial Statements
2013 Third Quarter Management's Discussion and Analysis
2013 Second Quarter Financial Statements
2013 Second Quarter Management's Discussion and Analysis
2013 First Quarter Financial Statements
2013 First Quarter Management's Discussion and Analysis
|Annual Financial Statements||
2012 Annual Report
2012 Annual Financial Statements
2012 Management's Discussion and Analysis
2012 Annual Information Form
2012 Third Quarter Management's Discussion and Analysis
2012 Third Quarter Financial Statements
2012 Second Quarter Financial Statements
|Annual Financial Statements||2011 Annual Financial Statements|
|Atrium Management Information Circular 2016 Atrium Management Information Circular 2015|
|Audit Committee Charter Communications and Disclosure Policy Nominating and Governance Committee Charter Board Mandate Code of Business Conduct and Ethics Share Ownership Policy Whistleblower Policy|