Investors

Investment objectives

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:

 

 
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Board of Directors
 
Dividends

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 -

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 info@atriummic.com or telephone (416) 607-4200.

 
Financial Reports