Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) September 30, 2018 December 31, 2017
Mortgage category Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial/mixed use 24 $130,217 19.7% 27 $167,622 26.5%
Low-rise residential 33 203,532 30.7% 36 234,343 37.1%
Construction 8 73,868 11.1% 8 64,828 10.3%
House and apartment 97 101,872 15.4% 120 86,287 13.6%
High-rise residential 8 36,918 5.6% 7 44,949 7.1%
Mid-rise residential 14 113,273 17.1% 4 31,471 5.0%
Condominium corporation 14 2,624 0.4% 14 2,887 0.4%
Mortgage portfolio 198 662,304 100.0% 216 632,387 100.0%
Accrued interest receivable   2,774     2,537  
Mortgage discount   (231)     (262)  
Mortgage origination fees   (499)     (706)  
Provision for mortgage losses   (10,100)     (7,200)  
Mortgages receivable   $654,248     $626,756  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (78.6%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 62.2%, with 85.3% 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 September 30, 2018 % December 31, 2017 %
Conventional first mortgages $473,149 71.5% $467,583 73.9%
Conventional second and third mortgages 88,921 13.4% 72,609 11.5%
Non-conventional mortgages 97,610 14.7% 89,308 14.1%
Other 2,624 0.4% 2,887 0.5%
  $662,304 100.0% $632,387 100.0%

Mortgages by Size

(thousands of Canadian dollars) September 30, 2018 December 31, 2017
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 136 $98,446 14.9% 161 $105,386 16.7%
$2,500,001 - $5,000,000 23 87,218 13.2% 19 69,755 11.0%
$5,000,001 - $7,500,000 10 59,724 9.0% 10 60,555 9.6%
$7,500,001 - $10,000,000 8 69,744 10.5% 5 42,920 6.8%
$10,000,001 + 21 347,172 52.4% 21 353,771 55.9%
  198 $662,304 100.0% 216 $632,387 100.0%

Mortgages by Type

As of September 30, 2018, the average outstanding mortgage balance was $3.3 million (December 31, 2017 – $2.9 million), and the median outstanding mortgage balance was $1.0 million (December 31, 2017 – $0.8 million).

Analyses of our mortgages as at September 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 $520,354 78.6% 8.41%
Second and third mortgages 47 141,950 21.4% 10.38%
  198 $662,304 100.0% 8.83%
Nature of underlying property        
Residential 174 $532,087 80.3% 9.10%
Commercial 24 130,217 19.7% 8.77%
  198 $662,304 100.0% 8.83%
Location of underlying property        
Greater Toronto Area 151 $404,050 61.0% 9.02%
Non-GTA Ontario 24 20,035 3.0% 8.36%
Saskatchewan 2 20,955 3.2% 7.85%
Alberta 3 15,613 2.4% 8.83%
British Columbia 18
201,651 30.4% 8.60%
  198 $662,304 100.0% 8.83%