Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) September 30, 2019 December 31, 2018
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Low-rise residential 34 $221,973 30.0% 38 $232,713 34.0%
High-rise residential 16 180,343 24.4% 15 146,027 21.3%
Mid-rise residential 19 145,812 19.7% 20 139,708 20.4%
House and apartment 87 60,328 8.2% 101 64,230 9.4%
Condominium corporation 14 2,755 0.4% 14 2,533 0.4%
Commercial 19 128,255 17.3% 20 99,193 14.5%
Mortgage portfolio 189 739,466 100.0% 208 684,404 100.0%
Accrued interest receivable   3,701     3,122  
Mortgage discount   (235)     (221)  
Unamortized origination fees   (650)     (684)  
Provision for mortgage losses   (5,090)     (3,900)  
Mortgages receivable   $737,192     $682,721  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (85.0%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 61.2%, with 89.2% 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 September 30, 2019 % December 31, 2018 %
Conventional first mortgages $604,408 81.7% $549,039 80.2%
Conventional second and third mortgages 52,654 7.1% 54,460 8.0%
Non-conventional mortgages 79,649 10.8% 78,372 11.4%
Other 2,755 0.4% 2,533 0.4%
  $739,466 100.0% $684,404 100.0%

Mortgages by Size

(thousands of Canadian dollars) September 30, 2019 December 31, 2018
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 121 $84,979 11.5% 145 $103,128 15.1%
$2,500,001 - $5,000,000 23 85,424 11.5% 26 98,176 14.3%
$5,000,001 - $7,500,000 14 86,278 11.7% 8 48,118 7.0%
$7,500,001 - $10,000,000 8 71,509 9.7% 7 61,394 9.0%
$10,000,001 + 23 411,276 55.6% 22 373,588 54.6%
  189 $739,466 100.0% 208 $684,404 100.0%

Mortgages by Type

As of September 30, 2019, the average outstanding mortgage balance was $3.9 million (December 31, 2018 – $3.3 million), and the median outstanding mortgage balance was $1.0 million (December 31, 2018 – $0.8 million).

Analyses of our mortgages as at September 30, 2019 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 158 $631,473 85.4% 8.50%
Second and third mortgages 31 107,993 14.6% 10.54%
  189 $739,466 100.0% 8.80%
Nature of underlying property        
Residential 170 $611,211 82.7% 8.80%
Commercial 19 $128,255 17.3% 8.79%
  189 $739,466 100.0% 8.80%
Location of underlying property        
Greater Toronto Area 151 $496,083 67.1% 8.88%
Non-GTA Ontario 18 24,789 3.3% 8.34%
Alberta 4 15,356 2.1% 8.80%
British Columbia 16
203,238 27.5% 8.66%
  189 $739,466 100.0% 8.80%