Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) June 30, 2021 December 31, 2020
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Low-rise residential 14 $97,876 13.8% 21 $174,362 23.4%
High-rise residential 15 196,024 27.6% 16 170,074 22.8%
Mid-rise residential 24 215,005 30.2% 25 199,525 26.8%
House and apartment 79 55,401 7.8% 63 45,522 6.1%
Condominium corporation 13 1,961 0.3% 13 2,165 0.3%
Commercial 20 144,292 20.3% 20 153,666 20.6%
Mortgage portfolio 165 710,559 100.0% 158 745,314 100.0%
Accrued interest receivable   2,959     3,458  
Mortgage discount   (157)     (181)  
Unamortized origination fees   (373)     (416)  
Allowance for mortgage losses   (10,019)     (9,150)  
Mortgages receivable   $702,969     $739,025  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (84.0%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 61.2%, with 91.9% 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 June 30, 2021 % December 31, 2020 %
Conventional first mortgages $589,186 82.9% $596,270 80.0%
Conventional second and third mortgages 62,155 8.7% 82,868 11.1%
Non-conventional mortgages 57,256 8.1% 64,011 8.6%
Other 1,962 0.3% 2,165 0.3%
  $710,559 100.0% $745,314 100.0%

Mortgages by Size

(thousands of Canadian dollars) June 30, 2021 December 31, 2020
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 102 $62,855 8.8% 86 $50,405 6.8%
$2,500,001 - $5,000,000 21 86,398 11.3% 28 105,560 14.2%
$5,000,001 - $7,500,000 13 75,975 10.7% 14 85,335 11.4%
$7,500,001 - $10,000,000 6 53,619 7.6% 3 26,165 3.5%
$10,000,001 + 23 437,712 61.6% 27 477,849 64.1%
  165 $710,559 100.0% 158 $745,314 100.0%

Mortgages by Type

As of June 30, 2021, the average outstanding mortgage balance was $4.3 million (December 31, 2020 – $4.7 million), and the median outstanding mortgage balance was $0.8 million (December 31, 2020 – $1.3 million).

Analyses of our mortgages as at June 30, 2021 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 146 $596,551 84.0% 8.26%
Second and third mortgages 19 $114,008 16,0% 10.13%
  165 $710,559 100.0% 8.56%
Nature of underlying property        
Residential 145 $566,267 79.7% 8.46%
Commercial 20 $144,292 20.3% 8.97%
  165 $710,559 100.0% 8.56%
Location of underlying property        
Greater Toronto Area 112 $483,682 68.0% 8.69%
Non-GTA Ontario 33 26,215 3.7% 7.83%
Alberta 2 6,838 1.0% 8.89%
British Columbia 18
193,824 27.3% 8.33%
  165 $710,559 100.0% 8.56%