Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) December 31, 2018 December 31, 2017
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Commercial 20 $99,193 14.5% 27 $167,622 26.5%
Low-rise residential 38 232,713 34.0% 39 256,581 40.6%
House and apartment 101 64,230 9.4% 120 86,287 13.6%
High-rise residential 15 146,027 21.3% 10 81,939 13.0%
Mid-rise residential 20 139,708 20.4% 6 37,071 5.9%
Condominium corporation 14 2,533 0.4% 14 2,887 0.4%
Mortgage portfolio 208 684,404 100.0% 216 632,387 100.0%
Accrued interest receivable   3,122     2,537  
Mortgage discount   (221)     (262)  
Mortgage origination fees   (684)     (706)  
Provision for mortgage losses   (3,900)     (7,200)  
Mortgages receivable   $682,721     $626,756  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (84.1%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 61.1%, with 88.6% 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 December 31, 2018 % December 31, 2017 %
Conventional first mortgages $549,039 80.2% $467,583 73.9%
Conventional second and third mortgages 54,460 8.0% 72,609 11.5%
Non-conventional mortgages 78,372 11.4% 89,308 14.1%
Other 2,533 0.4% 2,887 0.5%
  $662,304 100.0% $632,387 100.0%

Mortgages by Size

(thousands of Canadian dollars) December 31, 2018 December 31, 2017
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 145 $103,128 15.1% 161 $105,386 16.7%
$2,500,001 - $5,000,000 26 98,176 14.3% 19 69,755 11.0%
$5,000,001 - $7,500,000 8 48,118 7.0% 10 60,555 9.6%
$7,500,001 - $10,000,000 7 61,394 9.0% 5 42,920 6.8%
$10,000,001 + 22 373,588 54.6% 21 353,771 55.9%
  208 $684,404 100.0% 216 $632,387 100.0%

Mortgages by Type

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

Analyses of our mortgages as at December 31, 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 167 $575,619 84.1% 8.55%
Second and third mortgages 41 108,785 15.9% 10.44%
  208 $684,404 100.0% 8.85%
Nature of underlying property        
Residential 188 $585,211 85.5% 8.80%
Commercial 20 99,193 14.5% 9.15%
  208 $684,404 100.0% 8.85%
Location of underlying property        
Greater Toronto Area 162 $431,334 63.0% 8.94%
Non-GTA Ontario 26 29,160 4.3% 8.28%
Alberta 3 15,698 2.3% 8.83%
British Columbia 17
208,212 30.4% 8.76%
  208 $684,404 100.0% 8.85%