Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) March 31, 2019 December 31, 2018
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Low-rise residential 36 $228,109 32.2% 38 $232,713 34.0%
High-rise residential 17 159,520 22.5% 15 146,027 21.3%
Mid-rise residential 21 156,477 22.1% 20 139,708 20.4%
House and apartment 100 64,578 9.1% 101 64,230 9.4%
Condominium corporation 14 2,943 0.4% 14 2,533 0.4%
Commercial 20 96,089 13.7% 20 99,193 14.5%
Mortgage portfolio 208 707,716 100.0% 208 684,404 100.0%
Accrued interest receivable   3,604     3,122  
Mortgage discount   (257)     (221)  
Mortgage origination fees   (665)     (684)  
Provision for mortgage losses   (4,300)     (3,900)  
Mortgages receivable   $706,098     $682,721  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (84.4%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 60.6%, 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 March 31, 2019 % December 31, 2018 %
Conventional first mortgages $570,248 80.6% $549,039 80.2%
Conventional second and third mortgages 57,741 8.2% 54,460 8.0%
Non-conventional mortgages 76,784 11.4% 78,372 11.4%
Other 2,943 0.4% 2,533 0.4%
  $707,716 100.0% $684,404 100.0%

Mortgages by Size

(thousands of Canadian dollars) March 31, 2019 December 31, 2018
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 144 $105,429 14.9% 145 $103,128 15.1%
$2,500,001 - $5,000,000 22 80,798 11.4% 26 98,176 14.3%
$5,000,001 - $7,500,000 13 79,020 11.2% 8 48,118 7.0%
$7,500,001 - $10,000,000 7 61,783 8.7% 7 61,394 9.0%
$10,000,001 + 22 380,686 53.8% 22 373,588 54.6%
  208 $707,716 100.0% 208 $684,404 100.0%

Mortgages by Type

As of March 31, 2019, the average outstanding mortgage balance was $3.4 million (December 31, 2018 – $3.3 million), and the median outstanding mortgage balance was $0.9 million (December 31, 2018 – $0.8 million).

Analyses of our mortgages as at March 31, 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 171 $597,323 84.4% 8.61%
Second and third mortgages 37 110,393 15.6% 10.50%
  208 $707,716 100.0% 8.90%
Nature of underlying property        
Residential 188 $611,627 86.3% 8.86%
Commercial 20 96,089 13.7% 9.17%
  208 $707,716 100.0% 8.90%
Location of underlying property        
Greater Toronto Area 161 $456,406 64.5% 9.00%
Non-GTA Ontario 26 29,830 4.2% 8.26%
Alberta 4 14,817 2.1% 8.80%
British Columbia 17
206,663 29.2% 8.79%
  208 $707,716 100.0% 8.90%