Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) June 30, 2019 December 31, 2018
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Low-rise residential 35 $219,390 29.8% 38 $232,713 34.0%
High-rise residential 18 183,883 25.0% 15 146,027 21.3%
Mid-rise residential 20 140,506 19.1% 20 139,708 20.4%
House and apartment 91 61,231 8.3% 101 64,230 9.4%
Condominium corporation 14 2,850 0.4% 14 2,533 0.4%
Commercial 21 128,166 17.4% 20 99,193 14.5%
Mortgage portfolio 199 736,026 100.0% 208 684,404 100.0%
Accrued interest receivable   3,499     3,122  
Mortgage discount   (246)     (221)  
Mortgage origination fees   (727)     (684)  
Provision for mortgage losses   (4,700)     (3,900)  
Mortgages receivable   $733,852     $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 60.3%, with 89.4% 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, 2019 % December 31, 2018 %
Conventional first mortgages $598,420 81.3% $549,039 80.2%
Conventional second and third mortgages 57,130 7.7% 54,460 8.0%
Non-conventional mortgages 77,626 10.6% 78,372 11.4%
Other 2,850 0.4% 2,533 0.4%
  $736,026 100.0% $684,404 100.0%

Mortgages by Size

(thousands of Canadian dollars) June 30, 2019 December 31, 2018
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 132 $98,879 13.4% 145 $103,128 15.1%
$2,500,001 - $5,000,000 23 83,842 11.4% 26 98,176 14.3%
$5,000,001 - $7,500,000 13 78,805 10.7% 8 48,118 7.0%
$7,500,001 - $10,000,000 8 71,124 9.7% 7 61,394 9.0%
$10,000,001 + 23 403,376 54.8% 22 373,588 54.6%
  199 $736,026 100.0% 208 $684,404 100.0%

Mortgages by Type

As of June 30, 2019, the average outstanding mortgage balance was $3.7 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 June 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 165 $625,488 85.0% 8.51%
Second and third mortgages 34 110,538 15.0% 10.52%
  199 $736,026 100.0% 8.81%
Nature of underlying property        
Residential 178 $607,860 82.6% 8.82%
Commercial 21 $128,166 17.4% 8.80%
  199 $736,026 100.0% 8.81%
Location of underlying property        
Greater Toronto Area 155 $491,990 66.8% 8.91%
Non-GTA Ontario 23 24,749 3.4% 8.31%
Alberta 4 15,047 2.0% 8.80%
British Columbia 17
204,240 27.8% 8.65%
  199 $736,026 100.0% 8.81%