About Us
Company Profile
We are a mortgage lender filling the lending gap caused by the limited number of financial institutions operating in Canada. We lend in major urban centres where the stability and liquidity of real estate is high. Our loan portfolio is of high quality but we are able to charge higher rates than the banks because we offer flexibility, speed, creativity and excellent service. In addition, bank lending is often formulaic and constrained, whereas we are able to customize solutions.
Mortgages on which we lend are secured by all types of residential, multi-residential and commercial real property located in Canada, and must all be in strict compliance with our investment policies. Atrium has an 19-year track record of success and consistently achieving its strategic objectives: namely, to grow in a controlled manner by diversifying geographically, and focusing on real estate sectors with the lowest risk profiles.
Our investment objectives are to preserve our shareholders’ equity and provide our shareholders with stable and secure dividends from our investments in mortgage loans within the criteria permitted for a Mortgage Investment Corporation (MIC). Working within conservative risk parameters, we endeavour to maximize income and thus the dividends paid to our shareholders through the sourcing and efficient management of our mortgage investments.
For 2021, we are currently paying a monthly dividend of $0.075 per share, plus a special dividend to shareholders who own our shares on December 31 in the event the dividends declared are less than taxable income for the fiscal year.
| Year | Regular dividend | Bonus dividend | Total dividends paid | Earnings per share (basic) |
|---|---|---|---|---|
| 2013 | $0.80 | $0.05 | $0.85 | $0.85 |
| 2014 | $0.82 | $0.07 | $0.89 | $0.91 |
| 2015 | $0.84 | $0.09 | $0.93 | $0.94 |
| 2016 | $0.86 | $0.10 | $0.96 | $0.97 |
| 2017 | $0.88 | $0.04 | $0.92 | $0.95 |
| 2018 | $0.90 | $0.04 | $0.94 | $0.95 |
| 2019 | $0.90 | $0.06 | $0.96 | $0.97 |
| 2020 | $0.90 | $0.02 | $0.92 | $0.93 |
| 2021 | $0.90 | to be determined |
“Our investment objectives are to preserve our shareholders’ equity & to provide our shareholders with stable and secure dividends.”
Our Business
Many mortgage providers are constrained by a lack of flexibility. We are flexible, nimble and provide mortgages to quality borrowers where larger financial institutions do not offer competitive terms and structures. Typical loans are for bridge financing, land assembly, and infill construction, with interest rates of 7.75% to 10% per annum, a one to two-year term, and monthly interest-only payments. We lend in Ontario, Alberta and British Columbia.
We are Canada’s premier non-bank lender™. Our objective is to provide investors with stable, safe, and reliable returns and to preserve capital. Through conservative underwriting and custom structures, we provide mortgages to borrowers whose financing needs are not being met by larger financial institutions. As a Mortgage Investment Corporation, 50% of our investments must be in residential mortgages, and we distribute all of our earnings every year.
The weighted average loan-to-value ratio of our mortgage portfolio, as a whole, at the time of underwriting each loan in our portfolio, may not exceed 75%. A typical loan in our portfolio has an interest rate of 7.75% to 10% per annum, a one or two-year term and monthly interest-only mortgage payments.
Our lending parameters are as follows:
- Mortgages on income-producing real estate up to a maximum of 85% of appraised value.
- Mortgages on residential and commercial properties up to a maximum of 75% of appraised value.
- Loans on single family residences up to 75% of appraised value.
- Construction loans up to a maximum of 90% of cost.
- Loans to condominium corporations
Mortgage loan amounts are generally $300,000 to $30 million. The largest single mortgage in our mortgage portfolio as at December 31, 2020 was $43.0 million (December 31, 2019 – $43.0 million). For loan amounts in excess of $30 million, we generally co-lend with a financial institution or private lender.
The parameters listed above are our maximum mortgage lending parameters. At December 31, 2020, the weighted average loan-to-value ratio of the mortgage portfolio was 61.0% (December 31, 2019 – 59.5%).
As a mortgage lender, we are positioned to occupy the gap caused by the limited number of financial institutions operating in Canada.
“As a mortgage lender, we are positioned to occupy the gap caused by the limited number of financial institutions operating in Canada.”
Mortgage Investment Corporations
We qualify as a MIC and are restricted from any activity that would result in us failing to qualify as a MIC. In order to qualify as a MIC, we must satisfy the requirements in subsection 130.1(6) of the Income Tax Act (ITA).
Among the requirements are:
- We can only invest or manage funds, and cannot manage or develop real property.
- We cannot own debts secured on real property situated outside Canada, debts owing by non-residents unless such debts were secured on real property situated in Canada, shares of the capital stock of corporations not resident in Canada, or real property situated outside of Canada or any leasehold interest in such property.
- No shareholder (together with related persons, as defined in the ITA) may at any time own, directly or indirectly, more than 25% of our common shares.
- The cost for tax purposes of cash on hand, debts secured on specified residential properties, and funds on deposit with a Canada Deposit Insurance Fund or Régie de l’assurance-dépôts du Québec-insured institution or credit union must constitute at least 50% of the cost of all of our property.
- The cost for tax purposes of any interests in real property (including leaseholds but excluding real or immovable property acquired by foreclosure after default by the mortgagor) may not exceed 25% of the cost of all of our property.
- There are certain restrictions as to our maximum debt-to-equity ratio.
As a MIC, earnings that are distributed as dividends to shareholders are not subject to corporate income tax, and are treated as interest for Canadian income tax purposes.
We are managed by Canadian Mortgage Capital Corporation (the “manager” or “CMCC”), which is our exclusive manager and arranges and services our mortgage loans and otherwise directs our affairs and manages our business. CMCC’s website is here.
