- Atrium’s net mortgage portfolio was up 4% QoQ to $734 million by the end of Q2-2019. We were pleasantly surprised with this growth as management had stated in their Q1 conference call that they expected the portfolio size to stay around end of Q1’s $706 million through the year.
- Revenues increased 14% YoY to $17 million in Q2-2019, and net income increased 12% YoY to $10 million (EPS: $0.25) – both are new quarterly records.
- Despite the increase in portfolio size, we believe the risk profile of Atrium’s portfolio has dropped QoQ. First mortgages increased QoQ from 84.4% to 85.0%, and the Loan-to-Value (“LTV”) dropped QoQ from 60.6% to 60.3%.
- We are raising our 2019 total dividend forecast to $0.98 per share (previously $0.96 per share).
- Except for residential mortgages in Vancouver, we expect reasonably strong markets for commercial / multi-family mortgages in Vancouver, and commercial / multi-family / residential mortgages in Toronto. This is likely to be partially offset by a lower interest rate environment.
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