Key Highlights

  • 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.

Visit Atrium Mortgage Investment Corporation page for more research, discussion boards and to like, and share.

Are you enjoying the highlights?

Discover the company's fair value estimate from our certified analysts, identify potential risks, and explore exciting upcoming catalysts in our detailed report.

Already a member? Sign In