- Revenues grew 8% YoY to $17 million in Q3-2019. Net income in Q3-2019 increased 12% YoY to $10 million (EPS: $0.25) – beating the records created in Q2.
- Atrium’s net mortgage portfolio was up 0.5% QoQ to $737 million by the end of Q3-2019. We believe the risk profile of Atrium’s portfolio has stayed flat QoQ.
- We estimate that dividends as a percentage of book value decreased YoY from 8.50% to 8.34% p.a. in Q3-2019, primarily due to a decline in the weighted average lending rate as we had expected.
- Atrium reported nil realized losses in the quarter (nil in Q1 and Q2 2019 as well), versus $7.10 million for 2018 (1.1% of the portfolio).
- Our forecast for total dividends in the year is now $0.96 per share (previously $0.98 per share) due to an increase in shares outstanding from a recent $27 million equity financing.
- The Vancouver residential market is showing signs of stabilization. We continue to 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.
- Our current fair value estimate reflects potential for a 9.2% total return in the next 12 months.
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.