Atrium Mortgage Investment Corporation
Dividend Delight in a Challenging Market
Published: 11/18/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:
AI.TO - TSX 🔹
AMIVF - NASDAQ 🔹
- In Q3-2024, mortgage receivables (gross) rose 2% QoQ to $926M – the highest in AI's history. However, due to sluggish sector activity, loan advancements declined 50% YoY.
- As 86% of AI’s portfolio are floating-rate mortgages, lending rates have been falling since the Bank of Canada (BoC) began cutting rates. As a result, Q3 revenue was down 3% YoY, missing our estimate by 0.9%. However, EPS increased 4%, driven by significantly lower loan loss provisions, despite missing our estimate by 0.7%.
- The company anticipates a material decrease in stage two and three (impaired) mortgages in Q4, and therefore, we expect loan loss provisions to continue to decrease in Q4.
- We anticip