Atrium Mortgage Investment Corporation
Dividend Delight in a Challenging Market
Published: 11/18/2024
Author: FRC Analysts
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:AI.TO - TSX 🔹AMIVF - NASDAQ 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $11.25 |
| Fair Value | CAD $1308 |
| Risk | 3 |
| 52 Week Range | CAD $9.95-12.00 |
| Shares O/S (M) | 47 |
| Market Cap. (M) | CAD $530 |
| Current Yield (%) | 9.1 |
| P/E (forward) | 10.8 |
| P/B | 1.04 |
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Report Highlights
- 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
