Report Highlights

  • In Q1-2025, mortgage receivables (gross) decreased 2% to $852M. Despite the dip, we maintain our view that AI can reach $900M by year-end.
  • As 84% of AI’s portfolio are floating-rate mortgages, its average lending rate has declined with the Bank of Canada’s cuts.
  • Q1 revenue and EPS declined 13% and 7% YoY, respectively, both missing our estimates (by 3% and 6%) due to lower lending rates. Annual regular dividends remained steady at $0.93/share, reflecting an 8.4% yield.
  • Stage three (impaired) mortgages declined 33% QoQ to 2.2% of mortgages, the lowest level since Q2-2023, signaling a lower risk profile. Key portfolio metrics remained stable, with a high proportion of first mortgages (96.7%), and a relatively low LTV of 61%.