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1. Company Snapshot

1.a. Company Description

Atrium Mortgage Investment Corporation, a non-bank lender, provides financing solutions to the real estate communities in Ontario, Alberta, and British Columbia.It offers various types of mortgage loans for residential, multi-residential, and commercial real properties, which includes first and second mortgages; infill construction and financing; land and land assembly financing for stacked and traditional townhomes, single detached homes, and low-rise and midrise condominiums; and bridge and term financing.The company was incorporated in 2001 and is headquartered in Toronto, Canada.

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1.b. Last Insights on AI

Atrium Mortgage Investment Corporation's recent performance was negatively driven by a decline in earnings per share (EPS) from $1.18 in 2023 to $1.06 in 2024, despite a 20% revenue increase to $74.2 million. The company's net income decreased by 6.6% year-over-year to $47.9 million, partly due to higher operating expenses. Additionally, the company's special dividend of $0.16 per share in 2024 was lower than expected, potentially affecting investor sentiment.

1.c. Company Highlights

2. Atrium Mortgage Investment Corporation's Q4 Earnings: A Resilient Performance

Atrium Mortgage Investment Corporation reported a net income of $49.1 million for the year ended December 31, 2025, representing a 2.5% increase over the prior year. This translated to basic earnings per share of $1.03, exceeding the fixed dividend rate for the year of $0.93 per share. The mortgage portfolio grew by 3.4% to $917.1 million, with 80.8% of the portfolio priced based on floating rates and 95.2% comprising first mortgages. The actual EPS for the quarter was $0.2191, slightly below estimates of $0.26.

Publication Date: Mar -08

📋 Highlights
  • Net Income Growth:: Atrium reported $49.1 million net income, a 2.5% increase YoY, with EPS rising to $1.03 vs. $0.93 fixed dividend.
  • Mortgage Portfolio Expansion:: Portfolio grew to $917.1 million (+3.4%), with 80.8% floating-rate mortgages and 61.4% average loan-to-value ratio.
  • Allowance for Credit Losses:: Increased to $30.5 million (+3.1%), equivalent to 332 basis points of the portfolio.
  • Special Dividend Declared:: $0.10 special dividend announced, bringing total 2025 dividends to $1.03/share, aligned with EPS.
  • Stage 3 Loan Status:: $31 million loan in Stage 3 is under contract, expected full repayment in Q2 2026 with no anticipated loss.

Portfolio Composition and Credit Quality

The average loan-to-value ratio of the portfolio stood at 61.4%, well within the desired range of 65%. Atrium's allowance for credit losses was $30.5 million at December 31, 2025, a 3.1% increase over the previous year. The total loan loss reserve increased marginally to 332 basis points on the overall mortgage portfolio. Robert G. Goodall noted that the commercial real estate market stabilized in 2025, while the residential and multi-residential real estate markets continued to struggle.

Strategic Focus and Outlook

The company's strategy for managing the portfolio and deploying capital in a challenging macro backdrop involves focusing on single-family mortgages and commercial real estate, particularly in areas such as multi-residential and industrial sectors. Atrium will avoid development except for the strongest developers and continue to risk-rate every single loan every quarter. Regarding provisioning, Robert G. Goodall stated that it will likely be similar to 2025, but not as high as 2023 levels.

Valuation and Dividend

The company's dividend yield stands at 7.96%, indicating an attractive return for investors. Atrium also announced a $0.10 special dividend, bringing the total dividends for the year to $1.03 per share, in line with earnings per share for 2025. With a P/B Ratio of 1.07 and an ROE of 9.36%, the stock appears reasonably valued. Analysts estimate next year's revenue growth at -0.4%, which may impact the stock's performance.

Credit Risk Management

Atrium is closely monitoring vulnerabilities in its portfolio, having a clear understanding of it after a single quarter. The company is adequately provisioned for Stage 3 and Stage 2, with a notable aspect being the $31 million loan in Stage 3, which is under contract and expected to be fully repaid in Q2 with no loss expected.

3. NewsRoom

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Atrium Mortgage Investment Q4 Earnings Call Highlights

Mar -01

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Atrium Mortgage Investment Corporation Reports Strong 2025 Annual Results, Declares $0.10 Special Dividend for 2025 and Announces Dividends for the Second Quarter of 2026

Feb -26

Source: newsfilecorp.com

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Atrium Mortgage Investment Corporation Announces 2025 Year End Investor Conference Call Details

Feb -20

Source:

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Atrium Mortgage Investment Corporation Announces Its Monthly Regular Dividend and Dividends for the First Quarter of 2026

Jan -05

Source:

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Atrium Mortgage Investment Corporation Announces December 2025 Dividend

Dec -03

Source: newsfilecorp.com

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Atrium Mortgage Investment Corporation Announces Appointment of New CFO

Dec -01

Source: newsfilecorp.com

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Atrium Mortgage Investment Corporation Announces Strong Third Quarter Earnings per Share

Nov -12

Source: newsfilecorp.com

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Atrium Mortgage Investment Corporation Announces November 2025 Dividend and Q3 2025 Investor Conference Call Details

Nov -03

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.97%)

6. Segments

Gas & Services

Expected Growth: 4.83%

Atrium Mortgage Investment Corporation's Gas & Services segment growth of 4.83% is driven by increasing demand for natural gas, strategic acquisitions, and expansion into new markets. Additionally, investments in infrastructure and technology have improved operational efficiency, leading to higher margins and revenue growth.

Global Markets & Technologies

Expected Growth: 7.88%

Atrium Mortgage Investment Corporation's 7.88% growth in Global Markets & Technologies is driven by increasing demand for mortgage investments, expansion into new geographic markets, and strategic partnerships. Additionally, the corporation's diversified portfolio, strong risk management, and efficient operations contribute to its growth. Furthermore, the low-interest-rate environment and government-backed mortgage initiatives also support the segment's growth.

Engineering & Construction

Expected Growth: 7.9%

Atrium Mortgage Investment Corporation's 7.9% growth in Engineering & Construction is driven by increasing demand for infrastructure development, government investments in public-private partnerships, and a growing need for sustainable building practices. Additionally, the rise of urbanization and population growth contribute to the segment's expansion.

7. Detailed Products

Residential Mortgages

Atrium Mortgage Investment Corporation provides residential mortgages to individuals and families to purchase or refinance their homes.

Commercial Mortgages

Atrium Mortgage Investment Corporation offers commercial mortgages to businesses and investors to finance their commercial properties.

Construction Loans

Atrium Mortgage Investment Corporation provides construction loans to builders, developers, and property owners to finance their construction projects.

Bridge Loans

Atrium Mortgage Investment Corporation offers bridge loans to individuals and businesses to provide short-term financing for their real estate transactions.

Mezzanine Financing

Atrium Mortgage Investment Corporation provides mezzanine financing to businesses and developers to fill the financing gap between their equity and senior debt.

8. Atrium Mortgage Investment Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Atrium Mortgage Investment Corporation is medium, as there are alternative mortgage investment options available to investors, but they may not offer the same level of returns or diversification benefits.

Bargaining Power Of Customers

The bargaining power of customers is low, as individual investors have limited negotiating power, and the company's mortgage investment products are designed to appeal to a broad range of investors.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium, as the company relies on a network of mortgage brokers and agents to originate mortgages, but it has some flexibility to negotiate terms and rates.

Threat Of New Entrants

The threat of new entrants is high, as the mortgage investment market is attractive to new entrants, and the barriers to entry are relatively low, although the company's established brand and network of brokers and agents provide some protection.

Intensity Of Rivalry

The intensity of rivalry is high, as the mortgage investment market is highly competitive, with many established players competing for market share, and the company must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.02%
Debt Cost 10.00%
Equity Weight 73.98%
Equity Cost 10.00%
WACC 10.00%
Leverage 35.17%

11. Quality Control: Atrium Mortgage Investment Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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MCAN Mortgage

A-Score: 7.6/10

Value: 5.4

Growth: 6.4

Quality: 5.6

Yield: 10.0

Momentum: 8.0

Volatility: 10.0

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Atrium Mortgage

A-Score: 7.0/10

Value: 3.9

Growth: 4.4

Quality: 7.7

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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First National

A-Score: 6.9/10

Value: 4.0

Growth: 5.0

Quality: 5.2

Yield: 9.0

Momentum: 8.0

Volatility: 10.0

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Firm Capital Mortgage

A-Score: 6.8/10

Value: 4.2

Growth: 3.2

Quality: 7.4

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

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Timbercreek Financial

A-Score: 6.4/10

Value: 5.8

Growth: 3.0

Quality: 5.7

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

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Greystone Housing Impact Investors

A-Score: 5.7/10

Value: 7.2

Growth: 4.2

Quality: 6.1

Yield: 10.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.54$

Current Price

11.54$

Potential

-0.00%

Expected Cash-Flows