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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 Posts Solid Q3 Earnings

Atrium Mortgage Investment Corporation reported a net income of $11.9 million for the third quarter, representing a 2.5% increase over the prior year. Basic and fully diluted earnings per share were $0.25 per share, slightly missing estimates of $0.26 per share. The company's mortgage portfolio ended the quarter at $917.3 million, up from $886.7 million at December 31, 2024. The average interest rate on the mortgage portfolio decreased to 9.2% as of September 30, 2025.

Publication Date: Dec -02

📋 Highlights
  • Net Income Growth:: Increased to $11.9M, a 2.5% rise YoY.
  • Earnings Per Share (EPS) Exceed Dividend:: $0.25/share vs. fixed dividend of $0.2325/share.
  • Mortgage Portfolio Expansion:: Grew to $917.3M from $886.7M as of Dec 31, 2024.
  • Lower Average Interest Rate:: Dropped to 9.2% as of Sept 30, 2025.
  • Allowance for Mortgage Losses:: $29.5M (321 bps of portfolio) signals risk mitigation.

Portfolio Composition and Credit Quality

The portfolio saw a net increase in commercial loans and single-family mortgages, with a focus on lower-risk sectors. The allowance for mortgage losses was $29.5 million, representing 321 basis points of the mortgage portfolio. The company's efforts to manage credit risk are evident, with four out of six Stage 3 loans expected to be repaid by the end of Q4 or early Q1.

Outlook and Guidance

Atrium expects both new loan advances and repayments to be higher in Q4, with the portfolio size expected to increase slightly. The company anticipates steady average mortgage rates, citing a decrease in problem loans with high coupon rates. Management is pricing new business at prime plus, with a floor in place, currently around 7.95-8%, reflecting the expectation that rates may not move up, but could continue to move down.

Valuation and Dividend Yield

With a P/E Ratio of 10.95 and a Dividend Yield of 8.18%, Atrium Mortgage Investment Corporation presents an attractive income investment opportunity. The company's ROE of 9.59% indicates a reasonable return on equity. Analysts estimate next year's revenue growth at -0.7%, which may put pressure on the stock's valuation. However, the current dividend yield provides a cushion, making the stock relatively attractive to income investors.

Growth Prospects

The company's focus on lower-risk sectors and its efforts to manage credit risk position it well for future growth. While the weak housing market in Ontario and BC may pose challenges, Atrium's diversified portfolio and steady average mortgage rates are expected to support its performance. The expectation of steady interest rates and a slight increase in portfolio size in Q4 provide a positive outlook for the company's near-term prospects.

3. NewsRoom

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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

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Atrium Mortgage Investment Corporation Announces October 2025 Dividend

Oct -03

Source: newsfilecorp.com

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Atrium Mortgage Investment Corporation Announces September 2025 Dividend

Sep -04

Source: newsfilecorp.com

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Atrium Mortgage Investment Second Quarter 2025 Earnings: EPS: CA$0.28 (vs CA$0.26 in 2Q 2024)

Aug -10

Source:

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3 TSX Dividend Stocks Yielding Up To 6.5%

Aug -08

Source:

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: 7.7/10

Value: 6.2

Growth: 5.3

Quality: 7.4

Yield: 10.0

Momentum: 7.5

Volatility: 10.0

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Atrium Mortgage

A-Score: 6.8/10

Value: 4.0

Growth: 5.3

Quality: 7.7

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

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First National

A-Score: 6.8/10

Value: 4.0

Growth: 5.0

Quality: 5.2

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

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Firm Capital Mortgage

A-Score: 6.8/10

Value: 4.3

Growth: 4.0

Quality: 7.5

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

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Timbercreek Financial

A-Score: 6.6/10

Value: 5.8

Growth: 3.7

Quality: 5.8

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

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Greystone Housing Impact Investors

A-Score: 6.3/10

Value: 7.0

Growth: 4.2

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 8.7

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

11.38$

Current Price

11.38$

Potential

-0.00%

Expected Cash-Flows