Atrium Mortgage Investment reports a 10.7% drop in Q2 net income as repayments outpace originations and portfolio yield declines.
Atrium Mortgage Investment (TSE:AI) posted a second-quarter net income of C$11.7 million, or C$0.24 per share, down from C$13.1 million, or C$0.28 per share, a year earlier. The decline reflects a 6.2% contraction in its mortgage portfolio to C$860.1 million and a drop in average portfolio yield to 8.69%.
Despite the year-over-year decline, earnings exceeded the company’s regular quarterly dividend of C$0.2325 per share. Atrium maintained its annual dividend rate of C$0.93, with monthly dividends of C$0.0775 per share declared for the next three months. Credit performance improved, with Stage 3 loans falling 28% to C$61.5 million, though Stage 2 balances rose to C$93.9 million.
Management expects repayments to moderate and targets portfolio growth to at least C$900 million by year-end. The company is shifting toward commercial and apartment lending, which now account for 53.4% of its portfolio.