Atrium Mortgage (AI) 2024年年度報告「TSX」.pdf

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1、2024Report to ShareholdersDecember 31,2024Safety|Consistency|YieldAtrium lends in major urban centres and where the stability and liquidity of real estate is high.As a mortgage lender,we fill the lending gap that results from the limited number of financial institutions operating in Canada.Our loan

2、portfolio is high quality but we are able to charge higher rates than the banks because we offer flexibility,creativity and excellent service.Our mortgages are secured by all types of residential,multi-residential and commercial real estate property located in Canada,and must all be in strict compli

3、ance with our investment policies.Atrium has a 23-year track record of success and consistency in achieving our strategic objectives:to grow in a controlled manner by focusing on real estate sectors with the lowest risk profiles.About Atrium Mortgage Investment Corporation1 Earnings Press Release5 M

4、anagements Discussion and Analysis 21 Consolidated Financial Statements 51 Corporate DirectoryTABLEOF CONTENTSSince commencing operations in 2001,our investment objectives have been to preserve our shareholders equity and provide our shareholders with stable and secure dividends from our investments

5、 in mortgage loans within the criteria permitted for a Mortgage Investment Corporation(MIC).Working within conservative risk parameters,we endeavour to maximize income and dividends through careful underwriting and efficient management of our mortgage investments.We were listed on the Toronto Stock

6、Exchange in 2012.Our regular dividend is paid monthly,currently at a rate of$0.0775 per share per month.Our dividends since 2020 are as follows:Regular Dividend$0.90$0.90$0.90$0.90$0.90$0.93Year20202021202220232024Special Dividend$0.02$0.07$0.23$0.29$0.16To be determinedTotal Dividends Paid$0.92$0.9

7、7$1.13$1.19$1.06Earnings Per Share(basic)$0.93$0.98$1.08$1.18$1.0620251 FOR IMMEDIATE RELEASE ATRIUM MORTGAGE INVESTMENT CORPORATION ANNOUNCES A STRONG FINISH TO A VERY SUCCESSFUL YEAR AND$0.16 SPECIAL DIVIDEND FOR 2024 TORONTO:March 6,2025 Atrium Mortgage Investment Corporation(TSX:AI,AI.DB.D,AI.DB

8、.E,AI.DB.F,AI.DB.G)today released its financial results for the year ended December 31,2024.Highlights Annual basic and diluted earnings per share of$1.06 and$1.05,respectively,compared to$1.18 and$1.14 basic and diluted earnings per share,respectively in 2023 Annual net income of$47.9 million,compa

9、red to$51.5 million in the prior year$0.16 per share special dividend to shareholders of record on December 31,2024 to be paid on March 19,2025 High quality mortgage portfolio o 96.7%of portfolio in first mortgages o 95.7%of portfolio is less than 75%loan-to-value o average loan-to-value is 61.9%“At

10、riums results for calendar 2024 were very strong.Our earnings per share of$1.06 was the third best result in our history as a public company.This performance has produced a sizeable special dividend of$0.16 which is above the five-year average of$0.13.I am very proud that the last three years have b

11、een the best three years since Atrium went public in 2012.Some of the credit for our results has been due to higher interest rates,but we also underwrote more conservatively than other non-bank lenders and therefore had fewer problem loans.For example,our Stage 2&3 loans decreased dramatically to$79

12、 million in Q4 from$129.7 million in Q3.Over 2024,we shifted loan origination towards lower risk sectors to protect shareholder capital throughout this economic downturn and our mortgage portfolio ended the year with a low loan-to-value of 61.9%.We believe that there may be less competition from non

13、-bank lenders in 2025 so we also took steps to increase our funding capacity to support future growth.The maximum amount on our credit facility was increased by$25 million to$340 million by adding Royal Bank to the lending syndicate.We also completed an oversubscribed bought deal equity offering in

14、Q4 that raised gross proceeds of$28.8 million.Given our superior financial performance,we were pleased to cap off the year with an increase in the monthly dividend from an annualized rate of$0.90 to$0.93 beginning in December.We are well positioned in 2025 to navigate an unpredictable year caused by

15、 weak real estate market conditions and tariffs imposed by the United States on Canadian goods”said Rob Goodall,CEO of Atrium.Conference call Interested parties are invited to participate in a conference call with management on Friday,March 7,2025 at 9:00 a.m.ET to discuss the results.To participate

16、 or listen to the conference call live,please call 1-833-491-0507(call topic:Fourth quarter results).For a replay of the conference call(available until March 21,2025)please call 1-833-607-0619,passcode 4174703#.2 Results of operations For the year ended December 31,2024,Atrium reported assets of$86

17、4.3 million,down from$877.9 million at the end of 2023.Revenues were$97.3 million,a decrease of 1.3%from the prior year.Net income for 2024 was$47.9 million,a decrease of 7.1%from the prior year.Atriums allowance for mortgage losses at December 31,2024 totaled$29.6 million or 3.33%of the gross mortg

18、age portfolio.Basic and diluted earnings per common share were$1.06 and$1.05,respectively,for the year ended December 31,2024,compared with$1.18 and$1.14 basic and diluted earnings per common share in the prior year,a decrease of 10.2%(basic).Basic and diluted earnings per common share were$0.27 and

19、$0.26,respectively,for the fourth quarter compared to$0.27 and$0.26 basic and diluted in the comparative quarter.The board of directors declared a special dividend of$0.16 for 2024,resulting in a total dividend of$1.0625 per common share paid to shareholders for the year,compared to$1.19 for the pri

20、or year.Mortgages receivable as at December 31,2024 was$863.2 million,down from$876.7 million as at December 31,2023.This was due to mortgage interest and principal repayments exceeding advances and a higher allowance for mortgage losses.During the year ended December 31,2024,$352.2 million of mortg

21、age principal was advanced and$327.3 million was repaid.The weighted average interest rate on the mortgage portfolio at December 31,2024 was 9.98%,compared to 11.42%at December 31,2023.Financial summary Consolidated Statements of Income and Comprehensive Income (000s,except per share amounts)Year Ye

22、ar Year ended ended ended December 31 December 31 December 31 2024 2023 2022 Revenue$97,263$98,574$78,371 Mortgage servicing and management fees (8,558)(8,465)(8,526)Other expenses (1,301)(1,299)(1,098)Impairment loss on investment property held for sale (1,832)Recovery of prior mortgage losses 268

23、492 1,050 Provision for mortgage losses (13,839)(11,894)(1,914)Income before financing costs 73,833 77,408 66,051 Financing costs (25,981)(25,923)(19,719)Net income and comprehensive income$47,852$51,485$46,332 Basic earnings per share$1.06$1.18$1.08 Diluted earnings per share$1.05$1.14$1.06 Dividen

24、ds declared$48,171$52,095$48,736 Mortgages receivable,end of year$863,169$876,733$860,374 Total assets,end of year$864,304$877,877$874,780 Shareholders equity,end of year$516,980$482,206$475,564 Book value per share,end of year$10.96$10.97$10.97 3 Analysis of mortgage portfolio As at December 31,202

25、4 As at December 31,2023 Outstanding%of Outstanding%of Property Type Number amount Portfolio Number amount Portfolio (outstanding amounts in 000s)High-rise residential 17$247,202 27.9%22$323,340 36.2%Mid-rise residential 20 139,738 15.8%25 208,289 23.3%Low-rise residential 12 152,827 17.2%14 153,561

26、 17.2%House and apartment 219 154,713 17.5%153 117,943 13.2%Condominium corporation 6 1,279 0.1%10 1,786 0.2%Residential portfolio 274 695,759 78.5%224 804,919 90.1%Commercial 24 190,939 21.5%19 88,640 9.9%Mortgage portfolio 298$886,698 100.0%243$893,559 100.0%As at December 31,2024 Weighted Weighte

27、d Number of Outstanding Percentage average average Location of underlying property mortgages amount outstanding loan-to-value interest rate (outstanding amounts in 000s)Greater Toronto Area 211$791,809 89.3%60.6%9.96%Non-GTA Ontario 73 40,816 4.6%69.6%9.15%British Columbia 14 54,073 6.1%75.0%10.96%2

28、98$886,698 100.0%61.9%9.98%As at December 31,2023 Weighted Weighted Number of Outstanding Percentage average average Location of underlying property mortgages amount outstanding loan-to-value interest rate (outstanding amounts in 000s)Greater Toronto Area 166$653,401 73.1%61.4%11.63%Non-GTA Ontario

29、52 40,753 4.6%64.6%9.81%British Columbia 24 191,955 21.5%60.6%10.95%Alberta 1 7,450 0.8%71.0%14.00%243$893,559 100.0%61.4%11.42%For further information on the financial results,and further analysis of the companys mortgage portfolio,please refer to Atriums consolidated financial statements and its m

30、anagements discussion and analysis for the year ended December 31,2024,available on SEDAR+at www.sedarplus.ca,and on the companys website at .Restatement of Comparative Consolidated Statement of Cash Flows In response to commentary received from an issue oriented review of Atrium Mortgage Investment

31、 Corporations continuous disclosure record by the Ontario Securities Commission(the“OSC”),management determined that cash flows from cash advances of mortgages receivable and cash repayments of mortgages receivable,previously classified as investing activities,will be reclassified as operating activ

32、ities in the consolidated statement of cash flows.In addition,interest and fees on convertible debentures paid and interest and other financing charges paid,previously classified as financing activities,will also be reclassified to operating activities on the consolidated statement of cash flows.The

33、 consolidated statement of cash flows for the year ended December 31,2023 was restated for these reclassifications as illustrated in the table below,with no change to the cash balance at year end.This adjustment had no impact on the consolidated statement of financial position,consolidated statement

34、 of changes in shareholders equity,consolidated statement of income and comprehensive income,earnings per share,or mortgages receivable.4 For the year ended December 31,2023 As previously reported Restatement Restated Cash provided by operating activities$77,316$(42,445)$34,871 Cash provided by(used

35、 in)investing activities$(4,635)$17,910$13,275 Cash used in financing activities$(72,681)$24,535$(48,146)About Atrium Canadas Premier Non-Bank Lender Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of

36、 real estate are high.Atriums objectives are to provide its shareholders with stable and secure dividends and preserve shareholders equity by lending within conservative risk parameters.Atrium is a Mortgage Investment Corporation(MIC)as defined in the Canada Income Tax Act,so is not taxed on income

37、provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year.Such dividends are generally treated by shareholders as interest income,so that each shareholder is in the same position as if the mortgage investments made by the company

38、 had been made directly by the shareholder.For further information about Atrium,please refer to regulatory filings available at www.sedarplus.ca or investor information on Atriums website at .For additional information,please contact Robert G.Goodall John Ahmad Chief Executive Officer Chief Financia

39、l Officer (416)867-1053 2024MD&AManagements Discussion and AnalysisFor the years endedDecember 31,2024 and 20236 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS Managements Discussion and Analysis December 31,2024 Our business Atrium is a mortgage lender filling the l

40、ending gap that results from the limited number of financial institutions operating in Canada.We lend in major urban centres and where the stability and liquidity of real estate are high.Our loan portfolio is high quality but we are able to charge higher rates than the banks because we offer flexibi

41、lity,creativity and excellent service.Our mortgages are secured by all types of residential,multi-residential and commercial real estate located in Canada,and must all be in strict compliance with our investment policies.Atrium has a 23-year track record of success and consistency in achieving our s

42、trategic objectives:to grow in a controlled manner by focusing on real estate sectors with the lowest risk profiles.Our objective is to invest in a diverse portfolio of predominantly first mortgages that are relatively short-term,to provide our shareholders with stable and secure dividends while pre

43、serving shareholders equity,all within the parameters mandated for a Mortgage Investment Corporation(MIC).Working within conservative risk parameters,we endeavour to maximize income and dividends through careful underwriting and efficient management of our mortgage investments.Information herein is

44、current as of March 6,2025.Highlights Atrium continued to generate strong financial results for shareholders.For the year ended December 31,2024,we had revenues of$97.3 million compared to$98.6 million in the prior year,a decrease of 1.3%.Net income was$47.9 million compared with$51.5 million in the

45、 prior year,a decrease of 7.1%.Basic and diluted earnings per share were$1.06 and$1.05,respectively,compared with$1.18 basic and$1.14 diluted earnings per share in the prior year,a decrease of 10.2%basic and 7.9%diluted.All the figures from the prior year were the highest ever recorded by Atrium,and

46、 the calendar 2024 figures represent our third best as a public company.We declared a regular dividend of$0.9025 for the year,compared to$0.90 in the prior year.In addition,we declared a special dividend of$0.16,for a total dividend of$1.0625 for 2024,compared to$1.19 for the previous year.For 2025,

47、our board of directors has set the regular dividend rate at$0.93 per annum.Our regular and special dividends for the past five years are as follows:Year Regular dividend Special dividend Total dividends paid Earnings per share(basic)2020$0.90$0.02$0.92$0.93 2021$0.90$0.07$0.97$0.98 2022$0.90$0.23$1.

48、131$1.08 2023$0.90$0.29$1.191$1.18 2024$0.9025$0.16$1.06251$1.06 1)The difference between dividends paid and earnings per share is largely due to a timing difference created by an impairment and/or provision for accounting that is excluded from the calculation of taxable income.We had$863.2 million

49、of mortgages receivable as at December 31,2024,a decrease of 1.6%from December 31,2023.This was due to mortgage interest and principal repayments exceeding advances and a higher allowance for mortgage losses.During the year,$352.2 million of mortgage principal was advanced and$327.3 million was repa

50、id.The portfolio had a weighted average remaining term of 8.6 months.Our focus continues to be lending in the major metropolitan areas of Ontario and British Columbia.Fourth quarter net income of$12.7 million,increase of 7.0%from prior year period Annual earnings per share$1.06 basic and$1.05 dilute

51、d Strong,high quality mortgage portfolio 96.7%first mortgages 95.7%less than 75%loan-to-value Mortgages receivable$863.2 million,down 1.6%from prior year We focus on first mortgages with high liquidity and low loan-to-value ratios MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT C

52、ORPORATION 7 Investment portfolio Our mortgage portfolio consisted of 298 mortgage loans and aggregated$886.7 million as at December 31,2024,a decrease of 0.8%from December 31,2023.As at December 31,2024 As at December 31,2023 Outstanding%of Outstanding%of Property Type Number amount Portfolio Numbe

53、r amount Portfolio(outstanding amounts in 000s)High-rise residential1 17$247,202 27.9%22$323,340 36.2%Mid-rise residential1 20 139,738 15.8%25 208,289 23.3%Low-rise residential1 12 152,827 17.2%14 153,561 17.2%House and apartment2 219 154,713 17.5%153 117,943 13.2%Condominium corporation3 6 1,279 0.

54、1%10 1,786 0.2%Residential portfolio 274 695,759 78.5%224 804,919 90.1%Commercial 4 24 190,939 21.5%19 88,640 9.9%Mortgage portfolio 298 886,698 100.0%243 893,559 100.0%Accrued interest receivable 6,321 6,049 Mortgage discount (47)(68)Unamortized origination fees (247)(207)Allowance for mortgage los

55、ses (29,556)(22,600)Mortgages receivable$863,169$876,733 1)Mortgage loans on properties where the near-term business plan,as vetted by the lender,is to intensify the property into low-rise residential(detached,semi-detached,townhomes and/or multi-unit residential buildings up to 4 storeys),mid-rise

56、residential(multi-unit residential buildings from 5-20 storeys and stacked townhomes)or high-rise residential(multi-unit residential buildings over 20 storeys).2)Mortgage loans on existing single-family or multi-family residential homes and apartment buildings.3)Mortgage loans to residential condomi

57、nium corporations for guest suites,superintendent suites and green loans.4)Mortgage loans on properties where the existing real estate is currently,or the proposed development project after rezoning will be mixed use,commercial or industrial.A summary of our mortgages by loan type is presented below

58、.As at December 31,2024 As at December 31,2023 Outstanding%of Outstanding%of Loan type Number amount Portfolio Number amount Portfolio(outstanding amounts in 000s)Term loans 293$838,520 94.6%237$853,654 95.5%Construction loans 5 48,178 5.4%6 39,905 4.5%298$886,698 100.0%243$893,559 100.0%A summary o

59、f our mortgages by size is presented below.As at December 31,2024 As at December 31,2023 Outstanding%of Outstanding%of Mortgage amount Number amount Portfolio Number amount Portfolio(outstanding amounts in 000s)$0-$2,500,000 230$148,761 16.8%169$109,873 12.3%$2,500,001-$5,000,000 16 62,356 7.0%19 72

60、,477 8.1%$5,000,001-$7,500,000 18 112,966 12.7%17 104,924 11.8%$7,500,001-$10,000,000 5 44,558 5.0%8 69,035 7.7%$10,000,001+29 518,057 58.5%30 537,250 60.1%298$886,698 100.0%243$893,559 100.0%As at December 31,2024,the average outstanding mortgage balance was$3.0 million(December 31,2023$3.7 million

61、),and the median outstanding mortgage balance was$0.7 million(December 31,2023$0.7 million).The tables below show our mortgage portfolio by location of the underlying property and type of mortgage.The weighted average interest rates shown exclude the lender fees paid by the borrower,which reflect th

62、e yield to Atrium.As at December 31,2024,84.3%of our portfolio was priced at floating rates,the majority with rate floors,down from 89.8%at December 31,2023.8 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS As at December 31,2024 Weighted Weighted Number of Outstandin

63、g Percentage average average Location of underlying property mortgages amount outstanding loan-to-value interest rate(outstanding amounts in 000s)Greater Toronto Area 211$791,809 89.3%60.6%9.96%Non-GTA Ontario 73 40,816 4.6%69.6%9.15%British Columbia 14 54,073 6.1%75.0%10.96%298$886,698 100.0%61.9%9

64、.98%As at December 31,2023 Weighted Weighted Number of Outstanding Percentage average average Location of underlying property mortgages amount outstanding loan-to-value interest rate(outstanding amounts in 000s)Greater Toronto Area 166$653,401 73.1%61.4%11.63%Non-GTA Ontario 52 40,753 4.6%64.6%9.81%

65、British Columbia 24 191,955 21.5%60.6%10.95%Alberta 1 7,450 0.8%71.0%14.00%243$893,559 100.0%61.4%11.42%We have an exceptionally high proportion of our portfolio invested in first mortgages(96.7%),which is one of our core strategies.As at December 31,2024,the weighted average loan-to-value ratio in

66、our mortgage portfolio was 61.9%,with 95.7%of the portfolio below 75%loan-to-value(At December 31,2023,the weighted average loan-to-value ratio was 61.4%,and 94.0%of the portfolio was below 75%loan-to-value).As at December 31,2024 Weighted Number of Outstanding Percentage average Type of mortgage mo

67、rtgages amount outstanding interest rate(outstanding amounts in 000s)First mortgages Conventional 267$817,867 92.2%9.91%Non-Conventional 22 38,520 4.3%10.63%Other 6 1,279 0.2%7.51%295 857,666 96.7%9.94%Second and third mortgages Conventional 3 29,032 3.3%11.24%Non-conventional -3 29,032 3.3%11.24%29

68、8$886,698 100.0%9.98%As at December 31,2023 Weighted Number of Outstanding Percentage average Type of mortgage mortgages amount outstanding interest rate(outstanding amounts in 000s)First mortgages Conventional 209$801,323 89.7%11.40%Non-Conventional 16 42,367 4.7%11.58%Other 10 1,786 0.2%7.43%235 8

69、45,476 94.6%11.40%Second and third mortgages Conventional 6 37,008 4.1%12.11%Non-conventional 2 11,075 1.3%10.84%8 48,083 5.4%11.81%243$893,559 100.0%11.42%MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 9 Conventional mortgages are those with a loan-to-value of less

70、than or equal to 75%,which is the industry standard for determining that a mortgage is conventional.Non-conventional mortgages have a loan-to-value in excess of 75%.The weighted average term remaining for our mortgage portfolio at December 31,2024 is 8.6 months(December 31,2023 9.2 months).Our busin

71、ess In Canada there is a lending gap due to the limited number of financial institutions operating.Our business is to help fill that gap by focusing on loans that cannot be placed with larger financial institutions but represent an acceptable underwriting risk.Our borrowers benefit from our efficien

72、t,thorough and fast underwriting process.We lend in major urban centers where the stability and liquidity of real estate are at the highest levels.Our policy is that the weighted average loan-to-value ratio of our mortgage portfolio,as a whole,at the time of underwriting each loan in our portfolio,w

73、ill not exceed 75%.At December 31,2024,the weighted average loan-to-value ratio of the mortgage portfolio was considerably lower than that,at 61.9%,compared to 61.4%at December 31,2023.A typical loan in our portfolio has an interest rate of 8.24%to 13.71%per annum,a one or two-year term and monthly

74、interest-only mortgage payments.Pricing on new loans during the fourth quarter typically ranged between 8.24%to 11.47%.Our lending parameters are as follows:Mortgages on residential and commercial properties up to a maximum of 75%of appraised value.Loans on single family residences up to 75%of appra

75、ised value.Mortgages on income-producing real estate up to a maximum of 85%of appraised value.Construction loans up to a maximum of 90%of cost.Loans to condominium corporations.Mortgage loan amounts are generally$300,000 to$30 million.The largest single mortgage in our mortgage portfolio as at Decem

76、ber 31,2024 was$49.9 million,secured by five properties as part of a master facility(December 31,2023$48.1 million).Our investment policies,which may be changed by our board of directors(“board”),are as follows:We may invest only in residential mortgages,commercial mortgages,commercial mortgage back

77、ed securities and certain related investments.All investments must be mortgages on the security of real property situated within Canada,loans to condominium corporations,or certain permitted interim investments.Commercial mortgages may not constitute more than 50%of our total assets at any time.The

78、term of the mortgage may generally be no greater than ten years.Mortgages are subject to the following geographic limits at the time of funding:Alberta maximum 15%of total mortgages;British Columbia maximum of 45%of total mortgages.No single borrower may account for more than 15%of our total assets.

79、All mortgages are supported by external appraisals by a qualified appraiser.All mortgages,except mortgages secured by one to six residential units,are also supported by environmental audits.The maximum initial loan-to-value ratio of an individual mortgage is 85%including any prior ranking encumbranc

80、es,and the weighted average loan-to-value ratio of our mortgage portfolio at the time of underwriting each loan may not exceed 75%.Maintain a debt to total assets ratio of not more than 0.55:1.00.We do not invest directly in real property,although real property may be acquired by foreclosing on a mo

81、rtgage.A mortgage investment of:(i)$4,000,000 or more requires approval of the board;(ii)between$2,000,000 and$4,000,000 requires approval of three members of the board,including at least two independent directors;and(iii)$2,000,000 or less requires approval of any one member of the board.For loans

82、previously approved,the approval of one member of the board is required(i)for changes to the loan that do not exceed the approved amount by more than the greater of(a)$200,000 or(b)2%of the previously approved loan amount;or(ii)for minor technical amendments that do not change other underwriting con

83、siderations,provided in all cases that the loan-to-value ratio increases by less than 5%and the ratio is 75%or less.We may invest in interim investments that are guaranteed by the Government of Canada or of a province or territory of Canada or deposits or certificates of deposits,acceptances and oth

84、er similar instruments issued,endorsed or guaranteed by a Schedule I Bank in any amount without prior board approval.We may not make unsecured loans to,nor invest in securities issued by,our manager or its affiliates,nor make unsecured loans to the directors or officers of the manager.We may not mak

85、e any investment,or incur any indebtedness,that would result in our not qualifying as a MIC.10 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS Our objective is to invest in a diverse portfolio of predominantly first mortgages that are relatively short-term,to provide

86、our shareholders with stable and secure dividends while preserving shareholders equity,all within the parameters mandated for a MIC.Working within conservative risk parameters,we endeavour to maximize income and dividends through the sourcing and efficient management of our mortgage investments.We a

87、re a non-bank lender and invest in mortgages secured by all types of residential,multi-residential and commercial real property located in Canada,subject to compliance with our investment policies.The types of properties that we finance include residential houses,small multi-family residential prope

88、rties comprised of six or fewer units,residential apartment buildings,commercial properties and store-front retail properties,residential and commercial land development sites.We also finance construction projects and provide short-term bridge financing for real estate developers.Our strategy is to

89、grow in a controlled manner by diversifying geographically,and focusing on real estate sectors with the lowest risk profiles.For larger loan amounts,we generally co-lend with a financial institution or private lender.We qualify as a MIC and are restricted from any activity that would result in us fa

90、iling to qualify as a MIC.In order to qualify as a MIC,we must satisfy the requirements in subsection 130.1(6)of the Canada Income Tax Act(ITA)throughout the taxation year.Among the requirements are:We can only invest or manage funds and cannot manage or develop real property.We cannot own debts sec

91、ured on real property situated outside Canada,debts owing by non-residents unless such debts were secured on real property situated in Canada,shares of the capital stock of corporations not resident in Canada,or real property situated outside of Canada or any leasehold interest in such property.No s

92、hareholder(together with related persons,as defined in the ITA)may at any time own,directly or indirectly,more than 25%of our common shares.The cost for tax purposes of cash on hand,debts secured on specified residential properties,and funds on deposit with a Canada Deposit Insurance Fund or Rgie de

93、 lassurance-dpts du Qubec-insured institution or credit union must constitute at least 50%of the cost of all of our property.The cost for tax purposes of any interests in real property(including leaseholds but excepting real or immovable property acquired by foreclosure after default by the mortgago

94、r)may not exceed 25%of the cost of all of our property.There are certain restrictions as to our maximum debt-to-equity ratio.We are managed by Canadian Mortgage Capital Corporation(the“manager”or“CMCC”),which is our exclusive manager and arranges and services our mortgage loans and otherwise directs

95、 our affairs and manages our business.For explanations as to some of the terms used herein,please refer to our Annual Information Form for the year ended December 31,2024,which is available at www.sedarplus.ca.Recent Developments Atrium generated earnings per share(EPS)of$1.06 for fiscal 2024 which

96、includes EPS of$0.27 in the fourth quarter of 2024.This earnings performance represented the third best year in our companys history as a public company and resulted in a sizeable special dividend of$0.16 for the year.Real estate markets remained challenging but the macroeconomic environment has bee

97、n stabilizing over the course of the year as interest rates and inflation have been trending downward.The mortgage portfolio remained relatively stable at$886.7 million at year end compared to$893.6 million at the beginning of the year despite reaching a record$926.3 million in the third quarter.Des

98、pite challenging market conditions that persisted over the course of the year,principal advances of$352.2 million were more than offset by principal and interest repayments.The decrease in the mortgage portfolio over the fourth quarter was largely driven by payouts of higher risk loans in Stages 2 a

99、nd 3 which helps reinforce a stronger mortgage portfolio.The company has significantly reduced the percentage of higher risk Stage 2 and 3 loans in the portfolio from 17.8%at the beginning of the year down to 8.9%at year end.The company was able to source high quality loans due to reduced market com

100、petition from non-bank lenders but the market did see more competitive pressure as the year progressed.Earnings remained strong over the course of the year despite higher loan loss reserves to prudently recognize elevated credit risk in the portfolio due to weak market conditions.This consistency in

101、 earnings supported an increase in the annual dividend rate from$0.90 per share to$0.93 beginning in December 2024.Over the course of the year,Atrium continued to build a strong balance sheet that remains highly capitalized with shareholder capital representing 59.8%of total funding sources at year

102、end.On June 30,2024,one convertible debenture of$25.3 million matured and was repaid in full using the credit facility.Maintaining ample capacity on the credit facility provides optionality in terms of assessing market conditions for the optimal time to issue long-term debt.During the second quarter

103、,the company added Royal Bank of Canada as a lender and increased the maximum balance available on the credit facility by$25,000 to$340,000.The lending syndicate supporting the facility now includes four of top six financial institutions in the country which reflects the strength of our business mod

104、el and mortgage MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 11 portfolio.The credit facility also has an accordion feature of$60 million which can increase the maximum availability to$400 million to provide further funding capacity and liquidity.In October 2024,At

105、rium also successfully completed a bought deal offering resulting in the issuance,including the over-allotment option,of 2,512,750 common shares for gross proceeds of$28.8 million.The proceeds were used to repay existing indebtedness on the credit facility and provides additional capital that can be

106、 leveraged for future growth.The rate on the mortgage portfolio was 9.98%at year end which was down from 10.52%in the third quarter.The decrease was largely driven by two 50 bps Bank of Canada rate cuts announced on October 23,2024 and December 11,2024 as 84.3%of the mortgage portfolio is priced off

107、 floating rates with the majority having rate floors in place.The business,however,also focused on lower risk profile mortgages over the course of year which are priced at lower rates.After raising the policy interest rate by a total of 475 bps over 2022 and 2023,the Bank of Canada cut rates five ti

108、mes over 2024 for a total of 175 bps.The credit facility is priced off prime and the market rate for Term CORRA loans and has benefited from lower rates.The average cost of borrowing on the credit facility was 6.34%in the fourth quarter of 2024 which is down from 6.96%in the third quarter and 7.55%i

109、n the prior year comparative quarter.The allowance for mortgage losses was$29.6 million at year end which represented 333 bps of the mortgage portfolio.This is up from$22.6 million and 253 bps,respectively,from the beginning of the year.These increases were largely driven by a higher assessment of c

110、redit risk relating to specific loans in the mortgage portfolio.Numerous factors including elevated interest rates,increased construction costs,and higher financial stress on end consumers put increased pressure on borrowers across the industry.The company,however,made material progress in terms of

111、resolving loans classified as Stages 2 and 3 as the balance decreased steadily from$158.7 million at the beginning of the year to$79.0 million at year end.The Stage 1 provision was 0.91%of the mortgage portfolio at year end,a slight drop from 1.04%at the beginning of the year due to some improvement

112、s in macroeconomic indicators that still incorporate relatively stagnant growth and high unemployment figures.The primary focus of the business over the year has been to maintain a resilient mortgage portfolio that can withstand the downturn in the credit cycle.The business was able to generate soli

113、d,consistent returns for shareholders over 2024 despite challenging market conditions and maintaining strict risk parameters.In fact,despite weak real estate conditions over the last couple of years,our highest earnings per share in our history as a public company were generated in 2022,2023 and 202

114、4.The deep experience of our management team across all market cycles has helped maintain our mortgage portfolio in terms of size but more importantly mitigate risk through disciplined underwriting and the focus on lower risk sectors.The mortgage portfolio ended the year with 96.7%of mortgages in fi

115、rst position and a low LTV of 61.9%.The portfolio also remained concentrated in the major urban centers of the GTA and GVA where liquidity is highest.All things being equal,Management remains cautiously optimistic that real estate markets will gradually improve over the course of 2025 and has positi

116、oned the business with the resources and capacity to capitalize on any growth opportunities that should arise.Tariffs stemming from recent border and trade disputes with the new US Administration,however,represents a significant risk factor that could prolong the downturn in the real estate cycle.We

117、 plan to remain cautious with disciplined underwriting and excess liquidity to navigate through these market uncertainties.Results of Operations(In this section,dollars are in thousands of Canadian dollars,except per share amounts)Financial summary Year Year Year ended ended ended December 31 Decemb

118、er 31 December 31 2024 2023 2022 Revenue$97,263$98,574$78,371 Mortgage servicing and management fees (8,558)(8,465)(8,526)Other expenses (1,301)(1,299)(1,098)Impairment loss on investment property held for sale (1,832)Recovery of prior mortgage loss 268 492 1,050 Provision for mortgage losses (13,83

119、9)(11,894)(1,914)Income before financing costs 73,833 77,408 66,051 Financing costs (25,981)(25,923)(19,719)Net income and comprehensive income$47,852$51,485$46,332 12 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS Year Year Year ended ended ended December 31 Decembe

120、r 31 December 31 2024 2023 2022 Basic earnings per share$1.06$1.18$1.08 Diluted earnings per share$1.05$1.14$1.06 Dividends declared$48,171$52,095$48,736 Mortgages receivable,end of year$863,169$876,733$860,374 Total assets,end of year$864,304$877,877$874,780 Shareholders equity,end of year$516,980$

121、482,206$475,564 Book value per share,end of year$10.96$10.97$10.97 Summary of quarterly results(unaudited)Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Revenue$22,626$24,514$24,930$25,193$25,907$25,412$23,548$23,707 Mortgage servicing and management fees(2,144)(2,168)(2,170)(2,076)

122、(2,206)(2,153)(2,052)(2,054)Other expenses(237)(414)(244)(406)(282)(241)(332)(444)Recovery of prior mortgage losses 85 183 115 220 157 Provision for mortgage losses (2,132)(3,488)(4,365)(3,854)(4,810)(5,442)(690)(952)Income before financing costs 18,198 18,444 18,334 18,857 18,724 17,796 20,474 20,4

123、14 Financing costs (5,521)(6,839)(6,805)(6,816)(6,872)(6,804)(6,045)(6,202)Net income and comprehensive income$12,677$11,605$11,529$12,041$11,852$10,992$14,429$14,212 Basic earnings per share$0.27$0.26$0.26$0.27$0.27$0.25$0.33$0.33 Diluted earnings per share$0.26$0.26$0.26$0.27$0.26$0.25$0.32$0.31 D

124、ividends declared$18,265$10,004$9,971$9,931$22,634$9,854$9,822$9,785 The following is a quarterly summary of the companys restated consolidated statements of cash flows for the eight most recently completed quarters:Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Net cash provided by

125、(used in)operating activities$51,819$(7,836)$1,048$23,097$(469)$(34,813)$36,885$33,268 Net cash provided by investing activities$13,275$Net cash provided by(used in)financing activities$(51,819)$7,836$(1,048)$(23,097)$469$21,538$(36,885)$(33,268)Results of operations Three months ended December 31,2

126、024 For the three months ended December 31,2024,mortgage interest and fees revenues aggregated$22,612,compared to$25,900 in the comparative period,a decrease of 12.7%.Virtually all our revenues are mortgage interest,and the decrease in revenue is due to a lower weighted average interest rate for the

127、 current quarter compared to the fourth quarter of 2023.The lower weighted average interest rate was driven largely by lower benchmark market rates in the quarter compared to the prior year quarter as well as the composition of the mortgage portfolio balance.A variety of other factors can affect the

128、 changes in the weighted average interest rate of our mortgage portfolio from quarter to quarter.No single other factor is determinative or material for the mortgage portfolio as a whole,however,such factors include,but are not limited to,the timing of changes in the prime rate of interest,the timin

129、g and dollar amount of mortgages advanced and/or repaid in the period,the types of properties on which mortgage loans are advanced and/or repaid in the period,the location of the underlying properties on which mortgage loans are advanced and/or repaid,the types of mortgage loans advanced and/or repa

130、id during the period and whether the mortgage loans advanced and/or repaid during the period are conventional or non-conventional mortgages.The weighted average interest rate on our mortgage portfolio was 9.98%as at December 31,2024,compared with 11.42%as at December 31,2023.Operating expenses,exclu

131、ding the provision for mortgage losses,and recovery of prior mortgage losses for the three months ended December 31,2024 were$2,381,compared to$2,488 in the comparative period,a decrease of 4.3%.This decrease is primarily due to lower mortgage servicing and management fees and a higher adjustment to

132、 fair value of deferred share units.Mortgage servicing and management fees paid(that is,the management fee plus HST)aggregated$2,144 for the three months ended December 31,2024,compared with$2,206 in the comparative period.This decrease was due to a decrease in the mortgage portfolio balance in the

133、current quarter as well as timing variations in mortgage fundings between the quarters,as mortgage servicing fees are calculated and paid monthly based on the mortgage portfolio balance outstanding during the month.The adjustment to the fair value of deferred share units was($61)for the three months

134、 ended December 31,2024 compared with($21)for the comparative quarter MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 13 due to a decrease in the companys stock price over the quarter which decreased the amount due to directors at quarter end.The recovery of prior mor

135、tgage loss was($85)in the quarter compared to($115)in the comparative period.The provision for mortgage losses was$2,132 in the quarter,for a total allowance of$29,556 as at December 31,2024 compared to a provision of$4,810 in the comparative period and a total allowance of$22,600 as at December 31,

136、2023.The decrease in the provision for mortgage losses was due to a lower increase in credit risk in the mortgage portfolio compared to the prior year comparative quarter.Financing costs for the three months ended December 31,2024 were$5,521,compared to$6,872 in the same period of 2024,a decrease of

137、 19.7%.Coupon rate interest on convertible debentures was$1,821 for the three months ended December 31,2024 compared to$2,150 for the comparative period.Accretion and other costs were$366 for the three months ended December 31,2024 compared to$413 for the comparative period.The carrying amount of co

138、nvertible debentures as at December 31,2024 was$133,858 compared to$157,610 as at December 31,2023 due to the maturity of the 5.30%convertible debenture of$25.3 million on June 30,2024.Interest expense on the credit facility was$3,222 for the three months ended December 31,2024,down from$4,129 in th

139、e comparative period.This decrease is due to a lower credit facility balance in the three months ended December 31,2024 compared to the prior period and a lower weighted average cost of borrowing in the fourth quarter of 2024(6.34%)compared to the fourth quarter of 2023(7.55%)due to decreases in mar

140、ket benchmark rates.Net income and comprehensive income for the three months ended December 31,2024 was$12,677,an increase of 7.0%from net income and comprehensive income of$11,852 for the same period in the prior year.Basic and diluted earnings per common share were$0.27 and$0.26 respectively,for t

141、he three months ended December 31,2024,compared with$0.27 and$0.26 basic and diluted earnings per share,respectively,for the comparable period.During the three months ended December 31,2024,we funded mortgages receivable aggregating$123,757.Of those advances,$119,757 were first mortgages,representin

142、g 96.8%of the total loans funded.British Columbia advances were$5,572,non-GTA Ontario were$8,452 and the remaining$109,733 were for mortgages on properties located in the Greater Toronto Area.There were$160,858 of repayments during the period.Results of operations Year ended December 31,2024 For the

143、 year ended December 31,2024,mortgage interest and fees revenues aggregated$97,220,compared to$97,940 in the prior year,a decrease of 0.7%.Virtually all our revenues are mortgage interest and therefore the decrease in revenue is due to a lower weighted average interest rate partially offset by a hig

144、her average mortgage portfolio balance in the current year compared to the prior year.The lower weighted average interest rate was driven by changes in benchmark rates compared to the prior year.A variety of other factors can affect the changes in the weighted average interest rate of our mortgage p

145、ortfolio from year to year.No single other factor is determinative or material for the mortgage portfolio as a whole,however,such factors include,but are not limited to,the timing of changes in the prime rate of interest,the timing and dollar amount of mortgages advanced and/or repaid in the year,th

146、e types of properties on which mortgage loans are advanced and/or repaid in the year,the location of the underlying properties on which mortgage loans are advanced and/or repaid,the types of mortgage loans advanced and/or repaid during the year and whether the mortgage loans advanced and/or repaid d

147、uring the year are conventional or non-conventional mortgages.The weighted average interest rate on our mortgage portfolio was 9.98%at December 31,2024,compared with 11.42%at December 31,2023.We generated net rental income of$43 for the year December 31,2024 from our investment properties compared t

148、o net rental income of$634 for the year ended December 31,2023.The decrease was a result of the disposition of the 90 unit property in Regina in the third quarter of 2023.Operating expenses,excluding the provision for mortgage losses,and recovery of prior mortgage losses for the year ended December

149、31,2024 were$9,859,compared to$9,764 in the prior year.This increase is primarily due to higher mortgage servicing and management fees and adjustment to fair value of deferred share units;partially offset by lower transfer agent,regulatory fees and investor relations.Mortgage servicing and managemen

150、t fees paid(that is,the management fee plus HST)aggregated$8,558 for the year ended December 31,2024,compared with$8,465 in the prior year.This increase was due to a higher average mortgage portfolio balance in the current year as well as timing variations in mortgage fundings between the periods,as

151、 mortgage servicing fees are calculated and paid monthly based on the mortgage portfolio balance outstanding during the month.Adjustment to fair value of deferred share units for the year ended December 31,2024 of$45 increased from($29)in the prior year due to an increase in the companys stock price

152、.Transfer agent,regulatory fees and investor relations expense for the year ended December 31,2024 of$231 compared to$283 in the prior year due to an expenditure for investment research in the prior year and lower transfer agent and registrar costs in the current year.Recovery of prior mortgage loss

153、es for the year ended December 31,2024 was($268)compared to($492)in the prior year.The provision for mortgage losses was$13,839 in 2024,for a total allowance of$29,556 at December 31,2024 compared to a provision of$11,894 in the prior year for a total allowance of$22,600 at December 31,2023.The incr

154、ease in the provision was due to a higher assessment of credit risk in the mortgage portfolio.Financing costs year ended December 31,2024 were$25,981,compared to$25,923 in the prior year,an increase of 0.2%.Coupon rate interest on convertible debentures was$7,955 for the year ended December 31,2024

155、compared 14 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS to$8,626 for the prior year.Accretion and other costs were$1,569 for the year ended December 31,2024 compared to$1,666 for the prior year.The 5.30%convertible debenture of$25,300 which matured on a non-busine

156、ss day,June 30,2024,was settled on the first business day in the third quarter using the credit facility.Interest expense on the credit facility was$15,954 for the year ended December 31,2024,up from$15,129 for the prior year.This increase is due to a higher average credit facility balance in the ye

157、ar ended December 31,2024 compared to the prior year offset by a lower weighted average cost of borrowing in the year(7.03%)compared to the prior year(7.19%)due to lower average market benchmark rates.Net income and comprehensive income for the year ended December 31,2024 was$47,852,a decrease of 7.

158、1%from net income and comprehensive income of$51,485 for the prior year.Basic and diluted earnings per common share were$1.06 and$1.05 respectively,for the year ended December 31,2024,compared with$1.18 and$1.14 basic and diluted earnings per share in the previous year.During the year ended December

159、,2024,we funded mortgages receivable aggregating$375,026.Of those advances,$362,140 were first mortgages,representing 96.6%of the total loans funded.British Columbia advances were$30,992,non-GTA advances were$25,297 and the remaining$318,737 were for mortgages on properties located in the Greater To

160、ronto Area.There were$375,004 of repayments during the year.Liquidity and capital resources As at December 31,2024,we had borrowings under the credit facility(excluding unamortized and prepaid financing costs)of$193,787.The credit facility,currently authorized for up to$340,000(December 31,2023$315,

161、000),is provided by a syndicate of six major chartered banks,drawn through a combination of term CORRA loans and bank loans to minimize our borrowing costs.At any time during the term of the credit facility,we have the right to increase the credit facility by up to$60,000(such that the total maximum

162、 availability would be up to$400,000).At December 31,2024,we had four series of convertible debentures outstanding,with a total carrying amount of$133,858 and a face value(and maturity value)of$137,933.For additional information on the operating credit facility and the debentures,please refer to Not

163、es 7 and 9,respectively,of our accompanying consolidated financial statements.The growth in our mortgage portfolio since inception has been financed by the issuance of common shares,issuance of convertible debt,and through the operating credit facility.We expect to be able to generate sufficient fun

164、ds for future growth in net mortgage loan investments by utilizing those three sources of funds.As at December 31,2024,total balance sheet debt was 40.2%of total assets(December 31,2023 45.1%).Changes in financial position Cash provided by operating activities during the year ended December 31,2024

165、included advances of principal on mortgage loans of$352,157 less principal repayments received of$327,297,for net cash advances of mortgage loans of$24,860.Borrowings under our operating credit facility(excluding unamortized and prepaid financing costs)decreased to$193,787 at December 31,2024,from$2

166、18,281 at December 31,2023,due to the issuance of common shares completed in the fourth quarter,decrease in the mortgage portfolio and repayments of credit facility,partially offset by the 5.30%convertible debenture which matured in the year.Accounts payable and accrued liabilities,including accrued

167、 convertible debenture interest,was$8,684 at December 31,2024 compared to$5,025 at December 31,2023.Dividends payable was$11,202 at December 31,2024,down from$16,047 at December 31,2023 due to a lower special dividend of$0.16 in 2024 compared to$0.29 in 2023.Share capital increased to$513,811 at Dec

168、ember 31,2024 from$478,903 at December 31,2023,primarily due to the issuance of common shares by prospectus and issuance of common shares under the dividend reinvestment plan.Contractual obligations Contractual obligations due at December 31,2024 were as follows:As at December 31,2024 Total obligati

169、on Within 1 year 1 to 3 years 3 to 5 years More than 5 years Borrowings under credit facility$202,075$202,075$Accounts payable and accrued liabilities 7,768 7,768 Accrued convertible debenture interest 916 916 Dividends payable 11,202 11,202 Convertible debentures 155,918 69,321 7,556 79,041 Total c

170、ontractual obligations$377,879$291,282$7,556$79,041$MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 15 We have commitments to advance additional funds under existing mortgages of$20,421,and for new mortgages of$33,750 at December 31,2024(December 31,2023$37,239,$1,992

171、 respectively).Generally,outstanding commitments are expected to be funded within the next 24 months.Our experience,however,has been that a portion of the unfunded amounts on existing mortgages will never be drawn.Off-balance sheet arrangements As at December 31,2024,we had$5,191(December 31,2023$12

172、,171)of letters of credit(LCs)outstanding which were issued under our operating credit facility.The maximum available by way of LCs under our operating credit facility at December 31,2024 was$25,000(December 31,2023$25,000).LCs represent irrevocable assurances that our banks will make payments in th

173、e event that a borrower of the company cannot meet its obligations to third parties.LCs carry the same credit risk,recourse and collateral security requirements as mortgages extended to customers.$4,426 of cash was received,and is recorded in accounts payable and accrued liabilities for letters of c

174、redit on mortgages that are discharged(December 31,2023$601).Transactions with related parties Transactions with related parties are in the normal course of business and are recorded at the exchange amount,which is the amount of consideration established and agreed to by the related parties,and are

175、measured at fair value.The manager is responsible for our day-to-day activities.We incurred management and mortgage servicing fees from a subsidiary of the manager of$8,553 for the year ended December 31,2024(year ended December 31,2023$8,379).Mr.Robert G.Goodall is a director and part of the key ma

176、nagement personnel of the manager,received compensation from the manager,and is also a director of Atrium.The management agreement between us and the manager contains provisions for the payment of termination fees to the manager in the event that the management agreement is terminated in certain cir

177、cumstances.The manager also acts as broker for our mortgages.The manager receives origination fees from the borrowers of up to 1%of the amount being funded;origination fees in excess of 1%are split between the manager and Atrium.During the year ended December 31,2024,CMCC reimbursed the company for

178、share-based payments of$82 related to grants under the companys DSIP(year ended December 31,2023$113).Under an employee share purchase plan(ESPP)for the companys common shares,participants,including employees of CMCC,may contribute up to an annual maximum to the ESPP and CMCC matches 50%of the parti

179、cipants contributions.The total amount matched by CMCC for the year ended December 31,2024 was$76(year ended December 31,2023$69).Certain of the companys mortgages receivable are shared with other investors.As at December 31,2024,companies owned by a director and/or officer of the company were co-in

180、vested in one syndicated mortgage receivable of$536,of which the companys share was$502,of which$502 had been funded(December 31,2023 nil syndicated mortgages receivable of$nil).During the year ended December 31,2024,the company recognized net mortgage interest and fees of$nil(year ended December 31

181、,2023$377)from no borrowers(2023 two)over which a director and/or officer of the company has joint control.Critical accounting estimates and policies Our consolidated financial statements for the year ended December 31,2024 are prepared in accordance with Canadian generally accepted accounting princ

182、iples(GAAP)and IFRS Accounting Standards as issued by the International Accounting Standards Board(IASB),as set out in Part I of the CPA Canada Handbook Accounting.The preparation of consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB requires managem

183、ent to make estimates,assumptions and judgements that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date and the reported amounts of revenue and expenses during the reporting period.The most subjective of these estimates re

184、late to:(a)determining whether the cash flows from the mortgages receivable represent solely payments of principal and interest(SPPI);(b)the measurement of impairment losses for mortgages receivable,in particular:measurement of credit risk to determine whether there has been a significant increase i

185、n credit risk since initial recognition;the assessment of when mortgages receivable become impaired and the incorporation of forward-looking information to determine expected credit losses;(c)the measurement of fair value,cost of disposal and the value in use of investment property;16 ATRIUM MORTGAG

186、E INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALYSIS (d)the measurement of the liability and equity components of the convertible debentures,which depend upon the estimated market interest rates for a comparable debenture without the convertibility feature;and(e)the measurement of fair

187、value of the purchased or originated credit-impaired financial assets reflecting the lifetime expected credit losses.Management believes that its estimates are appropriate;however,actual results could differ from the amounts estimated.Estimates and underlying assumptions are reviewed each quarter.Re

188、visions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.Economic uncertainties have resulted in a challenge of reliably estimating the impact on financial results and condition of the company in future periods.Accordingly,there

189、 is inherently more uncertainty associated with the estimates,judgements and assumptions made by management in the preparation of the consolidated financial statements.It is not possible to forecast with certainty the extent to which the economic impact will affect the companys operations and financ

190、ial results in the near-term and long-term.Areas of the companys business that could potentially be adversely impacted include,but are not limited to,mortgage interest rates,mortgage interest and fees revenue,allowance for mortgage losses and valuation of investment property.Management continues to

191、monitor and assess the impacts of these economic uncertainties on its estimates,judgements and assumptions.Mortgages receivable Mortgages receivable are a financial asset and are recognized initially at fair value and are subsequently carried at amortized cost using the effective interest method.All

192、 our mortgages receivable are held in a single business model.We have concluded that our business model is to hold mortgages receivable to collect contractual cash flows that represent SPPI.Mortgages receivable and commitments are assessed for impairment at the end of each reporting period using an

193、expected credit loss(ECL)model.The ECL model uses a three-stage impairment approach based on changes in the credit risk of the commitment or mortgage receivable since initial recognition.Credit quality is assessed at each reporting period and results in commitments and mortgages receivable being mov

194、ed between stages,as necessary.Significant judgement is required when assessing evidence of credit impairment and estimating expected credit losses.For commitments and mortgages receivable,the company considers a number of past events,current conditions and forward-looking information when assessing

195、 if there has been a significant increase or subsequent decrease in credit risk.The company considers a commitment or mortgage receivable to be impaired when there is objective evidence that one or more events have occurred that have an unfavourable impact on estimated future cash flows such that th

196、ere is no longer reasonable assurance as to the timely collection of the full amount of principal and interest.An ECL represents the difference between the present value of all contractual cash flows that are due under the original terms of the contract and the present value of all cash flows expect

197、ed to be received.The companys application of the concept uses three inputs to measure ECLs for commitments and mortgages receivable classified as Stage 1:probability of default(PD),loss given default(LGD)and exposure at default(EAD).These inputs are determined at each reporting period using histori

198、cal data and current conditions.Adjustments may be made to the probability of default if the effects of,for example,forecasts of housing prices,employment and interest rates,are expected to be significant over the term of the mortgage.The inputs for Stage 1 mortgages receivable are calculated separa

199、tely for(i)mortgages receivable on single-family residences and(ii)mortgages receivable on all other properties on the basis of differences in the credit risk of each.The ECL is assessed individually for each commitment and mortgage receivable classified as either Stage 2 or Stage 3.For mortgages re

200、ceivable in these stages,forecast future information specific to the loan(for example,forecasts of real estate prices)is incorporated when assessing the cash flows expected to be received.The ECL methodology was modified to include an overlay adjustment to account for the uncertainty and difficulty

201、in forecasting future economic conditions.Mortgages receivable are presented on the consolidated statements of financial position net of the allowance for mortgage losses.A loss on a mortgage is written off against the related allowance for mortgage losses when there is no reasonable expectation of

202、further recovery,which is the point at which the underlying real property has been liquidated and claims against guarantors,if any,are unlikely to recover any further losses.For any mortgages receivable that have been written off but where guarantors are still being pursued for collection,no recover

203、y is recognized until it is virtually certain of collection.For further information see Note 3(a)and(c)of our consolidated financial statements for the year ended December 31,2024.Revenue recognition Mortgage interest and fees revenues are recognized in the statement of income and comprehensive inco

204、me using the effective interest method,except mortgage interest and fees revenue on purchased or originated credit-impaired financial assets.Mortgage interest and fees revenues include our share of any fees received,as well as the effect of any discount or premium on the mortgage.Interest revenue is

205、 calculated on the gross carrying amount for mortgages receivable in Stages 1 and 2 and on the net carrying amount for mortgages receivable in Stage 3.MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 17 The effective interest method derives the interest rate that disco

206、unts the estimated future cash receipts during the expected life of the mortgage receivable(or,where appropriate,a shorter period)to its carrying amount.When calculating the effective interest rate,future cash flows are estimated considering all contractual terms of the financial instrument,but not

207、future credit losses.The calculation of the effective interest rate includes all fees and transaction costs paid or received.Fees and transaction costs include incremental revenues and costs that are directly attributable to the acquisition or issuance of the mortgage.Mortgage interest and fees reve

208、nue on purchased or originated credit-impaired financial assets is recognized in the consolidated statements of income and comprehensive income using the credit-adjusted effective interest rate,reflecting the expected credit losses,to the financial asset from initial recognition.Convertible debentur

209、es The convertible debentures can be converted into our common shares at the option of the investor.They are compound financial instruments with two components:a financial liability,and a call option which is an equity instrument.The fair value of the liability component is measured as of the date t

210、hat the debentures were issued,and the equity instrument is valued on that date based upon the difference between the fair value of the debenture and the fair value of the liability component.The measurement of the fair value of the liability component is based upon market rates of interest on simil

211、ar debt instruments without the conversion feature.Expenses of issue are allocated between the two components on a pro-rata basis.The carrying amount of the debt is accreted up to its face value over the life of the financial liability using the effective interest method,which provides for the appli

212、cation of a constant interest rate over the term of the debt.The value of the equity component is not re-measured subsequent to its initial measurement date.Income taxes We are,and intend to maintain our status as,a MIC,and as such are not taxed on income provided that it flows through to our shareh

213、olders as dividends during the year or within 90 days after December 31 each year.It is our policy to pay such dividends to our shareholders to remain non-taxable.Accordingly,no provision for current or future income taxes is required.Future changes in accounting policies Various pronouncements have

214、 been issued by the IASB or IFRS Interpretations Committee that will be effective for future accounting periods.The company closely monitors new accounting standards as well as amendments to existing standards and assesses what impact,if any,they will have on the consolidated financial statements.In

215、 particular,IFRS 18,Presentation and Disclosure in Financial Statements was issued in April 2024 and applies to an annual reporting period beginning on or after January 1,2027.This new standard introduces changes to the structure of the statement of profit or loss,disclosure requirements around mana

216、gement defined performance measures and introduces enhanced principles on aggregation and disaggregation which focus on grouping items based on their shared characteristics.Management is evaluating the impact of the new standard in preparation for its adoption on January 1,2027.In addition,the IASB,

217、has issued amendments to the classification and measurement of financial instruments in May 2024 with amendments to IFRS 9 and IFRS 7 Financial Instruments:disclosures,this amendment applies to an annual reporting period beginning on or after January 1,2026.Management is evaluating the impact of the

218、 amendment relating to the derecognition of a financial liability and classification of financial assets in preparation for its adoption on January 1,2026.Controls and procedures Our Chief Executive Officer(CEO)and Chief Financial Officer(CFO)are responsible for establishing and maintaining disclosu

219、re controls and procedures(DC&P)and internal control over financial reporting(ICFR),as those terms are defined in National Instrument(NI)52-109 Certification of Disclosure in Issuers Annual and Interim Filings.We designed the DC&P and ICFR,the latter of which was using the framework in Internal Cont

220、rol Integrated Framework(published by the Committee of Sponsoring Organizations of the Treadway Commission(COSO),and as revised in 2013)to provide reasonable assurance(i)that material information relating to us is made known to our CEO and CFO during the reporting period;(ii)that information require

221、d to be disclosed by us in our filings under securities legislation is recorded,processed,summarized and reported within the required time periods;(iii)regarding the reliability of financial reporting and preparation of consolidated financial statements for external purposes in accordance with Canad

222、ian GAAP.Our CEO and CFO evaluated the design effectiveness of the DC&P and ICFR,as defined by NI 52-109,as of December 31,2024.Based on this evaluation,they concluded that the designs of the DC&P and ICFR were effective 18 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 MANAGEMENTS DISCUSSION AND ANALY

223、SIS as of that date.NI 52-109 also requires Canadian public companies to disclose in their MD&A any change in ICFR during the most recent fiscal quarter that has materially affected,or is reasonably likely to materially affect,ICFR.No such change to ICFR has occurred during the most recently complet

224、ed year.It should be noted that a control system,no matter how well conceived and operated,can provide only reasonable,not absolute,assurance that its objectives are met.Because of the inherent limitations in any control system,no evaluation of control can provide absolute assurance that all control

225、 weaknesses including,for example,any instances of fraud,have been detected.Inherent limitations include:(i)that managements assumptions and judgements could ultimately prove to be incorrect as conditions and circumstances vary;(ii)the impact of any undetected errors;and(iii)controls may be circumve

226、nted through the unauthorized acts of individuals,by collusion of two or more people,or by management override.The design of any system of control is also based upon assumptions as to the likelihood of future events and there is no assurance that any design will succeed in achieving its goals under

227、future conditions.Outstanding share data Our authorized capital consists of an unlimited number of common shares,of which 47,165,259 were issued and outstanding at December 31,2024,and 47,258,818 were issued and outstanding as at the date hereof.In addition,as at the date hereof,2,211,540,1,948,678,

228、1,971,430 and 2,402,986 common shares are issuable upon conversion or redemption or in respect of repayment at maturity of the outstanding 5.50%,5.60%,5.00%and the 5.10%convertible debentures,using the conversion price of$15.60,$14.75,$17.50 and$16.75 respectively,for each common share.We also have

229、an employee share purchase plan,a deferred share incentive plan and a dividend reinvestment plan pursuant to which common shares are issued from time to time.Normal course issuer bid On June 16,2022,the company announced that the Toronto Stock Exchange(TSX)had accepted a notice filed by the company

230、of its intention to make a normal course issuer bid(NCIB)with respect to its common shares.The notice provides that the company may purchase up to 3,000,000 common shares during the twelve month period commencing June 24,2022 and ending on June 23,2023.On June 13,2023,the company announced that the

231、TSX had approved renewal of the NCIB to purchase up to 4,176,336 common shares during the twelve month period commencing June 24,2023 and ending on June 23,2024.On June 17,2024,the company announced that the TSX had approved renewal of the NCIB to purchase up to 4,232,634 common shares during the tw

232、elve month period commencing June 24,2024 and ending on June 23,2025.During the year ended December 31,2024,the company did not purchase any common shares under the NCIB for a total cost of$nil(year ended December 31,2023 37,527 and$378,respectively).Risks and uncertainties We are subject to many ri

233、sks and uncertainties that may limit our ability to execute our strategies and achieve our objectives.We have processes and procedures in place in an attempt to control or mitigate certain risks,while others cannot be or are not mitigated.Material risks that cannot be mitigated include a significant

234、 decline in the general real estate market,interest rates changing markedly,being unable to make mortgage loans at rates consistent with rates historically achieved,not having adequate mortgage loan opportunities presented to us,and not having adequate sources of debt or equity financing available.U

235、nder various federal,provincial and municipal laws,an owner or operator of real property could become liable for the cost of removal or remediation of certain hazardous or toxic substances released on or in its properties or disposed of at other locations.In rare circumstances where a mortgage is in

236、 default,we may take possession of real property and may become liable for environmental issues as a mortgagee in possession.As part of the due diligence performed in respect of our mortgage loan investments,we obtain a Phase I environmental audit on the underlying real property provided as security

237、 for a mortgage,unless the manager has determined that a Phase I environmental audit is not necessary.Please also refer to“Forward-looking information,”below,and the“Risk Factors”section of our Annual Information Form for the year ended December 31,2024 which is incorporated herein by reference and

238、is available at www.sedarplus.ca and at .Forward-looking information From time to time in our public communications we provide forward-looking statements.Such statements are disclosures regarding possible events,conditions,results of operations or changes in financial position that are based upon as

239、sumptions and expectations.These are not based upon historical facts but are with respect to managements MANAGEMENTS DISCUSSION AND ANALYSIS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 19 beliefs,estimates,and intentions.Forward-looking statements generally can be identified by the use of forward-lo

240、oking terminology such as“outlook”,“objective”,“may”,“will”,“expect”,“intent”,“estimate”,“anticipate”,“believe”,“should”,“plans”,“continue”or similar expressions suggesting future outcomes or events.Forward-looking statements regarding earnings,possible mortgage losses,and mortgage portfolio growth

241、are based upon assumptions regarding performance of the economy in general and real estate markets in particular.Forward-looking statements generally assume that our revenues and expenses continue to follow current trends,and that current trends in our mortgage portfolio growth continue.All forward-

242、looking statements reflect managements current beliefs and are based on information currently available to management.These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties which could cause our actual resu

243、lts to differ materially from the forward-looking statements contained in this MD&A or elsewhere.Those risks and uncertainties include risks associated with mortgage lending,competition for mortgage lending,real estate values,interest rate fluctuations,environmental matters and the general economic

244、environment.For other risks and uncertainties,please refer to“Risks and uncertainties”above,and the“Risk Factors”section of our Annual Information Form for the year ended December 31,2024 which is available at www.sedarplus.ca and at .That list is not exhaustive,as other factors could adversely affe

245、ct our results,performance or achievements.The reader is cautioned against undue reliance on any forward-looking statements.Although the forward-looking information contained in this MD&A is based upon what management believes are reasonable assumptions,there can be no assurance that actual results

246、will be consistent with these forward-looking statements.We will not publicly update or revise any forward-looking statement,whether as a result of new information,future events or otherwise,unless required to do so by law.Responsibility of management and the board of directors Management is respons

247、ible for the information disclosed in this MD&A,and has in place the appropriate information systems,procedures and controls to ensure that the information used internally by management and disclosed externally is materially complete and reliable.In addition,our audit committee and board of director

248、s provide an oversight role with respect to our public financial disclosures,and have reviewed and approved this MD&A and the consolidated financial statements as at December 31,2024.Dividend Reinvestment Plan We have a Dividend Reinvestment Plan(DRIP)which is available to holders of our common shar

249、es.The DRIP allows participants to have their monthly cash dividends reinvested in additional common shares,at a discount of 2%from the market price.Additional information Additional information about Atrium,including our Annual Information Form for the year ended December 31,2024,is available on SE

250、DAR+at www.sedarplus.ca.You may also obtain further information about us from our website at ,by telephone at(416)867-1053,or by email at .2024Financial StatementsConsolidated Financial StatementsFor the years endedDecember 31,2024 and 2023 MANAGEMENTS RESPONSIBILITY FOR FINANCIAL REPORTING To the s

251、hareholders of Atrium Mortgage Investment Corporation:Management of Atrium Mortgage Investment Corporation(Atrium)is responsible for the preparation,presentation and integrity of these consolidated financial statements,and the accompanying Managements Discussion and Analysis.This responsibility incl

252、udes the selection and consistent application of appropriate accounting principles and methods in addition to making the judgements and estimates necessary to prepare the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standard

253、s Board.Management of Atrium is responsible to provide reasonable assurance that assets are safeguarded and that relevant and reliable financial information is produced.We are required to design a system of internal controls and certify as to the design and operating effectiveness of internal contro

254、ls over financial reporting.We have implemented a system of internal controls that we believe provides reasonable assurance in all material respects that transactions are authorized,assets are safeguarded and financial records are reliable for producing consolidated financial statements.Crowe Soberm

255、an LLP were appointed as the independent auditors by a vote of Atriums shareholders to audit the consolidated financial statements;their report appears on the next page.The board of directors,through the Audit Committee comprised solely of independent directors,is responsible for determining that ma

256、nagement fulfills its responsibilities in the preparation of these consolidated financial statements and the financial control of operations.The Audit Committee recommends the independent auditors for appointment by the shareholders,and it meets regularly with senior and financial management to disc

257、uss internal controls and financial reporting matters.The independent auditors have unrestricted access to the Audit Committee.These consolidated financial statements and accompanying Managements Discussion and Analysis have been approved by the board of directors based upon the review and recommend

258、ation of the Audit Committee.Toronto,Canada March 6,2025 “Robert Goodall”“John Ahmad”Robert Goodall John Ahmad Chief Executive Officer Chief Financial Officer INDEPENDENT AUDITORS REPORTTo the Shareholders of Atrium Mortgage Investment CorporationOpinionWe have audited the consolidated financial sta

259、tements of Atrium Mortgage Investment Corporation and itssubsidiaries(the Group),which comprise the consolidated statements of financial position as at December 31,2024and December 31,2023,and the consolidated statements of income and comprehensive income,consolidatedstatements of changes in shareho

260、lders equity and consolidated statements of cash flows for the years then ended,and notes to the consolidated financial statements,including material accounting policy information.In our opinion,the accompanying consolidated financial statements present fairly,in all material respects,theconsolidate

261、d financial position of the Group as at December 31,2024 and December 31,2023,and its consolidatedfinancial performance and its consolidated cash flows for the years then ended in accordance with IFRS AccountingStandards as issued by the International Accounting Standards Board(IASB).Basis for Opini

262、onWe conducted our audit in accordance with Canadian generally accepted auditing standards.Our responsibilitiesunder those standards are further described in the Auditors Responsibilities for the Audit of the ConsolidatedFinancial Statements section of our report.We are independent of the Group in a

263、ccordance with the ethicalrequirements that are relevant to our audit of the consolidated financial statements in Canada,and we have fulfilledour other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we haveobtained is sufficient and appropriate to p

264、rovide a basis for our opinion.Emphasis of Matter Restated Comparative InformationWe draw attention to Note 16 of the consolidated financial statements,which explains that certain comparativeinformation presented for the year ended December 31,2023 has been restated.Our opinion is not modified inres

265、pect of this matter.Key Audit MattersKey audit matters are those matters that,in our professional judgment,were of most significance in our audit of theconsolidated financial statements of the current period.These matters were addressed in the context of our audit ofthe consolidated financial statem

266、ents as a whole,and in forming our opinion thereon,and we do not provide aseparate opinion on these matters.Allowance for credit lossesRefer to Note 2(e)Use of estimates and judgements and Note 5(b)Mortgages receivable,Allowance for mortgagelosses.The Groups allowance for credit losses on its consol

267、idated statements of financial position is determined using anexpected credit loss(ECL)model.The ECL model uses a three-stage impairment approach based on changes in thecredit risk of the financial instruments since initial recognition.The 12-month ECL of financial instrumentsclassified in Stage 1,t

268、hat have not shown a significant increase in credit risk(SICR)since initial recognition,areestimated based on the probability of default,loss given default and exposure at default.The ECL is assessedindividually for each financial instrument that has experienced a SICR and are accordingly classified

269、 as either Stage2 or Stage 3.The ECL model was modified to include a post-model overlay to adjust for the uncertainty of futureeconomic conditions.The ECL is determined by evaluating a range of possible outcomes,incorporating the timevalue of money and supportable information about past events,curre

270、nt conditions and future economic forecasts.Auditing the allowance for credit losses was complex and identified as a key audit matter because of the significantjudgments and estimates required in the ECL model,the high degree of measurement uncertainty and the forward-looking nature of the assumptio

271、ns made for variables used in measuring the ECL.Our audit work included:obtaining an understanding of managements ECL model and methodology;assessingmortgages receivable identified by management as having experienced a SICR;assessing the Groups mortgageportfolio for potential mortgages receivable th

272、at experienced a SICR not identified by management;use of aspecialist to assess managements estimates relating to underlying valuations of mortgages receivable security;andtesting the inputs used in managements model and recalculating the Groups ECL.Other InformationManagement is responsible for the

273、 other information.The other information comprises:Managements Discussion and AnalysisThe information,other than the consolidated financial statements and our auditors report thereon,in theAnnual Report Our opinion on the consolidated financial statements does not cover the other information and we

274、do not expressany form of assurance conclusion thereon.In connection with our audit of the consolidated financial statements,our responsibility is to read the otherinformation and,in doing so,consider whether the other information is materially inconsistent with the consolidatedfinancial statements

275、or our knowledge obtained in the audit or otherwise appears to be materially misstated.If,based on the work we have performed,we conclude that there is a material misstatement of this other information,we are required to report that fact.We have nothing to report in this regard.Responsibilities of M

276、anagement and Those Charged with Governance for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with IFRS Accounting Standards as issued by the IASB,and for such internal control as managem

277、entdetermines is necessary to enable the preparation of consolidated financial statements that are free from materialmisstatement,whether due to fraud or error.In preparing the consolidated financial statements,management is responsible for assessing the Groups ability tocontinue as a going concern,

278、disclosing,as applicable,matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Group or to cease operations,or has norealistic alternative but to do so.Those charged with governance are responsible for overseeing the Groups

279、financial reporting process.Auditors Responsibilities for the Audit of the Consolidated Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement,whether due to fraud or error,and to issue a

280、n auditors report that includes ouropinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted inaccordance with Canadian generally accepted auditing standards will always detect a material misstatement when itexists.Misstatements can arise from fraud or

281、error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of theseconsolidated financial statements.As part of an audit in accordance with Canadian generally accepted auditing standards,we e

282、xercise professionaljudgment and maintain professional skepticism throughout the audit.We also:Identify and assess the risks of material misstatement of the consolidated financial statements,whether dueto fraud or error,design and perform audit procedures responsive to those risks,and obtain audit e

283、videncethat is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error,as fraud may involvecollusion,forgery,intentional omissions,misrepresentations,or the override of internal co

284、ntrol.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness ofthe Groups internal control.Evaluate the appropriateness of accounting policies

285、 used and the reasonableness of accounting estimatesand related disclosures made by management.Conclude on the appropriateness of managements use of the going concern basis of accounting and,basedon the audit evidence obtained,whether a material uncertainty exists related to events or conditions tha

286、tmay cast significant doubt on the Groups ability to continue as a going concern.If we conclude that amaterial uncertainty exists,we are required to draw attention in our auditors report to the relateddisclosures in the consolidated financial statements or,if such disclosures are inadequate,to modif

287、y ouropinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors report.However,future events or conditions may cause the Group to cease to continue as a going concern.Evaluate the overall presentation,structure and content of the consolidated financial statements

288、,includingthe disclosures,and whether the consolidated financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Gr

289、oup to express an opinion on the consolidated financial statements.We areresponsible for the direction,supervision and performance of the group audit.We remain solelyresponsible for our audit opinion.We communicate with those charged with governance regarding,among other matters,the planned scope an

290、dtiming of the audit and significant audit findings,including any significant deficiencies in internal control that weidentify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence,and to communi

291、cate with them all relationships and other matters that mayreasonably be thought to bear on our independence,and where applicable,related safeguards.From the matters communicated with those charged with governance,we determine those matters that were of mostsignificance in the audit of the consolida

292、ted financial statements of the current period and are therefore the key auditmatters.We describe these matters in our auditors report unless law or regulation precludes public disclosure aboutthe matter or when,in extremely rare circumstances,we determine that a matter should not be communicated in

293、 ourreport because the adverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.The engagement partner on the audit resulting in this independent auditors report is Patrick Truckle.Chartered Professional AccountantsLicensed Public Ac

294、countantsToronto,CanadaMarch 6,2025CONSOLIDATED FINANCIAL STATEMENTS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 27 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(in thousands of Canadian dollars)December 31,December 31,Notes 2024 2023 Assets Mortgages receivable 5,8$863,169$876,733 Investment proper

295、ty 6 1,101 1,101 Prepaid expenses 34 43 Total assets$864,304$877,877 Liabilities Borrowings under credit facility 7$193,580$216,989 Accounts payable and accrued liabilities 8,12 7,768 4,109 Accrued convertible debenture interest 916 916 Dividends payable 11,202 16,047 Convertible debentures 9 133,85

296、8 157,610 Total liabilities 347,324 395,671 Shareholders equity Share capital 10 513,811 478,903 Deferred share incentive plan units 1,128 943 Equity component of convertible debentures 3,526 3,786 Contributed surplus 1,848 1,588 Deficit (3,333)(3,014)Total shareholders equity 516,980 482,206 Total

297、liabilities and shareholders equity$864,304$877,877 Commitments 7,14(d)The accompanying notes are an integral part of these consolidated financial statements.Approved on behalf of the board of directors:“Robert Goodall”“Mark Silver”Robert Goodall,Director Mark Silver,Director 28 ATRIUM MORTGAGE INVE

298、STMENT CORPORATION 2024 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY(in thousands of Canadian dollars,except for number of common shares)Deferred Equity share component Total Share capital incentive of convertible Contributed shareholders Notes Number A

299、mount plan units debentures surplus Deficit equity Balance,December 31,2022 43,335,995$471,882$712$3,786$1,588$(2,404)$475,564 Shares issued under dividend reinvestment plan 10 631,187 6,969 6,969 Shares purchased under normal course issuer bid 10 (37,527)(378)(378)Shares issued under employee share

300、 purchase plan 10 18,710 207 207 Shares issued under deferred share incentive plan 11 17,116 223 (223)Share-based payments 11 454 454 Net income and comprehensive income 51,485 51,485 Dividends declared (52,095)(52,095)Balance,December 31,2023 43,965,481$478,903$943$3,786$1,588$(3,014)$482,206 Share

301、s issued under dividend reinvestment plan 10 648,584 7,102 7,102 Shares issued under employee share purchase plan 10 20,554 229 229 Shares issued under deferred share incentive plan 11 17,416 218 (218)Shares issued by prospectus 10 2,512,750 28,771 28,771 Shares issued on debenture conversion 474 7

302、7 Maturity of convertible debentures 9 (260)260 Issue cost 10 (1,419)(1,419)Share-based payments 11 403 403 Net income and comprehensive income 47,852 47,852 Dividends declared (48,171)(48,171)Balance,December 31,2024 47,165,259$513,811$1,128$3,526$1,848$(3,333)$516,980 Dividends amounted to$1.0625

303、per share for the year ended December 31,2024(year ended December 31,2023$1.19).The accompanying notes are an integral part of these consolidated financial statements.CONSOLIDATED FINANCIAL STATEMENTS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 29 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE

304、INCOME(in thousands of Canadian dollars,except for per share amounts)Years ended December 31 Notes 2024 2023 Revenues Mortgage interest and fees 8$97,220$97,940 Rental income 6 43 634 Total revenues 97,263 98,574 Operating expenses Mortgage servicing and management fees 8 8,558 8,465 Transfer agent,

305、regulatory fees and investor relations 231 283 Share-based payments 8,11 321 341 Professional fees 245 240 Directors expense 8,12 304 301 Administration and general 155 163 Adjustment to fair value of deferred share units 8,12 45 (29)Recovery of prior mortgage loss (268)(492)Provision for mortgage l

306、osses 5(b)13,839 11,894 Total operating expenses 23,430 21,166 Income before financing costs 73,833 77,408 Financing costs Interest on convertible debentures 9 9,524 10,292 Interest and other financing charges 7,12 16,457 15,631 Total financing costs 25,981 25,923 Net income and comprehensive income

307、 for the year$47,852$51,485 Earnings per common share Basic 13$1.06$1.18 Diluted 13$1.05$1.14 The accompanying notes are an integral part of these consolidated financial statements.30 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF CASH FLOWS(

308、in thousands of Canadian dollars)Years ended December 31 2024 2023 Cash provided by(used in):(Restated note 16)Operating activities Net income and comprehensive income for the year$47,852$51,485 Adjustments to determine net cash flows provided by(used in)operating activities Share-based payments 403

309、 454 Mortgage interest and fees earned (97,220)(97,940)Mortgage interest and fees received 121,614 87,721 Interest on convertible debentures expensed 9,524 10,292 Interest and other financing charges expensed 16,457 15,631 Adjustment to fair value of deferred share units 45 (29)Provision for mortgag

310、e losses 13,839 11,894 Recovery of prior mortgage loss (268)(492)Gain on disposition of investment property (74)Changes in operating assets and liabilities Cash advances of mortgages receivable (352,157)(281,507)Cash repayments of mortgages receivable 327,297 263,597 Additions to unamortized origina

311、tion fees 459 369 Prepaid expenses 9 61 Accounts payable and accrued liabilities 3,117 (2,056)Interest and fees on convertible debentures paid (7,969)(8,646)Interest and other financing charges paid (14,874)(15,889)Cash provided by operating activities 68,128 34,871 Investing activity Proceeds from

312、disposition of investment property 13,275 Cash provided by investing activity 13,275 Financing activities Advances under credit facility 447,506 274,072 Repayments under credit facility (472,000)(279,750)Issuance of common shares 29,000 207 Repurchase of common shares (378)Repayment of convertible d

313、ebenture (25,300)Share capital issue cost (1,419)Cash dividends paid (45,915)(42,297)Cash used in financing activities (68,128)(48,146)Increase in cash Cash,beginning of year Cash,end of year$The accompanying notes are an integral part of these consolidated financial statements.NOTES TO THE CONSOLID

314、ATED FINANCIAL STATEMENTS 2024 ATRIUM MORTGAGE INVESTMENT CORPORATION 31 NOTE 1 NATURE OF OPERATIONS Atrium Mortgage Investment Corporation(the“company”)is a corporation domiciled in Canada,incorporated under the Ontario Business Corporations Act.The address of the companys registered head office an

315、d principal place of business is Suite 1010,18 King Street East,Toronto,Ontario M5C 1C4.The company is a Mortgage Investment Corporation(MIC)as defined in Section 130.1(6)of the Canada Income Tax Act(ITA).Accordingly,the company is not taxed on income provided that its taxable income is paid to its

316、shareholders in the form of dividends within 90 days after December 31 each year.Such dividends are generally treated by shareholders as interest income,so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder.The c

317、ompanys common shares are listed on the Toronto Stock Exchange(TSX)under the symbol AI and its convertible debentures are listed under the symbols AI.DB.D,AI.DB.E,AI.DB.F and AI.DB.G.NOTE 2 BASIS OF PRESENTATION (a)Statement of compliance These consolidated financial statements have been prepared in

318、 accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board(IASB),as set out in Part I of the CPA Canada Handbook Accounting.Material accounting policies have been consistently applied in the preparation of these consolidated financial statements,which were a

319、uthorized for issuance by the board of directors on March 6,2025.(b)Basis of measurement These consolidated financial statements are prepared on the historical cost basis.(c)Functional and presentation currency These consolidated financial statements are presented in Canadian dollars,which is also t

320、he companys functional currency.Dollars are expressed in thousands except for per share amounts or where the context requires otherwise.(d)Principles of consolidation These consolidated financial statements include the accounts of the company and Canadian Properties LP,which is considered to be a su

321、bsidiary for financial reporting purposes.Consolidation commenced the date the company obtained control and continues until control ceases.The company has consolidated the subsidiary from August 5,2016,the date of its formation.All transactions and balances between the company and the subsidiary hav

322、e been eliminated,including unrealized gains and losses,if any.(e)Use of estimates and judgements The preparation of consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB requires management to make estimates,assumptions and judgements that affect the r

323、eported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the reporting date and the reported amounts of revenues and expenses during the reporting period.The most subjective of these estimates relate to:(a)determining whether the cash flows from the

324、 mortgages receivable represent solely payments of principal and interest(SPPI);(b)the measurement of impairment losses for mortgages receivable,in particular:measurement of credit risk to determine whether there has been a significant increase in credit risk since initial recognition;the assessment

325、 of when mortgages receivable become impaired and the incorporation of forward-looking information to determine expected credit losses;(c)the measurement of fair value,costs of disposal and the value in use of investment property;32 ATRIUM MORTGAGE INVESTMENT CORPORATION 2024 NOTES TO THE CONSOLIDAT

326、ED FINANCIAL STATEMENTS NOTE 2 BASIS OF PRESENTATION(continued)(e)Use of estimates and judgements(continued)(d)the measurement of the liability and equity components of the convertible debentures,which depend upon the estimated market interest rates for a comparable debenture without the convertibil

327、ity feature;(e)the measurement of fair value of the purchased or originated credit-impaired financial assets reflecting the lifetime expected credit losses.Management believes that its estimates are appropriate;however,actual results could differ from the amounts estimated.Estimates and underlying a

328、ssumptions are reviewed each quarter.Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.Economic uncertainties have resulted in a challenge of reliably estimating the impact on financial results and condition of the comp

329、any in future periods.Accordingly,there is inherently more uncertainty associated with the estimates,judgements and assumptions made by management in the preparation of the consolidated financial statements.It is not possible to forecast with certainty the extent to which the economic impact will af

330、fect the companys operations and financial results in the near-term and long-term.Areas of the companys business that could potentially be adversely impacted include,but are not limited to,mortgage interest rates,mortgage interest and fees revenue,allowance for mortgage losses and valuation of inves

331、tment property.Management continues to monitor and assess the impacts of these economic uncertainties on its estimates,judgements and assumptions.NOTE 3 MATERIAL ACCOUNTING POLICY INFORMATION (a)Financial instrument assets initial recognition and measurement Financial instrument assets are initially

332、 recognized when the company becomes a party to a contract.On initial recognition,the measurement category is determined,based on:(i)the business model under which the asset is held,and(ii)the contractual cash flow characteristics of the instrument.Upon initial recognition,financial assets are measu

333、red as either:Fair value through profit and loss(FVTPL)which is the required measurement classification for instruments that are held for trading and derivative assets;Amortized cost if the instrument is held within a business model whose objective is to collect contractual cash flows and the cash flows represent SPPI;Fair value through other comprehensive income(FVOCI)which is required for debt i