Q4 2025 Atrium Mortgage Investment Corp Earnings Call

February 27, 2026

Operator: Welcome to the conference call. An operator will be with you shortly. Hello. Welcome to the event call. May I have your first name? Hi, it's Rachel Smith. Rachel Smith. The company you're calling from, Rachel? Your company? It's Aiera. How do you spell Aiera? It's A-I-E-R-A. Excuse me. Thank you. I'll put you on hold right now, okay? Thank you. You will now enter the conference, muted.

Operator: Ladies and gentlemen,

Operator: Recording started.

Operator: Please stand by. Your conference is about to begin. Welcome to the Atrium Mortgage Investment Corporation's Q4 Results Conference Call. At this time, all lines are in listen-only mode. Later in the call, a question and answer session. At that time, if you have a question, you'll be asked to press star two on your touch tone keypad. Reminder that this conference is being recorded. Friday, 27 February 2026. Certain statements will be made during this phone call that may be forward-looking statements. Although Atrium believes that such statements are based upon reasonable assumptions, actual results may differ materially. Forward-looking statements are based upon beliefs, estimates, and opinions of Atrium's the statements are made. Atrium undertakes no obligations to update these forward-looking statements in the event that management's beliefs, estimates, opinions, or other factors change.

Operator: I would now like to turn the conference over to your host, Robert Goodall, CEO of Atrium. Mr. Goodall, please go ahead.

Robert Goodall: Thank you all for calling in this morning. Our CFO, Chris Anastasopoulos, is joining me today. Chris will begin with an overview of our, of our financial results, and then I'll speak about our performance from an operational and portfolio perspective. Chris?

Chris Anastasopoulos: Thank you, Rob. In Q4 and for the year ended 31 December 2025, Atrium continued to generate strong results for shareholders amid a challenging economic environment. Atrium generated net income of CAD 12.2 million in Q4, and our basic earnings per share was CAD 0.25 per share, which decreased from CAD 0.27 per share in Q4 2024. For the year ended 31 December 2025, Atrium earned net income of CAD 49.1 million, a 2.5% increase over the prior year, resulting in basic earnings per share of CAD 1.03 per share.

Chris Anastasopoulos: This was ahead of our fixed dividend rate for the year of CAD 0.93 per share. After considering the CAD 0.10 per share special dividend announced yesterday, our total dividends for the year were CAD 1.03 per share, which is in line with our earnings per share for 2025. We are proud of this performance, particularly given the weak market conditions in 2025. As expected, the average interest rate on the mortgage portfolio decreased to 8.98% at 31 December 2025, down from 9.98% at 31 December 2024.

Chris Anastasopoulos: The decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of four 25 basis point rate reductions by the Bank of Canada during the year, impacting floating interest rates. As at 31 December 2025, 80.8% of the mortgage portfolio was priced based on floating rates, with the majority having rate floors in place. The mortgage portfolio ended the year at CAD 917.1 million, an increase of 3.4% from CAD 886.7 million at 31 December 2024. Despite the difficult market and due to the strength of our underwriting team, we were able to grow the portfolio this year.

Chris Anastasopoulos: During the year ended 31 December 2025, mortgage advances exceeded interest in principal repayments, with CAD 358.6 million of mortgage principal advanced and CAD 316.6 million repaid and transferred, net of write-offs of CAD 4.3 million. At 31 December 2025, 95.2% of our mortgages were first mortgages, and we maintain a conservative average loan-to-value ratio of 61.4% for the portfolio, which decreased from 61.9% at 31 December 2024. Our mortgages classified as Stage 1 were CAD 782.4 million at 31 December 2025, down 3.1% from CAD 807.7 million at 31 December 2024.

At December 31, 202 95.2% of our mortgages were first mortgages and we maintain a conservative average loan to value ratio of 61.4%.

for the portfolio, which decreased from 61.9% at December 31, 2024

Chris Anastasopoulos: We had CAD 48.7 million in mortgages classified as Stage 2 at year-end, a decrease of 2.6% from CAD 49.9 million at 31 December 2024. Stage 3 loans increased to CAD 86 million at the end, at 31 December 2025, compared to CAD 29 million as at 31 December 2024, and CAD 56.3 million at the end of Q3. Three commercial loans, totaling approximately CAD 53 million, were migrated to Stage 3 in Q4 as they became impaired, which were offset by repayments of commercial loans of approximately CAD 23 million during the quarter. The Allowance for Credit Losses was CAD 30.5 million at 31 December 2025, a 3.1% increase over 31 December 2024.

Our mortgage is classified as stage 1 or 782.4% 2025, down 3.1% from 800 and 7.7 million. At December 31 2024, we had 48.7 million in mortgages classified, as stage 2 at year end. A decrease of 2.6% from 49.9 million at December 31st 2024

Stage 3 loans increased to $86 million as at December 31, 2025, compared to $29 million as at December 31, 2024.

And 56.3 million at the end of the third quarter.

3 commercial loans, uh tooling approximately 53 million were migrated to stage 3 in the fourth quarter as they became impaired which were all set by repayments of commercial loans of approximately 23 million during the quarter.

Chris Anastasopoulos: As a percentage of the mortgage portfolio, this is represents a healthy 332 basis points, consistent with the prior year rate of 333 basis points. The total allowance for credit losses related to Stage 1 loans was CAD 6.1 million at 31 December 2025, down 8, from CAD 8.1 million at 31 December 2024. Our Allowance for Credit Losses on Stage 2 mortgages was CAD 2.9 million at year-end, a decrease from CAD 8.1 million at 31 December 2024. Our Stage 3 Allowance for Credit Losses was CAD 21.5 million, up from CAD 13.3 million at 31 December 2024, primarily due to the migration of new loans from Stage 2 during the Q4, offset by loan repayments. We continued to maintain a strong, liquid, and well-capitalized balance sheet.

The allowance for credit losses. Was 30.5 Million at December? 31 2025 a 3.1% increase. Over December 31202, 244th

The total allowance for credit losses related to Stage 1 loans was 6.1 million at the 731.25 down 8 from 8.1 million at December, 31 2024.

Was $21.5 million, up from $13.3 million at December 31, 2024, primarily due to the migration of new loans from Stage 2 during the fourth quarter, offset by loan repayments.

Chris Anastasopoulos: As at 31 December 2025, balance sheet debt remained low at 40%, with $283 million drawn on our $380 million credit facility, leaving a healthy available capacity. The weighted average cost of borrowing on the credit facility was 5.08% this year, down from 7.03% in the prior year. During the year, we also repaid our 5.6% convertible debenture with principal amount of $28.7 million on 31 March, and on our 5.5% convertible debenture with a principal amount of $34.4 million on 31 December. Our healthy debt capacity provides us with the opportunity to make use of convertible debt in the market in 2026, provided market conditions are favorable.

We continue to maintain a strong liquid and well capitalized balance sheet as at December. 3120 balance sheet. Debt remains low at 40% with 283 million drawn on our 380 million dollar. Credit facility leaving a healthy available capacity.

The weighted average cost of borrowing on the credit facility was 5.08% this year down from 7.03% in the prior year.

During the year, we also repaid, our 5.6% convertible dementia with principal amount of 28.7 million on March 31st. And our, our 5.5% convertible. Debenture was the principal amount of 344.4 million on December, 31st.

Chris Anastasopoulos: In 2025, we continued our trend of strong financial performance for our shareholders, even under difficult market conditions. We remain committed to our disciplined risk management approach as we pursue new opportunities, strengthening our team to ensure timely transaction analysis, managing our operating expenses prudently, and maintaining a strong balance sheet to confidently navigate the current economic cycle. I will now pass you back to Ralph for the business and portfolio updates.

Our healthy debt capacity provides us with the opportunity to make use of convertible debt to the market in 2026 provided markets and conditions are favorable.

In 2025, continue our trend of strong financial performance for our shareholders. Even under difficult market conditions. We remain committed to our disciplined risk management approach. As we pursue New Opportunities, strengthening our team to ensure timely transaction analysis managing our operating expenses, prudently, and maintaining a strong balance sheet to confidently. Navigate, the current economic cycle.

Robert Goodall: Thank you. As Chris said, Atrium MIC had a very good quarter with basic earnings per share of CAD 0.25, identical to the previous quarter. I'm very proud of our annual results of CAD 1.03 per share, which marks the fourth consecutive year in which our earnings exceeded CAD 1.00 a share. We were able to deliver one of our best years despite a very weak economy and the severe downturn in residential real estate markets across Canada, for which our team deserves a lot of credit. This strong performance has allowed us to reward our shareholders with a CAD 0.10 special dividend. Overall, the portfolio increased to CAD 917 million, up from CAD 887 million at the end of calendar 2024.

I will now pass you back to Ralph for the business and portfolio updates.

Thank you, as Chris said, Atrium. Mech had a very good quarter with basic earnings per share of 25 cents, identical to the previous quarter.

I'm very proud of our annual results of $3 per share, which marks the fourth consecutive year in which our earnings exceeded $1 a share.

We were able to deliver one of our best years, despite a very weak economy and a severe downturn in residential real estate markets across Canada for which our turn. Our team deserves a lot of credit.

This strong performance has allowed us to reward our shareholders with a 10 cent special dividend.

Robert Goodall: I think a big reason for the increase in the portfolio is the growth in our underwriting team, which has more than doubled in size since the beginning of 2020. Loan advances in 2025 were CAD 359 million, which was slightly higher than in calendar 2024. Repayments in calendar 2025 were CAD 317 million, which represents a portfolio turnover of approximately 39%, which is in line with our normal level and is a sign of a healthy portfolio. We made good progress implementing CMCC's strategy to increase our exposure to commercial and single-family mortgages in 2025.

Overall, the portfolio, increased to 917 million up from 887 million at the end of calendar 2024.

I think a big reason for the increase in the portfolio, is the growth in our underwriting team, which is more than doubled in size since the beginning of 2020.

Loan advances in 2025 were $359 million, which was slightly higher than in calendar 2024.

Repayments in calendar, 2025 or 317 million, which represents a portfolio turnover of approximately 39%, which is in line with our normal level and is a sign of a healthy portfolio.

Robert Goodall: The commercial category represented 28.7% of the total portfolio at the end of the year and has seen an increase of CAD 72 million over the past year, representing a 38% increase year-over-year. The single family and apartment category has risen to 19.2% of the total portfolio, up 14% on a year-over-year basis. Together, these lower-risk sectors now represent approximately 48% of our portfolio. In Q4, Atrium's average mortgage rate dropped from 9.2% last quarter to 8.98% this quarter, which reflects the 25 basis point drop in the prime rate of interest during Q4. Total of high ratio loans, that is loans over 75% loan-to-value, was CAD 85 million, equal to 9.3% of the portfolio.

We made good progress implementing cmcc strategy to increase our exposure to Commercial and single family mortgages in. 20125, the commercial category, represented 28.7% of the total portfolio at the end of the year and a seen seen an increase of 72 million over the past year, representing a 38% increase year-over-year.

And the single family and apartment category has risen to 19.2% of the total portfolio, up from 14% on a year-over-year basis.

Together, these lower-risk sectors now represent approximately 48% of our portfolio.

In Q4 atrium's, average mortgage rate, dropped from 9.2% last quarter to 800 to 8.98% this quarter, which reflects the 25 basis point drop in the prime rate of interest during the fourth quarter.

Robert Goodall: For the single-family mortgage portfolio, loans over 75% loan-to-value totaled just over CAD 30 million. There were 5 high-ratio commercial loans totaling CAD 54.7 million. One of these loans, totaling CAD 14.25 million, was repaid in full in January, while another, totaling CAD 12.6 million, is expected to be substantially paid down by the end of March. In Q4, the average loan-to-value of the portfolio increased slightly from 60.8% last quarter to 61.4% at year-end, and continues to be well within our desired range of 65%. Atrium's percentage of first mortgages remain very high at 95.2%. Construction loans rose slightly in Q4, but still represent less than 5% of the portfolio. We funded a CAD 12.5 percent million...

Total of high ratio loans—that is, loans over 75% loan-to-value—was $85 million, equal to 9.3% of the portfolio.

For the single family mortgage portfolio, loans over 75% loan to value totaled just over $30 million. And there were five high-ratio commercial loans, totaling $54.7 million.

1 of these loans totaling 14.25 million was repaid in full in January while another totaling 12.6 million is expected to be substantially paid down by the end of March.

In Q4 the average loan to value of the portfolio. Increased slightly from 60.8% last quarter to 61.4% at year end and continues to be well within our desired range of 65%.

Robert Goodall: a twelve point five million dollar construction loan with a well-known Toronto developer on a purpose-built rental in Q4. Turning to portfolio quality, the mix of Stage 1, 2, and 3 loans changed in Q4. The good news is that the aggregate of Stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio. Stage 2 loans dropped sharply from CAD 96.8 percent million to CAD 48.7 million. Although Stage 3 loans did increase from CAD 56 million to CAD 86 million, it was due to the addition of a CAD 31 million loan, and that property has been conditionally sold, and we expect it to be repaid in early Q2, 2026.

Robert Goodall: a twelve point five million dollar construction loan with a well-known Toronto developer on a purpose-built rental in Q4. Turning to portfolio quality, the mix of Stage 1, 2, and 3 loans changed in Q4. The good news is that the aggregate of Stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio. Stage 2 loans dropped sharply from CAD 96.8 percent million -CAD 48.7 million. Although Stage 3 loans did increase from CAD 56 million-CAD 86 million, it was due to the addition of a CAD 31 million loan, and that property has been conditionally sold, and we expect it to be repaid in early Q2, 2026.

Turning to portfolio quality the mix of stage 1 2 and 3 loans changed. In Q4. The good news is that the aggregate of stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio.

Stage 2 owns drop sharply from 96.8 million to 48.7 million.

Robert Goodall: In terms of the loan loss reserve, we expensed a loan loss provision of CAD 1 million in Q4, after having a CAD 1.3 million loan loss provision in Q3, and a total provision expense for the year of CAD 4.5 million. On a net basis, Atrium's total loan loss reserve increased marginally from CAD 29.5 million last quarter to CAD 30.5 million at year-end, equal to 332 basis points on the overall mortgage portfolio. With regard to our line of credit, we added 3 new lenders to our lender syndicate in 2025 and increased our committed line of credit from CAD 340 million to CAD 380 million. We used the line of credit to repay 2 convertible debentures, which matured in 2025.

Robert Goodall: In terms of the loan loss reserve, we expensed a loan loss provision of CAD 1 million in Q4, after having a CAD 1.3 million loan loss provision in Q3, and a total provision expense for the year of CAD 4.5 million. On a net basis, Atrium's total loan loss reserve increased marginally from CAD 29.5 million last quarter to CAD 30.5 million at year-end, equal to 332 basis points on the overall mortgage portfolio. With regard to our line of credit, we added 3 new lenders to our lender syndicate in 2025 and increased our committed line of credit from CAD 340 million-CAD 380 million. We used the line of credit to repay 2 convertible debentures, which matured in 2025.

Although stage 3 loans did increase from $56 million to $86 million, it was due to the addition of a $31 million loan, and that property has been conditionally sold. We expect it to be repaid in early Q2 2026.

In terms of the loan loss Reserve, we expensed a loan loss. Provision of 1 million in Q4 after having a 1.3 million dollar loan loss provision in Q3, and a total provision expense for the year of 4 and a half million.

On a net basis. Atrium's, total loan loss reserved increased marginally from 29.

Million.

The last quarter to 30.5 million at year, end equal to 332 basis points on the overall mortgage portfolio.

With regard to our line of credit.

We added three new lenders to our lenders syndicate in 2025 and increased our committed line of credit from $340 million to $380 million.

Robert Goodall: We expect to access the convertible debenture market in 2026, provided market conditions remain favorable. My economic commentary is as follows: The Bank of Canada's latest forecast of GDP growth is for a flat Q4. Bank of Canada has also forecasted slow growth of 1.1% in 2026, and 1.5% in 2027, as Canada adjusts to a new trading relationship with the United States. CPI dropped to 2.3% in January, and the Bank of Canada expects inflation to slow further in the coming months. Both Canada and the United States held their rates steady in December, and it's unclear when or if more interest rate cuts will occur in either country. Turning to commercial real estate. The commercial real estate market stabilized in 2025 as investor confidence gradually improved.

We used the line of credit to repay to convertible debentures, which matured in 2025, we expect to assess a convertible debenture Market in 20126 provided market, conditions, remain, favorable,

My econ economic commentaries as follows. The bank of Canada's latest, forecasts of GDP growth is for a flat Q4.

Thank you. Canada is also forecasted for slow growth of 1.1% in 2026 and 1.5% in 2027, as Canada adjusts to a new trading relationship with the United States.

PPI dropped to 2.3% in January, and the Bank of Canada expects inflation to slow further in the coming months.

Both Canada and the United States held their rates steady in December, and it's unclear when, or if, more interest rate cuts will occur in either country.

Burning to Commercial Real Estate.

Robert Goodall: Performance across most commercial real estate sectors has been resilient, particularly the retail and seniors residence sectors. The multi-residential and industrial sectors are still healthy, although rents have dropped from their peak levels and vacancy rates have risen. We view commercial real estate as one of the best areas to focus our lending activities, and CMCC has worked hard in the last two years to increase Atrium's exposure to these markets. The office sector, where we have limited exposure, has recently shown signs of recovery in the GTA as a result of return to office requirements by many large employers, with mandates of four to five days per week in office. However, it is still a difficult sector for all but the Triple A class buildings.

The commercial real estate market stabilized in 2025, as investor confidence gradually improved.

Performance across most commercial real estate sector. Sectors has been resilient particularly the retail and seniors residents sectors, the multi-residential and Industrial. Sectors are still healthy. Although rents have dropped from their Peak levels, and vacancy rates have risen.

We've we view commercial, real estate as 1 of the best areas to focus our lending activities. And cmcc is working hard in the last 2 years, to increase atrium's, exposure to these markets.

The office sector, where we have limited exposure, has recently shown signs of recovery in the GTA as a result of return-to-office requirements by many large employers, with mandates of four to five days per week in office. However, it is still a difficult sector for all but the AAA class buildings.

Robert Goodall: Looking at the residential and multi-residential real estate market, in contrast to commercial real estate, unfortunately, the misery continues in residential housing markets. Starting with resales, in the GTA, resales declined by 11% in 2025 on a year-over-year basis, with sales at their lowest level in at least 12 years. Similarly, resale activity in the Greater Vancouver area decreased by 10% year-over-year in December, capping a year with the lowest annual sales in 2 decades. Over the past year, benchmark resale prices declined by 6.3% in the GTA and 4.5% in the Greater Vancouver area. Turning to new home sales, the soft resale market conditions have directly contributed to a lack of activity in the new home market, as construction costs and affordability constraints continue to weigh heavily on demand.

looking at the residential and multi-residential real estate markets in contrast.

To the commercial real estate, unfortunately, the misery continues in residential housing markets.

Starting with resales in the GTA resales declined by 11% in in 2025, on a year-over-year basis.

With sales at their lowest level. Now, at least 12 years.

Similarly resale activity, in the Greater Vancouver area, decreased by 10% year-over-year in December. Tapping a year with the lowest annual sales in 2 decades,

Over the past year, benchmark resale prices declined by 6.3% in the GTA and 4.5% in the Greater Vancouver area.

Robert Goodall: The new home market remains slow across most urban centers in Canada, with the GTA and the GVA leading the way, with new home sales 81% and 70% lower, respectively, than the average sale for the 10-year period between 2016 and 2025. Other markets are also slow. For example, in 2025, even Calgary and Montreal, two of the stronger markets, had new home sales that were 42% and 70% respectively below their 10-year average from 2016 to 2025. The condo sector is the weakest sector within the residential markets, but fortunately, the supply of new condos should reduce dramatically over the next 2 years.

Turning to new home sales, the soft resale market conditions have directly contributed to a lack of activity in the new home market, as construction costs and affordability constraints continue to weigh heavily on demand.

The new Home Market remains slow across most Urban centres in Canada with the GTA and the gva leading the way with new home, sales 81% and 70%, lower respectively than the average sales for the 10-year period between 2016 and 2025.

But other markets are also slow. For example, in 2025, even Calgary and Montreal.

The condo sector is the weakest sector within the real within the residential markets.

Robert Goodall: For example, in the GTA, the number of condominium units under construction dropped sharply to 50,000 units by the end of the year, and that number could drop as low as 30,000 units by the end of 2026, which should form the base for a recovery. The housing market clearly needs more government support in the form of an HST rebate for all buyers, not just first-time buyers, and ideally a major reduction or elimination of development charges. It's worth noting that Mississauga and Burlington have implemented on their own a reduction or elimination of development charges. The housing market, of course, also needs more economic certainty to improve consumer confidence.

But fortunately, the new Supply, the supply of new condos should reduce dramatically over the next 2 years.

For example, in the GTA, the number of condominium units under construction, drop sharply to 50,000 units by the end of the year. And that number could drop as low as 30,000 units by the end of 2026, which should should form the base for a recovery.

The housing market, clearly needs more government support in the form of an hsd rebate for all buyers, not just first-time buyers. And ideally a major reduction or elimination of development charges.

And it's worth noting that Mississauga and Burlington have implemented on their own a reduction or elimination of development charges.

Robert Goodall: We believe that the housing markets in the GTA, particularly, should stabilize and gradually start to recover in 2027, when the number of project completions starts to drop sharply. To conclude, I'm proud of Atrium's results in 2025, and pleased that we're able to reward our eligible shareholders with a CAD 0.10 special dividend. The results didn't come easily. The new management, senior management, or the senior management team, have all been working very hard to navigate the toughest real estate market that I've seen since the early nineties. We have dealt effectively and decisively where we've had problem loans, rather than kicking the can down the road. This is important because the residential resale and new home markets are generally expected to perform poorly in 2026, a delayed response will likely be costly.

And the housing market, of course, also needs more economic certainty to improve consumer confidence.

We believe that the housing markets,

In the GTA, prices should stabilize and gradually start to recover in 2027, when the number of project completions starts to drop sharply.

To conclude I'm proud of atrium of results in 2025 and pleased that were able to reward our eligible shareholders, with the 10 cent special dividend.

The results didn't come easily, the new management senior management or the the senior management team have all been working very hard to navigate. The toughest real estate market that I've seen since the early 90s,

we have Delta effectively and decisively, where we've had problem loans rather than kicking the can down the road. This is important because the residential resale and new home markets are generally expected to perform.

Poorly in 2026.

Robert Goodall: The other challenge in 2026 will be continuing to source new loan business due to the lack of overall activity in the market. The banks have, at times, been very aggressive. CMCC recently added two underwriters in the Toronto office in an attempt to free up time to source more new business. Our growth in 2026 will also hopefully come from Western Canada. The BC office has lots of room for growth, and we are looking at the possibility of recruiting a new managing director in Alberta. Notwithstanding the challenges, Atrium has a more resilient portfolio than many of our competitors, and as a publicly traded MIC, one of the few publicly traded MICs, but I might add, we have more stable funding sources, including permanent shareholders' equity, better access to syndicate lenders for our line of credit.

So, a delayed response will likely be costly.

The other challenge in 2026 will be continuing to Source. New loan business, due to the lack of overall activity in the market.

The banks have, at times, been very aggressive.

The NCC recently added 2 Underwriters in the Toronto office in attempt to free up, time to Source, more new business.

Our growth in 2026 will also, hopefully, come from Western Canada. The BC office has lots of room for growth, and we are looking at the possibility of recruiting a new managing director in Alberta.

Notwithstanding the challenges, Atrium has a more resilient portfolio than many of our competitors, and as a publicly traded MEC—

1 of the few publicly traded mixed but I might add we have more stable funding sources, including permanent shareholders equity.

Robert Goodall: For instance, in 2025, we added 3 new lenders to our lender syndicate and access to the convertible debenture market. While conditions remain very difficult, Atrium's results have been consistently strong through economic downturns, and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle. That's all for the presentation, but we'd be pleased to take any questions from the listeners.

Better access to syndicate lenders for our line of credit—for instance, in 2025, we added three new lenders to our lender syndicate.

And access to the convertible debenture market.

While conditions remain very difficult, Atrium's results have been consistently strong through economic downturns, and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle.

That's all for the presentation, but we'd be pleased to take any questions from the listeners.

Operator: The Q&A session will now begin. Please enter star two on your keypad to let the operator know you have a question. Our first question is from Graham Ryding of TD Securities. Graham, please go ahead.

The Q&A session will now begin. Please enter *2 on your keypad to let the operator know you have a question.

Our first question is from Graham, writing of TD Securities. Graham, please go ahead.

Graham Ryding: Good morning. Maybe, Rob, just to elaborate on sort of your messaging at the end of the call there, or your prepared remarks. Just big picture, obviously a tough market, particularly in the GTA condo space. What's your strategy, you know, broadly for managing your portfolio and deploying capital in what seems to be a tough macro backdrop?

Uh, good morning, um, maybe Rob just to elaborate on sort of your messaging at the end of the call there, or your prepared remarks, just big picture, obviously a tough Market.

Robert Goodall: The strategy, and it really started almost 3 years ago, it has been to do more single-family mortgages, because we still view that as one of the most liquid types of real estate. By the way, condominiums had an enormous supply of completions, as you probably know, over the last 2 years, 60,000 units. That swamped the market. That will be changing in 2026 and even more particularly in 2027. It's not like we're focused on the condominium market, but we think that it will gradually improve. Condominiums do have the advantage of being the most affordable type of single-family residence. We're not totally against condominiums. We're obviously wary given the supply, but.

Um, particularly in the GTA condo space, what's your strategy? You know, broadly for managing your portfolio and deploying capital. And what seems to be, uh, uh, a tough macro backdrop.

So so the strategy and it really started almost 3 years ago, it has been to do more single family mortgages because we still view that as 1 of the most liquid types of Real Estate.

And, um, by the way, condominiums had an enormous supply of completions, as you probably know, over the last two years—60,000 units.

So, that's swamped the market. That will be changing in 2026, and even more particularly in 2027.

Robert Goodall: We look at single-family mortgages as a good area, and we look at commercial real estate as a good area. We've done a lot of multi-residential, and we've done a lot of industrial, occasionally retail. You know, we've looked at senior residents. We haven't won any business there yet, but that's a really strong sector right now, as you probably know. You know, we're avoiding development except for the very strongest developers who are being opportunistic. Those people we would back, but those, as you know, are few and far between, those type of opportunities. Generally, we're looking at income-producing and single-family mortgages as sort of the two areas we're most focused on.

So it's not like we're focused on the condominium Market but we think um, that it'll that it will gradually improve, and economy means do have the advantage of being the most affordable type of single family, um, residents. So, um, we're not, we're not totally against Condominiums. We're obviously weary given the supply but, um,

Single family mortgages as a good area. And we look at Commercial, Real Estate as a good area. We've done a lot of multi reset, a lot of, um, industrial occasionally retail

um,

Um, you know, we've looked at senior residents, we haven't won any business there yet, but that's a really strong sector right now. As you probably know,

so,

You know, we're we're avoiding developing except for the very strongest developers who are being opportunistic. Those people we would back but but those as you know, are a few and far between those those type of opportunities. So so generally we're looking at income producing and single family mortgages, that that sort of the 2 areas where most focused on

Graham Ryding: Okay. Helpful. Then just with your ACLs on the balance sheet, just given the, I guess, the sort of difficult market conditions, you had about, I think, CAD 4.9 million in PCLs in 2025. How are you thinking about your level of provisioning, and should we expect a similar level in 2026?

Okay, helpful and then, just with your uh acl's on the uh on the balance sheet.

Um, just given the, I guess, the sort of difficult market conditions, you had about, I think, $4.9 million in PCLs in 2025. How are you thinking about your level of provisioning and, and

Robert Goodall: Yeah.

Should we expect a similar level in 2026, or

Graham Ryding: Could we move back to some 2023, 2024 levels, perhaps?

Uh, yeah.

Yeah, 2023 2024 levels for us.

Robert Goodall: Yeah, I don't think it'll be back to 2023. You know, I think we had well over CAD 10 million in provisions in 2023. I don't think it'll be that. It would surprise me if we had that big a provision. We're thinking it'll probably be similar, but it's really, really hard to tell right now because we're so early in the year. We do risk rate every single loan, every single quarter. We know the portfolio inside and out, and we know where, you know, the vulnerabilities are, and we're watching those closely. One thing I'm confident is we're very adequately provisioned on what we put in Stage 3 or put in Stage 2.

Yeah, I don't think it'll be back to 23 and, you know, when I think we had well over 10 million in provisions and 23, I don't think it'll be that would surprise me if we have that bigger provision. So,

We're thinking it'll probably be similar, but it's really, really hard to tell right now because we're so early in the year.

Um, but we do risk-rate every single loan, every single quarter, so we know the portfolio.

Inside and out. And we know where, you know, the vulnerabilities are, and we're we're watching those closely. So I I, I 1 thing I'm confident is we're very, we're very adequately, provisioned on what we put in stage 3 or put in stage 2.

Graham Ryding: Okay, great. One more, if I could. Just the... It sounds like you're expecting to get repaid for that CAD 31 million loan in Stage Three, repaid in Q2. Is that a full repayment with no loss? Is that what you're expecting there?

Okay, great. And 1 more, if I could just the, uh, it sounds like you're expecting to get repaid for that 31 million.

Robert Goodall: That's right. Yeah. Because it's under contract, I don't want to say more about it, but, yeah, it's a full recovery.

Uh, loan in stage 3, uh, repaid in Q2? Is that a... is that a full repayment with no loss? Is that what you're expecting there?

That's right.

Yeah, because it's under contract. I don't want to say more about it, but uh, yeah, it's a full recovery.

Graham Ryding: Okay. That's it for me. Thank you.

Robert Goodall: Thanks.

Okay, that's it for me. Thank you.

Thanks.

Operator: If anyone else has a question, please enter star two on your keypad. It appears there are no other questions at this time. I will now give the call back to Robert Goodall for closing statements.

If anyone else has a question, please enter star 2 on your keypad.

It appears there are no other questions at this time. I will now give the call back to Robert Goodall for closing statements.

Robert Goodall: Okay. Thank you all for getting up early and attending our conference call. We're pleased with the results, particularly the CAD 0.10 special dividend. I hope our shareholders are as well. For existing shareholders, thank you so much for your continued support. Have a great day.

Okay, thank you all for getting up early and attending our conference call. We're pleased with the results—particularly the $0.10 special dividend—and I hope our shareholders are as well.

Operator: Thank you all for participating. This conference call is now concluded. Please hang up.

Uh, for existing shareholders. Thank you so much for your continued support and have a great day.

Thank you all for participating. This conference call is now concluded. Please. Hang up.

Operator: Recording paused.

Recording pause.

Q4 2025 Atrium Mortgage Investment Corp Earnings Call

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