Atrium Mortgage Investment Corporation

Recording start. Ladies and gentlemen, please stand by. Your conference is about to begin. Welcome to the Atrium Mortgage Investment Corporation's fourth quarter 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 2 on your touchtone keypad. Reminder that this conference is being recorded Friday, February 27, 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 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. I would now like to turn the conference over to your host, Robert Goodall, CEO of Atrium. Mr. Goodall, please go ahead.

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

Thank you, Rob. In the fourth quarter and for the year ended December 31, 2025, Atrium continued to generate strong results for shareholders amid a challenging economic environment. Atrium generated net income of $12.2 million in the fourth quarter, and our basic earnings per share was $0.25 per share, which decreased from $0.27 per share in the fourth quarter of 2024. By the year end of December 31, 2025, Atrium earned net income of $49.1 million, a 2.5% increase over the prior year, resulting in basic earnings per share of $1.03 per share. This was ahead of our fixed dividend rate for the year of $0.93 per share, And after considering the $0.10 per share special dividend announced yesterday, our total dividends for the year were $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 December 31, 2025, down from 9.98% at December 31, 2024, The decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of 25 basis point rates reductions by the Bank of Canada during the year impacting floating interest rates. As of December 31, 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 $917.1 million, an increase of 3.4% from $886.7 million at December 31, 2024. Despite the difficult market and due to the strength of our underwriting team, we were able to grow the portfolio this year. During the year ended December 31, 2025, mortgage advances exceeded interest and principal repayments with $358.6 million of mortgage principal advanced and $316.6 million repaid and transferred net of write-offs of $4.3 million. At December 31, 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 December 31, 2024. Our mortgages classified at Stage 1 were $782.4 million, at December 31, 2025, down 3.1% from $807.7 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 31, 2024. Stage 3 loans increased to $86 million at December 31, 2025, compared to $29 million as at December 31, 2024. and $56.3 million at the end of the third quarter. Three commercial loans, including approximately $53 million, were migrated to Stage 3 in the fourth quarter as they became impaired, which were offset by repayments of commercial loans of approximately $23 million during the quarter. The allowance for credit losses was $30.5 million at December 31, 2025, a 3.1% increase over December 31, 2024, As a percentage of the mortgage portfolio, this 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 $6.1 million at December 31, 2025, down from $8.1 million at December 31, 2024. Our allowance for credit losses on Stage 2 mortgages was $2.9 million at year-end, a decrease from $8.1 million at December 31, 2024. Our Stage 3 allowance for credit losses 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. We continue to maintain a strong, liquid, and well-capitalized balance sheet As of December 31, 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 to venture with principal amount of $28.7 million on March 31st. and our 5.5% convertible venture with a principal amount of $34.4 million on December 31st. 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. In 2025, we created 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'll now pass you back to Ralph for the business and portfolio updates.