Thank you and thank you all for calling in on a Friday morning. Our CFO, Chris Anastasopoulos, is joining me today.

Chris will start 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. Atrium had a strong start to 2026 despite a continuing challenging lending environment.

Atrium generated net income of $12 million in the first quarter, and our basic and diluted earnings per share was 25 cents per share, which is consistent with the fourth quarter of 2025 and the comparative quarter of 2025 as well. Earnings continue to outpace our regular dividend of 23.5 25 cents per share for the quarter.

As expected, the average interest rate on the mortgage portfolio decreased to 8.86% at March 31, 2026, down from 8.98% at December 31, 2025. The decrease was largely driven by repayments of loans with higher yields compared to yields on new loan originations.

As at March 31, 2026, 80.1% of the mortgage portfolio was priced based on floating rates, with the majority having floors in place. The mortgage portfolio ended the quarter at $896.2 million, a modest decrease of 2.3% from $917.1 million at December 31, 2025.

This decrease primarily reflected net portfolio reduction during the quarter as mortgage advances were offset by interest and principal repayments, with $44.8 million of mortgage principal advanced and $64.5 million repaid and transferred, net of write-offs of $0.1 million during the quarter. As at March 31, 2026, 95.3% of our mortgages were first mortgages, and we maintained a conservative average loan-to-value ratio of 61.4% for the portfolio, which was unchanged from year-end.

Our mortgages classified as stage one were $735.3 million at March 31, 2026, down 47.1 million from $782.4 million at December 31, 2025. We had $66.1 million in mortgages classified as stage two at March 31, 2026, an increase of $17.4 million from $48.7 million at December 31, 2025.

This was primarily due to loans migrating to stage two from stage one, with four loans being over 30 days past maturity, however they remain current on their payments. Stage three loans increased to $94.8 million at March 31, 2026 from $86 million at year-end.

This was primarily due to the addition of a new $6.9 million loan, which migrated from stage one as it went into default in the quarter. Our allowance for credit losses was $31.1 million at March 31, 2026, a modest 2% increase over December 31, 2025.

As a percentage of the mortgage portfolio, this represents 3.5%, up from 3.3% at December 31, 2025. The total allowance for credit losses related to stage one loans was $5.8 million at March 31, 2026, down from $6.1 million at December 31, 2025.

Our allowance for credit losses on stage two mortgages was $3.4 million at March 31, 2026, an increase from $2.9 million at year-end, and our stage three allowance for credit losses was $21.8 million, up from $21.5 million at December 31, 2025. We continue to maintain a strong, liquid, and well-capitalized balance sheet.

At March 31, 2026, balance sheet debt remained low at 38.4% with $262.9 million drawn on our $380 million credit facility, leaving a healthy available capacity. The weighted average cost of borrowing on the credit facility was 4.57% for the quarter, down from 5.08% at year-end.

Our debt capacity provides us the option to make use of the convertible debenture market later this year if market conditions are favorable. The board also declared a monthly dividend of 7.75 cents per share for the months of July, August, and September 2026.

This is consistent with our announced 93 cents per share standard dividend for the year. Overall, the first quarter provided strong, consistent performance for our shareholders despite the continuing difficult market conditions.

We remain committed to our disciplined risk management approach as we pursue new opportunities, strengthen our team to provide access to more opportunities, managing operating expenses prudently, and maintaining a strong balance sheet that can withstand stresses from the current economic cycle. I will now pass you back to Rob for the business and portfolio updates.

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

The portfolio declined 2.3% quarter-over-quarter from $917 million to $896 million in Q1. Loan production was relatively weak in Q1 because of the inactive market conditions.

In Q1, Atrium's weighted average mortgage rate dropped just marginally from 8.98% to 8.86%. In terms of loan composition, commercial loans rose to 29% of the portfolio, and single-family and apartment mortgages rose to 20.1% of the portfolio.

We've increased our exposure to these sectors to over 49% from 23% of the portfolio in 2024. The total of high-ratio loans, that is loans over 75% loan-to-value, was $81 million, a slight improvement from last quarter, and equal to 9% of the portfolio.

The breakdown was approximately 50/50 between single-family mortgages and the commercial and multi-residential loan sector. In Q1, the average loan-to-value of the portfolio remained steady at 61.4% and continues to be well within our desired range of 65%.

Atrium's percentage of first mortgages, as Chris mentioned, remained very high at 95.3%, which is consistent with our defensive lending strategy. Construction loans decreased slightly in Q1, but we do intend to be more active in this area in the future, as construction costs are much more stable today.

We are working on some construction loans at the current time. Turning to portfolio quality, there were very few new concerns in the portfolio, although the staging numbers suggest a deterioration in portfolio quality.

I'll explain. Stage two loans increased by $17.5 million, but the increase was almost entirely caused by the addition of four matured mortgages, which are in good standing with no loan quality concerns.

Those four mortgages have since been renewed, and it was really a matter of negotiation with the respective borrowers. Under IFRS 9 rules, loans past maturity are automatically categorized as stage two loans regardless of quality.

In the stage three loan category, loans defined as impaired loans, it increased a small amount from $86 million to $95 million. We anticipate that two of the largest stage three loans, representing $41 million or roughly 43% of this total stage three balance, will be repaid or refinanced by the end of May.

In terms of a loan loss reserve, we expensed a loan loss provision of $650,000 in Q1 compared to $1 million in the previous quarter, and that again reinforces the fact that the portfolio quality remained very consistent. On a net basis, Atrium's total allowance for credit losses increased marginally from $30.5 million last quarter to $31.1 million, equal to 347 basis points on the overall mortgage portfolio.

My economic commentary is as follows: The Bank of Canada recently reported that GDP growth resumed in the first quarter of 2026 after stalling in the fourth quarter of 2025, and it projects real GDP growth of 1.2% in '26 and 1.6% in 2027 as Canada continues to adjust to a new trading relationship with the United States. Inflationary pressures have increased in recent months, with the CPI rising to 2.4% on a year-over-year basis in March, primarily because of the Iranian war, which triggered a record increase in gas prices.

The Bank of Canada expects inflation to remain elevated in the near term before easing towards its 2% target in 2027 as global prices are assumed to moderate. Both Canada and the United States held their policy rate steady in April.

Turning to commercial real estate, commercial real estate markets continued to stabilize in Q1. The all-properties capitalization rate moved two basis points lower in the first quarter to 6.61% after dropping a further three basis points in the previous quarter.

Performance was strongest in the office and industrial sectors, and slightly weaker in the multi-residential sector. Commercial real estate in my opinion has held up remarkably well during this downturn.

The office sector, which had experienced weakness in the last few years, continued to show signs of recovery in Q1. Net absorption in the GTA has exceeded 1 million square feet in each of the last three quarters, and the vacancy rate in downtown Toronto is now 14.4% versus over 18% not long ago.

Suburban office vacancy rate in the GTA remains elevated, however, at 21%. By contrast, Vancouver continues to have one of the lowest office vacancy rates in the country, at 10.8%—12.3% downtown and only 9.1% in the suburbs.

In the industrial sector, Toronto had the strongest momentum across Canada with 2 million square feet of absorption. Vacancy rates at the end of the quarter were 3.7% in Toronto and 5.1% in Vancouver.

In contrast to the commercial real estate sector, the residential housing markets are still relatively weak. Starting with resales, the GTA reported some improvement in the last two months.

Resales increased by 7% year-over-year in April, and new listings declined 9.3% year-over-year. Given that sales were up by a greater rate than new listings, more competition between buyers is now starting to occur in the GTA.

In Greater Vancouver, April sales decreased slightly by 2.5% year-over-year, and new listings also decreased by 2.4%. The benchmark price over the last 12 months declined by 6.6% in the GTA and by 6.9% in the Greater Vancouver area.

Turning to new home sales, the soft resale market conditions have contributed to subdued activity in the new home market as construction costs and affordability constraints continue to weigh heavily on demand. In the GTA, 948 new home sales occurred in March, up significantly from a year earlier, but still 64% below the 10-year average.

Mid and high-rise sales remain particularly slow at 86% below the 10-year average. However, single-family sales totaled 685 homes in March, up 167% from last year, and only 12% below the 10-year average.

Industry experts had been expecting a recovery in the low-rise sector first, and this forecast appears to be becoming true. In the GVA, Greater Vancouver Area, new home sales were a little better: 974 new homes sold in Q1, down just 4% from the previous quarter, although a 32% decline from the same period last year.

During the quarter, 11 projects were released, totaling 342 units, with 30% of the new inventory being pre-sold. The weakest sector in both cities remains the high-rise condominium market, although condo inventory under construction in the GTA has now dropped to 48,000 units from a high of 104,000 units in mid-2023.

48,000 units is well below the 10-year average of inventory under construction. In Vancouver, inventory is also gradually decreasing as completed units are removed from the market.

One very positive political announcement occurred in Ontario on March 31, the last day of Q1. The federal government and the province of Ontario jointly announced an agreement, effective April 1, 2026, to rebate HST to a maximum of $130,000 until March 31, 2027 on all new home sales up to $1.5 million.

In addition, the two governments agreed to lower municipal development charges by up to 50% for the next three years. According to Urbanation, these two initiatives would allow a 600 square foot condo in Toronto priced at $756,000 to be repriced at $652,000, a material change.

The reduced price would shrink the gap between new and resale prices from 38% to 20%, a premium that is in line with historic benchmarks. Although there's some short-term confusion of how the HST rebate will exactly be applied, there's already substantial anecdotal evidence that new home sales increased substantially in April, particularly among low-rise developers.

To conclude, we had good results in Q1, and the portfolio quality was virtually unchanged despite sluggish conditions in the residential and multi-residential markets. With an anticipated repayment of $41 million of stage three loans by the end of May, stage three balance is likely to drop materially in Q2.

We expect more loan origination will be generated from Western Canada in the second half of 2026. In Q1, we successfully recruited an experienced and well-known non-bank lender to open a new office for Atrium in Alberta.

That office will cover all of the prairie provinces. As I've mentioned in the past, Atrium's results have historically been strong during economic downturns.

It is when we really separate ourselves from our peers. In Q1, Atrium continued that legacy of delivering strong results in today's challenging lending environment.

We remain in good shape financially, and have capital readily available to take advantage of opportunities in the market. That's it for the presentation, but we'd be pleased to take any questions from the listeners.

Hey, good morning.

Morning.

I'm wondering if you can provide some color on any operational objectives for 2026, whether it's diversifying the portfolio geographically or growing exposure to certain asset types.

Sure. Geographically, we'd like to do more business in Western Canada, both in BC and the Prairies.

However, that's not to say that we're overly concerned with the weighting we have right now in Ontario. If you look at over the last 25 years how we've performed in Ontario, it's been exceptional, including up to this quarter.

It's because we have 12 underwriters in Ontario, we've been around for so long and we have such a big team that we really feel comfortable with sort of the market penetration we have. We know virtually every real estate developer and real estate investor, certainly in the GTA.

We tend not to make mistakes. We tend to do very well in the province, but we would like to expand geographically in BC, and we would obviously like to start lending in Alberta and the prairie provinces as well.

I'm hopeful in the long term each province can be in the 15% range, maybe higher, but that'll take a few years. It's not going to happen overnight.

In terms of sectors, the last three years we've been working really hard at doing more apartment lending, do more single-family mortgage lending, and do more commercial lending. Why?

Because it's more resilient in today's market. It's a very competitive part of the market, but we've more than doubled our penetration in those markets in the last three years.

We have made progress.

Appreciate that. For the four loans that you mentioned that were in the stage two bucket and subsequently renewed, can you provide some detail on the borrowers and the collateral there?

I don't have the four loans in front of me, but if you look at risk profile, those are all stage one loans. It's just they were past maturity.

I was just handed the four loans. One is a $3.3 million mortgage.

It's at King and Spadina, fully leased, unbelievably strong sponsor, one of the stronger loans we have on the books, and it was a negotiation over rate. That's what this was all about, and terms.

A second one is a loan actually on a single condominium unit, where less than 50%. Again, a negotiation over rate.

Third one is $9.2 million. Again, the terms of the extension were really the issue, not the risk profile of the loan.

The fourth one is a small assembly. Again, these were all renewed, and we weren't asking for paydowns or anything like that because we were completely satisfied with the loans.

They're always looking for the best rate they can get and the best terms they can get. They knew perfectly well we wanted to keep the loans, but they wanted to be assured that they were getting the best deal they could get in the marketplace.

Had nothing to do with risk, absolutely zero to do with risk.

That's great to hear.

Those are the rules of IFRS 9. Don't ask me whether they make sense or not, but those are the rules of IFRS 9.

Understood. Just a question on modeling, G&A and professional fees were up year-over-year.

I know part of that was from the new auditor. Would the costs in Q1 be an appropriate run rate to use for the remainder of 2026?

I'll let Chris answer that one.

I think that would be a good starting point to measure out the rest of the year. I think we're generally should be in line with that.

Thanks Rob and Chris. I'll turn it back.

K.

Hi, good morning.

Just

want to maybe touch on your expansion into Alberta. You've pushed into this market previously and then pulled back.

It does seem like the timing is better to be moving into that province now. Can you just talk about sort of your strategy here of how you're approaching moving into that market, I guess prudently without sort of protecting the portfolio against outsized losses?

How do you go about that?

We're not going to do a ton of development financing. We might do some depending on the covenants, but we see that it'll be mostly commercial loans.

That would be my guess. The real issue is the quality of person you have.

Nobody can say that the Toronto market has been good the last three years, and yet we've had virtually no losses in this market, and it's because of the quality of the team. We're really, really pleased with the person we got, 20 20 to 25 years of experience, most of it in non-bank lending, senior director where he was at one of the largest non-bank lenders in the province.

I think it might be the largest non-bank lender in the province. We offer a really compelling employment opportunity because he gets to run the entire prairie provinces and build a team, which he wouldn't have had the same opportunity to do where he was.

You can't go into a province short-term and say, "Okay, because there's a good run," and I agree there is a good run. If we hadn't found the right person, we would not have hired in Alberta.

We were not committed to hire at all costs in Alberta unless we got the right person.

Great. That's it for me.

Thank you.

K, thank you.

K, thank you. Thanks, everyone, for attending our conference call this morning.

We're pleased with the results. I hope you guys are as well.

For our existing shareholders, thank you for your continued support in the company. Have a great day.