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St Helier Jersey / Channel Islands -
Nine months 2019 trading update
Continued portfolio growth in Warsaw and Prague
Jersey, 7 November 2019, Atrium European Real Estate Limited (VSE/Euronext:
ATRS), (the "Company" and together with its subsidiaries, the "Atrium Group" or
the "Group"), a leading owner, operator and redeveloper of shopping centres and
retail real estate in Central Europe, provides an update on trading for the nine
months ended 30 September 2019.
KEY FINANCIAL FIGURES FOR THE PERIOD
9M 2019 9M 2018 CHANGE
EURm EURm
Net rental income 106.7 104.7 1.9%
excl. Russia
EPRA Like-for-Like
net rental income 45.0 44.3 1.6%
excl. Russia
Net rental income 133.4 135.0 (1.2%)
EPRA Like-for-Like 61.4 61.2 0.3%
net rental income
EBITDA(1) 116.8 118.3 (1.3%)
Company adj. EPRA
earnings per share 21.3 22.4 (4.7%)
(in EURcents)
Net LTV (in %) 33.5 31.3
Highlights
* Continued momentum in implementing the Group's strategy focusing on prime
shopping centres in Warsaw and Prague:
o In July 2019, the Company completed the sale of two Polish shopping centres
for EUR298m, at around 3% above book value, and reached an agreement for the
EUR37m sale of Atrium Duben in Zilina, Slovakia at book value
o Acquisition in June of King Cross, Atrium's fifth Warsaw shopping centre,
for EUR43m. King Cross is a well-connected and established centre with a
diverse tenant mix and future redevelopment opportunities
* 1.6% growth in EPRA like-for-like net rental income ("NRI") excluding Russia,
or 0.3% growth across the whole portfolio
* NRI broadly flat as pick up from acquisitions and completed redevelopments in
Warsaw offset disposals
* Strong occupancy and operating margin of 95.9% and 94.6%, respectively
* EBITDA(1) and EBITDA margin remained stable at EUR117m and 88% respectively
(EUR118m and 88% in 9M 2018)
* Company adjusted EPRA earnings per share was 21.3 EURcents, 4.7% lower than in
the comparable period mainly following the reduction in revenue resulting from
asset disposals
* Significant liquidity to support growth with a 33.5% net LTV as at 30
September 2019 and EUR300m unutilized revolver credit facility
* Further to its announcement of 23 July, in connection with the recommended
cash acquisition to be implemented by means of a court sanctioned scheme of
arrangement by Nb (2019) B.V., an indirect wholly-owned subsidiary of Gazit-
Globe Ltd on 25 October, Atrium published an update relating to the Court
Meeting held that day. During the Court Meeting, the requisite level of
support for the scheme was not obtained from the shareholders and accordingly
the scheme has lapsed. The full announcement is available on Atrium's website
at: https://www.aere.com/pressreleases.aspx [https://www.aere.com/
pressreleases.aspx]
* Following the announcement on 25 October 2019 of the lapse of the court-
sanctioned scheme of arrangement, the Board is reviewing the distributions
policy of the Company and intends to make a further announcement before the
end of the year
Liad Barzilai, Chief Executive Officer of Atrium Group, commented:
"Operationally the main focus year to date has been the continuation of our
portfolio rotation and repositioning strategy and it was particularly pleasing
that we have agreed or completed EUR364 million of sales at or above book value
in the year to date. We also further progressed our redevelopment and
refurbishment programme which currently spans four of our assets and now
includes two centres in the Czech Republic, Arkády Pankrác in Prague and Atrium
Pardubice, in addition to Promenada and Reduta in Warsaw. The progress made with
improving the portfolio quality is reflected in our financial results as new
rental income from acquisitions and completed redevelopments in Warsaw offset
the impact of recent disposals and assets currently under redevelopment, and led
to solid growth in like-for-like NRI across our key geographies. The Russian
portfolio's performance has now stabilised and we believe will benefit from both
recent asset management and retenanting initiatives. We have also identified a
number of further opportunities to invest in our portfolio which we are working
hard to bring to fruition in the months ahead."
"Finally, a short comment following the lapse of the offer by Gazit-Globe at the
end of last month. We were pleased that both Gazit-Globe and our minority
shareholders showed their support for the Company, its values, strategy and
execution. As before, we will continue to work hard to execute our strategy and
create value for all our shareholders."
(1) For 2019 the transaction costs in relation with the recommended cash
acquisition by Gazit Globe Ltd. of EUR5m were adjusted
Further information can be found on the Company's website www.aere.com or for
Analysts:
Molly Katz: mkatz@aere.com
Press & Shareholders:
FTI Consulting Inc.: +44 (0)20 3727 1000
Richard Sunderland/Claire Turvey: atrium@fticonsulting.com
[atrium@fticonsulting.com]
About Atrium European Real Estate
Atrium is a leading owner, operator and redeveloper of shopping centres and
retail real estate in Central Europe. Atrium specializes in locally dominant
food, fashion and entertainment shopping centres in the best urban locations.
Atrium owns 31 properties with a total gross leasable area of over 850,000 sqm
and with a total market value of approximately EUR2.7 billion. These properties
are located in Poland, the Czech Republic, Slovakia and Russia, and with the
exception of one, are all managed by Atrium's internal team of retail real
estate professionals.
The Company is established as a closed-end investment company incorporated and
domiciled in Jersey and regulated by the Jersey Financial Services Commission as
a certified Jersey listed fund, and is listed on both the Vienna Stock Exchange
and the Euronext Amsterdam Stock Exchange. Appropriate professional advice
should be sought in the case of any uncertainty as to the scope of the
regulatory requirements that apply by reason of the above regulation and
listings. All investments are subject to risk. Past performance is no guarantee
of future returns. The value of investments may fluctuate. Results achieved in
the past are no guarantee of future results.
Further inquiry note:
For further information:
FTI Consulting Inc.:
+44 (0)20 3727 1000
Richard Sunderland
Claire Turvey
Ellie Sweeney
atrium@fticonsulting.com
end of announcement euro adhoc
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(END) Dow Jones Newswires
November 07, 2019 00:55 ET (05:55 GMT)
