PRESS RELEASE : Atrium European Real Estate Limited / First Half 2021 Results – ATTACHMENT

=——————————————————————————- Corporate news transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement. =——————————————————————————- Company Information St Helier Jersey / Channel Islands – First Half 2021 Results Jersey, 29 July 2021, Atrium European Real Estate Limited (VSE/Euronext: ATRS), (the […]

  Corporate news transmitted by euro adhoc with the aim of a Europe-wide 
  distribution. The issuer is responsible for the content of this announcement. 
Company Information 
St Helier Jersey / Channel Islands - 
                            First Half 2021 Results 
Jersey, 29 July 2021, Atrium European Real Estate Limited (VSE/Euronext: ATRS), 
(the "Company" and together with its subsidiaries, "Atrium" or the "Group"), a 
leading owner operator of shopping centres in Central Europe, reports its 
financial results for the six months ended 30 June 2021 and provides an update 
on both the impact of COVID-19 on its operations as well as the ongoing momentum 
achieved in its residential for rent diversification strategy. 
Business overview year to date 
* All of our centres are now operational (approximately 98% of the Group's GLA), 
  following the reopening of shopping centres in Poland and the Czech Republic 
  in May. 
* Centres were closed approximately 44% of H1 2021 compared to 37%, in H1 2020. 
* Recovery in our centres continues to build as vaccination take-up rates 
  increase; Tenant sales and footfall rebounded rapidly as shoppers began to 
  return after restrictions were eased and as of June were 87% and 78% of 2019 
  levels, respectively. For H1 2021 tenant sales and footfall were 67% and 62% 
  of H1 2019 levels. 
* As of 26 July 2021, collection rates were 93% in Q1 2021 and 87% in Q2 2021 of 
  invoiced rent (H1 2021 90%). 
* Continued to progress Atrium's ESG strategy with 72% of the portfolio now 
  BREAAM 'very good' or above (H1 2020: 4%).In May 2021, Atrium became a member 
  of the Polish Green Building Council (PLGBC). Further information can be found 
  in the extended ESG report which was publishedtogether with the full H1 2021 
* Diversification strategy into residential for rent gaining momentum, with over 
  4,000 units in different stages of assembly across major Polish cities: c. 
  2,000 through densification of Atrium's retail properties and 2,000 of 
  acquisition pipeline. 
Key financial figures for the period 
In EURm                         6M 2021              6M 2020   CHANGE % / ppt 
Net rental income 
("NRI")                            62.7                 71.4       (12.2%) 
EPRA Like-for-Like 
NRI                                52.6                 58.8       (10.6%) 
EBITDA                             51.9                 61.6       (15.8%) 
Company adjusted 
EPRA earnings                      25.7                 37.2       (31.0%) 
Occupancy rate (%)*                92.2                 92.3          - 
Operating margin 
(%)                                90.2                 90.0          - 
EPRA NRV per share 
(in EUR)*                          4.15                 4.25        (10) 
* As at 30/6/2021 and 31/12/2020 respectively 
* Group NRI was EUR63 million, down 12% or EUR9 million year on year due to: 
  o EUR4 million COVID-19 net straight line of tenant support 
  o EUR3 million decrease due to continued impact of COVID-19 restrictions on 
  o EUR2 million arising from non-core asset disposals as part of the portfolio 
    rotation strategy 
  o On a cash basis excluding the impact of straight lining for accounting, the 
    NRI was down EUR4.5 million or -6.3% and NRI -3.3%on a like for like basis. 
* EBITDA decreased by 16% primarily due to the decrease in NRI. 
* Company adjusted EPRA earnings decreased by 31% due to the decrease in EBITDA 
  and the costs associated with liability management initiatives. 
* Occupancy stable at 92.2% compared to year-end 2020; a recovery of 0.5% in Q2 
  2021 compared to Q1 2021 driven primarily from leasing activity in Russia. 
* EPRA NRV per share as of 30 June 2021 was slightly lower at EUR4.15 due to 
  dividend distributions. 
Sufficient liquidity to support the residential for rent strategy 
* Atrium currently has EUR520 million of cash and a further EUR300 million of 
  unutilized credit facilities 
* EUR650 million notes were issued under our EMTN green financing programme 
  during the period 
  o EUR300m/2.625% green notes issued in February 
  o EUR350m/3.625% hybrid green notes issued in May 
* Group's net LTV reduced from 39% as at the end of March to 26% as of June 30 
  2021, following the green hybrid issuance. Rating treatment confirmed as 50% 
  equity / debt. 
* Moody's maintained Baa3 investment grade credit rating in April and improved 
  its outlook from negative to stable; Fitch maintaining BBB 
Liad Barzilai, Chief Executive Officer of Atrium Group, commented: 
"Whilst the first half of 2021 was once again heavily impacted by the COVID-19 
lockdowns in our key territories of Poland and Czech, with shopping centres 
closed for a longer period than in the corresponding period last year, we have 
been encouraged by the speed at which footfall and sales have improved as 
restrictions have lifted in the end of May. Today, all of shopping centers are 
open, 98% of our GLA is operating and sales in June reached 87% of 2019 levels 
cross the portfolio. We hope that this positive momentum will continue to build 
throughout the second half of the year. Recently we raised EUR350 million in 
Atrium first green hybrid note to support our residential diversification 
strategy. We are very satisfied with the progress we have made so far on this 
front, with a number of developments at or adjacent to existing assets in 
planning, as well as a strong pipeline of additional opportunities. In totality, 
these initiatives have the potential to deliver around 4,000 units, putting us 
on target to achieve our goal of 5,000 units by 2025." 
* 46% and 49% of shareholders opted to receive scrip dividend in Q1 and Q2 2021, 
  resulting in an issuance of 8,954,461 shares and cash dividend payment of 
  c.EUR28 million. 
* The Company announces its intention to pay Q3 2021 dividend (as a capital 
  repayment) on 30 September 2021 to shareholders on the register as at 13 
  September 2021, with an ex-dividend date of 10 September 2021. The election 
  date for a scrip dividend will start on 14 September and end on 27 September 
* A circular setting out further details on the election being offered to 
  shareholders pursuant to the scrip dividend alternative will be posted on the 
  Company's website before the start of the election period. 
Intention to delist from Euronext Amsterdam 
* The Board of Directors of the Company has resolved to apply for the delisting 
  of the Company's shares (ISIN: JE00B3DCF752) from Euronext Amsterdam. The 
  delisting application will be filed shortly. 
* Trading in the shares on the regulated market of Vienna Stock Exchange will 
  not be affected by this measure and will continue unchanged. Further updates 
  and information for shareholders, including in relation to timing, will follow 
  once Euronext Amsterdam has resolved on the delisting application. 
* The rationale for the delisting is that the trading volumes recorded for 
  Euronext Amsterdam are significantly lower than those recorded for the Vienna 
  Stock Exchange. Therefore, the Board of Atrium has concluded that the benefits 
  resulting from Atrium's listing on Euronext Amsterdam no longer justify the 
  associated costs and administrative requirements. 
Further information can be found on the Company's website or for 
Doron Lavi Segelson: [email protected] 
Press & shareholders: 
FTI Consulting Inc.: +44 (0)20 3727 1000 
Richard Sunderland / Claire Turvey / Andrew Davis: [email protected] 
[[email protected]] 
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 26 properties with a total gross leasable area of over 809,000 sqm 
and with a total market value of approximately EUR2.5 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. In February 2020 Atrium announced a strategy to diversify 
its portfolio by investing in and managing residential for rent real estate, 
with a primary focus on Warsaw. 
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. 
For the presentation see: 
Further inquiry note: 
For further information: 
FTI Consulting Inc.: 
+44 (0)20 3727 1000 
Richard Sunderland 
Claire Turvey 
[email protected] 
end of announcement                         euro adhoc 
Attachments with Announcement: 

(END) Dow Jones Newswires

July 29, 2021 00:45 ET (04:45 GMT)

Latoyia Bugtong

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