EANS-News: Atrium European Real Estate Limited / First Half 2021 Results - ATTACHMENT CNE

Thursday, 29. July 2021 06:45
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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
  report.

* 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
    operations
  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."

Dividend

* 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
  2021.
* 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 www.aere.com or for
analysts:
Doron Lavi Segelson: dlavi@aere.com

Press & shareholders:
FTI Consulting Inc.: +44 (0)20 3727 1000
Richard Sunderland / Claire Turvey / Andrew Davis: 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 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:
https://aere.com/wp-content/uploads/2021/07/
20210729_Atrium_first_half_2021_results_presentation.pdf

Further inquiry note:
For further information:
FTI Consulting Inc.:
+44 (0)20 3727 1000
Richard Sunderland
Claire Turvey
Richard.sunderland@fticonsulting.com

end of announcement                         euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/279/5/10764729/1/ATRIUM_INTERIM_FINANCIAL_REPORT_30_JUNE_2021.pdf

issuer:       Atrium European Real Estate Limited
              Seaton Place 11-15
              UK-JE4 0QH  St Helier Jersey / Channel Islands 
phone:        +44 (0)20 7831 3113
FAX:          
mail:         richard.sunderland@fticonsulting.com
WWW:          http://www.aere.com
ISIN:         JE00B3DCF752
indexes:      
stockmarkets: Luxembourg Stock Exchange, Wien
language:     English

EAX0001    2021-07-29/06:45

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