Atrium European Real Estate Limited

EANS-Adhoc: Atrium European Real Estate Limited

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Atrium European Real Estate Limited


Two further shopping centre extensions and refurbishments approved in Poland

Ad hoc announcement - Jersey, 16 November 2016. Atrium European Real Estate
Limited (VSE/ Euronext: ATRS) (the "Company" and together with its subsidiaries,
the "Group"), a leading owner, operator and redeveloper of shopping centres and
retail real estate in Central and Eastern Europe, announces its results for the
third quarter and nine months ended 30 September 2016.

- On a like-for-like basis, Group NRI excluding Russia increased by 1.5% to
  EUR102.1m (9M 2015: EUR100.6m)
- Group income continues to be impacted by the situation in Russia with GRI of
  EUR146.4m (9M 2015: EUR155.0m), and EPRA like-for-like GRI of EUR129.8m 
  (9M 2015: EUR135.5m)
- Group NRI was EUR142.1m (9M 2015: EUR147.4m), with EPRA like-for-like NRI of 
  EUR126.6m (9M 2015: EUR129.9m) which included a EUR4.9m or 16.6% reduction to
  EUR24.4m in Russia where the rate of the decline has slowed over the past
- Group operating margin increased from 95.1% to 97.0% mainly due to an 
  improvement in receivables collection in both core markets and in Russia
- EPRA occupancy steady at 95.7% (31 December 2015: 96.7%). Russian occupancy 
  remained high at 90.7%
- Profit before taxation of EUR80.3m for the first nine months of 2016, 
  reflecting an increase of EUR89.1m compared to a loss of EUR8.8m for the same 
  period in 2015. The increase was primarily driven by a EUR9.3m revaluation 
  compared to a EUR69.1m devaluation during the same period last year mainly due
  to the Russian portfolio) and a EUR11.0m decrease in finance expenses 
- Company adjusted EPRA earnings per share was 23.2 EURcents 
  (9M 2015: 24.7 EURcents)
- EBITDA, excluding revaluation and disposals, was EUR111.4m 
  (9M 2015: EUR122.0m), mainly as result of lower income in Russia as well as a 
  EUR6.9 m increase in administrative expenses, mainly due to an increase in 
  legacy legal expenses and related provisions 
- Value of the Group's portfolio of 62 standing investments stood at EUR2.6 
  billion reflecting the impact of the strategic portfolio sales (31 December
  2015: 77; EUR2.7 billion)
- EPRA Net asset value ("NAV") per share was EUR5.48 following the payment of a 
  14.0 EURcents special dividend in September (31 December 2015: EUR5.64) and 
  including three regular quarterly dividends of 6.75 EURcents
- A fourth quarterly dividend of 6.75 EURcents per share due to be paid as a 
  capital repayment on 29 December 2016 to shareholders on the register at 22 
  December 2016 with an ex-dividend date of 21 December 2016
- At its meeting on 15 November 2016, the Company's Board of Directors approved 
  a consistent annual dividend of EUR0.27 per share for 2017 to be paid as 
  capital repayment in equal quarterly instalments commencing at the end of 
  March 2017 (subject to any legal and regulatory requirements and restrictions 
  of commercial viability) 

Portfolio repositioning highlights during and after the period:
Redevelopments and extensions
- Further progressing the strategy to increasingly focus on the upgrade and 
  extension of the existing portfolio, the Board of Directors has approved two
  additional projects in Poland, with a c. 6,000 sqm c. EUR28m redevelopment 
  planned at Atrium Reduta in Warsaw and a c. EUR31m 7,500 sqm upgrade to be 
  undertaken at Atrium Biala in Bialystok. Both these projects will include 
  increased leisure and dining facilities in line with the Group's objective to 
  create dominant destination locations
- Together with the ongoing extensions at Promenada and Targowek, these four 
  projects represent a total approved investment of c. EUR120m as part of a 
  wider redevelopment pipeline that will eventually deliver almost 70,000 sqm 
  of new GLA
­- The first stage of the modernisation and extension of Promenada successfully 
  completed in October adding 7,600 sqm new GLA
­- The c. EUR11m  initial phase of the Targowek extension is progressing, 
  preceding construction of the main extension, and comprising land assembly, 
  project design and the construction of additional parking spaces

- Completed the sale of a portfolio of ten retail assets in the Czech Republic 
  for a value of EUR102.6m in February 2016, reflecting an 8% premium to fair 
  value prior to the receipt of initial offers
- In April 2016, the Group signed a framework agreement for the sale of a 
  wholly owned subsidiary which owns two land plots in Pushkino, Russia, for a 
  consideration of EUR10m
- In May 2016, the Group acquired the 46.5% co-ownership share of the Zilina 
  Duben Shopping Centre in Slovakia for a total consideration of EUR7m, giving 
  it full ownership of the asset  
- In June 2016, the Group completed the sale of three Polish assets with a 
  total lettable area of approximately 15,700 sqm for a total consideration of 
- In October 2016, the Group completed the sale of Atrium Azur in Latvia for a 
  total value of EUR12.5m 

Financing transactions
- In March 2016, the Group completed the voluntary repayment of a bank loan, in 
  Poland, for a total amount of EUR49.5m. 84% of the Group's standing 
  investments are unencumbered as at 30 September 2016
- As at 30 September 2016 Gross LTV and Net LTV were 32.3% and 27.5%, 
  respectively. The Company remains conservatively leveraged and well placed to 
  support future redevelopments and growth opportunities as they arise

- At its meeting on 15 November 2016, the Board of Directors approved a change 
  from a quarterly reporting to semi-annual reporting commencing in 2017. The 
  Group will continue to publish a quarterly trading update and the change aims 
  to improve the cost and time efficiency of the Group's reporting processes 
  whilst bringing them in line with industry practice
- In October 2016 the arrangement to create a compensation fund through which 
  to resolve Austrian legacy litigations expired. Whilst the Company maintains 
  its position that there is no basis for any claims to be made against it, the 
  compensation arrangement has proved to be an efficient means of dispute 
  resolution with c.1,750 individual submissions which are expected to result 
  in approximately EUR12.5m of compensation payments (with the Group bearing 
  50% of these costs)

Commenting on the results, Josip Kardun, Group CEO, said: 

"The third quarter saw a continuation of the robust performance in our core
markets of Poland, Czech Republic and Slovakia but the Group-wide performance is
still impacted by the situation in Russia. 

"We have also made further progress with the repositioning of our portfolio
during the period and are pleased to announce today that we have approval to
invest approximately EUR60m in two further redevelopment and extension projects
in our core market of Poland.  These will be undertaken at our Atrium Reduta
centre in Warsaw and Atrium Biala centre in Bialystok, and further demonstrate
our commitment to increasingly focus on upgrading our existing portfolio so that
it can continue to deliver sustainable income growth over the long term.

"Looking ahead, we remain cautiously optimistic with the impact of our portfolio
asset management efforts coming through clearly and the business in
significantly better shape than it was 12 months ago, benefiting from a much
strengthened balance sheet and an improving economic backdrop. While we cannot
ignore still existing uncertainty in Russia and the impact it continues to have
on the Company's results as a whole, the successful optimisation of the Group's
portfolio and its significant weighting towards higher quality income from our
core countries ?has given the Board sufficient confidence to provide
shareholders with both the EUR52.7m special dividend paid in September, and
maintain the dividend at EUR0.27 per share for 2017."

This announcement is a summary of, and should be read in conjunction with, the
full version of the Group's Q3 2016 results, which can be found on the Company
page of the Vienna Börse website at and on the Group's
page of the Euronext Amsterdam website, or on the Group's
website at

Further information can be found on the Company's website or from:


Ljudmila Popova                                                 
Press & Shareholders:

FTI Consulting Inc      +44 (0)20 3727 1000                                  
Richard Sunderland

Claire Turvey
Ellie Sweeney
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

end of announcement                               euro adhoc 

issuer:      Atrium European Real Estate Limited
             Seaton Place 11-15
             UK-JE4 0QH  St Helier Jersey / Channel Islands 
phone:       +44 (0)20 7831 3113
sector:      Real Estate
ISIN:        JE00B3DCF752
indexes:     Standard Market Continuous
stockmarkets: official market: Wien, stock market: Luxembourg Stock Exchange 
language:   English

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