Atrium European Real Estate Limited
EANS-Adhoc: Atrium European Real Estate Limited
THIRD QUARTER RESULTS SHOW
CONTINUED STRONG OPERATIONAL PERFORMANCE
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13.11.2012
Atrium European Real Estate Limited
("Atrium" or the "Group")
THIRD QUARTER RESULTS SHOW CONTINUED STRONG OPERATIONAL PERFORMANCE
- 17.6% increase in dividend approved for 2013 -
Ad hoc announcement - Jersey, 13 November 2012. Atrium European Real Estate
Limited (VSE/Euronext: ATRS), a leading owner, operator and developer of retail
real estate and shopping centres in Central and Eastern Europe, announces its
results for the third quarter and nine months ended 30 September 2012.
Financial Highlights:
- 14.5% growth in gross rental income ("GRI") to EUR144.6m for the nine
months to 30 September 2012 (9M 2011: EUR126.3m), with an increase in like-
for-like GRI of 5.8% to EUR120.9m (9M 2011: EUR114.3m)
- 19.5% rise in net rental income ("NRI") to EUR137.5m (9M 2011: EUR115.1m),
with a 7% increase in like-for-like NRI to EUR112.6m (9M 2011: EUR105.2m)
- 17.5% growth in Q3 GRI to EUR48.4m (Q3 2011: EUR41.2m) with a 6.1%
increase to EUR40.1m on a like-for-like basis (Q3 2011: EUR37.8m). Q3 NRI
increased 23.5% to EUR45.7m (Q3 2011: EUR37.0m) and 7.1% to EUR36.3m on a
like-for-like basis (Q3 2011: EUR33.9m)
- 95.1% operating margin for the nine months to 30 September 2012 (9M
2011: 91.1%) remaining ahead of management's full year expectation. The Q3
operating margin grew to 94.4% (Q3 2011: 90.0%)
- EBITDA, excluding revaluation, remained consistent at EUR113.9m for the
nine month period, with the EUR114.0m reported in 2011 benefitting from an
additional EUR32.5m of profits from disposals
- EPRA occupancy rates remained stable at 97.7% (HY 2012: 97.7%)
- 19% increase in adjusted EPRA earnings per share to EUR0.25
(9M 2011: EUR0.21)
- 2.4% increase in EPRA net asset value per share to EUR6.51
(31 December 2011: EUR6.36)
- 28.3% growth in net cash generated from operating activities to EUR92.2m
(9M 2011: EUR71.9m)
- Value of the Group's portfolio of 155 income producing assets was
EUR2.167bn as at 30 September 2012 (31 December 2011: EUR2.077bn)
- Balance sheet remains strong with cash of EUR168.9m and borrowings of
EUR503.9m as at 30 September 2012 (31 December 2011: EUR568m), with a
gross LTV of 18.4% (net LTV of 12.3%)
- Further progress in reducing the Group's more expensive and shorter term
debt achieved through the tender offer and settlement of Atrium's bonds
maturing in 2013
- Final quarterly dividend for the year of EUR0.0425 per share to be paid 28
December 2012 to shareholders on the register on 21 December 2012, with an
ex-date of 19 December 2012
- On 12 November 2012 Atrium's Board approved a 17.6% increase in the Group's
annual dividend for 2013 to at least EUR0.20 per share (2012: EUR0.17),
reflecting the Group's continued robust financial performance and the
Board's confidence in its future prospects. The dividend will be paid in
quarterly instalments and remains subject to any legal and regulatory
requirements and restrictions of commercial viability.
Group and Operational Highlights:
- Achieved the Group's stated strategic priority of securing an investment
grade credit rating. Atrium is now rated at BBB- by both Standard & Poor's
and Fitch allowing the Group greater flexibility to diversify its sources
of capital
- Strong progress and lettings momentum was accomplished at Atrium Felicity,
the Group's first major greenfield development with:
- Construction commenced during the third quarter
- Agreements in place for 79% of the project, with an average lease
length in excess of ten years, including a recent pre-let to Leroy
Merlin, an international DIY store, in September, and some smaller pre-
leases to EURO RTV AGV, SuperPharm and Carry, since the end of the
third quarter
- Completed the acquisition from Russian Cinema Holdings of its holdings in
the Group's Volgograd, Togliatti and Yekaterinburg Russian shopping centres
for a total consideration of EUR9.3m, adding a further 15,400 sqm of GLA
to the portfolio.
Commenting on the results, Rachel Lavine, CEO of Atrium European Real Estate,
said:
"We have continued to build on the strong first half performance and, despite
the ongoing economic uncertainties across the Eurozone, and their impact on the
CEE region, we have again delivered substantial growth in our operating results
which has also translated in to higher cash flow. In light of this strong
financial performance and our confidence in Atrium's future prospects, the Board
has approved an increase in Atrium's annual dividend for the third
consecutive year. Our future growth prospects are reinforced by our Atrium
Felicity development, which we expect to be open to the public by the end of
next year. Construction is now underway and the centre is already 79% pre let.
"At a corporate level we were also very pleased to achieve our strategic
objective of gaining an investment grade credit rating which reflects the
progress we have made in improving the Group's financial strength and
operational stability."
This announcement is a summary of, and should be read in conjunction with the
full version of the Group's Q3 2012 results, which can be found on the Atrium
page of the Vienna Börse website at http://en.wienerborse.at/ and on the
Group's page of the NYSE Euronext Amsterdam website, www.euronext.com or on the
Group's website at www.aere.com.
Further information can be found on Atrium's website www.aere.com or from:
Analysts: Ljudmila Popova lpopova@aere.com
Press & Shareholders: FTI Consulting Inc +44(0)20 7831 3113
Richard Sunderland/ Will Henderson/ Daniel O'Donnell atrium@fticonsulting.com
Atrium is established as a closed-end investment company domiciled in Jersey.
Atrium is registered with the Dutch Authority for the Financial Markets as a
collective investment scheme which may offer participations in The Netherlands
pursuant to article 2:66 of the Financial Supervision Act (Wet op het
financieel toezicht). 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 7831 3113
Richard Sunderland
Will Henderson
Richard.sunderland@fticonsulting.com
end of announcement euro adhoc
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issuer: Atrium European Real Estate Limited
Seaton Place 11-15
UK-JE4 0QH St Helier Jersey / Channel Islands
phone: +44 (0)20 7831 3113
mail: richard.sunderland@fticonsulting.com
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English