Atrium European Real Estate Limited
EANS-Adhoc: Atrium European Real Estate Limited
FULL YEAR 2015 RESULTS REFLECT
SUCCESSFUL DELIVERY OF PORTFOLIO REPOSITIONING
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10.03.2016
Atrium European Real Estate Limited
("Atrium")
FULL YEAR 2015 RESULTS REFLECT SUCCESSFUL DELIVERY OF PORTFOLIO REPOSITIONING
Ad hoc announcement - Jersey, 10 March 2016. Atrium European Real Estate Limited
(VSE/ Euronext: ATRS) (the "Company" and together with its subsidiaries, the
"Group"), a leading owner and manager of shopping centres and retail real estate
in Central and Eastern Europe, announces its results for the year ended 31
December 2015.
Highlights:
- NRI in the Group's Core Markets of Poland, Czech Republic and Slovakia
increased 8% to EUR145.8m; with an increase of 0.7% to EUR112.2m on
a like-for-like basis.
- Group GRI was EUR207.4m (2014: EUR214.5m), with EPRA like-for-like GRI of
EUR170.5m (2014: EUR189.3m).
- Group NRI was EUR197.9m (2014: EUR204.0m), with EPRA like-for-like NRI of
EUR164.2m (2014: EUR183.8m).
- The decrease in income was primarily attributable to rental discounts
provided in Russia.
- Group operating margin increased slightly from 95.1% to 95.4%.
- EPRA occupancy steady at 96.7% (2014: 97.4%). Russian occupancy remained high
at 94.4%.
- EBITDA, excluding revaluation, disposals and impairments, of EUR148.8m (2014:
EUR174.0m).
- Positive portfolio revaluation of EUR44.3m, offset by EUR143.4m devaluation
of the Russian portfolio (including development and land).
- Administrative expenses were EUR52.1m (2014: EUR25.0m), due to a EUR27.1m
increase of non-recurring expenses (mainly due to a legal provision).
- Profit after taxation of EUR4.8m compared to a loss of EUR57.8m in 2014.
- Company adjusted EPRA earnings per share of 33.3 EURcents (2014: 35.9
EURcents), with 0.8% growth to 24.2 EURcents outside of Russia (2014: 24.0
EURcents).
- The Group's 77 (2014: 153) standing investments portfolio grew in value by
3.5% to EUR2.7bn.
- Total assets of EUR3,282.9m with a cash position of EUR224.4m (31 December
2014: EUR420.6m) and borrowings of EUR1,012.8m as at 31 December 2015 (31
December 2014: EUR1,068.1m), representing a gross and net LTV of 33.8% and
26.3% respectively. 84.0% of debt unsecured as at 31 December 2015 (31
December 2014 64.9%).
- EPRA net asset value ("NAV") per ordinary share of EUR5.64 (31 December 2014:
EUR6.08) after total dividends of EUR0.27 per share paid as a capital
repayment in 2015.
- Consistent annual dividend of EUR0.27 per share approved for 2016.
Portfolio repositioning highlights during and after the period:
- Completed the strategic sale of 87 non-core retail assets in the Czech
Republic for EUR185.6m in three portfolio sales at 3.3% above book value on a
weighted average basis (72 assets for EUR69m in Jan 2015; 5 for EUR14m in Oct
2015; and 10 for EUR102.6m in Feb 2016).
- June: completed the acquisition of a 75% interest in the Arkády Pankrác
shopping centre in Prague for EUR162m; the Otto family owns the remaining 25%.
- March: opened 17,300 sqm extension of the Atrium Copernicus in Torun, Poland.
Financing transactions in 2015:
- December: EUR400m of assets were unencumbered from the Polish portfolio.
- October: signed a new five-year unsecured revolving credit facility for a
total of EUR125m, comprising EUR100m of new credit and an existing EUR25m
facility which has been extended.
- May: tapped EUR150m 3.625% notes due in October 2022. The issue price of
106.395% reflected a yield of 2.9%.
- May: completed a voluntary repayment of a bank loan in Poland for a total
amount of EUR105.3m (including fees and swap break costs).
- Repurchased bonds issued in 2005 and due in 2017, with a nominal value of
EUR81m.
Post period events:
- In January 2016, Atrium announced the resolution of the Dutch litigation case
brought by the "Stichting Atrium claim" and the establishment of an
arrangement to create a compensation fund through which to resolve disputes
currently being litigated in Austrian civil courts, as well as submissions by
individuals to join pending criminal proceedings. Preliminary indications
demonstrate an encouraging level of interest in resolution through the
compensation arrangement although the actual level of participation and
compensation will be determined over time.
Commenting on the results, Josip Kardun, Group CEO, said:
"2015 was a year of positive operational momentum and the results of that are
reflected in Group's performance in its core markets. We continued to make
significant progress with our strategy of repositioning our portfolio towards
larger format dominant centres and higher quality income in our region's
strongest economies, with the improvements to our Czech portfolio being
particularly noteworthy. These activities helped mitigate, but not fully
compensate for, the negative impact of the ongoing situation in Russia on the
Group's wider performance. Overall, our strong, low-leveraged balance sheet,
high liquidity profile and solid operational performance provide a firm basis
for our confidence as we look ahead."
This announcement is a summary of, and should be read in conjunction with the
full version of the Group's Q4 2015 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 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 3727 1000
Richard Sunderland
Claire Turvey
Ellie Sweeney
atrium@fticonsulting.com
Atrium is established as a closed-end investment company incorporated and
domiciled in Jersey and regulated by the Jersey Financial Services Authority 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
atrium@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, stock market: Luxembourg Stock Exchange
language: English