EANS-Adhoc: Atrium European Real Estate Limited / FIRST HALF 2011 RESULTS

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6-month report

16.08.2011

Atrium European Real Estate Limited
("Atrium" or the "Company")

FIRST HALF 2011 RESULTS SHOW CONTINUED OPERATIONAL IMPROVEMENT
-DIRECTORATE CHANGE-

Jersey, 16 August 2011. Atrium European Real Estate Limited
(VSE/Euronext: ATRS), one of the leading real estate companies
focused on shopping centre investment, management and development in
Central and Eastern Europe, announces its results for the first half
and second quarter ended 31March2011.

Financial Highlights: * Gross rental income increased by 14.5% to
E85.1 million (H1 2010: E74.4 million; FY2010:E151.5million) with
like-for-like gross rental income up 9.1% to E76.4 million
(H12010:E70.0 million; FY2010:E134.4million) * Net rental income grew
19.4% to E78.0 million (H12010: E65.3million;
FY2010:E134.5million), while like-for-like net rental income
increased by 14.7% to E71.2 million (H12010: E62.1million;
FY2010:E121.3million) reflecting the continued improvement in
operating margin which increased to 91.7% compared to 87.9% in H1
2010 (FY 2010: 88.8%) * EBITDA excluding revaluation improved 12% to
E55.8million (H12010:E49.8 million; FY2010: E98.4million) * Profit
before tax increased 8.9% to E113.7 million (H1 2010: profit of
E104.4 million; FY2010:profit of E125.8million) * EPRA Net asset
value ("NAV") per ordinary share increased 2.8% to E6.19 compared
to E6.01 at 31March 2011 and E6.02 at 31December 2010 * Net cash from
operating activities increased 29.3% to E60.3 million
(H12010:E46.6million; FY2010:E97.4million) * Value of the income
producing portfolio increased to E1.771 billion at 30 June 2011 as
a result of the E171million acquisition of the Promenada shopping
centre and a revaluation increase of E69.1 million (31March2011:
E1.511 billion) * Developments and land portfolio valued at E614.7
million compared to E629.8 million at 31March2010 * Borrowings
increased to E452.6 million, as at 30 June 2011 from E393.5
million, as at 31March2011, taking into account both the financing of
the acquisition of Promenada and the Company's continued strategy
of repurchasing its debt * Cash balance remained strong at E209.7
million (31March2011:E341.4million) providing ample resources for
the Group's acquisition and development strategy * E0.035 dividend
paid on 30 June 2011 (June 2010: E0.03), with a further E0.035
quarterly dividend to be paid on 30 September which has an ex date of
21 September and a record date of 23 September 2011.

Operational highlights and post-period events: * Occupancy increased
to 96.6% compared to 94.7% for H1 2010 and 94.7% at the end of 2010
* Conclusion of settlement agreement with Meinl Bank and others in
July which unwound all the remaining business relations and fully
and finally resolved all disputes between the parties. It also
removes any potential obligation for Atrium to indemnify Meinl Bank
and provided Atrium with a broad release of any and all claims by
Meinl Bank and Julius Meinl, including those where Meinl Bank has
requested that Atrium join it as co-defendant. * Completion of the
E171 million acquisition of Promenada, one of Warsaw's top shopping
centres, in May 2011 and the conditional acquisition in February of
a 22,500 sq m land plot adjacent to Promenada for E10.7million,
providing scope for an extension to the current centre * Sale of
two land plots, in Turkey for E18 million and E16.5 million, both
being at or above book value as well as the disposal of 422
residential apartments in Russia, for E15 million, also at book
value * Conditional acquisition in May 2011 of a 38,000sqm plot
adjacent to Atrium's Copernicus shopping centre in Toru?, for
E7.5million which, once complete, will allow an extension to the
current centre to be built * Conclusion of the termination agreement
with Multi in July, which generated a profit of approximately
E15million that will be recognised in Q3 2011. The transaction
included the divestment of the Trabzon shopping centre in Turkey
and provided Atrium with full ownership of the Koszalin shopping
centre in Poland, as well as two development projects in Turkey and
one in Sofia, Bulgaria.

Directorate Changes Atrium also announces that, following approval at
a Board meeting on 15 August 2011 Joseph Azrack has been appointed as
a non-executive director with immediate effect, following the
retirement from the Board of Neil Hasson.

Commenting on the results, Rachel Lavine, CEO of Atrium European Real
Estate, said: "During the first half of 2011 we once again made
strong progress with our operational and financial performance. A
number of transactions have allowed us to both ensure our development
pipeline is focussed on those assets which we believe provide the
best opportunity to create value and strengthen our operating
portfolio, which will also be enhanced by a number of smaller asset
management initiatives.

"Our financial results show a solid improvement compared to the same
period last year. In particular, like-for-like net rental income grew
by 14.7% during the first half, profit before tax increased 8.9% to
E113.7 million while EBITDA grew 12% to almost E56million.

"While we continue to be encouraged by our performance, recent events
have highlighted the amount of economic uncertainty that remains and
reminds us of the importance of managing our assets properly, being
prudent in our approach to acquisitions and developments while
ensuring we remain on a stable footing. With that in mind, I remain
optimistic about Atrium's future and look forward to maintaining the
positive momentum achieved during the first half."

Chaim Katzman, Chairman of Atrium, added "I am very pleased to
welcome Joseph Azrack to the Board, he has a wealth of experience
that will be invaluable to the Company as it continues to grow. I
would also like to take this opportunity to thank Neil for his
contribution and hard work during his tenure as a director."

This announcement is a summary of, and should be read in conjunction
with the full version of the Group's first half 2011 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:

Financial Dynamics: +44 (0)20 7831 3113
Richard Sunderland
Laurence Jones
Will Henderson
atrium@fd.com

About Joseph Azrack Joseph Azrack is the Managing Partner of Real
Estate for Apollo Global Management. He has over 30 years of real
estate investment management experience and prior to joining Apollo,
was President and CEO of Citi Property Investors where he chaired the
firm's Management Committee and Investment Committee. Prior to
joining CPI, he was Chief Executive and Chairman of AEW Capital
Management, L.P., Founder and President of the AEW Partners Funds, a
Director of Curzon Global Partners and Founder and Chairman of IXIS
AEW Europe.

Mr. Azrack holds an M.B.A. from Columbia University and a B.S. from
Villanova University. He is a past adjunct professor at Columbia
University's Graduate School of Business where he is a member of and
for many years chaired the Real Estate Program Advisory Board. Mr.
Azrack is a member and past Chairman of the Pension Real Estate
Association (PREA). He is also a trustee of the Urban Land
Institute.

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:
Financial Dynamics, London
Richard Sunderland / Laurence Jones
Phone: +44 (0)20 7831 3113
mailto:richard.sunderland@fd.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@fd.com
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English