EANS-Adhoc: Atrium European Real Estate Limited / FIRST QUARTER 2016 RESULTS SHOW CONTINUED STEADY OPERATIONAL PROGRESS

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18.05.2016

Atrium European Real Estate Limited
("Atrium")

FIRST QUARTER 2016 RESULTS SHOW CONTINUED STEADY OPERATIONAL PROGRESS
-Plans announced for c.9,000 sqm extension to Targowek and second
stage of

Promenada in Warsaw-

Ad hoc announcement - Jersey, 18 May 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 three months ended 31 March 2016.

Highlights:

* NRI in the Group's core markets of Poland, Czech Republic and
Slovakia increased by 1.2% to EUR36.3m; remaining stable at
EUR31.4m on a like-for-like basis * Group GRI was EUR48.6m (3M
2015: EUR51.8m), with EPRA like-for-like GRI of EUR43.3m (3M 2015:
EUR47.0m) * Group NRI was EUR47.3m (3M 2015: EUR49.0m), with EPRA
like-for-like NRI of EUR42.3m (3M 2015: EUR45.0m) * The decrease in
income was primarily attributable to rental discounts provided in
Russia * Group operating margin increased from 94.6% to 97.3% * EPRA
occupancy steady at 95.8% (31 December 2015: 96.7%). Russian
occupancy remained high at 91.8% * Profit before taxation was
EUR26.5m compared to EUR11.1m for the first three months of 2015.
The change was mainly caused by

o EUR3.7m revaluation (compared to a EUR4.4m devaluation in the same period
last year)
o EUR1.3m profit on the disposal of non-core assets in the Czech Republic
(compared to a EUR10.6m loss in the same period last year)
o offset by an increase of EUR4.3m in administrative expenses attributed
mainly to the higher legacy legal expenses

* Company adjusted EPRA earnings per share of 7.6 EUR cents (3M 2015:
8.1 EUR cents); with growth to 5.9 EUR cents outside of Russia (3M
2015: 5.6 EUR cents) * EBITDA, excluding revaluation and disposals,
was EUR35.1m (3M 2015: EUR41.1m) * The Group's portfolio of 67
standing investments (31 December 2015: 77) stood at EUR2.6
billion, reflecting a 3.2% reduction, arising mainly from disposals,
while the value of our core markets grew for the fourth consecutive
quarter with a 1% improvement in the first quarter * EPRA Net asset
value ("NAV") per ordinary share remained relatively constant at
EUR5.62 (31 December 2014: EUR5.64) after first quarter dividend of
EUR0.0675 per share paid as capital repayment in March 2016 * Second
quarterly dividend of EUR0.0675 per share due to be paid as a capital
repayment on 30 June 2016 to shareholders on the register at 23 June
2016 with an ex-dividend date of 22 June 2016

Portfolio repositioning highlights during and after the period:

Redevelopments and extensions: * In March 2016, the first extension
in stage one of the Atrium Promenada extension and redevelopment in
Warsaw, Poland, was completed * On 17 May 2016, the Board of
Directors approved the second stage of Atrium Promenada which has
an estimated cost of EUR51m and comprises a remodelling and
renovation of an additional part of the shopping centre * The Board
has also approved the first phase of a c.9,000 sqm GLA extension to
Atrium Targowek in Warsaw. This initial phase, which precedes
construction of the main extension, is expected to cost around
EUR11m and will comprise land assembly, project design and the
construction of additional parking

Sales: * Completed the sale of a portfolio of ten retail assets in
the Czech Republic for a consideration of EUR102.6m in February
2016. This represents approximately 8% over the fair value prior to
the receipt of initial offers * In April 2016 the Group signed a
preliminary sale agreement for three Polish assets for EUR17.5m,
which is expected to be completed in the second quarter, as well as
a framework agreement for the sale of a wholly owned subsidiary
which owns two land plots in Pushkino, Russia for a consideration of
EUR10m

Financing transactions: * March 2016: 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 31 March 2016 * In April 2016, Atrium repurchased bonds issued
in 2013 and 2014 and due in 2020 and 2022 with a total nominal
value of EUR15.0m and EUR1.4m respectively * As at 31 March 2016
Gross LTV and Net LTV were 33.2% and 22.3% respectively. The
company remains conservatively leveraged and well placed to support
future redevelopments and growth opportunities when they may arise

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

"Following the extensive operational activity undertaken in 2015,
during the first quarter we have been active in our ongoing efforts
to reposition Atrium's portfolio towards larger scale and dominant
shopping centres which produce higher quality cash flow. The results
which, excluding Russia, show a 1.6% increase in NRI, tell us our
overall strategy is having a positive impact on the rest of the
portfolio. We remain committed to our strategic refocusing of the
portfolio through value enhancing acquisitions, disposals of
non-strategic assets and the ongoing upgrading of our existing
centres, such as through the extensions to Targowek and Promenada
which we have announced today. We will also continue to strengthen
our balance sheet and capital structure as we build on the momentum
we have already achieved across all these initiatives."

This announcement is a summary of, and should be read in conjunction
with, the full version of the Group's Q1 2016 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
Ellie Sweeney
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