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

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Disclosed inside information pursuant to article 17 Market Abuse Regulation
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Mid Year Results
17.08.2016

Atrium European Real Estate Limited
("Atrium")

FIRST HALF 2016 RESULTS SHOW CONTINUED STEADY OPERATIONAL PROGRESS

Ad hoc announcement - Jersey, 17 August 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 second quarter and six months
ended 30 June 2016.

Highlights: - NRI in the Group's core markets of Poland, Czech
Republic and Slovakia increased by 1.1% to EUR72.3m (6M 2015:
EUR71.5) and 0.5% to EUR 62.2m on a like-for-like basis (6M 2015:
EUR61.9) - Group income continues to be impacted by the situation in
Russia with GRI of EUR98.5m (6M 2015: EUR103.6m), and EPRA
like-for-like GRI of EUR87.6m (6M 2015: EUR92.8m) - Group NRI was
EUR95.6m (6M 2015: EUR97.9m), with EPRA like-for-like NRI of
EUR85.5m (6M 2015: EUR89.0m) - Group operating margin increased from
94.5% to 97.1% mainly due to an improvement in receivables
collection - EPRA occupancy steady at 95.4% (31 December 2015:
96.7%). Russian occupancy remained high at 89.9% - Profit before
taxation was EUR63.7m compared to a loss of EUR4.8m in the first
half of 2015 with the increase primarily driven by a EUR13.6m
revaluation in our core markets (compared to a EUR36.7m devaluation
during the same period last year due to the Russian portfolio) and
a EUR11.3m decrease in finance expenses - Company adjusted EPRA
earnings per share was 15.6 EURcents (6M 2015: 16.0 EURcents) -
EBITDA, excluding revaluation and disposals, was EUR76.1m (6M 2015:
81.3m), mainly as result of lower income in Russia - The value of
Group's portfolio of 62 standing investments stood at EUR2.6
billion (31 December 2015: 77; EUR2.7 billion) - EPRA Net asset value
("NAV") per ordinary share increased slightly to EUR5.65 (31
December 2015: EUR5.64) after first and second quarter dividend of
EUR0.0675 per share paid as capital repayment in March 2016 and June
2016 - Third quarterly dividend of EUR0.0675 per share due to be paid
as a capital repayment on 30 September 2016 to shareholders on the
register at 23 September 2016 with an ex-dividend date of 22
September 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 - In 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 in May the first phase of a 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

Acquisitions and sales - Completed the sale of a portfolio of ten
retail assets in the Czech Republic for a consideration 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 EUR17.5m - In July 2016, the Group signed a
preliminary sale agreement for the sale of Atrium Azur in Latvia
for a total value of EUR12.5m. The sale is expected to be completed
in the fourth quarter of the year

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 June 2016 - During the period, Atrium
repurchased bonds issued in 2013 and 2014 and due in 2020 and 2022
with a total nominal value of EUR15.1m and EUR1.4m respectively -
As at 30 June 2016 Gross LTV and Net LTV were 32.4% and 26.1%
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: "During
the first half we continued with our portfolio repositioning strategy
and the progress we have made in this regard is reflected in the
positive performance across our overall portfolio excluding Russia.
Against the backdrop of economic growth, robust consumer spending and
investor demand in our core markets, we will continue to make
selective asset sales and undertake acquisitions, if the price and
opportunity are compelling. We will also increase our focus on
upgrading the existing assets in our portfolio and have identified a
number of shopping centres where we believe a significant investment
and modernisation will enhance their value and performance over the
long term."

This announcement is a summary of, and should be read in conjunction
with, the full version of the Group's Q2 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
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, stock market: Luxembourg Stock Exchange
language: English