EANS-Adhoc: Atrium European Real Estate Limited / THIRD QUARTER 2016 RESULTS SHOW CONTINUED STRONG PERFORMANCE IN CORE MARKETS

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other/Company Information
16.11.2016

Atrium European Real Estate Limited

THIRD QUARTER 2016 RESULTS SHOW CONTINUED STRONG PERFORMANCE IN CORE
MARKETS

Two further shopping centre extensions and refurbishments approved in
Poland

Ad hoc announcement - Jersey, 16 November 2016. Atrium European Real
Estate Limited (VSE/ Euronext: ATRS) (the "Company" and together with
its subsidiaries, the "Group"), a leading owner, operator and
redeveloper of shopping centres and retail real estate in Central and
Eastern Europe, announces its results for the third quarter and nine
months ended 30 September 2016.

Highlights - On a like-for-like basis, Group NRI excluding Russia
increased by 1.5% to EUR102.1m (9M 2015: EUR100.6m) - Group income
continues to be impacted by the situation in Russia with GRI of
EUR146.4m (9M 2015: EUR155.0m), and EPRA like-for-like GRI of
EUR129.8m (9M 2015: EUR135.5m) - Group NRI was EUR142.1m (9M 2015:
EUR147.4m), with EPRA like-for-like NRI of EUR126.6m (9M 2015:
EUR129.9m) which included a EUR4.9m or 16.6% reduction to EUR24.4m
in Russia where the rate of the decline has slowed over the past
quarters - Group operating margin increased from 95.1% to 97.0%
mainly due to an improvement in receivables collection in both core
markets and in Russia - EPRA occupancy steady at 95.7% (31 December
2015: 96.7%). Russian occupancy remained high at 90.7% - Profit
before taxation of EUR80.3m for the first nine months of 2016,
reflecting an increase of EUR89.1m compared to a loss of EUR8.8m for
the same period in 2015. The increase was primarily driven by a
EUR9.3m revaluation compared to a EUR69.1m devaluation during the
same period last year mainly due to the Russian portfolio) and a
EUR11.0m decrease in finance expenses - Company adjusted EPRA
earnings per share was 23.2 EURcents (9M 2015: 24.7 EURcents) -
EBITDA, excluding revaluation and disposals, was EUR111.4m (9M
2015: EUR122.0m), mainly as result of lower income in Russia as well
as a EUR6.9 m increase in administrative expenses, mainly due to an
increase in legacy legal expenses and related provisions - Value of
the Group's portfolio of 62 standing investments stood at EUR2.6
billion reflecting the impact of the strategic portfolio sales (31
December 2015: 77; EUR2.7 billion) - EPRA Net asset value ("NAV")
per share was EUR5.48 following the payment of a 14.0 EURcents
special dividend in September (31 December 2015: EUR5.64) and
including three regular quarterly dividends of 6.75 EURcents - A
fourth quarterly dividend of 6.75 EURcents per share due to be paid
as a capital repayment on 29 December 2016 to shareholders on the
register at 22 December 2016 with an ex-dividend date of 21
December 2016 - At its meeting on 15 November 2016, the Company's
Board of Directors approved a consistent annual dividend of EUR0.27
per share for 2017 to be paid as capital repayment in equal
quarterly instalments commencing at the end of March 2017 (subject
to any legal and regulatory requirements and restrictions of
commercial viability)

Portfolio repositioning highlights during and after the period:
Redevelopments and extensions - Further progressing the strategy to
increasingly focus on the upgrade and extension of the existing
portfolio, the Board of Directors has approved two additional
projects in Poland, with a c. 6,000 sqm c. EUR28m redevelopment
planned at Atrium Reduta in Warsaw and a c. EUR31m 7,500 sqm upgrade
to be undertaken at Atrium Biala in Bialystok. Both these projects
will include increased leisure and dining facilities in line with
the Group's objective to create dominant destination locations -
Together with the ongoing extensions at Promenada and Targowek, these
four projects represent a total approved investment of c. EUR120m
as part of a wider redevelopment pipeline that will eventually
deliver almost 70,000 sqm of new GLA - The first stage of the
modernisation and extension of Promenada successfully completed in
October adding 7,600 sqm new GLA - The c. EUR11m initial phase of
the Targowek extension is progressing, preceding construction of
the main extension, and comprising land assembly, project design
and the construction of additional parking spaces

Sales - Completed the sale of a portfolio of ten retail assets in the
Czech Republic for a value 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 October 2016, the Group completed the sale of
Atrium Azur in Latvia for a total value of EUR12.5m

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 September 2016 - As at 30 September 2016 Gross
LTV and Net LTV were 32.3% and 27.5%, respectively. The Company
remains conservatively leveraged and well placed to support future
redevelopments and growth opportunities as they arise

Others - At its meeting on 15 November 2016, the Board of Directors
approved a change from a quarterly reporting to semi-annual
reporting commencing in 2017. The Group will continue to publish a
quarterly trading update and the change aims to improve the cost
and time efficiency of the Group's reporting processes whilst
bringing them in line with industry practice - In October 2016 the
arrangement to create a compensation fund through which to resolve
Austrian legacy litigations expired. Whilst the Company maintains
its position that there is no basis for any claims to be made against
it, the compensation arrangement has proved to be an efficient
means of dispute resolution with c.1,750 individual submissions
which are expected to result in approximately EUR12.5m of
compensation payments (with the Group bearing 50% of these costs)

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

"The third quarter saw a continuation of the robust performance in
our core markets of Poland, Czech Republic and Slovakia but the
Group-wide performance is still impacted by the situation in Russia.

"We have also made further progress with the repositioning of our
portfolio during the period and are pleased to announce today that we
have approval to invest approximately EUR60m in two further
redevelopment and extension projects in our core market of Poland.
These will be undertaken at our Atrium Reduta centre in Warsaw and
Atrium Biala centre in Bialystok, and further demonstrate our
commitment to increasingly focus on upgrading our existing portfolio
so that it can continue to deliver sustainable income growth over the
long term.

"Looking ahead, we remain cautiously optimistic with the impact of
our portfolio asset management efforts coming through clearly and the
business in significantly better shape than it was 12 months ago,
benefiting from a much strengthened balance sheet and an improving
economic backdrop. While we cannot ignore still existing uncertainty
in Russia and the impact it continues to have on the Company's
results as a whole, the successful optimisation of the Group's
portfolio and its significant weighting towards higher quality income
from our core countries ?has given the Board sufficient confidence to
provide shareholders with both the EUR52.7m special dividend paid in
September, and maintain the dividend at EUR0.27 per share for 2017."

This announcement is a summary of, and should be read in conjunction
with, the full version of the Group's Q3 2016 results, which can be
found on the Company 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 the Company'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

The Company is established as a closed-end investment company
incorporated and domiciled in Jersey and regulated by the Jersey
Financial Services Commission 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

Original-Content von: Atrium European Real Estate Limited, übermittelt durch news aktuell